Collaboration with Stakeholders Needed to Improve Working Conditions in Shenzhen’s Information and Communication Technology Industry
IFC Washington, DC:
Lucie Giraud
Phone: +1 (202) 458 4662
Email: lgiraud@ifc.org
IFC Beijing:
Helen Ni
Phone: +86 10 5860-3262
Email: hni@ifc.org
BSR:
Laura Commike
Phone: +1 (415) 984 3217
Email:
lcommike@bsr.org
GeSI:
Joan Sherlock
Email:
press@gesi.org
EICC:
Email: eicc@bsr.org
Shenzhen Electronics Industries Association:
Email: szseia@public.szptt.net.cn
Beijing, July 12, 2007 - A new report
published today determines that collaboration between suppliers, international
customers, local government, and NGOs is key to improving social and environmental
conditions in the information and communication technology (ICT) industry
in China.
The report results from a year-long collaboration between FIAS - the
World Bank Group’s investment climate advisory service, Business for Social
Responsibility (BSR), the Electronics Industry Code of Conduct (EICC),
the Global e-Sustainability Initiative (GeSI), and Shenzhen Electronics
Industries Association (SEIA).
“The highest social and environmental standards result from working closely
with suppliers, partners, and other stakeholders throughout the supply
chain,” said Bonnie Nixon Gardiner, Global Program Manager at Hewlett
Packard, which is a member of both GeSI and the EICC. She added,
“Collaboration between the ICT industry and local stakeholders to build
greater understanding and capability will help achieve long-term sustainable
impact.”
The report highlights that private sector monitoring of the supply chain
is necessary, but rarely sufficient to solve social and environmental challenges
in Chinese supply chains. In addition to monitoring, the ICT industry should
collaborate with the government and civil society to put resources into
capability building.
The recommendations in the report were discussed at a workshop in June
2007 in Shenzhen with Chinese government authorities, the labor union,
international buyers, local suppliers, and civil society organizations.
The conference highlighted that capability building requires that local
employers better understand the cost and benefits of corporate social responsibility.
“Better labor practices can reduce turnover and increase productivity,
but many suppliers do not keep track of these benefits and are therefore
not convinced of the business case,” said Wei Dong Zhou from BSR China.
Another challenge is that small and midsize companies have fewer resources
to invest in improving social and environmental practices. “An organization
like the SEIA plays an important role in helping member companies prepare
for the increased demand for social and environmental requirements,” said
Yanjun Xu from SEIA.
One of the outcomes of the conference was agreement on a six-month pilot
project in Shenzhen. The pilot aims to improve worker engagement and integrate
social and environmental standards into factory operations and associated
management systems.
“Achieving sustainable labor and environmental practices in global supply
chains requires an enabling environment that is supported by the government,”
said Annemarie Meisling, Private Sector Development Specialist at FIAS.
“Hence we encourage the local government encouraged to participate in
the pilot project through a public-private partnership to ensure a long-term
sustainable solution.”
The report is available at: www.fias.net,
www.bsr.org,
www.gesi.org,
www.eicc.info
________________________________________________________________
The partners in the project include:
FIAS is a multidonor service of IFC, the private sector arm of the
World Bank Group; the Multilateral Investment Guarantee Agency; and the
World Bank. FIAS advises governments of developing and transition countries
on how to improve their investment climate for domestic and foreign investors,
focusing on four main areas: investment climate diagnostics, investment
laws and promotion, administrative barriers solutions, and industry competitiveness.
Since 1985, FIAS has assisted over 130 countries in increasing the level
and impact of private investments through more than 680 projects. For more
information, visit www.fias.net.
Business for Social Responsibility (BSR) provides socially responsible
business solutions to many of the world’s leading corporations. Headquartered
in San Francisco and with offices in Europe and China, BSR is a nonprofit
business association that serves its 250 member companies and other Global
1000 enterprises. Through advisory services, events, and research, BSR
works with corporations and concerned stakeholders of all types to create
a more just and sustainable global economy. For more information, visit
www.bsr.org
Shenzhen Electronics Industries Association, is an industry association
with a number of small and midsize member companies in the Shenzhen region.
The Electronics Industry Code of Conduct (EICC) group consists of 30
companies that have come together in their common interest to improve working
conditions and environmental stewardship throughout the electronics supply
chain. This group supports a common code of conduct for electronics
companies, the EICC. The code covers expectations for performance across
a range of issues including labor, health and safety, environmental practices,
ethics, and management systems. Through its board, steering committee,
and working groups, the group is working to implement the EICC, engaging
with stakeholders, and keeping the code up-to-date. For more information
please visit www.eicc.info.
The Global e-Sustainability Initiative
(GeSI) is a joint initiative of an international group of ICT service
providers and suppliers, industry associations, the Carbon Disclosure Project,
and WWF, with the support of the United Nations Environment Programme and
International Telecommunication Union. GeSI seeks to contribute to sustainable
development in the ICT industry by taking a leadership role in collaborative
exploration and responsible management of the evolving interfaces among
industrial, ecological, and social systems. The EICC and GeSI are working
together on development and deployment of a consistent set of tools and
processes to measure, monitor, and improve supply chain corporate responsibility
performance across the ICT sector. Information about GeSI members
and ongoing activities can be found at www.gesi.org.
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