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Social Responsibility Testing in ICRT CI World Congress Hong Kong, May 2011 Guido Adriaenssens, Chief Executive Officer. Content. Why and what do we do in ICRT on SR? How do we test SR? Key references and new SR standards & guidelines International SR research examples

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  1. Social Responsibility Testing in ICRT CI World Congress Hong Kong, May 2011 Guido Adriaenssens, Chief Executive Officer

  2. Content • Why and what do we do in ICRT on SR? • How do we test SR? • Key references and new SR standards & guidelines • International SR research examples • General conclusions and most common problems • Consumer interest

  3. Why comparative testing on SR • Our main mission is to inform the consumers on all criteria that can influence their choice: quality, price, durability and sustainability • More and more products make “fair trade” and ethical claims: can we assume they are correct? • What to think about the hundreds of labels and logos?

  4. What do we do in ICRT on SR? • ICRT Working Groupwith consumer organisations from Germany, The Netherlands, Belgium, Italy, Spain, Portugal, France, Austria, Denmark, Sweden, Norway and Switzerland since 2002 • Internal Guidelinesfor joint SR research • Joint publicationson jogging shoes, washing machines, toys, mobile phones, pharmaceutical industry, hotel chains, airlines, tuna, jeans …

  5. How do we test SR in ICRT? • A number of methods available: • Information in the public domain • Questionnaires completed by companies • Anonymous calls and letters (mystery shopping) • Company meetings or visits • Factory visits and management review • Interviewing employees and stakeholders • Peer review

  6. Key references • ILO conventions • UN global compact • ISO 26000 Guidance Standard • Sustainable development and social responsibility • Core subjects of SR are • Organisational governance • Human rights • Labour practises • Environment • Fair operating practices • Consumer issues • Community involvement and development

  7. Unique and specific approach Validation of questionnaires: • Plant visits • Different from audits • Include subcontractors plants • Expensive exercise that no one else does

  8. Digital cameras- January 2010 -1 • Partners in Germany, Belgium, Spain, Portugal, Italy, Sweden, Finland, Denmark, Norway, Switzerland, Austria, Korea, Thailand, Hong Kong • Covered 10 brands, 20 models, 11 production sites in China, Indonesia, Japan and Korea • Methodologies: • Company survey (questionnaires) • Consultation with company headquarters • Visit production factories and worker interviews • SR information on companies’ internet sites • Data checking

  9. Digital cameras- January 2010 - 2 • Key issues: • SR management focuses on environment not social issues • Lack of tranparency • Results: • Nikon has strong SR engagement • Sony and Canon did not allow production site visits • Fuijifilm, Kodak, Olympus and Pentax did not cooperate

  10. Published Article on CSR digital cameras in Test in January 2011

  11. Published Article on CSR digital cameras in Test in January 2011

  12. Hotel chains – March 2011 - 1 • Partners in Sweden, Finland, Denmark, Austria, Belgium, Spain, Portugal, Italy • Covered 10 hotel groups with 64 brands • Methodologies: • Company survey (questionnaires) • Publicly available SR information • Visits and interviews with hotel managers in 3 key tourist destinations • Headquarter validation • Data checking

  13. Hotel chains – March 2011 - 1 • Key issues: • Management of water and energy use, but there is a culture of consumption and waste • International key conventions adhered to, but practical application difficult to see • Wages below minimum living wage, lot of overtime • Results: • Overall good cooperation • Accor best overall rating • Hilton average, weak on labour and socioeconomic issues and customer engagement • Riu and Iberostar overall weak

  14. Published Article on Hotel Chains in Test-Achats March 2011

  15. Published Article on Hotel Chains in Test Achat March 2011

  16. General conclusions of SR testing • 3 groups of companies • Non responders: Some say “there is no point in participating because we can’t even answer 10% of your questions” • Principle collaborators: Have a global policy but it is not implemented in the field • The positive group: They collaborate, engage and allow plant inspections The best react to our comments and put things right

  17. Most common problems • Suspicious origin of ingredients • Subcontracting and temporary workers • Unpaid mandatory overtime, no pay slips, too long working periods • Discrimination • No safety training • Use of dangerous products and unhealthy environments • Poor chemical (waste) management • Misuse of ethical trade labels

  18. Consumer Interest • Readership surveys show that SR articles have average to good interest rates • In recent reader surveys 35-55% of members sought ethical information and 20-25% wish to see more ethical topics • Most interest on product related information • About 3 international CSR projects per year • Careful editing needed to avoid generalisation

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