Results in industry and trade

One third of all goods consumed in Germany are produced outside the EU, mainly in Asia. In the case of textiles, that share rises to over 50 percent. Many of these countries do not comply with the ILO's Core Labour Standards and more extensive social standards, such as health and safety in the workplace.

The situation can only be improved if the problem is addressed from all sides within the value chain, from the producers right through to the consumers - in Germany as well as in the producing countries. By introducing codes of conduct and complying with the standards, German companies can help to ensure that human rights are respected in developing and transition countries. Requiring suppliers to comply with social and ecological standards makes these standards relevant in terms of awarding contracts. GTZ and the Foreign Trade Association of the German Retail Trade (AVE) have succeeded in introducing broad social standards in production plants in eleven Asian and Eastern European countries that supply products to the German textile industry.

To initiate a dialogue on the introduction, enforcement and monitoring of codes of conduct and to test possible solutions in pilot projects, BMZ set up a Code of Conduct Round Table in Germany in 2001. The Round Table Secretariat is managed by the Social Standards component.

In developing and transition countries too, awareness must be raised of their responsibility in dealing with this challenge. Both sides of industry in the SMEs must be sensitised to the issue of social standards. The key to success is a functioning employee representation system that enables workers to discuss their concerns and negotiate their rights independently with their employers.
In this context, our training module on profitable social management (PSM), which is targeted at SME managers in developing countries, and a pilot project to promote a dialogue between the management and the workforce are significant instruments.