What is the Global Social Compliance Programme (GSCP)?

The Global Social Compliance Programme (GSCP) provides a platform for building consensus on best practice in labour standards in supply chains in order to develop a single, clear and consistent message for suppliers globally.

The objective is to facilitate continuous improvement in worldwide working conditions.

The programme will:

• accommodate the specificities of existing systems while building comparability and transparency between them,
• drive convergence and reduction of duplication and, above all,
• allow purchasing companies and suppliers to concentrate on the identification of root causes of non-compliance and remediation of non-compliances.

To drive convergence, GSCP is building a set of reference tools that aim to show what best practice looks like. This toolkit comprises a reference code; a reference audit checklist; a reference audit methodology and a reference auditor standard.

Each tool will be developed by an Expert working group whose role is to identify and build consensus around best practices for each tool.

This toolkit, which will be openly available, can then either:

• Be integrated in part or in full by companies into their existing system
• Be used by companies or initiatives as a reference against which to compare their existing tools.

Why GSCP?

Companies have invested a considerable amount of time, money and expertise to develop codes and implementation systems which have brought about some real change. However, the number of codes has proliferated and approaches have diverged. This has led to duplication of effort, confusion amongst suppliers and inefficiency.

GSCP goals include the development of a clear and consistent message to suppliers worldwide and mutual learning among participating retailers and brand manufacturers, thus accelerating progress in monitoring working conditions among suppliers. This will free the way for effective continuous improvement in partnership with suppliers.

What is the scope of GSCP?

GSCP encompasses all products sold in modern retail structures. This will therefore include non-food items (toy, electronic devices, clothes, furniture, etc…)

GSCP’s scope is global and focussed on sourcing countries. It aims at improving labour practices and working conditions.

GSCP’s focus is on labour conditions. GSCP has decided to handle the management of environmental issues in a separate stage because they cannot be addressed with the same methodology (as inter alia the audit process, methodologies and auditors are not the same as for labour standards). Countries will soon be facing new environmental requirements, currently negotiated at UN and national levels.

 

Why not start at the European level?

If companies really want to step change the way the sector can improve working conditions in the global supply chain, they have to start thinking global. Human rights are universal, today’s economy is global, we therefore need a global standard that goes beyond European borders.

 

Is GSCP a new standard?

GSCP is not a new standard. GSCP’s aim is to promote convergence between existing tools and practices (with a view to improving working conditions in the supply chain).

Companies will be free to either adopt the reference tools as such or use them as a reference to make the necessary adjustment to their existing systems.

The intention is to allow for mutual recognition of audits to reduce audit fatigue while upgrading every company’s system.
GSCP also offers a platform to promote knowledge exchange and best practices in order to foster a common understanding and approach to the issues.

Isn’t GSCP just another initiative on monitoring? What about training and capacity building?

GSCP’s objective is two-fold:

- To build consensus on best practices and develop a clear and consistent message for suppliers globally in order to reduce duplication of effort and facilitate continuous improvement in worldwide working conditions

- This harmonisation will create the circumstances in which suppliers can concentrate on the continuous improvement of working conditions in partnership with retailers and brand manufacturers. The goal is to reduce the excessive emphasis on compliance in order to focus on real improvement on the ground.

It is important to develop a common interpretation of requirements and then to complete it with training and capacity-building activities to help suppliers develop their own solutions to the problems and the knowledge and skills to understand the requirements and implement them.

Why the need to develop a shared and global set of tools when you can go straight into training and capacity building?

Part of the reason why suppliers do not concentrate enough on improving working conditions is that they spend a lot of time trying to ‘pass’ audits imposed on them by each company they are supplying.

The first step is to promote convergence and the definition of a clear and consistent message for suppliers globally. This will help companies identify what the issues are which is a prerequisite for efficient remediation. This will allow retailers and brand manufacturers to spend more time and resources in working with their suppliers on remediation and help them develop their own solutions to the problems and the knowledge and skills to understand the requirements and implement them.

How will stakeholders be involved?

One of the founding principles of GSCP is to ensure that the expectations of all stakeholders are formally integrated in the pursuit of the programme’s objectives.

GSCP’s governance includes an Advisory Board to ensure this founding principle is respected.

The Advisory Board’s main role will be to advise and challenge the Executive Board on strategy and best practices. Members, within their respective field of expertise, will help the Executive Board deliver the programme’s objectives, provide critical advice on the strategic direction of GSCP and monitor and evaluate progress.

What is the relationship between GSCP and existing initiatives?

GSCP aims at promoting the harmonisation of existing industry standards by building on what has already been achieved, not at replacing them.

GSCP offers a platform where differences between existing systems (developed individually or collaboratively) can be aired, discussed and reconciled in order to move towards harmonisation and/or mutual recognition of systems and develop a solution based on best practices while preserving each system’s specificity.

All companies involved will continue to use and work with their existing systems and initiatives, all of which will stand to gain from this process.

Why not join an existing initiative?

GSCP represents the opportunity to upgrade existing standards.

Companies have invested a considerable amount of time, money and expertise to develop codes and implementation systems which have brought about some real change. Each industry standard or initiative has developed good practices that can be learnt from.

GSCP offers a global platform to identify and build consensus around best practices from existing standards and initiatives and to integrate external stakeholders’ expertise. This approach will help build comparability and transparency between systems and will help reduce duplication while raising overall standards.

 

Isn’t GSCP duplicating existing efforts?

Quite the opposite. The collaborative aspect of the working plan will enable all existing systems (developed individually or collaboratively) to upgrade while moving towards mutual recognition and/or harmonisation. GSCP is a means to raise overall standards worldwide as well as to communicate a clear and consistent message to suppliers, and will reduce audit fatigue and duplication.

We do not see that happening elsewhere at a global level. We are not questioning the existing schemes or initiatives but merely offering a platform where differences between existing standards and initiatives can be aired, discussed and reconciled in order to move towards mutual recognition of systems and develop a global and shared solution based on best practices while preserving each system’s specificity.

Some members of this programme are already part of other initiatives, what are the implications?

Companies involved will continue to use and work with their existing systems and initiatives, all of which will stand to gain from this process.

Companies will bring their expertise and know-how to GSCP, allowing GSCP to promote harmonisation and not to duplicate. Each will contribute to building consensus around best practices drawn from the initiative they are members of in order to develop a clear and consistent message for suppliers globally. This will help reduce duplication and accelerate progress in monitoring working conditions, the first step towards effective remediation, which is the ultimate goal of the programme.

Will there be a role in the programme for the existing initiatives? What will it be?

GSCP is a business-driven programme. Each initiative will be represented on GSCP by its members who will in parallel continue to use and work with their existing systems.

Experts from some of the initiatives have been and will continue to be part of the consultations led by expert working groups.

Communication has begun with each initiative to ensure that there is a clear understanding of GSCP’s role in relation to them and to ensure fruitful collaboration.

 

How was the GSCP draft reference code for consultation developed?

To launch the first step of the programme the 5 companies that have initiated GSCP (Carrefour, Metro, Migros, Tesco and Wal-Mart) drafted a reference code which was first made available in June 2007. This draft is based on the provisions which, in the codes of these different companies, afford the greatest level of protection for workers. It is based on the relevant international conventions and guidelines. The development of a reference code aims at showing what best practice looks like and at providing a common interpretation of code requirements and implementation in practice to enable retailers and brand manufacturers around the world, in whatever industry, to work towards mutual recognition of audit results. It will help bring more clarity to suppliers, who will have one clear and consistent set of requirements to comply with.

Do participating companies have to sign up to the GSCP draft reference code?

Companies will be free to either adopt the reference tools as such or use them as a reference against which to compare their existing tools.

The intention is to allow for mutual recognition of audits to reduce audit fatigue while upgrading every company’s systems.

What is CIES role?

CIES is the only global professional organisation that brings together the major corporations in the retail and consumer goods business. Its mission is to promote best practice and common industry positions on strategic non-competitive issues. It offers the right platform for competing retail companies to work on common issues with their suppliers.

CIES will facilitate this programme for all participating companies (CIES members and non-members).

Companies who initiated GSCP (namely Carrefour, Metro, Migros Tesco and Wal-Mart) asked CIES to facilitate the programme because it represents a global, well-established organisation that gathers retailers and manufacturers worldwide. CIES has also helped these companies to successfully build a similar initiative for the convergence of standards in Food Safety (the Global Food Safety Initiative).

The group also sought the credibility and support of a CEO-led body.

To initiate the process the CIES Retail Board has proved to be an effective sounding board:

• To ensure the vision is understood and shared and gains genuine drive from the top.
• To build a multisectorial approach as retailers touch every sector in the consumer markets.
• To gain the commitment of business at leadership level and increase credibility in the dialogue with civil society stakeholders and international institutions (UN, ILO, Global Compact)
• To take the lead, as retailers outsource up to 100% of their products and processing.

GSCP has however developed an independent governance model where its own Board will report to the Task Force which represents a much wider constituency of companies (retailer and consumer brands from all sectors).

Who do I contact for more information?

Please contact Claudine Musitelli at CIES on c.musitelli@ciesnet.com