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Social accountability good for firms - Ecop


Wednesday, August 31, 2005
Social accountability good for firms - Ecop

Cebu-based companies can strengthen their competitiveness in the global market, especially in European countries, by strengthening efforts on social accountability.

According to Cecil Benavidez, InWent Special Project Officer, most companies in Europe now require their trade partners to adhere to the principle of social accountability, one of the core components of corporate social responsibility (CSR).

Social accountability had been set as a global standard for improving working conditions around the world. It developed in the late 1990s, in relation to the International Labor Organization’s 1998 Declaration of Fundamental Labor Standards.

Ensure

“SA (social accountability) provides definitions and parameters to ensure conformance to universal rights concerning labor standards, and an assurance of good practice to consumers, buyers and other companies,” according to a document furnished Sun.Star Cebu by the Employers Confederation of the Philippines (Ecop).

The social accountability standard is one of the “Global Eight” initiatives that emerged due to globalization. The other global international standards include ISO (International Organization for Standardization) 14000 Series and Accountability 1000.

InWent, an acronym of a German nongovernment organization that means Capacity Building International Germany, is synonymous with human resources and organizational development in international cooperation. It is a joint undertaking of the German Federal Government, the federal state governments and the industries.

Benefits

InWent works with partners in developing countries, transition states and industrialized nations.

During the forum, Ecop research and advocacy manager Romeo Garcia said companies gain “significant benefits” from observing social accountability.

These benefits include improved staff morale and avoidance of accidents, leading to a better reputation, greater consumer and investor confidence, and enhanced product quality.

He said social accountability is significant to suppliers and contractors because, by improving working conditions, certified suppliers and contractors enhance their competitiveness, possibly leading to long-term contracts with companies.

The social accountability standard addresses workplace conditions such as child labor, force labor, health and safety, freedom of association and collective bargaining, discrimination, disciplinary practices, working hours, compensation and management systems.

“By taking better care of workers, absenteeism often fall, worker commitment may increase, productivity may increase and relationships with trade unions and other key stakeholders can improve,” Garcia said.

“By improving working conditions, companies are contributing to a more stable global business environment.” (JBN)

(August 31, 2005 issue)
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