IETP launches a Social Impact Assessment Tool for companies to use to measure and improve the effectiveness of management systems in place to protect workers’ rights and ensure safe workplace conditions
For the past 15+ years IETP has provided labor standards assurance through our factory certification program, primarily in China. In order to support companies to achieve greater oversight of their supply chain we have created the SIA program which can be implemented at scale, globally. It enables companies to segment their supply chain and for those where certification is appropriate, SIA provides an excellent development route.
The IETP Social Impact Assessment is designed to assess a manufacturing site, vendor, agent or licensee’s social impact by measuring the effectiveness of their management systems in place for labor standards in their businesses and in their supply chains. Social impact is the effect an organization has on people and communities as a result of its actions, activities, projects, programs or policies.
We believe that all businesses should have a positive impact on their workers and other people affected by their operations. The assessment is based on an ethos of ‘you can’t improve what you don’t measure’ – to improve social impact the first step for a company is to measure what it is doing now. From there it can map a path to improvement.
The IETP Social Impact Assessment was launched in 2020 with a global pilot of manufacturers, agents, distributors and licensees based in the UK, USA and Mainland Europe. SIA is available worldwide and at a lower cost than an in-person factory audit.
The program allows companies to gain a new level of oversight over suppliers that they previously may not have been able to assess or audit such as beyond tier one, those where the business relationship may be short term or where the buyer has low influence.
The assessment is designed to determine the capacity of a manufacturing site, vendor, agent or licensee to effectively manage labor, environmental, and health and safety compliance in their facility or supply chain.
The assessment is not a due diligence audit; it is a verified assessment and a capacity building program which is designed to help the organizations completing it by providing them with advice, coaching and a tailored improvement plan based on the findings.
Anywhere in your supply chain where you do not have oversight is a potential risk to your corporate reputation. Whether this is through licensing of your IP, which may mean you do not have visibility of how and where product is being manufactured, or for a direct supplier based in a perceived low-risk region such as Europe.
By requesting that your suppliers, agents or licensees participate in the SIA program, all parties will benefit. You will gain required oversight of where and how your products, or products with your IP, are being produced and they will better understand their strengths and their risk areas in managing social compliance requirements. They receive an independent verified score, which is shared with you. They will also receive a tailored improvement plan, identifying areas to focus on and specific recommended actions they can take in each area to improve.
How to get started:
- Contact Aine McCarthy (firstname.lastname@example.org) IETP Social Impact Program Manager to develop a plan to meet your needs
- Know your supply chain – identify locations and categories where you require further oversight – this can be direct manufacturers, agents, middlemen, licensees or vendors
- Companies identified to participate will be briefed and the assessment process can begin.