A SESSION ON

WORK ETHICS & COMPLIANCE

By
Sandeep Prasad
 Global Supply Chain : Everyone’s
Business
 Complex Environment
 Business environment is increasingly started getting
more complicated.
 Governments have started taking a keen interest in
supply chain issues , and global labour and
environmental standards.
 Therefore Companies need to have a Code of
Conduct Program.
 Development of Consensus Codes
 The proliferation of codes has created a unique
problem for factories.
 There are more than 300 codes operating in the
apparel,footwear,toy and sporting goods industries.
 At times , factories find conflicting demands from
various code inspectors.
 Therefore consensus codes are being developed.
Code of Conduct as a Business Tool
 Some of the key benefits a company can expect
form code of conduct implementation are :
 Expression of commitment.( to uphold ethical
values)
 Brand protection.
 Improvement in quality and productivity.
 Minimized business risk and liability.
 Better crisis management.
 How to develop and implement a code of
conduct
 Create company vision and philosophy.
 A company must have a clearly defined social
accountability vision,reflecting its values and
commitment to ethical business practices.
 Formulate code of conduct policy.
 The policy will take its cue from the vision statement
and the rest will depend on its business model,scale and
risk perception.
 Create a code of conduct.
 The code of conduct should involve best practices
involving community development,adult literacy and
worker training.
 Communicate the code of conduct.
 It should be communicated to all its employees through
detailed explanation and by organising workshops.
 Determine processes and procedures
 To document audit and monitoring processes and
procedures.
 By creating necessary administrative
forms,brochures,SOPs,tools etc.
 Build an effective team
 The company should hire experienced and committed
staff to implement the code.
 Training of Staff
 It should have an intensive training program for its code of
conduct team.
 It should include audit and monitoring policies,processes and
procedures.
 Audits and Monitoring
 Once the staff is trained or external audit firm has been hired and
all the concerned parties have been communicated about the
program,the company can initiate audits and monitoring of the
factories.
 Compliance decisions
 Based on the outcome of the audits,the company needs to make
prompt decisions , including termination of non-compliant
factories,suspension of orders or issuing warnings.
THANK YOU