Sustainability in Time of Crisis
Your Corporate Social responsibility Partner
The economic crisis of late last year shocked the world leaving no industry or country unscathed in its ripple effect. As a key actor on the responsible actions*, we obviously fretted about the consequences and waited for the worst to be over to state an opinion. Accurately, it was too complex for a reliable forecasting at the onset. Even if the severity was known from the start, the impression left will force the international community to re-think its policies and actions, particularly in the realm of CSR.
At its beginning, the consensus was that companies would surely reduce their CSR budgets to save costs, given that CSR does not translate to immediate returns. It seemed only logical that companies would take that step without hesitation. To our pleasant surprise, a recent survey of the actions taken by companies showcase better defined CSR policies than ones for purely marketing purposes. If some companies have cut their budgets, many more have solidified or reinforced their social accountability process with zero reduction. Why has the opposite happened instead of the obvious?
In the context of the supply chain, the roots of the financial crisis stem from short-term return (loans impossible to reimburse long-term, but profitable short term; unstable supply-chain to cut the buying costs; acceleration of life cycle of goods...). With this now clear and publicly known, permanence of the very existence of the company becomes the most important value, which is found not only in companies but also in the community witnessed by the increasing concern for the environment and the impact of toxic chemicals on the health of customers (REACH in Europe, Strengthening of Japan toy 's manufacturer association legislation...). Taking into account the working conditions in factories as obviously part of this approach where the time scale evolves and the very idea of sustainability of an organization makes sense.
We now see many companies trying to get to know their suppliers better to anticipate and therefore, manage the risks in their supply chain more effectively. Actually, the evolution of CSR is positive as it shows many companies shifting from short-term approaches to a better defined longer term strategy. Only time will tell if the community will throw out the short view or if it nosedive headlong. What we witness right now certainly injects optimism, even if short-lived.
* WethicA participates in the improvement of working conditions in low cost countries as an aim. Our pragmatic approach, based on results, is to integrate with the economic world instead of pushing the worker on its edge.
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Release date: 2009-05-21
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We would love to have your comments. Please don't hesitate to use the form below
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| Reader Patrick wrote on 16/07/2009 |
Some suggestions:
The use of fair written contracts agreed to by unified employee groups or unions with business/factory managers and owners can guarantee that the first priority is payment of wages to workers. The contracts should stipulate that the business owner must budget adequate funding to buy out the contracts if the factory must be shut down - with at least six months pay to terminated workers, and more for the most experienced employees.
When the products produced by the workers are sold at retail level - a percentage (3\% to start) of the purchase price should be returned back to the factory workers and managers as a common bonus fund to be divided equally between managers and workers. |
| WethicA wrote on 22/05/2009 |
The commenting tools has just being implemented again.
Don't hesitate to use it! |
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