Many business houses understand that a company’s social accountability is a competitive asset. But companies find it difficult to deliver on and verify corporate responsibility when dealing with a huge net work of suppliers, contractors, institutions, and their customers. The first approach was to adopt internal code of conduct.


This approach had several flaws :-

• Internal code of conducts is expensive proposition.
• Many a times, they are inefficient, since laws and customs vary widely.
• Codes were perceived as a proprietary form of managerial jurisprudence, applicable only to a section of employees. When transgression takes places, corrective actions are largely not transparent.
• Supply chains, catering to different customers, having to undergo multiple audits to different set of requirements. Sometimes individual auditors interpret these requirements differently, without being sensitive to the cultural practices. A point in case is the insistence of an auditor, while carrying out a code of conduct audit at Nepal on behalf of a German client, wanted all toilets to be provided with toilet papers, arguing about unhygienic practices!

The next approach was introduction of a model similar to ISO 9000, with a set of requirements, which are credible, auditable and certifiable by third parties. With a basic system management approach like PDCA, the standard aims at continual improvement. Sa 8000 is a performance standard covering nine essential areas – where companies must amply with relevant local legislature and SA 8000 requirements.

These areas are :- Child labour, forced labour, health & safety, freedom of association & collective bargaining, discrimination, disciplinary practices, working hours, compensation and management practices.

There are two additional elements that are considered essential for social auditing :-

• Auditors are required to gather information from interested parties – NGO’s, trade unions, workers etc.
• The complaints and appeals process allows workers and interested parties to raise non-compliance issues and bring it to the notice of certification bodies and Social Accountability International.

SA 8000 is based on 12 ILO conventions, the UN declaration of human rights and the UN convention on the rights of the child.