German retail industry relies on supplier responsibility

To improve working conditions in those countries supplying the German retail industry, GTZ is now working together with the Foreign Trade Association of the German Retail Industry (AVE) under a commission from the German Federal Ministry for Economic Cooperation and Development (BMZ). AVE member companies have undertaken to uphold an ongoing, sector-specific code of conduct. Through this PPP project, recognised social standards are to be introduced to supplier companies of the German textile, shoe and toy industry in some eleven countries in Asia and Eastern Europe. The aim is to strengthen the competitiveness of the companies concerned by improving the workforce’s living and working conditions. These activities are based on internationally recognised guidelines such as the ILO core labour standards for corporate social responsibility.

Since spring 2003, the project has reached supplier companies with a total of around 1.25 million workers in China, India, Pakistan, Bangladesh, Indonesia, Philippines, Thailand, Vietnam, Turkey, Bulgaria and Romania. In the initial phase, some 2,000 company representatives were sensitised to the need for social standards. By the end of 2006, 1,700 production sites will have undergone a so-called audit. Beyond these company-specific activities, GTZ is initiating and coordinating forums, so as to mobilise a wide-scale discussion on social standards in the individual countries. These “National Round Tables” are not only for the AVE and its supplier companies, but include government, union and NGO representatives. In a dialogue process, they provide consultancy to back up ongoing auditing and upgrading measures by the project, but also engage in further-reaching activities seeking to find solutions and new approaches to the long-term implementation of social standards in their country. As part of this process, national actors will increasingly assume responsibility for issues such as “ownership” of the round tables and future process steering. In the course of the project in the eleven countries, companies having a combined workforce of more than 30 million employees will be sensitised to the importance of minimum social standards thanks to the multiplier effect of the groups involved in the National Round Tables.