Social and environmental standards in the shoe industry Andreas Tepest, Head of Quality Management DEICHMANN SE
16 November 2013
Social and Environmental Standards The DEICHMANN Group … feels responsible for its worldwide operations’ socialand environmental compliance has come up with a code of conduct that draws upon the BSCI Code of Conduct expects that all suppliers and their subcontractors follow this code of conduct without any exception Most of the requirements follow ILO Conventions and Recommendations or similar international regulations Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
Social and Environmental Standards The DEICHMANN Group … wants to establish and develop social and environmental standards together with supplier and producer will not be terminate the business relationships in the event of non-compliance will rather be looking for solutions in order to improve the situation of all parties concerned Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
BSCI A successful story BSCI was established in 2003 DEICHMANN decided to join BSCI in 2005 By the end of 2013, DEICHMANN had BSCI Audits at 113 shoe manufacturers worldwide 80 of them are in China
Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
BSCI A successful story After 3 ½ years of membership 70 per cent of member’s suppliers have to be rated no lower than “good“ or “need improvement“ More than 90 per cent of the current DEICHMANN suppliers and producers rated “good” or “need improvement“
Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
Risk-Countries Shoe manufacturer … without BSCI Audit or SA 8000 certificate often show huge deficits are asked to participate in the seminars organised by BSCI when working for the DEICHMANN Group for the first time
Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
Risk-Countries Shoe manufacturer … will first complete a BSCI “Self Assessment“ after having attended these seminars asks for support of external consultancies specialised in the implementation of social and environmental standards
Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
Introduction First BSCI Audit Audit Process - Assessment through Common Code of Conduct DEICHMANN will commission an external BSCIrecognised auditor to run the first BSCI Audit The costs will be borne by the DEICHMANN Group
Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
Introduction First BSCI Audit Audit Report The result is taken down in an Audit Report The manufacturer and DEICHMANN will receive the Report 5-10 days after the Audit In many cases a shoe manufacturer will not get a “good” rating right after the first Audit
Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
Introduction First BSCI Audit Audit Report The “Corrective Action Plan“ (CAP) lists the actions to be taken in order to see improvement Areas that show very often deficits are Management and Documentation
Industrial Safety
No Emergency Management Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
BSCI Audit Process Re-Audit DEICHMANN demands an implementation after 3 months We initiate a Re-Audit by an external auditor Often actions listed in the CAP cannot be corrected in the agreed period
Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
BSCI Audit Process Conclusion In most cases, shoe manufacturers need up to 12 months before getting a “positive” audit rating It is very helpful if the owner of the company is personally involved in the process
Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
New Initial Audit  Monitoring and Identifying Continuous Improvements Areas through Re-audits  3 years after the first Initial Audit a new Initial Audit has to be started
Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
New Initial Audit The Producer … will not achieve a “good” rating at the first time without a good preparation is asked to attend BSCI seminars on a regular basis has to send new CSR officers for BSCI training
Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
New Initial Audit DEICHMANN will … discuss potential weak points with the manufacturer’s pertinent staff check that the maximum number of working hours per week is not exceeded work pro-active with supplier and spread the orders and delivery dates more evenly in order to avoid the usual bottlenecks in shoe production Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
New Initial Audit Conclusion The social and environmental standards also have to be discussed in between the audits and actually “lived” in the factories The local QA/QC staff needs to be involved to report problems that might arise
Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
Voluntary Measures Best Practice – DEICHMANN Partner Well-trained and content staff is very important in a labour-intensive industry like the shoe industry Pay more than the official minimum wages Pay social insurance contributions
Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
Voluntary Measures Best Practice – DEICHMANN Partner Employ a real co-determination system Set up regular labour-management meetings to discuss problems and come up with solutions Improve accommodation facilities
Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
Voluntary Measures Conclusion These measures help to improve the employees´ satisfaction The factory benefits from a small staff turnover It helps to achieve a very constant product quality
Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
Voluntary measures Conclusion Implementation of voluntary social standards contributes to an improvement of productivity A good relation ship with employees is an important competitive factor to stay successful in times of rising labour costs
Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013
Thank you very much for your attention‌. ‌.and welcome to BSCI
Andreas Tepest - Social and environmental standards in the shoe industry - 16 November 2013