Wednesday, September 10, 2008

The Base Code Principles of Implementation

ETI has developed a code of labour practice - the 'Base Code' - reflecting the most relevant international standards with respect to labour practices which will be used as the basis of its work.

ETI member companies are expected to adopt this Base Code, or to adopt their own code so long as it incorporates the Base Code. The Base Code which is accompanied by a set of general principles concerning implementation, provides a foundation for ETI's philosophy of learning.

Principles of Implementation:

The purpose of ETI is to identify, develop and promote good practice with respect to implementing codes of labour practice.

Critical areas include monitoring and verification, and transparency and disclosure, to determine and communicate whether standards embodied in the code are being achieved. ETI members accept the following as general principles upon which to develop or refine their search for best practice.

1. Commitment

  • The company gives its membership of ETI, the code and its implementation process an informed and explicit endorsement.
  • This commitment is communicated throughout the company and to its suppliers and sub-contractors (including closely associated self- employed staff).
  • A member of senior management is assigned responsibility for the implementation of compliance with the code.
  • The code and the implementation process is integrated into the core business relationships and culture.
  • The company will ensure that human and financial resources are made available to enable it to meet its stated commitments.
2. Monitoring, independent verification, and reporting
  • Member companies accept the principle that the implementation of codes will be assessed through monitoring and independent verification; and that performance with regard to monitoring practice and implementation of codes will be reported annually.
  • Companies will engage with other members in the design, Implementation and analysis of pilot schemes to identify good practice in monitoring and independent verification and share this experience with other members.
  • Company members will draw on this experience in establishing where relevant with other ETI members' work plans to implement programmes of monitoring, independent verification, and reporting, and will report progress against these programmes to and through the ETI in a format and timing to be agreed.
  • Workers covered by the code shall be provided with a confidential means to report failure to observe the code and shall be otherwise protected in this respect.
3. Awareness raising and training
  • All relevant personnel are provided appropriate training and guidelines that will enable them to apply the code in their work.
  • Suppliers are made aware of the code, and the company's commitment to sourcing from suppliers who observe the standards in the code.
  • Workers whose work is covered by the code are, where possible, made aware of the code and implementation principles or procedures.
4. Corrective actions
  • Member companies commit themselves, on the basis of knowledge gained from monitoring to; (a) negotiate and implement agreed schedules for corrective actions with suppliers failing to observe the terms of the code, i.e. a continuous improvement approach; (b) require the immediate cessation of serious breaches of the code, and; (c) where serious breaches of the code persist, to terminate any business relationship with the supplier concerned.
5. Management procedures, pricing and incentives
  • Negotiations with suppliers shall take into account the costs of observing the code.
  • Understanding and implementation of company policy with respect to its code of labour practice shall constitute a positive performance measure when assessing appropriate personnel.