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SO C I AL AC C O UNTAB I L I TY I NTER NATI O NAL

Human

Rights

at Work2 0 1 0 A N N U A L R E P O R T

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2010JANUARY

SA8000:2008 FAQs Issued

This comprehensive document compiles an-

swers to requently asked questions receivedby auditors and SA8000 users about the

implementation o the 2008 edition o the

SA8000 standard.

FebRUARY

Social Dialogue Forum in Central America

In Managua, over 140 participants engaged

in important discussions at a regional multi-

stakeholder orum on Labor Rights and CSR

in the agricultural sector.

MARch

SAI is U.S. Representative or Cotton Madein Arica

SAI becomes the ocial U.S. representative

or this Europe-based initiative, which pro-

motes socially responsible cotton production

and smallholder arms in Arica.

ApRil

SA8000 Excels in Consumers International

Report

The report, Checked Out, evidencesSA8000 as a best practice, and assesses the

impact o socially responsible procurement

initiatives o leading European supermarkets.

MAY

Scaling Up Indian CSR Initiatives Project

Launch

The three-year joint development partner-

ship (PPP) with the BSCI & GIZ aims to build

the capacity o suppliers on social compli-

ance in India, working closely with compa-

nies Gap Inc., Timberland, Tchibo GmbH &PGC Switcher.

JUNe

New Tools: Measure & Improve Your LaborStandards Perormance

Designed or all IFC-invested companies, this

handbook and toolkit aims to help improve

labor standards perormance in a company

and its supply chain.

From Principles to Practice: The Role

o SA8000 in Implementing the UNGC

Launched at the UNGC Leaders Summit:

Six companies in 6 countries are proled inthis joint report developed with the UNGC

& CIPE.

Beraca Joins SAI Corporate Programs

The So Paulo-based natural products com-

pany joins at the Explorer level and is the

rst Brazilian company to participate. Beraca

is one o the 6 companies proled in the

above From Principles to Practice.

JUlY

Magen Tzedek: Ethical Seal o Justice

SAI & SAAS work with the HekhsherTzedek Commission to establish eective

certication and accreditation systems or

the new Magen Tzedek ethical seal or

kosher products.

SAI Teams up with Rainorest Alliance & SAN

This partnership in Latin America will lever-

age benets and increase eciency o both

certication standards to improve agricul-

tural workplaces.

SA8000 & Unions Workshop in Sao Paulo

Representatives o bank workers unions in

Brazil participated in a workshop on the role

o worker involvement to sustain compliance

with SA8000.

AUgUst

China: Stakeholder Engagement & Social

Responsibility Consultation

More than 50 representatives rom over 30

local organizations convened in Guangzhou

to discuss experiences, signicant challenges

or compliance, and potential opportunities.

septeMbeR

SAI Unveils Social Fingerprint Program

Inormed by over a decade o experience

in the eld, this comprehensive system o

ratings, on and ofine training, and toolkits

is designed to help companies build capacity

internally, as well as in supply chains.

OctObeR

Project Cultivar Achievements

At the regional partners meeting in

Honduras, inspiring data showed that the

our-year program has impacted over 1,800

workers, over 260 managers, and over 200

government representatives/NGOs in the

CAFTA-DR agricultural sector.

Impacts o Project Cultivar Recognized

On a visit to two participating armsFinca

Coquimba Bananas & Monte Rosa Sugar

MillDaniel Carroll (U.S. Labor Attach to

Nicaragua) armed the program benets on

labor practices and productivity.

NOveMbeR

Advisory Board Convenes in Mumbai

During the semi-annual meeting hosted by

the Tata Council on Community Initiatives,

SAI recognized its new programs in India

and their t with SAI's strategic agenda to

scale up impact and increase local alliances.

DeceMbeR

RAGS Program in India Launched

With support rom the UK Department or

International Development (DFID) the 2-yearRAGS program will ocus on home work-

ers and gender discrimination in the Indian

ready-made garment industry, partnering

with Gap Inc., PGC Switcher, Prakruthi,

Timberland, and in cooperation with the

Ethical Trading Initiative and the National

Homeworkers Group.

Fair Trade Apparel Pilot Audits

This partnership seeks to develop an eec-

tive social audit process through a series

o pilot audits in India, where SA8000

certication and Fair Trade certication in

the garment industry can be combined in a

joint process.

Transparency International USA Enlists SAI

or Siemens Anti-Corruption Program

Verication o Corporate Anti-Corruption

Programs will look at the key role that ve

dierent compliance verication methods

can play in companies adherence to anti-

corruption programs.

To subscribe to SAIs monthly e-newsletter,

visit www.sa-intl.org/news

h

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LetterNew tools and broader participation brought measurable results in 2010 as SAI, our

members and our local partners embedded human rights at work rom China to

the Dominican Republic, New York to Hamburg. Despite the extended economic

crisis, SAI grew and introduced new, more eective, tools and techniques.

hr a amn o wa sAi aomd n 2010:

Tapping a growing spirit o social enterprise, SAI channeled a decade o work into its new on-line

training program, Social Fingerprint, now successully tested by 300 companies in 20 countries.

Rapidly growing demand and overwhelmingly positive eedback are an inspiring testament to the

programs innovation and practicality. In 2011, SAI will explore modest expansion into a broader

range o CSR issues, such as adding environmental modules in agriculture to Social Fingerprint.

More than 1.4 million workers are now employed at SA8000 -certied acilities, across 65 industrial

sectors. At the brand and retail level, companies with total 2010 revenue exceeding $400 billion, andover 90,000 suppliers have joined SAI Corporate Programs.

SAI conducted more than 50 robust workshops and provided technical assistance or:

Managers in Abu Dhabi seeking CSR awareness.

Trade unionists in Brazil seeking to understand the best role or unions in SA8000 certication.

Walt Disneys global network o licensees pursuing social compliance in a business-licensing model.

In India, with our partners, SAI launched two interrelated development partnerships: Scaling Up Indian

CSR Initiatives and RAGS. Our trainings aim to ensure that workers and managers in Indias rapidly

growing economy adopt and implement decent work practices and management systems through a

multi-stakeholder context. This work is done with the participation o Timberland, the Ethical Trading

Initiative with its National Homeworkers Group, Gap Inc., Tchibo, PCG Switcher, the German Develop-

ment Cooperation (GIZ), UKAID (DFID), BSCI, and Prakruthi. The impact will be measured by comparing

pre- and post- training assessments at actories as we build the capacity o Indian trainers to deliverthese courses.

In Central America, with support rom the US Department o Labor and our dedicated local partners

in the Dominican Republic, Honduras, and Nicaragua, Project Cultivarhelped arms to activate worker-

manager Occupational Saety & Health Committees to increase saer practices and reduce hazards. The

project also trained government labor inspectors and brought key stakeholders to the table or the

rst time to discuss the root cause o labor violations. It empowered arm workers to identiy hazards

and lodge documented complaints at the arm and with appropriate government agencies.

In China we worked with Tchibo, Solidaridad, and GIZ to reap signicant improvements through the

WE program o worker/manager trainings, building on earlier work or the US Department o State.

With every step orward we refect: How can we be more practical? Deliver results in a more cost

eective and sustainable manner? Tackle daunting challenges like the poverty o home workers in India,reedom o association in China, and exploitation o contracted labor? How can we scale up?

A century ago, the Triangle Shirtwaist Fire in New York Citys Garment District resulted in the death o146 workers, mostly young girls. This tragedy catalyzed the creation o workplace saety measures andre prevention eorts; it was the impetus or NY and US worker protection laws. The 100th anniversaryis a moment to honor the victims, celebrate the progress that ollowed, and respond to the questionsabove.

The glaring need or more steps to prevent such tragedies is still with us. Nearly every week, a actoryre claims the lives o workers in high-risk countries. In 2010, a re at a garment actory in Gazipur,Bangladesh killed 21 people. We began re saety training in Bangladesh in an MFA Forum project withthe global trade union ederation, the ITGLWF.

To continue our eorts to ensure human rights at work, countering the downward price pressures andcorruption that oten undermines decent work, we need all o our supporters, and we need more oyou. Let's keep the dialogue going our work has just begun.

From prdn, car o sAi Adory board and car o sAi gornn board

Alice Tepper MarlinSAI President

Achim LohrieChair, SAI Advisory Board

Tom DeLucaChair, SAI GoverningBoard o Directors

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India

Project Goals:

Build up local, aordable CSR training capacities in India

Scale up current CSR initiatives with a local trainer network

Foster dialogue with local stakeholders

Create a nodal point or these activities through the establishment o a sustainable center

o excellence or responsible business

As an emerging economy and powerhouse in the global supply chain, India plays a

signicant role in the international CSR movement. Although national labor laws in

India are protective o workers, enorcement is hampered by capacity constraints in

labor inspectorates and producers lack o access to support structures to maintain

ethical workplaces. This project works closely with Indian industry, and other key

partners to help scale up the adherence to CSR standards in the country. Addition-

ally, the approach will enable Indian producers and suppliers, rom large to small, to

access relevant and aordable responsible business related trainings and technical

assistance, thus improving their social and ethical perormance.

Fast Facts

Project Duration: 3 years

Goal: Increase availability o CSR training to

Indian businesses

Sectors: AnyActivities: Supplier training; train-

ing networks; establish CSR expertise

center; acilitate multi-stakeholder

dialogue

Funders/Partners: German Develop-

ment Cooperation (GIZ); Business

Social Compliance Initiative (BSCI);

Gap Inc.; PGC Switcher; Tchibo GmbH;

Timberland

With increased

business and tradecomes an evengreater need orcorporateresponsibility andaccountability. ThisPPP could not bearriving at a morepertinent time orthe next phase odevelopment o

India.

Rishi Singh,

SAI India Project Director

In 2010, SAI embarked on two large-scale development partnershipsin India to build the capacity o India-based suppliers and enhance

local inrastructure to reach smaller companies. Through these two

programs the PPP and RAGS SAI and a variety o partners will

jointly seek to impact all levels o the supply chain.

san U indan csR ina- ppp (pu pra

parnr) amon bsci, giZ, and sAi

san U n inda: budn caay rouou suy can

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Garment export has ueled economic growth in scores o developing

countries, creating over 25 million jobs worldwide. At the same time,

working conditions remain a challenge, with gender discrimination,

excessive working hours, and saety violations commonplace.

RAGS program partners will address these issues in India by ocusing on home work-

ers and discrimination on the basis o gender and caste. Participating companies

Gap Inc., PGC Switcher and Timberland and Indian NGO, Prakruthi, will engage a

select group o their suppliers based in India. In cooperation with the Ethical TradingInitiative (ETI) UK, along with its grass roots partner the National Home Workers

Group (NHG) in New Delhi, and SAIs development partnership with GIZ and BSCI in

India, this project will improve the lives o thousands o primarily emale garment

workers through our measures:

Develop training tools & standards1.

In over 100 Indian actories, develop and test training materials about home

worker and gender discrimination issues, and management systems designed

to assure decent work

Stakeholder eedback incorporated rom producers, brands, NGOs, and unions

Completed training tools & materials delivered by CSR Expertise Center

Build local training capacity2.

30 local trainers will be trained and qualied to deliver CSR courses through

training-o-trainer strategy

Increase worker and manager skills and awareness o rights3.

The 30 local trainers will work with the 100 actories to improve avenues

o communication, discrimination in the workplace and enable responsible

subcontracting to home workers.

Strengthen local audit capacity4.

Auditor guidance on home worker and discrimination issues delivered to

maintain improvements

Multi-stakeholder engagement meetings to enhance core expertise by

identiying areas or continual improvement

2010 h

May 2010: Launch o Scaling Up Indian CSR Initiatives

May 2010:Interview with Richa Gautam, GIZ

November 2010: Interview with SAI India Project Director, Rishi Singh

December 2010: Launch o RAGS Project in India

Fast Facts

Project Duration: 28 months

Focus Issues: Gender discrimination, home

workers

Sectors: Ready-made garments

Activities: Develop training tools and

standards; build local capacity; worker &

manager training; strengthen local audit

capacity

Funder/Partners: UK Department or

International Development/Gap Inc., PGC

Switcher, Timberland, Prakruthi, and in co-

operation with the Ethical Trading Initiative

and the National Homeworkers Group

RAgs: imron soa sandard n indan Rady-Mad garmn sor

KeY ppp pROJect cOMpONeNts

Supplier trainings

150 Indian producers and suppliers receive supplier training and technical assistance

Develop dispersed national network o qualifed local trainers

30 Local trainers selected and trained

Establish Centre o Excellence or Responsible business

Main coordination point or trainings, CSR guidance and support services

Build multi-stakeholder dialogue

Linked with the Centre o Excellence, this activity will incorporate workshops, training o

local trainers, and build stakeholder groups into the center

sAi iNDiAView the Annual Report electronically to open web links: http://www.sa-intl.org/AR2010

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Central America

4

proj cuar: 4 Yar o Adann laor R n Aruur

In a challenging sector or labor rights, Project Cultivar

enables a culture o compliance

Jeremy Spector, Labor Attach or the U.S.

Embassy o Honduras, visits a participatingbanana arm in Project Cultivar

SAI Project Cultivar Team gather in Tela, HondurasProject Cultivar has had the vision to provide workshops on laborrights which has given workers and managers the tools to resolvetheir issues internally. They no longer need an intermediary. Thishas been one o the benets o the project.

Cndida Rosa Rodriguez - Ministry o Labor, Department o Inspections, Chinandega, Nicaragua

3 pRiNcipAl stRAtegies

Strengthen local

leadership

Local partners lead to promote labor compliance through training and

acilitation o social dialogue

Build capacity

o the 3 pillarso labor relations

3 pillars:

Workers empowerment to proactively exercise rightsEmployers commitment & systemic improvement o labor conditions

Government improve ability to ulll mandate to enorce labor laws

Facilitate Social

Dialogue

Convene workers, employers, government and other stakeholders or

proactive dialogue on labor conditions

In 2007, SAI established Project CULTIVAR:

Advancing Labor Rights in Agriculture,

unded by the U.S. Department o Labor(USDOL), to advance compliance with

national labor laws in the agricultural

sectors o Honduras, Nicaragua, and the

Dominican Republic. Overseen by SAIs

regional oce in Managua, Nicaragua,

this locally-grounded project leverages

partnerships with our local NGOs in

the three countries to build an enabling

environment or labor rights in agricul-

ture through three sustainable business

strategies.

Agriculture is a key export sector or Central American countries and

the Dominican Republic. However, this economic engine continues

to be characterized by unsae working conditions and unullled

labor rights. Improving labor standards in agriculture requires build-

ing a culture o dialogue and commitment to socially and environ-

mentally sustainable business practices throughout the supply chain.

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stRAtegY 1:

Strengthen Local Leadership

SAIs local partners in Cultivar have

strengthened their leadership as

proponents o labor law compliance.

Highlights include:

INCAP & CIAC undertook national

cholera prevention planning or the

Dominican banana and sugarcane sec-

tors;

CDH was invited by the Honduran

tripartite Socio-Economic Council (CES)

to deliver a workshop on promotingsocial dialogue to a regional orum

o peer Councils, which represent the

national social dialogue structures in

their 3 respective countries;

CIAC was tapped by the Canadian

International Development Agency to

provide technical assistance to the Do-

minican Labor Ministry on overall and

specic saety and health strategies.

pROJect cUltivAR

U.S. Embassy Labor Attach, Dan Carroll, meets with

workers at the Ingenio Monte Rosa sugar mill, a Proj

Cultivar participant, in Chinandega, Nicaragua

stRAtegY 2:

Build Capacity o Workers, Managersand Labor Inspectors

Project Cultivar has worked with 38 arms

and actories in the banana, melon, and

sugarcane sectors and trained 2,546

workers, managers, labor inspectors,

and other government ocials rom

2007-2011. SAI and local partners devel-

oped and delivered training workshops

ocused on national labor laws, manage-

ment systems or occupational health

and saety, and internal complaint reso-lution mechanisms. Highlights include:

In Nicaragua, training or 100 percent

in the arms in the banana industry

In Nicaragua, Finca Coquimbas owner

attributes to Cultivar the act that his

banana arm rose to 1st place nation-

wide in Chiquitas supplier ratings or

production quality and productivity

(boxes packed per hectare)

In Honduras, development o a Certi-

cate Program in Social Dialogue, Labor

Relations, and Management Systems

with the Autonomous National Univer-

sity o Honduras (UNAH). The inaugural

class o 32 included employers, trade

union leaders, government ocials

and academics.

In the Dominican Republic and Nicara-

gua, popular education materials were

developed and published on labor

rights (in Spanish and Haitian Creole in

the DR), or agricultural workers and

employers.

stRAtegY 3:

Facilitate Social Dialogue

Project Cultivar convened 24 multi-

stakeholder meetings or workers and

their trade unions, producer and buyer

companies, government ministries and

other key stakeholders, to discuss and

develop strategies to address labor com-

pliance challenges that are beyond the

capacity o an individual arm to resolve.

Highlights include:

In Nicaragua, re-activation o the

Chinandega Department Council orOccupational Health and Saety, a

tripartite body mandated by law to

oversee OSH in the department, by

providing meeting space and conven-

ing regular meetings, which partici-

pants have committed to sustain

In the Dominican Republic, the round-

table meetings in the sugar sector

represented groundbreaking dialogue

among Haitian workers, colonos (pro-

ducers), sugar companies and govern-

ment ocials, a historic precedent in

a sector whose history is tainted withinstances o slavery-like conditions

The consultative group in the Domini-

can banana sector engaged Haitian

and Dominican immigration authori-

ties and the military and agreed on

a permit to acilitate workers move-

ment in the Northwest region.

In all my years working here, this is the rst time that I see a light.

Sister o the Escalabriana Order o the Catholic Church, on the Dialogue Roundtable and hope or

improvements in the Dominican sugarcane sector.

pROJect cUltivAR pARtNeRships & sectORs

Country SAI Local Partner Sectors

Dominican Republic Center or Cultural Research and

Action (CIAC)

Sugarcane

Dominican Republic Institute or Local Culture & Sel-Reliance o the NW Region (INCAP)

Banana

Honduras Center or Human Development

(CDH)

Banana, Melon

Nicaragua Proessionals or Corporate Social

Auditing (PASE)

Banana, Sugarcane

proj cuar tr prna sra n Aon

Project Cultivar concludes in May 2011. The

Cultivar partners will continue to share best

practices and coordinate their eorts in the

region as The Cultivar Network.

Achievements with Project Cultivar

3 participating countries: Dominican

Republic, Honduras, and Nicaragua

38 participating arms rom the banana,

melon, and sugarcane sectors

2,195 workers and managers trained

283 Ministry o Labor inspectors and

other government trained

45% o participating producers reported

an increase in resolved grievances

View the Annual Report electronically to open web links: http://www.sa-intl.org/AR2010

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El Salvador

iMpRessiON AppARel-el sAlvADOR

Impression Apparel: bun-Drn Domn

There were two major challenges: union/

management relations and worker com-

munications. Encouraged by Gap Inc.,a customer, the actory worked with

C-Lie Group and asked SAI to help drive

sustainable improvements through an

in-actory technical assistance program.

Using SAIs Social Fingerprint program,

Impression Apparelreceived a social

perormance

baseline rating,

and committed to

making improve-

ments. The rating

highlighted theprocesses and

systems needing

improvement to

eectively tackle

compliance

issues.

SAI worked with all three stakeholders

Impression Apparel, C-Life, and Gap Inc.,

-- to improve management systems and

enhance dialogue between management

and workers. The rst step to buildingthis enabling environment was orming

an internal social perormance team that

included managers rom multiple

departments, elected union members

and elected worker representatives.

SAI worked with the team to improve

internal policies and procedures or

managing working conditions, and to

acilitate communications between

workers and managers. SAI ocused on

training managers and workers, and on

gaining their understanding, commitment

and trust to establish eective communi-

cation channels.

Jenny Hong, General Manager, noted

the need or a change in their approach,

the most important change or us was

to know the importance o management

systems or social compliance and that

they are related to the

competitiveness o our

plantyou cannot imple-

ment a change without a

change in mentality rst,

rom Impressions Presi-

dent, to its managers.

The committee has been

an eective communica-

tion mechanism between

the social compliance

department, workers,

and the trade unions, said SAIs Yolanda

Brenes, who played a key role on the

ground. Now both the unions and the

actory are better able to understand

their roles in acilitating dialogue to

negotiate eectively.

Collaborative work with stakeholders

took place over 18 months. The actory

completed a 180-degree transorma-

tion, improving relations with workers

through establishing respected worker-

manager communication channels and

regular dialogue between management

and union representatives.

Hymie Shamah, President o C-Life,

remarked, it was terric to see the

palpable tension between workers and

management start to melt away as soon

as communication was improved. With

better channels o communication in

placea more comortable environment

emerged in the actory, one o true

camaraderie and teamwork.

While these successes are inspiring,

Impression Apparelrecognizes the need

or continual improvement. Ater thor-

ough evaluation, its relationship with

Gap Inc. was re-armed a testament to

demonstrated improvements in working

conditions. Impression Apparelis taking

its commitment urther, now working to

achieve SA8000 certication.

With better channelso communication inplacea more com-ortable environmentemerged in the actory,one o true camaraderieand teamwork.

- Hymie Shamah, President o C-Lie,

Impression Apparels main importer

Details:

loaon: Soyapango, El Salvador

su o: Gap Inc., Walmart, Sears,

Target, Coca Cola via main importer,

C-Lie

Numr o emoy: 890-1300

Ky an: Union/Management

Relations, Worker/Manager Communica-

tion, Working Hours

sA8000 crfd? No, currently

pursuing certication

Ky o mromn: union/

management communication; manage-

ment systems; stakeholder cooperation

In 2009, Impression Apparelactory aced a challenge: improve

working conditions or risk losing its biggest customers. Located in

Soyapango, El Salvador, the actory supplied international brands

and retailers. In the wake o the global recession, maintaining this

business was key to sustain the livelihoods o over 800 employees.

A worker at Impression Apparel measures the widto the shirts to prepare or packaging and shipping

spOt light

How an apparel actory in El Salvador saved over

800+ jobs by committing to SAIs training programsto improve working conditions.

View the Annual Report electronically to open web links: http://www.sa-intl.org/AR2010

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Global Training

pROJect pROJect DescRiptiON

Disney Licensee Evaluation Pilot Project Worked with Disney to implement a Licensee Management program; utilizedonline Social Fingerprint training program and remote evaluations

Timberland Audit Evaluation Project Worked with Timberland in China and India to conduct shadow audits and

produce reports with our local trainers and representatives

Abu Dhabi Sustainability Group Social

Compliance Seminar

Conducted a seminar in Abu Dhabi with ADSG to introduce social compliance and

its business benets to participants

SAI-IFC Handbook:

Measure and Improve Your Labor

Standards Perormance

Produced and delivered a custom Handbook and Toolkit or implementing a

socially responsible supply chain based on IFC PS2 and Management Systems

Eileen Fisher Social Fingerprint

China Project

Worked with Eileen Fisher and its Chinese suppliers to deliver online Social

Fingerprint training program with ollow up seminar in China

Cotton made in Arica

Cotton Sourcing Report

Researched and delivered customized cotton sourcing report or CmiA; initiated

rst contractual agreement between CmiA and U.S company, SAI Corporate

Member Anvil

Social Fingerprint Supply Chain

Online Course

Online Supply Chain course to help companies better manage their supply chains

GIEK- Norway Social Fingerprint

Evaluation Improvement Program

Linking Social Fingerprint to trade nance

h

46 Global SA8000 basic and ad-

vanced auditor training courses

711 Attendees, global basic and

advanced SA8000 auditor train-

ing courses

14 Countries where auditor

training took place292 Online training participants

60 Participants in the online

SA8000 2008 revision course

80 Proessional Development

Seminar attendees

Sanjiv Singh (top, second from left)

and Doug DeRuisseau (top, third from left)

gather with participants after leading

an awareness seminar in Dubai, UAE

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Awarn smnar

SwedenImplementing a Socially Responsible

Supply Chain

(Interactive presentation streamed live

rom New York)

November 30, 2010 / Gteborg, SwedenHost: Sustainable Purchasing Workgroup

o the CSR Vstsverige (CSR West Swe-

den) Association

Trainer: Craig Moss

Focus: Developing management systems

or social compliance; trends in the so-

cially responsible supply chain; elements

and advantages o SA8000; business

benets o improved social compliance;

introduction to the Social Fingerprint

Program; and getting started with man-

agement systems and building internalcompliance teams.

Attendees: Volvo Cars, SKF Group, Goth-

enburg University, Lindex Group, and

Gothenburg Citys Sustainable Procure-

ment department.

RomaniaEnhancing Competitiveness through

Improving Social Compliance

November 11-12, 2010/Bucharest, Romania

Host: Floyd ADC

Trainer: Doug DeRuisseauFocus: Introductory concepts in CSR;

labor compliance; developing manage-

ment systems or social compliance;

elements and advantages o SA8000;

business benets o improved social

compliance

Attendees: Over 20 participants rom a

host o dierent organizations and con-

sulting frms throughout Romania.

UAEIntroduction to Social Compliance

and its Business Benets

November 10, 2010 / Abu Dhabi, UAE

Host: Abu Dhabi International Center or

Organizational Excellence (ADICOE), withsupport rom the Environmental Agency-

Abu Dhabi and the Emirates Foundation

or Philanthropy.

Co-Trainers: Craig Moss, Sanjiv Singh

Focus: Introductory concepts to improv-

ing social compliance; labor compliance

challenges in the Middle East; UAE Fed-

eral Government initiatives in monitor-

ing and improving labor standards.

Attendees: Over 35 participants rom

a wide array o industries: aviation; con-

struction; services; oil & gas; and govern-ment enterprises, including members

o the Abu Dhabi Sustainability Group

(ADSG).

ColombiaSocial Compliance and its Business

Benets

September 23, 2010 / Bogota, Colombia

Host: Ecopetrol, at its National Conven-

tion o Suppliers

Trainer: Craig Moss

Focus: Development o managementsystems to ensure social compliance and

prevent risk; overview o key CSR themes

and main guiding principles or social

compliance

Attendees: Over 300 international suppli-

ers o goods and services that work with

Ecopetrol

SAI oers awareness seminars or social auditors, buyers, suppliers

and corporate compliance managers. These seminars aim to help

people understand social compliance issues, and the importance

o management systems or ongoing compliance. Our trainings

highlight how producers and companies can incorporate standards

into their management systems to promote continual improvement,

and also demonstrate the business and nancial benets rom

improved social perormance.

BrazilSA8000 and Unions:

An Alliance in the Deense o

Fundamental Workers Rights

July 14-15, 2010 / So Paulo, BrazilHost: BSD Consulting-Brazil

Trainer: Adriano Diniz Costa

Focus: Origin o SA8000 and trade union

involvement; role o worker empower-

ment or social compliance; management

systems approach to improve worker-

manager communication channels.

Attendees: 20 bank workers trade union

members representing Bradesco, HSBC,

Santander, and Ita/Unibanco

UAEIntroduction to Social Compliance

and its Business Benets

July 11, 2010 / Dubai, UAE

Host: Emirates National Oil Company

(ENOC) and arranged by WIRE

Trainers: Sanjiv Singh

Focus: Foundational elements o labor

compliance; SA8000 business benets in

production, marketing, access to capital;

overview o SAI-IFC Handbook: Measure

& Improve Your Labor Standards Peror-mance

Attendees: Walmart Global Procure-

ment, TNT, National Bank o Abu Dhabi,

Jumeirah Group and the Dubai Proper-

ties Group, ENOC.

EgyptEnhancing Competitiveness through

Improving Social Responsibility

July 7-8, 2010 / Cairo, Egypt

Host: Egyptian Corporate Responsibility

Center, under the Ministry o InvestmentCo-Trainers: Mohamed El-Husseiny, Craig

Moss

Focus: Business benets o management

systems or social compliance; examining

SA8000 in the context o Egypt; orming

an internal compliance team.

Attendees: Olympic Group; Giza Spin-

ning and Weaving; the Export Develop-

ment Bank o Egypt; BMW Egypt; and

Metalco.

spOt light

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Where we work

Since 1997, SAI has provided supply chain management

and CSR training to over 20,000 people, including actory

managers, workers, brand compliance ocers, auditors,

labor inspectors, trade union representatives and other

worker rights advocates. Our multi-stakeholder programs are

supported by headquarters and representatives internationally,

and spread across the globe in over 50 countries.

The goal o these programs is to build an enabling

environment or labor rights by: strengthening local capacity

and leadership to support employer compliance eorts and

enable worker participation; promoting social dialogue

as a oundation or sustainable change; and connecting

government enorcement with incentive-driven voluntary

compliance.

Nor AmraCanadaMexicoUnited States

cnra and

sou AmraArgentinaBrazilChileColombiaCosta RicaDominican RepubliEcuadorEl SalvadorGuatemalaHondurasNicaraguaPeru

WheRe We WORK

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This map shows where SAI programs and trainings have taken place, and the countries in which we have ofces and representation

euroBelgiumBulgariaDenmarkFinlandFrance

GermanyGreeceItalyNetherlandsPolandPortugalRomaniaRussiaSpainSwedenSwitzerlandUnited Kingdom

AraEgyptGhanaKenyaLesothoMauritius

South AricaUganda

Mdd eaTurkeyUnited ArabEmirates

AaBangladeshBhutanCambodiaChinaHong Kong

IndiaIndonesiaJapanNepalPakistanPhilippinesSingaporeSri LankaTaiwanThailandVietnam

sAi Of & Rrnaon

New York, U.S.A. SAI Headquarters

Amsterdam, Netherlands SAI NL Oce

Bangalore/Mumbai/New Delhi, India SAI India Oce &

Representative

Shenzhen, China Representative

Dubai, United Arab Emirates RepresentativeGeneva, Switzerland Representative

Managua, Nicaragua Project Cultivar Regional Oce & Local Partner

Quezon City, Philippines Representative

San Jos, Costa Rica Representative

Mao Valverde/Santo Domingo, Dominican Republic

Project Cultivar Local Partner

So Paulo, Brazil Representative

Tegucigalpa, Honduras Project Cultivar Local Partner

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Social FingerprintEvery company has a Social Fingerprint - a uniquemark it leaves on the world telling everybody how it

does business.

Leveraging over a

decade o experience

with the SA8000

management systems

approach, SAI estab-

lished this program to

help companies imple-ment management

systems in a credible,

pragmatic and cost-eective way. The ratings help compa-

nies go beyond looking at code violations, to evaluating the

processes that are essential to high-level social perormance.

The programs process-based approach is a practical way to

drive improvement regardless o what corporate or industry

code is being used. In order to make the program cost-eec-

tive, SAI has created an online hub - the Social Fingerprint

Training Center - as a way to supplement classroom training.

The program includes the Social Fingerprint Company RatingSystem, the Social Fingerprint Supply Chain Management

Rating System, plus all o the components needed to help

companies build capacity immediately. Companies can pick and

choose rom the Social Fingerprint program components to

enhance their existing corporate code o conduct program, or

they can use the program to evaluate their own social peror-

mance or that o their suppliers.

t goa suy can W

BRAND

SUPPLIER

SUPPLIER

SUPPLIER SUPPLIER

BRAND

SUPPLIER

SUPPLIER SUPPLIER

In September 2010, SAI launched the Social Fingerprint Program

to help companies measure and improve their mark on the world.

For more inormation, go to:http://www.socialngerprint.org

sOciAl FiNgeRpRiNt

Watch the demo online.

SAI's Social FingerprintTraining Center's online hub

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proram comonn

Experience & Quality o Program

96% agreed or strongly agreed that

participation has been valuable in

identiying strengths and weaknesses

82% agree or strongly agree that this

program was more helpul in provid-

ing guidance through tips, in compari-

son to other social compliance work-

shops and programs attended91% agreed or strongly agreed that

this technical assistance rom SAI was

eective

91% agreed or strongly agreed that

the online system was easy to navigate

and to use

In Action: Timberland

How are we doing compared to our

peers? is a key questions that SAI

oten receives rom its member compa-

nies regarding how well they manage

social compliance in the supply chain.

To answer this, SAI is using the Social

Fingerprint Program. In early 2010,

Timberland sought eedback on its Code

o Conduct program, which goes beyond

monitoring and works directly with

vendors to build their capacity or social

compliance.

Taking a two-way approach, Timberland

looked inward at how it can measure

and improve, and also looked outward at

how it is helping its vendors do the same.

This mutual exercise looked at how its

purchasing practices, vendor develop-

ment initiatives and other activities help

drive continual improvement throughout

its supply chain.

Social FingerprintSupply Chain Managementcategory scores (aggregated)

11 Corporate Programs members

participated in Social Fingerprint

Supply Chain Management scoring.

All Companies

Category Score(Out o 5)

Scope and Risk 3.8

Aggregate Rating o Suppliers 3.0

Annual Improvement in

Aggregate Rating O Suppliers

3.2

Internal Integration o

Compliance and Sourcing

3.5

Supplier Communications & Pur-

chasing Practices

3.1

Complaint Management &

Resolution Sel-Assessment

2.9

Total 19.5

Social Fingerprint 3.2

Best Score In Each Category Among

All Companies

Category Score(Out o 5)

Scope and Risk 5.0

Aggregate Rating o Suppliers 3.7

Annual Improvement in Aggregate

Rating O Suppliers

4.8

Internal Integration o Compliance

and Sourcing

4.0

Supplier Communications &

Purchasing Practices

3.9

Complaint Management &

Resolution Sel-Assessment

4.0

Social Fingerprint 3.9

Lowest Score In Each Category Among

All Companies

Category Score

(Out o 5)Scope and Risk 3.0

Aggregate Rating o Suppliers 2.3

Annual Improvement in Aggregate

Rating O Suppliers

1.8

Internal Integration o Compliance

and Sourcing

2.3

Supplier Communications &

Purchasing Practices

2.3

Complaint Management &

Resolution Sel-Assessment

1.4

Social Fingerprint 2.4

Social Fingerprint Company Rating:Looks inside a company at how it manages social compliance

Impact:

100% said that the program enhanced

their ability to identiy root causes o

compliance problems

100% said the program enhanced

their ability to improve management

systems to support human resource

and social compliance policies and

procedures92% stated the program enhanced

their ability to improve worker involve-

ment and communication channels

95% cited that the program enhanced

their ability to create a practical and

eective improvement plan

81% reported that they implemented

3-6+ improvement tips immediately

Social Fingerprint Supply Chain Management Rating:Looks at how a company manages social compliance in its supply chain

Four Major Steps:

Code o Conduct Review:1. A review

included on-site visits observing

Timberland auditors in the eld.

Vendor perception survey:2. Gauged the

vendors perception o the value and

impact o Timberlands Program.

Social Fingerprint Company Rating:3.

This ratings system was completed by

30 o Timberlands suppliers in China,

Bangladesh, India and Vietnam, toassess how eectively each vendor is

managing its own labor standards.

Social Fingerprint Supply Chain4.

Management Rating: Completed by

Timberland to assess how eectively

it is managing labor standards in its

supply chain.

In Action: Carreour Group

Carreour was one o the rst companies to use SAIs Social Fingerprint Company

program with its vendors. In 2010, SAI and Carreour worked closely with 60 vendors

in India to build internal capacity and make improvements. SAI tailored this program

to work with Carreours existing code o conduct program; this fexibility is a key

eature o SAIs Social Fingerprint program. We surveyed the vendors about the

program and their progress. Feedback was overwhelmingly positive:

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ChinasA8000 Faory: ho Fa garmn prnn

Ho Fai is one o seven Chinese acto-

ries with which American garment

company and SAI Corporate Program

member, Eileen Fisher, works as a key

supplier. In early November 2010, ollowing an SAI work-

shop or actory managers in Shenzhen, Luna Lee (Eileen

Fisher Human Rights Associate), visited Ho Fai and ve

other, non-SA8000, certied, suppliers in the region.

According to Ms. Lee, provisions or workers welare

were by ar the best in Ho Fai. On-site employee child

care provided a secure environment or the children and

reassurance or their parents. The actory dormitories also

have rooms to accommodate workers who are married

or have children, enabling a positive living situation to

maintain their work-lie balance. Addionally, hot wateris available in every bathroom, and there are cleaning

services in all general areas.

Two experiences o Ho Fais employeesdemonstrate the current good practices:

Ching Y. has worked at the actory or over 19 years

and is a tremendous asset to the actory. He is trained

and capable o working in every section o the actory,

including cutting, sewing, and garment dyeing. He lives

close to the actory, and returns home every week to his

amily.Another worker, Li Y., came rom Guangxi and has been

with the actory or 3 years. In comparison to the previous

garment actory where she was employed, she notes that

the standards o production quality are much higher.

Ching and Li were elected by their peers to be the SA8000

worker committee representatives.

The Ho Fai Garment Printing actory in the industrial hub o Shenzhen

employs over 300 workers. It has been certied to SA8000 since

2004. In China, over 300 actories, employing over 250,000 workers,

have earned certication.

Li.Y. Ho Fai employee or 3 years and elected SA8000 worker representative

spOt light

hO FAi gARMeNt pRiNtiNg FActORY

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SA8000 Certiied FacilityDistinctions

Ho Fai Garment Printing

Child care acilities

Family riendly working hours

High productivity

High worker retention rates

SA8000 in China

349 Certied Facilities

270,384 Workers in Certied

Facilities

to rfd ndur: apparel,

electronics, plastics, textiles

Ching Y. Ho Fai employee or over 19 years, elected SA8000 worker representative

Textiles at Ho Fai or Eileen Fisher categorized

by color

A glimpse o Ho Fais actory foor, one o seven actories in china where Eileen Fisher clothing is manuactured

Embellished tank top produced at Ho Fai or Eileen Fisher

More than ever, dedicated employees

such as these two are invaluable.

Because o widespread labor shortages

in Shenzhen, the majority o actories

are not operating at ull capacity.

To address this issue, actories raisedwages by over 30% in 2010, and

Shenzhen now oers the highest

minimum wage in the country. This

worker shortage has increased workers

bargaining power, as they are able

to leverage their demands and set

higher standards and expectations

or companies. Read an interview

with Eileen Fishers Director o Social

Consciousness, Amy Hall, about its best

practices to engage its vendors.

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Cotton made in Africacorora Mmr:

An Knwar

CmiA, based in Hamburg,

Germany, is overseen

by the Aid by Trade

Foundation, which

aims to reduce poverty

and promote economic

development through

market-based incentives.

In addition to licensing revenue, CmiA

is unded by the Bill & Melinda Gates

Foundation, the German Federal

Ministry or Economic Cooperation and

Development (BMZ), Otto Group, and

other international organizations.

SAI was drawn to CmiA because o the

benets it provides or the entire supplychain- rom smallholder armers to brands

and retailers. To help ensure the integrity

o the CmiAs value chain, SAI initiated

a pilot project in June 2010 to measure

and improve social compliance in the

programs spinning mills. This provides

buyers with greater assurance that the

cotton is coming rom a sustainable

supply chain committed to improved

working conditions.

American apparel manuacturer, Anvil

Knitwear, an SAI Corporate Program

member at the Signatory level since

2007, is one o the leading transparent

sustainability pioneers, having built

a strong reputation through its

green collections and award-winning

traceability projects, including:

AnvilOrganic and AnvilSustainable

collections, the TrackMyT.com website,

which captures a t-shirts journey

rom cotton seed to tee shirt, and the

Shirt Scan smart phone app, which

incorporates product traceability

through a QR code on its products.

Anthony Corsano, Anvil Knitwear CEO,commented on the new partnerships

alignment with Anvils social and envir-

onmental priorities and its evolving

sustainable ber strategy: Cotton made

in Arica is another source o sustainable

ber or Anvil. It is rain ed, utilizes

principles o soil conservation, reduces

pesticides, and incorporates important

ILO labor principles. We also hope our

purchases help Arican smallholder ar-

mers improve their own living standards.

Since March 2010, SAI has worked as the U.S. representative with the Cotton Made in Arica (CmiA)

initiative to expand use o socially responsible cotton by American companies. In late 2010, Anvil Knitwear

became the rst U.S. apparel manuacturer to join the initiative to drive CmiAs goal to improve the lives o

Arican cotton armers through socially responsible production.

For more inormation, contact SAI Assistant Director

o Corporate Programs & Training-Kate Critchell,

[email protected]

In 2010, the CmiA initiative worked with

armers in Burkina Faso, Benin, Malawi,

Cote dIvoire and Zambia, generating

signicant impacts on the ground in

Zambia, there has been a 35% harvest

increase, and over 1 million armers and

amilies are involved in the 5 countries.

It works with 20 mills spread throughout

10 sourcing markets, including China,

Bangladesh, and Pakistan.

spOt light

3 WAYs cMiA FUNDs ARe UseD:

Training or Arican Smallholder Farms1.

Social Projects2.

Additional Income or Smallholder3.Farms

3 WAYs bUsiNesses cAN pARticipAte:

Sale o CmiA cotton textiles based on1.

a fexible ee structure

Direct sponsorship o social projects2.

with public relations support o CmiA

Special partnership arrangements3.

cORpORAte MeMbeR ANvil KNitWeAR

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SAAS &SAIOther SAAS Highlights 2010

Comparing SA8000 & ISO26000

SA8000 Field Auditor Calibration Meeting

in China

New SAAS Sta Member: Salah Hussein i

Magen Tzedek Certifcation: Ensuring

Ethically Produced & Kosher Products

Launched in 2007,

the Magen TzedekCertication System

is a joint project o

the Hekhsher Tzedek

Commission o the

Rabbinical Assembly

and the United Synagogue o Conserva-

tive Judaism. Together, SAAS and SAI are

helping develop an eective system or

veriying compliance with the Magen

Tzedek standards to assure customers

that kosher products not only meet the

religiously-mandated production require-ments, but also are ethically produced.

This collaborative eort shares the

common goals o improving working

conditions, environmental practices, and

protecting animal welare. With the

kosher oods industry representing 40%

o all manuactured oods in the U.S.

market, there is great potential or posi-

tive impact. SAI and SAAS are working to

develop a comprehensive Magen Tzedek

certication system, inormed by eldtests to test and to rene the systems

accordingly. It will be up and running in

2011. Click here or more inormation.

Fair Trade Apparel: Raising the Bar or

Apparel Production

In 2010, SAAS and

Fair Trade USAthethird-party certier o

Fair Trade Certied

products in the United

Stateslaunched a

collaboration combin-

ing the SA8000 audit

with a Fair Trade audit in Fair Trade

USAs Fair Trade Certied Apparel and

Linens. This global program is being

piloted in India.

Joint SA8000Fair Trade audits help

producers avoid audit redundancy,

enabling them to ocus more time on

actual production needs, rather than

preparing or audits; this is also an

ecient way or producers to achieve

dual certication. The initiative has

begun with SA8000-certied acilities,

where the Fair Trade Certied garments

are being piloted by select supporting

brands and retailers. Click here or more

inormation.

For more inormation, visit www.saasaccreditation.org

Social Accountability Accreditation Services (SAAS): 14 years ago, SAI

was established as a standards-setting organization committed to

advancing the lives o workers with the SA8000 Standard to ensure

decent working conditions. In 2007, SAAS was established by SAI as

a separate not-or-prot entity. It accredits, and monitors the compli-

ance o, certication bodies to social standards certication require-

ments, including the SA8000 Standard. In 2010, we leveraged our

shared experiences to help integrate labor considerations into new

and allied social certications.

Rainorest Alliance & the Sustainable

Agriculture Network (SAN) Team Up

with SAI

SAI, Rainorest Alliance,and the Sustainable

Agriculture Network

(SAN), have joined

orces in Latin America

to improve agricultural

workplaces by increas-

ing uptake o labor

and environmental

standards and increasing eciency o

certication through joint auditing. This

collaboration will leverage the benets

o both certication standards - SAIsSA8000 standard or decent working

conditions and the Sustainable Agricul-

ture Network standard or sustainable

agricultural practices. This global

program is being piloted in Costa Rica.

Products rom certied arms can

bear the Rainorest Alliance Certied

trustmark. Recognizing that time and

resources are two common constraints

or agricultural organizations seek-

ing certication, this collaboration willenable a more ecient audit process to

eliminate redundancies, so that arms

can ocus attention and resources on

improving workplaces and maintaining

productivity. It is estimated that arms

could save a ull day rom the audit

process to receive dual certication.

Click hereor more inormation.

Fast Facts

2010 SA8000 Certifcation Statistics

1,421,035 Workers

2,478 Total Certied Facilities

65 Countries

66 Industrial Sectors

634 Total New Certied Facilities in 2010

20 Total Organizations Accredited to

Award SA8000 Certication

sAAs & sAi

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Our Programs &iNitiAtive DescRiptiON

USAID Program Environmental and LaborExcellence or CAFTA-DR

Ethical market access through labor and environmental standards compliance

Comply & Win (Cumple y Gana) Strengthening the labor inspection capacity o the Ministries o Labor

Cotton Made in Arica (CmiA) 1) SAI is the U.S. Representative or CmiA; 2) Pilot project: training at spinning mills in Bangla-desh, India, and China

Fair Trade Apparel: Streamlining Auditswith the SA8000 Standard

Enabling dual SA8000 and Fair Trade certication o garment actories

Fire Saety in Bangladesh Fire Saety & Disaster Prevention; Occupational Health & Saety Training; Multi- stakeholder

dialogue

GIZ/Tchibo WE Project Improving production acilities in Southeast Asia through worker-manager dialogue. SAI partici-pated in worker-manager training in China.

ISEAL Alliance ISEAL Full Member; Board o Directors member; Stakeholder Council member; Impacts Codecommittees; Finance committee

Joint SA8000 Certication & RainorestAlliance/SAN Certication

Enabling dual SA8000 and Rainorest Alliance/SAN certication o arms

MFA Forum Sustainable Apparel and Foot-wear Initiative (SAFI)

Linking labor and environmental standards to nance. Technical assistance to IFC on linkingstandards to supplier nance; case study o Rabobank Brazil CSR program.

Magen Tzedek Standard Developing an eective system to ensure that kosher ood products meet standards on labor,environment, and animal welare.

Measure & Improve Your Labor StandardsPerormance Handbook & Toolkit or IFCinvested companies

Supply chain management; management systems training

Project Cultivar Developing culture o labor law compliance through: training or workers, managers, and laborinspectors; acilitating social dialogue; building local leadership

Responsible and Accountable Garment Sec-tor (RAGS): Improving Social Standards inthe Indian Ready Made Garment Sector

CSR Training or Small and Medium-Sized Enterprises (SMEs) with a ocus on gender, homeworkers, and home worker issues in the ready-made garment sector

Scaling Up Indian CSR Initiatives Supplier training or SMEs; development o training networks; establish CSR expertise center;multi-stakeholder dialogue

UN Global Compact: Human Rights Work-ing Group & Supply Chain SustainabilityAdvisory Group

Strategic policy initiative or businesses committed to aligning operations and strategies withten universally accepted principles in the areas o human rights, labour, environment and anti-corruption.

Verication o Anti-Corruption Programs Review the potential applicability and useulness o experience with social certication systemsas guides or verication o companies' anti-bribery programs

WWF Aquaculture Dialogue Standards:Salmon (in development), Tilapia, Pangasius

Standards development: Developing a set o species-specic standards to address social andenvironmental impacts o aquaculture on arm workers and local communities

SAIs multi-stakeholder approach to address key challenges in the supply chain refects our belie in

bringing all voices to the table to identiy solutions. We work with companies, governments, NGO and

trade union organizations that represent a wide array o expertise to help us pursue inclusive change.

pROgRAMs & pARtNeRships

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Partnerships: 2010cOUNtRies sectOR(s) pARtNeR FUNDeR

Costa Rica; DominicanRepublic

Agriculture(Sugarcane, pine-apple, mango)

Rainorest Alliance; World Wildlie Fund; OBrien & Associates US Agency or Inter-national Development(USAID)

Dominican Republic; ElSalvador; Guatemala

Government Foundation or Peace and Democracy (FUNPADEM); Abt As-sociates Inc.

U.S. Department o Labor(USDOL)

Cotton grown in BurkinaFaso; Benin; Mozambique;and Zambia; Spinning Mills:Bangladesh; China; Pakistan

Agriculture;Textiles

Cotton Made in Arica Aid by Trade Foundation;Cotton Made in Arica

Worldwide, initial pilots inIndia

Apparel Fair Trade USA Fair Trade USA

Bangladesh Apparel Bangladesh National Council (BNC); ITGLWF; MFA Forum MFA Forum

Bangladesh; China; Thailand Apparel; Jewelry;Furniture; Metalgoods; Leather

German Development Cooperation (GIZ); Tchibo GmbH (Leadpartners)

Public Private Partnership(PPP) Model: GIZ & TchiboGmbH

Worldwide Any ISEAL Alliance ull members &associate members HIVOS; ICCO; Overbrook;Packard; FAO; Ford; GIZ;RBF; SECO; World Bank;Walton

Worldwide, initial pilot inCosta Rica

Agriculture Rainorest Alliance; Sustainable Agriculture Network USAID Program Environ-mental and Labor Excel-lence or CAFTA-DR

Worldwide Finance MFA Forum; IFC; Gap Inc.; American Eagle MFA Forum with USAIDunds

U.S. Kosher certiedood products

Hekhsher Tzedek Commission; SAAS Hekhsher Tzedek Com-mission

Any Any International Finance Corporation (IFC) IFC

Dominican Republic; Hondu-ras; Nicaragua

Agriculture(bananas, melon,sugar)

-Center or Research and Cultural Support (CIAC); Institute orCulture and Local Sel Reliance (INCAP)- Dominican Republic-Center or Human Development (CDH)- Honduras-Proessionals or Social and Business Audits (PASE)- Nicaragua:

U.S. Department o Labor(USDOL)

India Apparel Gap Inc., PGC Switcher, Prakruthi, and Timberland. In coopera-tion with the ETI-UK and the National Homeworkers Group.

Public Private Partnership(PPP) model: UK Depart-ment or InternationalDevelopment (DFID);Gap Inc.; PGC Switcher;

TimberlandIndia Any GIZ; Business Social Compliance Initiative (BSCI); Gap Inc.; PGC

Switcher; Tchibo GmbH; TimberlandPPP model: GIZ; Gap Inc.;PGC Switcher; TchiboGmbh; Timberland

Any Any Business & non-business participation Foundation or the GlobalCompact; CIPE

U.S.A Any Transparency International USA (TI-USA) Siemens; overseen by theWorld Bank

Standards used worldwide;standards developed inChile, Costa Rica, Ecuador,Honduras, Vietnam

Aquaculture World Wildlie Fund World Wildlie Fund

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LeadershipSAIs mission is led by a multi-disciplinary, truly

international, and diverse sta and board. Our

international Advisory and Governing Board mem-bers represent businesses, trade unions, and NGOs,

and leverages a wide-array o expertise in human

rights, socially responsible investing, social audit-

ing, and supply chain management.

(*denotes participation on Governing Board)

(**denotes participation on both Boards)

Advisory & Governing Board Members

Achim Lohrie,Chair, Advisory Board. Tchibo GmbH (Germany)

Thomas DeLuca*,Chair, Governing Board. CCI Consulting, LLC (USA)

Giorgio BertinelliLegacoop Nazionale (Italy)

Dorianne Beyer / David ZwiebelNational Child Labor Committee (USA)

Alke BoessingerUNI- Union Network International (Switzerland)

Dana Chasin*Americans or Financial Reorm (USA)

Kishor Chaukar / Anant G. NadkarniThe Tata Council or Community Initiatives (TCCI)(India)

Ivano CorrainiFederazione Italiana Lavoratori del Commerrcio,Turismo e Servizi (Italy)

Sylvain Cuperlier / Roberto VegaDole Food Company (France)

Vronique Discours-BuhotGroupe Carreour (France)

Aadith D. Vikram / Robin CorneliusPGC Switcher (India/Switzerland)

Jan Eggert / Lorenz BerzauBusiness Social Compliance Initiative (BSCI)(Belgium)

Jan Furstenborg*Responsible Productivity (Switzerland)

Oded Grajew / Helio MattarEthos Institute o Business & Social Responsibility(Brazil)

Amy HallEileen Fisher (USA)

Dan Henkle* / Darryl KnudsenGap Inc. (USA)

Joseph Iarocci / Patrick SolomonCARE International (USA)

George Jaksch / Manuel RodriguezChiquita Brands International (Belgium/USA)

David McLaughlinWorld Wildlie Fund (USA)

Nicholas Milowski*KPMG LLP (USA)

Steven Newman*Public Health Solutions (USA)

Mike Patrick / Emma CainTNT Express (Netherlands)

Rossella RavigliGucci (Italy)

Nico RoozenSolidaridad (Netherlands)

Alan SpauldingUnited Food and Commercial WorkersInternational Union (USA)

Andreas Streubig / Sibylle DunckerOtto GmbH & Co KG (Germany)

Alice Tepper Marlin**Social Accountability International (USA)

Achile TonaniRINA S.p.A. (Italy)

Sandra GrothTchibo GmbH (Germany)

Tensie Whelan / Chris WilleRainorest Alliance (USA / Costa Rica)

Morton WinstonThe College o New Jersey (USA)

Sta

Matthew ApplebaumI.T.Consultant

Yolanda Brenes

Project Manager

Richard CookChie Financial Ocer

Marie-Rose CoulibalyBookkeeper

Kathryn CritchellAssistant ManagerCorporate Programs & Training

Christie DalyExecutive Assistant

Doug DeRuisseauField Services Director

Erik DetigerDirector o Development

Matthew Fischer-DalySenior Manager

Jane HwangSenior ManagerCorporate Programs & Training

Eileen KaumanExecutive Director

Martin MaChina Program Director

Alice Tepper MarlinPresident

Craig MossDirector, Corporate Programs & Training

JoLeen Ong

Communications Manager

Rishi SinghIndia Project Director

Jason TurnerOce Systems Manager

Eliza WrightProgram Associate

Project Cultivar RegionalOce Nicaragua

Raael BarerraRegional Director

Carlos MoralesAssistant Director

Elizabeth TorresAdministrative Assistant

SAASLisa BernsteinProgram Manager

Salah HusseiniProject Manager

Leah RyeClient Coordinator

Rochelle ZaidExecutive Director

(*denotes global trainer)

(**denotes authorized

representative oce)

Adriano Costa*Brazil

Badri Gulur*India (Four-D Management Consulting)**

Beat Grninger*Brazil (BSD Consulting)**

Edwin Koster*Netherlands (Max Value)**

Mike Lee*China

Madhuri Lele*India (Services N Solution)**

Global Trainers & AuthorizedRepresentatives

Jane Liu*China

Dundar Sahin*Turkey

Peter ScottPhilippines (Global CompetitivenessConsultancy & Training, Inc.)**

Sanjiv Singh*United Arab Emirates (WIRE)**

Shirley To*China

Steven OatesSwitzerland (Steven Oates Co.)**

Lizzie BensonNew York University

Mary Katharine BowenNew York University

Steanie ColishSyracuse University

Emily DinanColombia University

Amy FinneganNew York University

Nathalie HermanWellesley College

Weiye KouWellesley College

Program Interns and Volunteers (2010)Allison KwanWellesley College

Jeevika MakaniUniversity o Melbourne

Diane MilnerCornell University

Christine MoserUniversity o Mnster

Emily SmithFordham University

Hayley WarrenUniversity o Nottingham

For more details about our internshipprogram, please visit www.sa-intl.org/careers

Founders CommitteeTom DeLucaCCI Consulting, LLC, (USA)

John BrookesAIG Consultants (USA)

Jan FurstenborgResponsible Productivity (Switzerland)

Fitzroy HillaireHillaire Associates (USA)

Neil KearneyInternational Textile, Garment and LeatherWorkers Federation (ITGLWF)

Frits NagelDutch Government Consultant or CorporateSocial Accountability (Netherlands)

View the Annual Report electronically to open web links:http://www.sa-intl.org/AR2010

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The Allayne & Douglas WickFoundation

Beatrice Briggs

Dana Chasin

Georgia and Michael de Havenon

Thomas DeLuca

Bill Drayton

Heidi S. Fiske

Alan and Catherine Harper

Erin Kauman and Mark Tashjian

Judy and Steve Kunreuther

J & L Foundation, Inc.

Loida Nicolas Lewis

E.R. Marlin Fund

Preliminary SAI total 2010 revenue

was $4 million, with grants provid-

ing about one third and earned

income two thirds. Over hal o

our unding was spent on global

training and capacity building

programs. This proportion varies

considerably rom year to year

based on the actual timing o

grant award notices and account-

ing rules on income recognition

dates. As a US-based charitable

501(C)(3) organization, SAI les a

990 statement annually with the

US Government - 990 reports are

available online through Guidestar

SAIs impact and continued leadership to advance

human rights at work around the world depends

on the partnerships, and generous nancial and

in-kind support, rom dedicated individuals, institu-

tions, governments, students, and companies.

As we renew our commitment to our mission to

advance the human rights o workers around the

world, SAI is deeply grateul to our supporters and

partners, detailed in this 2010 list. We are also very

grateul to individual anonymous donors.

Other

6%

Corporate Programs

9%

Training

25%

Accreditation

26%

Grants

34%

SOURCES OF FUNDING

Corporate Programs

8%

Accreditation

19%

Mgt & Fundraising

20%

Training

Building

5

HOW FUNDS WERE SPENT

Support & Financials

Donors

Financials

Bangladesh National Council (BNC)

Business or Social Responsibility (BSR)

Business Social Compliance Initiative (BSCI)

CSR West Sweden Association

Center or Cultural Research and Action(CIAC)

Center or Human Development (CDH)

Ceres

Cotton Made in Arica (CmiA)

Ethical Trading Initiative- Norway

Ethical Trading Initiative- UKFair Trade USA

Hekhsher Tzedek Commission

The ISEAL Alliance

Institute or Local Culture &Sel-Reliance (INCAP)

Partners / FundersInternational Society o SustainabilityProessionals (ISSP)

The International Textile, Garment andLeather Workers' Federation (ITGLWF)

MFA Forum

Prakruthi

Proessionals or CorporateSocial Auditing (PASE)

Rainorest Alliance/SustainableAgriculture Network

Solidaridad-Netherlands

The Tata Council or CommunityInitiatives (TCCI)

Transparency International USA

UN Global Compact (UNGC)

Valore Sociale

Marquis George MacDonaldFoundation, Inc.

Nicholas Milowski

Terry Mollner

Elsie Nelson

Sylvan and Ann Oestreicher Foundation

Nancy E. Phillips

Terry Pristin and Ronald H. Silverman

James Stuhlmacher

Ten Ten Foundation

Alice Tepper Marlin

Alan Wachtel

Tensie Whelan

The Whitehead Foundation

Anonymous

Government and Multilateral Institution

Center or International Private Enterprise (CIPE)

European Commission

German Development Cooperation (GIZ)

The Netherlands Development Finance Company (FMO)

The Norwegian Guarantee Institute or Export Credits (GIEK)

UK Department or International Development (DFID)

US Agency or International Development (USAID)

US Department o Labor (USDOL)

US Department o State

World Bank International Finance Corporation (IFC)

Anvil Knitwear (Signatory Level)*

Beraca (Explorer Level)*

Billabong International Limited (Sup-porting Level)*

The Body Shop

Carreour Group (Supporting Level)*

Chiquita Brands International(Supporting Level)*

Ecopetrol

Eileen Fisher (Signatory Level)*

Gap Inc. (Signatory Level)*

Garnet Hill (Supporting Level)*

General Mills (Supporting Level)*

Companies Public Private Partnerships,Collaboration & Membership

Gucci (Supporting Level)*

Hewlett Packard (Supporting Level)*

Otto Group (Supporting Level)*

PGC Switcher (Signatory Level)*

Private Label ManuacturersAssociation (Supporting Level)*

SKF

TNT (Supporting Level)*

Tchibo GmbH (Explorer Level)*

The Timberland Company(Explorer Level)*

The Walt Disney Company

(Supporting Level)*

(*denotes Corporate Program member)

To support our work, please visit www.sa-intl.org/support

For more inormation about

SAIs Corporate Programs, visitwww.sa-intl.org/companies/programs.html

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soa Aounay inrnaonaGlobal Headquarters15 West 44th Street, 6th FloorNew York, NY 10036 USAPhone: +1 (212) 684 1414

Fax: +1 (212) 684 [email protected]

NOTE ABOUT DISTRIBUTION FORMAT: This annual report was prepared or electronic distribution. This decision refects our ongoingcommitment to scal eciency and environmental sustainability. We have created two electronic versions o this annual report:one that is designed or reading online, and one that is ormatted or easy printing should you wish to have a hard copy.Additionally, we welcome your eedback on this decision as well as on other matters related to our annual report.

PLEASE EMAIL YOUR COMMENTS TO: JoLeen Ong, [email protected] download a PDF o this annual report, please visit www.sa-intl.org/AR2010Sign up or e-News updateswww.sa-intl.org/newsTo support our work, please visit www.sa-intl.org/support

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CREDITS:

Author: JoLeen OngEditor: Eileen KaumanResearch assistant: Jeevika MakaniDesign and Layout: Pamela HenryPhotography: Elena Arengo Adriano Diniz Costa Sam Cox Thorpe Lora du Moulin Matthew Fischer Daly Judy Gearhart

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