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Unchaining Value Corporate responsibility through the value chain

Unchaining Value Corporate responsibility through the value chain. Unchaining Value Corporate responsibility through the value chain Workshop 31 October 2007. Background and objectives Describing global value chains ICT sector overview and key challenges

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Unchaining Value Corporate responsibility through the value chain

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  1. Unchaining Value Corporate responsibility through the value chain

  2. Unchaining ValueCorporate responsibility through the value chainWorkshop 31 October 2007 • Background and objectives • Describing global value chains • ICT sector overview and key challenges • Food and beverage sector overview and key challenges • Issues in common • Small group discussions Background Value chains ICT sector F&B sector Issues Small groups

  3. Unchaining ValueCorporate responsibility through the value chainBackground and objectives • To understand challenges explore best practice • To understand capacity building within suppliers to address environmental and social issues in the supply chain • To explore scope for a multi-sector initiative on sustainable supply chains Background Value chains ICT sector F&B sector Issues Small groups

  4. Unchaining ValueCorporate responsibility through the value chainBackground and objectives • Fit with existing UNEP initiatives • Partnership with UNGC • Cross-sector or multi-sector? Background Value chains ICT sector F&B sector Issues Small groups

  5. ICT OEMs/operators: Nokia, O2, Deutsche Telekom, HP, Panasonic Contract Manufacturers: Delta Electronics* Academia: Wuppertal Institute, Öko-Institute, Yale University Networks/Consultants: GRI, BSR, Verité, sustainabilityagents NGOs: Good Electronics, ASK, TEAN Unions: Unite the Union Food Manufacturers: SAB Miller, Unilever Retailers: Carrefour, Marks & Spencer Fast food: McDonald’s, Starbucks Consultants: McKinsey Multistakeholder initiatives & certifications: Business Social Compliance Initiative Food Module, Common Code for the Coffee Community, Fairtrade UK, Rainforest Alliance, SAI Platform, World Cocoa Foundation NGOs/Think Tanks: Food Ethics Council, International Institute for Environment & Development, Oxfam Unchaining ValueCorporate responsibility through the value chainInterviews and research *agreed to participate, results still outstanding Background Value chains ICT sector F&B sector Issues Small groups

  6. Raw Materials Refinement Unchaining ValueCorporate responsibility through the value chainDescribing global value chains Tier 2+ suppliers R&D Outsourcing Upstream Suppliers Suppliers Manufac-turing Outsourcing Testing Suppliers Potential Re-Use or Recycle End Consumer Retail Customer Transport & Distribution Packaging Outsourcing Outsourcing Information Management Background Value chains ICT sector F&B sector Issues Small groups

  7. Unchaining ValueCorporate responsibility through the value chainICT sector overview and key challenges Background Value chains ICT sector F&B sector Issues Small groups

  8. Unchaining ValueCorporate responsibility through the value chainICT sector overview and key challenges Background Value chains ICT sector F&B sector Issues Small groups

  9. Unchaining ValueCorporate responsibility through the value chainICT sector overview and key challenges Background Value chains ICT sector F&B sector Issues Small groups

  10. Unchaining ValueCorporate responsibility through the value chainICT sector overview and key challenges • ICT sector characteristics: • OEMs aim for strategic long-term partnerships with suppliers of high-end components and products • Impacts (environmental/social; across sourcing, manufacturing, use, disposal) often determined in the design phase • Performance affected by infrastructure, education, incentives, culture, ability to reach out to workers, available technology, etc. • Overall price pressure, outsourcing and offshoring Background Value chains ICT sector F&B sector Issues Small groups

  11. Unchaining ValueCorporate responsibility through the value chainICT sector overview and key challenges • ICT sector responses: • Industry-wide efforts to set minimum standards and facilitate uptake among suppliers, notably Electronic Industries Code of Conduct (EICC) and the Global e-Sustainability Initiative (GeSI) • Minimal uptake among contract manufacturers • Interest in product labelling, though no significant activity Background Value chains ICT sector F&B sector Issues Small groups

  12. Unchaining ValueCorporate responsibility through the value chainFood sector overview and key challenges Background Value chains ICT sector F&B sector Issues Small groups

  13. Restaurants Breeder Producer Slaughterers Processors Supermarkets Middlemen / Market Middlemen / Market Distributors / Market Wet market Unchaining ValueCorporate responsibility through the value chainFood sector overview and key challenges Background Value chains ICT sector F&B sector Issues Small groups

  14. Unchaining ValueCorporate responsibility through the value chainFood sector overview and key challenges • Food sector characteristics: • Wide range of growers, from huge agri-business to smallholders, family and community farms • Supply and distribution across processors, manufacturers, distributors, retailers, middlemen • Size and volatility of world commodity markets • Increasing demands for traceability • Variability of supply and demand Background Value chains ICT sector F&B sector Issues Small groups

  15. Unchaining ValueCorporate responsibility through the value chainFood sector overview and key challenges • Food sector responses: • Commodity-specific, e.g. coffee, soya, palm oil • Monitoring focused on raising performance, not compliance • Broad commitments that leverage corporate distribution and buying power via business-NGO partnerships • Focus on benefits to suppliers, beyond cost savings and efficiency Background Value chains ICT sector F&B sector Issues Small groups

  16. Unchaining ValueCorporate responsibility through the value chainFood sector overview and key challenges Background Value chains ICT sector F&B sector Issues Small groups

  17. Unchaining ValueCorporate responsibility through the value chainIssues in common • Role of consumers: how important? • Product labelling may present important opportunities • The business case for suppliers is critical • Collective action, partnering and free riders • Burden of review and documentation • Challenges in partnering upstream and downstream, e.g. planning, processing of information, coordination, training Background Value chains ICT sector F&B sector Issues Small groups

  18. Unchaining ValueCorporate responsibility through the value chainThree-stage model: • Drivers Actions Background Value chains ICT sector F&B sector Issues Small groups

  19. Unchaining ValueCorporate responsibility through the value chainSmall group discussions • Part one: Major challenges within sectors; solutions needed; moving through the three phases • Lunch break • Part two: Highlighting good practices; evaluating success; scope for multistakeholder initiatives Background Value chains ICT sector F&B sector Issues Small groups

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