How SLCP supports stakeholders to improve working conditions
Convergence, Collaboration, and Credible Data: The 3 Cs of SLCP
There has never been a more urgent time to address the various human rights issues in apparel and textile production and supply chains in general. Even after the proliferation of social standards and auditing over the last 25 years, adherence to basic labor standards is not the norm. Many researchers including those at ILO and Cornell University’s New Conversations Project paint a concerning picture of the situation for workers, with the apparel industry continuing to face a myriad of obstacles in achieving effective labor governance. There is cause for concern for the resilience of global supply chains, which are rooted in unsustainable and irresponsible business practices.
An industry left to its own devices
The fashion industry has been largely unregulated in its efforts to address systemic social issues. However, it is becoming increasingly clear the market-driven solution of social auditing has not resulted in the systemic change industry stakeholders and outsiders had hoped for. And while the recent COVID crisis presented unparalleled challenges, the impacts on production systems and practices suggests it is not a standalone event, but reemphasizes the vulnerability of existing supply chain dynamics.
Changes have occurred in the context of market concentration and consolidation, sourcing and governance practices, and automation of production. Moreover, the industry has seen explosive growth of voluntary standards and private regulation which sought to address root causes, but often created confusion and lacked cohesion. While much of the attention has been on reputation and rebuilding credibility, the most crucial aspect has remained largely unchanged: working conditions. As such, many stakeholders agree that repetitive, resource-intensive, and market-driven proprietary social audits alone are not the solution.
The role of governments is changing
Recognizing this need, government agendas are shifting. After a long period where debate and regulation were dominated by the private sector, there is increasing demand for governments to play a greater role.
International frameworks such as the UNGPs and the OECD Guidelines for Responsible Business Conduct have clearly defined what the role of governments and other stakeholders should be. And yet, after 10 years of the UNGPs, states continue to come under scrutiny for their limited role in ensuring human rights. However, national governments are beginning to turn to mandatory regulation with judicial grievance mechanisms to implement universally agreed upon standards outlined in the ILO Conventions. This is evident in the recent developments by many western governments, including the UK (Modern Slavery Act 2015), Australia (Modern Slavery Act 2018), France (Corporate Duty of Vigilance Law), Germany (Supply Chain Law). The EU due diligence legislative proposal will be implemented shortly, and in the US, ambitious legislation in the state of New York (Fashion Sustainability and Social Accountability Act) is being deliberated.
Need for credible and actionable tools to implement due diligence
There is a growing consensus that governments should turn to multi-stakeholder initiatives (MSIs) in applying due diligence regulation. In doing so, MSIs’ collaborative design can be leveraged to play a supporting role, particularly in implementation.
For example, the European Union is currently developing the European Textile Strategy and human rights due diligence legislation. SLCP has earlier advocated for a smart mix of policies aimed at addressing the inadequate practices widespread in the fashion industry. Implementation of the Converged Assessment Framework (CAF) and the wide use of SLCP verified data can provide a solution for all actors in their effort to improve social and labor conditions in global supply chains.
What do smart solutions look like?
In seeking solutions, governments should turn to initiatives which drive (social) impact and build supply chain resilience. These initiatives should be enforceable in a way which avoids additional undue burden on vulnerable stakeholders such as small-medium enterprises (SME) suppliers in developing countries who typically bear the brunt of the cost and efforts to comply. At the same time, the private sector also requires smart solutions such as tools that can provide credible and actionable supply chain data and support in improving labor conditions.
SLCP, with the support of over 250 signatories, drives improvements to working conditions in supply chains through:
1. Convergence
The use of SLCP's Converged Assessment Framework (CAF) replaces duplicative social auditing with one harmonised and comprehensive data collection, verification, and data sharing process. This allows for the reallocation of resources to remediation and capacity building and increases the comparability of social and labor data across borders.
2. Collaborative Action
SLCP verified data enables collaborative improvement action and can drive strategies on remediation, buying practices, and transparency mechanisms. By providing one core data set, SLCP offers a common language and shared understanding. This sets a strong foundation for further collaboration between stakeholders to address the root causes of poor working conditions and build a resilient post-COVID industry. Through SLCP’s inclusive approach, there is not only brands and manufacturers having their needs and views heard, but also a broader range of stakeholders including governments, workers, and academia.
3. Credible Data
Using credible SLCP data, stakeholders can make decisions that are accurately informed on social and labor trends. Stakeholders can use SLCP data to implement responsible business practices in their operations or support improvements by demanding that due diligence is conducted. Through stringent verification processes, SLCP ensures the quality and integrity of its data.
While SLCP is scaling, broad adoption of the CAF is only one part of the solution. Significant shifts in practice are required from a multitude of stakeholders willing to adapt to new labor governance norms. For lasting change, informed policymakers will play a central role in determining labor policies and standards that need to be globally implemented with the support of those on the ground, including producing country trade unions, workers, and civil society.
Alignment of initiatives, collaborative action, and governments basing policy decisions on credible social and labor data are all pre-conditions for an industry that respects basic human rights’ standards.
As part of an ongoing series of blogs, this piece aims to provide a bird’s eye view of SLCP’s overall approach. In upcoming articles, we’ll shed light on a number of different angles of this debate and explore the varied industry and outsider perspectives.
