Eicc v.5.1 intro (slide shared)

EICC CODE OF
CONDUCT V.5.1
OVERVIEW
1
Pricha Leelanukrom / March 3, 2016

EICC – Importance to Global Electronics
Supply Chain
 Stakeholder demand
◦ Consumer : 25 % of consumers would switch brands if given an
ethical alternative
◦ Investor : Over 50 % of shareholder proposals in 2006 were
sustainability related (Media, Industrial Group,
Governments, Community Groups, Regulators,
Social Responsibilities Investment Firms
◦ Supplier : Half of supplier businesses are being asked to adopt
ethical labor or procurement standards by their
customers
◦ Employee :Work satisfaction, Balance of quality of life, Safety &
Security, Morale
 Brand Demand -------- > Sustainable Business, Corporate Image
◦ Apple, Hewlett Packard, Dell, IBM, Microsoft, Acer, Philips,Amazon, Asus,
Lenovo, Google, Costco, Best Buy, Walmart, etc.
 Third PartyWatch –Thailand
◦ Campaign thru NGO network : Good Electronic, Human Right Watch,
SOMO, etc.
◦ Industry Audit by NGO .
2

EXTERNAL PRESSURES
NGO focus on ICT industry …Chinese factories
falsification of
information related to
wages and hours of work
is common…
Financial Times
…in many cases workers
were exceeding the
company’s overtime
limits…
Wall Street Journal Asia
3

EICC Background - What is EICC ?
 “Electronics Industry Citizenship Coalition” www.eiccoalition.org
 Founded in 2004 to create a sector code of conduct and means for
efficient / consistent implementation
 By working together, the industry can reduce potential code / audit
proliferation, leverage resources, and make progress faster than solo-
efforts
 A vector of positive change forTechnology firms to embrace and drive
the effort
 Key sectors who drive the EICC
◦ The global e-Sustainability Initiative (GeSI)
◦ An international group of Information and Communication Technology
(ICT) service providers and suppliers
◦ The UNITED NATION Environment Program and International
Telecommunication Union (UNEP-ITU)
 Focusing on Social & Environmental Responsibility (SER)
6

EICC Code of Conduct - Definition
A common standard for
◦Fair, respectful and dignified treatments of
workers
◦Health Safe working conditions
◦Environmentally responsible production
◦Conduct business ethically
◦ The EICC Code of Conduct providesa foundationfor the improvement of social
and environmental conditionsin the global electronicssupply chain.
8

EICC Code Structure
 Code Design Concept :
◦ EICC Code of Conduct V.5.0 :
SA8000 + ISO140XX + OHSAS18001 +
ISO50001 (Energy Management) + ILO
Standard + UN Regulatory +………..
9

Requirements of EICC CodeV.5.1 (2016)
Labor
Health &
Safety
Environmental
Ethics
Management
Systems
Treat employee with
dignity & respect (A)
Protect the environment(C)
A management system
approach
drives sustainable solutions
(E)
Uphold highest
Standard
(D)
Evaluate & control
exposure to hazards
(B)
 ISO140XX
Environmental
Management System
and Related
 ISO50001 Energy
Management System
 ISO26000 Social
Responsibility
 SA8000 Social
Accountability
 ILO Standard
 OHSAS18001
Occupational,
Health and Safety
Management
System
 ISO22301 BCM
10

04/03/59 11
1) Occupational Safety
2) Emergency Preparedness
3) Occupational Injury and Illness
4) Industrial Hygiene
5) Physically Demanding Work
6) Machine Safeguarding
7) Sanitation, Food, and Housing
8) Health & Safety Communication
EICC V5.1 (2016) Elements
A management system approach drives
sustainable solutions
A. Labor
B. Health &
Safety
C.
Environmental
E. Ethics
D. Management
Systems
Uphold the highest
standardsEvaluate & control
exposure to hazards
Treat employees with
dignity & respect
Protect the
environment
1) Freely Chosen Employment
2) Young Workers
3) Working Hours
4) Wages and Benefits
5) Humane Treatment
6) Non-Discrimination
7) Freedom of Association
1) Environmental Permits and
Reporting
2) Pollution Prevention and
Resource Reduction
3) Hazardous Substances
4) Wastewater and Solid Waste
5) Air Emissions
6) Material Restrictions
7) Storm Water Management
8) Energy Consumption and
Greenhouse Gas Emissions
1) Company Commitment
2) Management Accountability and
Responsibility
3) Legal and Customer Requirements
4) Risk Assessment and Risk
Management
5) Improvement Objectives
6) Training
1) Business Integrity
2) No Improper Advantage
3) Disclosure of Information
4) Intellectual Property
5) Fair Business, Advertising and
Competition
6) Protection of Identity and Non-
Retaliation
7) Responsible Sourcing of Minerals
8) Privacy
7) Communication
8) Worker Feedback and Participation
9) Audits and Assessments
10) Corrective Action Process
11) Documentation and Records
12) Supplier Responsibility

EICCV.5. (2014)
 ……….In alignment with the UN Guiding
Principles on Business and Human Rights,
the provisions in this Code are derived from key
international human rights standards including
the ILO Declaration on Fundamental
Principles and Rights at Work and the
UN Universal Declaration of Human
Rights………

A. Labor Participants are committed to uphold the human rights of workers, and to treat them with
dignity and respect as understood by the international community.
Remark : Including sub-contractors, and service providers.
1. Freely Chosen Employment
I. E.g. no forced, bonded, involuntary, prison labor, freedom of resignation, freedom
of movement, zero recruitment fee.
2. YoungWorkers
I. E.g. no under-age workers, no hazardous duty for young workers, student
workers
3. Working Hours
I. E.g. limits on maximum hours worked (60 hours per 7 day week, at least one
mandatory day off per 7 day week)
4. Wages and Benefits
I. E.g. legal wages, overtime pay, clear information to employees, no wage deduction
5. HumaneTreatment
I. E.g. no abuse, coercion, sexual harassment, or punishment
6. Non-Discrimination
I. E.g. age, race, gender, religion, sexual or political orientation
7. Freedom of Association
I. E.g. labor union, collective bargaining, open communication
13

B. Health & Safety Participants recognize that in addition to minimizing the incidence of
work-related injury and illness, a safe and healthy work environment enhances the quality of products and services,
consistency of production and worker retention and morale.
1. Occupational Safety
1. E.g. control of hazardous conditions and potential accidents
2. Emergency Preparedness
1. E.g. planning, preparation, detection, and incident response i.e. BCP is in place.
3. Occupational Injury and Illness
1. E.g. reporting, treatment, counseling, case management
4. Industrial Hygiene
1. E.g. control of exposure to chemicals and other agent, lighting inspection, work
environment)
14

B. Health & Safety Participants recognize that in addition to minimizing the incidence of
work-related injury and illness, a safe and healthy work environment enhances the quality of products and services,
consistency of production and worker retention and morale.
5. Physically DemandingWork
1. E.g. heavy lifting, prolonged repetitive or forceful tasks
6. Machine Safeguarding
1. E.g. physical guards, interlocks, and protective barriers
7. Sanitation, Food, and Housing
1. E.g. dormitory and canteen conditions, sanitation, safety
8. Health and Safety Communication
1. E.g. Health and Safety training in primary language, Health and Safety communication
board, Safety Week
15

1. Environmental Permits and Reporting
1. E.g. permit registration, maintenance, compliance reporting
2. Pollution Prevention and Resource Reduction
1. E.g. waste reduction program
3. Hazardous Substances
1. E.g. material handling, storage, recycling, disposal, spill control
4. Wastewater & Solid Waste
1. E.g. waste stream monitoring, control, treatment, disposal
5. Air Emissions
1. E.g. emission characterization, monitoring, control, mitigation
C. Environment Participants recognize that environmental responsibility is integral to producing
world class products. In manufacturing operations, adverse effects on the community, environment and natural resources are to
be minimized while safeguarding the health and safety of the public.
16

6. Material Restrictions
1. E.g. controlled materials, disclosure, testing, recycled content; RoHS,
HF of products and processes
7. StormWater Management
1. E.g. separated gutters between storm water and factory water
8. Energy Consumption and Greenhouse Gas Emissions
1. E.g. tracking system of GHG and Energy usage, programs to reduce
the GHG and energy consumption
C. Environmental Participants recognize that environmental responsibility is integral to producing
world class products. In manufacturing operations, adverse effects on the community, environment and natural resources are to
be minimized while safeguarding the health and safety of the public.
17

D. Ethics To meet social responsibilities and to achieve success in the marketplace, Participants and
their agents are to uphold the highest standards of ethics including:
1. Business Integrity
E.g. no corruption, extortion, embezzlement, or falsification
2. No Improper Advantage
E.g. no use of bribes or other means of gaining advantage
3. Disclosure of Information
E.g. business activities, structure, financial situation
4. Intellectual Property
E.g. protect intellectual property rights of business partners
5. Fair Business, Advertising and Competition
E.g. advertising and competition, safeguarding customer data
18

D. Ethics To meet social responsibilities and to achieve success in the marketplace, Participants and
their agents are to uphold the highest standards of ethics including:
6. Protection of Identity and Non-Retaliation
E.g. anonymity for workers reporting policy violations
7. Responsible Sourcing of Minerals
E.g. ensure the purchasing of Tin,Tantalum,Tungsten, and Gold does not directly or
indirectly finance or benefit armed groups in DRC and adjoining countries
8. Privacy
E.g. protect the privacy of customers, suppliers, consumers, and employees
19

E. Management System Participants shall adopt or establish a management system
whose scope is related to the content of this Code.The management system shall be designed to ensure (a) compliance
with applicable laws, regulations and customer requirements related to the participant’s operations and products;
(b) conformance with this Code; and (c) identification and mitigation of operational risks related to this Code.
1. Company Commitment
1. E.g. policy statement endorsed by executive management
2. Management Accountability and Responsibility
1. E.g. official announcement of EICC committee, sub committee, job responsibilities &
authorities
3. Legal and Customer Requirements
1. E.g. registration system, deployment process to internal policy, procedures
4. Risk Assessment and Risk Management
1. E.g. process to identify the non-compliance risk against the code. Prioritization of risk.
5. Improvement Objectives
1. E.g. written performance objectives, targets and implementation plans to improve the
SER / EICC system
20

6. Training
1. E.g. training program for all employees to implement the policies, procedures and
improvement objectives.
7. Communication
1. E.g. process for clear communication about the policies, procedures, information to
employees, customers, suppliers.
8. Worker Feedback and Participation
1. E.g. ongoing process to assess the employees’ understanding, practices, and all conditions
(living, health, safety, environment, etc.). Grievance system
9. Audits and Assessments
1. E.g. periodic self-evaluation ( SER/EICC internal audit)
21

10. Corrective Action Process
1. E.g. timely correction of deficiencies identified by internal & external assessments
11. Documentation and Records
1. E.g. document control function
12. Supplier Responsibility
I. E.g.A process to communicate Code requirements to suppliers and to monitor
supplier compliance to the Code.
22

Eicc v.5.1 intro (slide shared)

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