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Case Studies | Monday June 1, 2009

Building Collaboration: The ILO/IFC’s Better Work Program

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The Challenge

A joint project of the International Labour Organization (ILO) and the International Finance Corporation (IFC), the Better Work program is designed to improve working conditions in global supply chains while boosting both countries' economic competitiveness and business for national industries. The ILO and IFC selected BSR to help increase the involvement of international buyers in order to create systemic improvements of the working conditions in their supply chains.

Our Strategy

BSR's work on this project grew out of our support for the ILO/IFC's Better Factories Cambodia project. In 2008, following the global expansion of the model, BSR worked with the ILO/IFC to expand the participation of international buyers in Better Work, to strengthen both that program and the companies' efforts to ensure responsible supply chains.

At the same time, BSR began running country-specific buyers' forums in countries to which Better Work was expanding, including Vietnam and Jordan. These events allow buyers to work directly with key local stakeholders—including government, unions, and enterprises—on shared solutions to improve working conditions. These country-level programs—which directly benefit nearly 800,000 workers—combine independent assessments of labor standards at the factory level with training and capacity building.

Our Impact

As a result of BSR's efforts, the number of international buyers in the project doubled, and we contributed to a significant reduction of duplicative factory monitoring in Cambodia. Our approach also led to verified improvements in working conditions across the apparel industry, the creation of tens of thousands of new jobs, and sustained increases in exports to the United States and the European Union.

In 2005, at the end of the Multi-Fibre Arrangement, the international system of national quotas for apparel production, many people were concerned that the industry in Cambodia would be decimated. Instead, the Better Work program helped increase jobs in Cambodia's garment export market by nearly 30 percent. In the first year after the lifting of quotas, international buyers involved in the program increased exports at twice the rate of the industry average.

While it's too early to quantify our impact in other Better Work countries, BSR has worked with many buyers sourcing in those regions to create a strong commitment to reducing the duplication of monitoring, continuously improving working conditions, and actively engaging in partnerships with local stakeholders.

The tripartite model of Better Work provides a basis for impact and credibility. Most importantly, Better Work's tools and country-specific programs enable international buyers to collaborate with government, employer, and workers' organizations on shared models that promote sustainable impact at the national level.

Case Studies | Monday June 1, 2009

Archer Daniels Midland: A Sustainable Supply Chain for Agribusiness

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The Challenge

As one of the largest agricultural processors in the world—producing food, feed, and bio-energy products—Archer Daniels Midland (ADM) addresses one of the world’s most pressing challenges: meeting the growing global demand for agricultural products, while balancing the need to use such resources for food, fuel, or animal feed, and minimizing environmental degradation. Seeking guidance as it navigated these interconnected issues, ADM engaged BSR, beginning in 2007, to help the company align its supply chain management with best practices in social and environmental stewardship.

Our Strategy

Over the course of nine months, BSR assessed key commodities in ADM’s supply chain, evaluated the impacts of related operations on the environment, helped the company understand stakeholder views, and recommended options for maximizing sustainability in the years to come.

BSR’s supply chain assessment included several steps. First, we analyzed the sustainability impacts for three commodities (corn, palm oil, and soy) in the key countries where they are grown: Brazil, Indonesia, Malaysia, and the United States.

Next, BSR sent teams to observe growing and harvesting practices at individual farms in these countries. To obtain a complete picture of the production, processing, and traceability of the three crops, BSR team members interviewed a variety of stakeholders at local and global levels, including farmers, production managers, key staff within ADM, and NGO leaders.

Finally, BSR used the information gathered in these steps, and our expertise in food and agriculture supply chain issues, to develop detailed recommendations for ADM. We provided executive-level guidance on the commitments and structural changes necessary to further integrate sustainable business practices into ADM’s culture and operations, as well as advice related to commodities production—such as how to increase stakeholder engagement and align with sustainable sourcing criteria.

Our Impact

With BSR’s guidance, ADM is taking several important steps: building capacity in its various sourcing regions by hiring local people with sustainability expertise; developing partnerships with local experts to reduce deforestation, prevent the loss of local land rights, advance sustainable growing practices, and improve working conditions; and working with supply chain partners in multi-stakeholder initiatives to establish certification schemes for palm and soy production. Finally, ADM has enhanced roles, responsibilities, and structures inside the company to anticipate sustainability risks and opportunities more effectively—and deliver value everywhere it does business.

Reports | Tuesday October 28, 2008

International Labor Migration: The Responsible Role of Business

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With 90 million people migrating globally for work every year, learn about the key migration trends that affect your company—and the solutions for improving working conditions along your supply chains.