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Application of International Labour Standards at the Enterprise Level Lessons from ILO Experience Emily Sims MULTI. Overview. This presentation will briefly cover: Understanding the application of ILS to enterprises Issues in incorporating ILS in management systems Enterprises
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Application of International Labour Standards at the Enterprise Level Lessons from ILO Experience Emily Sims MULTI
Overview This presentation will briefly cover: • Understanding the application of ILS to enterprises • Issues in incorporating ILS in management systems • Enterprises • Value chains • Tools available from ILO
Application of ILS to Firms Ratified Conventions Binding ILS National legislation Principles Non-binding Enterprise
Application of FundamentalConventions to Firms Conventions Obligation Forced labour Child labour Discrimination Freedom of Association Collective Bargaining National legislation Principles Moral obligation Enterprise
Cost? Assess? Manage? RISK RISK Competitive Position? Liabilities? Mitigate?
To every problem, there is a solution that is simple, direct and wrong. H.L. Mencken
Key Lessons on Incorporating ILS in Management Systems • Ensure responsible companies have access to capital even if there are problems of compliance in the country • Ensure that compliance mechanisms don’t wipe out SMEs Invest in risk assessment and client capacity building for mitigation and managment
ImplementingILS in Firms PRINCIPLES OF ILS EXPECTATIONS OF BUYERS, LENDERS BUSINESS STRATEGY MARKET PRESSURES Firm FIRM VALUES harmonize synergize EFFECTIVE MANAGEMENT SYSTEM ENGAGEMENT OF WORKERS, INCLUDING THEIR REPRESENTATIVES FULL RESPECT OF WORKERS’ RIGHTS PRODUCTIVE AND COMPETITIVE ENTERPRISES
End Consumer National Boundary Global Economy Large scale multi-outlet retailer Small-scale retailer Trans- National Company Buyers / Import Agents Specialised Buyers Trader or Export Agent Local Markets National Sector Operating in a business environment consisting of: Meta-level Macro-level Meso-level Micro-level Large-scale and/or Multi Plant Producer Small-scale Producer Small-scale Producer Raw Material Suppliers Preliminary Producer Traders Implementing ILS in Value Chains
Tools: large-scale interventions Factory Improvement Programme
Key potential partners for IFC • ILO • Employers’ and Workers’ organisations • Public and private institutions