Graduation Project (SA 8000 & it's frame work for Indian Apparel Manufacturing)

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1. INTRODUCTION
Industrialization is the major trend in developing countries. But industrialization is a result of
a complex socio-economic organisation. In today‘s fast changing global market, it is not only
the quality of garments which is cherished by the retailers and manufacturers but also the
working environments of the organization wherein the products were produced. Indian
apparel industry seems to have become one which is taking issues of ethical sourcing and
responsible business quite seriously. Given the pressure from consumers in the west upon
their service providers and brands to source and produce ethically and that, in turn, translating
into demands from Indian manufacturers to adhere to certain laid down rules and regulations,
the humane side of business has assumed substantial importance. Issues of workers‘ rights
and their welfare too have come into the ambit of ―the responsibility of businesses‘‘.
Aberrations on these accounts are not easily tolerated and companies which default on these
sensitive issues have a huge price to pay in terms of loss of face and of course, business.
The eagerness among apparel manufacturers in India to be socially compliant has gone up in
the last few years. According to data available with us, WRAP certifications alone have
shown an upward swing. In 2006, nearly 58 companies had been certified under WRAP. And
in 2008, the figure has apparently crossed the 100 mark.
1.1. STATEMENT OF THE STUDY
“Companies in a competitive world know that if they want to survive in the market today, they
have to ensure compliance of some threshold issues, which are called as red flags. Beside the
eagerness of Indian Exporters, social compliance certifications are still a challenge. Social
Compliance is one of the significant types of Non Tariff Measures (NTM’s) imposed by major
importers of Indian Apparels” (Gordhan K Saini, December 2009)
1.2. SIGNIFICANCE OF THE STUDY
The human side of business has gained substantial importance. Ethics, values, issues of
human rights and sensitivity to environmental issues is not just necessary for enhancing the
buyers‘ perception about the company. These are also important for inclusive growth.
Working culture and environment affect labour productivity. Aberrations on these accounts
are not easily tolerated and companies which default on these sensitive issues have a huge
price to pay in terms of loss of face and of course, business.

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Recent surveys show that a large and growing number of consumers and investors are
influenced in their decisions by a company's social and environmental performance. How a
company addresses these concerns affects their profits and access to financing. (Social
Compliance)
Leading companies are pushing to integrate social compliance into their sourcing activities.
Gap, Inc. is using an integrated supplier scorecard that measures a supplier's compliance level
as well as its business performance. Otto Group, Europe's largest catalogue retailer, is
including a social compliance rating along with measurements for delivery, quality and price.
(Social Compliance)
We know that Indian exporters have lost significant business due to failure in compliance
audits and certifications. These certifications also ensure the ethical practices & working
environments.
The US blacklisted India from engaging in apparel business in 2010, due bad performance in
Executive Order List 13126. Apparel exporters will risk losing clients like Next, GAP,
Reebok, Primark and Nike if India fails to convince the US that its industry does not employ
children. (Shramana Ganguly Mehta, 2011)
Absenteeism and operator‘s productivity are the most concerned issues at production floor.
Improved culture and environment will motivate the operators and contribute towards to
solve those issues. Thus it will also contribute towards improved overall production
efficiency.
“There is a need to rope in those who source garments from India in the process. The CSR
and sourcing teams within the various brands need to be more in sync. There is also a need to
understand the hidden costs of compliance and the role of importers and buying agents in
driving up the cost and complexity of compliance”
- Chandrima Chatterjee, Director, AEPC, India

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1.3. PURPOSE OF THE STUDY
This study will focus on identification of factors responsible for being most popular
certification, SA8000, for Social Accountability among Exporters of India. We will try to find
out the gap between SA8000 standards and Indian Labour Laws. Thus this report will serve
the purpose of the analysis of SA 8000 and its adaptability to Indian Labour Laws for Indian
Apparel Exporters in Bangalore.
This study aims to explore local-level experiences of SA8000 in Garment Manufacturing
Industries of Bangalore by analysing the impacts on business practices and working
environment. The analysis of the potential benefits may drive some organizations to
implement & sustain these standards.
1.4. OUTLINE
Chapter one sets out the scene and formulates the purpose of the study. Chapter two
elaborates the concepts of ‗NTM‘, precedence of Social compliance & its evolution. It also
discusses the present scenario of NTMs for RMG sector in India. Chapter three focus on the
concept of ‗Social Compliance‘ and its background. In this chapter, various initiatives,
standards and certifications have been overviewed, followed by the comparison of SA8000
with WRAP and BSCI. Further in this chapter, the Indian exports scenario of the sector has
been discussed. Chapter four provides some insights on ‗SA8000‘. Chapter five provides the
understanding of the certification process, while chapter six provides the status & statistics of
SA8000 certification. Chapter seven discuss the methodology to carry out the study. Chapter
eight is about the hypothesis based on the ‗Literature Review‘, while from chapter nine &
onwards the actual scenario regarding SA8000 & social compliance at large has been
discussed.
1.5. LIMITATIONS OF THE STUDY
i. Due to time constraints & proximity, the study has been focused only few region of
the Bangalore RMG Cluster, this may lead some sampling error.
ii. We have to go through management systems of the facilities to carry out the study,
which takes the flexibility and some control away from us, due to that we were not
able to carry out the free discussion with labours.
iii. Due to unavailability of all required data in public domain, we were not able to gather
all relevant information.

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2. NON TARIFF MEASURES
Recent trade negotiations have addressed measures that restrict or distort international trade
in goods. Tariffs are the more commonly known obstacle to trade flows, but OECD is also
active in identifying and analysing non-tariff measures (NTMs) - less apparent restrictions on
the free flow of trade. (Trade- Non Tariff Measures)
With lowering of Tariffs across the globe, NTMs becomes into more focus. Members started
to concentrate on these measures to erect the supply/entry barriers for trades (goods &
services). Developed countries are the more prolific user of these measures to keep out
developing countries exports.
Although identification and analyses of non-tariff measures (NTMs) has significantly
evolved, understanding their nature, extent and trade effects remains a challenge for analysts
and policymakers.
2.1. DEFINITION OF NON TARIFF MEASURES
“Non Tariff Measures (NTMs) are all measures other than normal tariffs namely trade
related procedures, regulations, standards, licensing systems and even trade defence
measures such as anti-dumping duties etc which have the effect of restricting trade between
nations.”
 Department Of Commerce, Ministry of Commerce & Industry,
Government of India (Non Tariff Measures)
“Non-Tariff Measures (NTMs) are policy measures, other ordinary custom tariff that can
potentially have an economic effect on international trade in goods, changing quantities
traded, or prices or both”
 MAST, United Nations Conference on Trade and Development
(Definition, Classification (and collection) of NTMs, 2009)
2.2. HISTORY OF NTMs/ NTBs
NTMs have been a concern since the birth of the General Agreement on Tariffs and Trade
(GATT). The GATT drafters included general rules covering some of these measures, such as
Article XI on the general elimination of quantitative restrictions. (Marc Bacchetta and
Cosimo Beverelli, WTO CONSULTANTS)

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Despite having a long period of existence/use, the NTMs came into special attention in early
70‘s (Quinn J. and Slayton P, 8-10 May, 1980) when the discussion of NTMs was explicitly
scheduled in the framework of Tokyo Round of the GATT negotiations. This round was
attended by 102 member countries. (The GATT years: from Havana to Marrakesh).
Conducted between 1973 and 1979, the Tokyo Round continued GATT's efforts to
progressively reduce tariffs. These efforts resulted into the decrease on the average tariffs of
manufactured products from 40 % (at the starting of GATT) to 4.7% with one third cut in
custom duties in the world‘s main nine markets. (The roots of the WTO). The understanding
of NTMs has come along with the gradual reduction on Tariff barriers which helped the
growth of NTMs and its importance.
2.3. TYPE OF NTMs
There are six major types of NTMs, which are in existence of current trade scenario of world.
(Non Tariff Measures, 2012)
Specific Limitations on Trade
Quotas.
Import Licensing requirements
Proportion restrictions of foreign to domestic
goods (local content requirements)
Minimum import price limits
Embargoes

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Customs and
Administrative Entry
Procedures
Valuation systems
Anti-dumping practices
Tariff classifications
Documentation requirements
Fees
Government Participation in
Trade
Government procurement policies
Export subsidies
Countervailing duties
Domestic assistance programs
Standards
Standard disparities
Intergovernmental acceptances of testing methods
and standards
Packaging, labeling, and marking

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According to the United Nations Conference on Trade and Development (UNCTAD)
classifications there are approximately 100 different codes, representing various non-tariff
measures. (Indicators of Tariffs and Non-Tariff Trade Barriers, 1997)
2.4. NTMs & INDIA
Since 1991, India has begun gradually liberalising its economy and dismantling barriers to
trade and investment. Although the reform process is incomplete, India has been able to
develop a diverse production base with the helped of developing country standards. This has
supported India to increase export and helped to open to foreign direct investment. This base
has been dominated by resource-based and low-technology products for which global demand
is somewhat stagnant. There is also a small set of high skill and technology products with
considerable export potential. Following the Asian currency crisis in mid-1997 and
international recession, there is an emerging perception that non-tariff measures in overseas
markets may adversely affect the country's export growth. These measures are likely to affect
Changes On Imports
Prior import deposit subsidies
Administrative fees
Special supplementary duties
Import credit discrimination
Variable levies
Border taxes
Others
Voluntary export restraints
Orderly marketing agreements

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the whole range of Indian exports. (Non-Tariff Measures affecting India's Exports - Executive
Summary)
Now to manage NTB/ NTMs India arrange the required database in the following ways:
 Country Wise
 Product Wise
Several surveys and studies have been carried out to establish proper channel for encounter of
NTMs. A study has recommended the government of India to encourage the private provision
of certain services required to improve the capabilities of enterprises to respond positively to
NTMs, in such areas as consultancy services, testing and certification facilities and quality
control issues. It also suggested the Government to make SMEs in particular more aware of
the importance of compliance issues. (Non-Tariff Measures affecting India's Exports -
Executive Summary)
According to a recent study by ICRIER, the database can be managed according to the
following categorization:
 Electric & Electronic products
 Pharmaceuticals products
 Product Specific requirements in the US
 Product specific requirements in the EC
 State Specific requirements in the US
 State specific requirements in the EC
 NTBs in the Gulf Cooperation Council (GCC).

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3. SOCIAL COMPLIANCE
The concept of ethical business is not a new one. But after 90‘s, due to liberalisation,
increased concerns over the impacts of globalisation has led to new demands of corporations
to play a central role in the human aspect of business, achieve equitable and accountable
systems of governance and ensure social as well as environmental security.
In essence, the approach is to view business as part of society and to find ways to maximise
the positive benefits that business endeavour can bring to human and environmental well-
being whilst minimising the harmful impacts of irresponsible business. These agendas are
now a day‘s known as ‗social accountability‘ for Corporate Social Responsibilities.
”I honestly believe that the winning companies of this century will be those who prove with
their actions that they can be profitable and increase social value — companies that both do
well and do good… Increasingly, shareowners, customers, partners and employees are going
to vote with their feet — rewarding those companies that fuel social change through business.
This is simply the new reality of business — one that we should and must embrace.”
- Carly Fiorina, Chairman and Chief Executive Officer, HP
(Abira Chatterjee, 2008)
A recent article enlightens the need of various approvals, certifications and compliances,
regarding to society and labours, for the continuous flow of business. (Ram K Navratna,
2011) These certifications are subjected to continuous audits by the internal and external
agencies.
3.1. DEFINITION OF SOCIAL COMPLIANCE
 “Result of conformance to the rules of social accountability by the extended
organization including not only the organization's own policies and practices but also
those of its supply and distribution chains. It is a continuing process in which the
involved parties keep on looking for better ways to protect the health, safety, and
fundamental rights of their employees, and to protect and enhance the community and
environment in which they operate.” (Social Compliance)

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3.2. SOME MAJOR GLOBAL STANDARDS & CERTIFICATION PROGRAMS FOR
SOCIAL & ETHICAL COMPLIANCE (MSMEs' role in Enterprise Social
Responsibility)
These standards / certifications emphasize on rules of social accountability that address
health, safety and fundamental rights of the enterprises‘ employees and other stakeholders.
The main purpose of such certifications is to protect and enhance the community and the
environment and fight ills like child labour, forced labour, occupational hazards and
discrimination.
3.2.1. SA 8000
It is a global social accountability standard for decent working conditions, developed and
overseen by Social Accountability International (SAI). It contracts with a global accreditation
agency, Social Accountability Accreditation Services (SAAS) that licenses and oversees
auditing organizations to award certification to employers that comply with SA8000.
Figure 1: Various Social Compliance Standards

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3.2.2. BSCI
Business Social Compliance Initiative is the common European platform of retailers, industry
and importing companies for monitoring and improving social standards in supplier countries
for all consumer goods. Audits within the BSCI can be conducted in any production facility
worldwide. The type of articles covered by the BSCI varies widely – soft goods, clothing,
home textiles, small appliances, toys, and accessories. (Home)
3.2.3. WRAP
Worldwide Responsible Accredited Production is a certification program for manufacturers.
WRAP is an independent, non-profit organization dedicated to the certification of lawful,
humane and ethical manufacturing throughout the world. WRAP apparel certification is now
a requirement by most garment retailers in the U.S. A WRAP certification is widely accepted
by retailers, brand managers, licensers, as evidence that your facility is socially responsible.
(Home)
3.2.4. ETHICAL TRADE INITIATIVE
ETI promotes responsible corporate practices that observe national and international Labour
Laws. Recognized by almost all UK retailers, ETI combines practical focus with balanced
labour rights perspectives. ETI must adhere to a code of labour practices based on key
conventions of ILO as well as a set of general principle determined by country and business
type.
3.2.5. AA 1000
It provides a basis for designing, implementing, evaluating and assuring the quality of
stakeholder engagement by organizations. It is developed by AccountAbility, a not-for-profit
British organization. (aa1000)
3.2.6. OHSAS 18000
It is an international occupational health and safety management system specification that
was developed to cater to the health and safety obligatory needs of enterprises in an efficient
manner. This specification comprises of two parts: (What Are OHSAS 18001 and 18002)
 OHSAS 18001 that specifies assists in controlling health and safety risks.
 OHSAS 18002 that highlights procedures for implementation and registration.

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3.2.7.ECS 2000
It is issued by the Business Ethics Research Project, Reitaku Center for Economic Studies,
Reitaku University. Corporate ethical standards systemically specify the development of
management systems to ensure ethical practices.
3.2.8. ISO 26000 or ISO SR
It is a family of standards, under development, which will provide guidelines for social
responsibility that will be applicable to any business regardless of its size, location or income.
3.3. COMPARISON OF VARIOUS SOCIAL ACCOUNTABILITY STANDARDS
Table 1: Comparison of SA8000 & WRAP (Phoebe Clark, November, 2007)
PARAMETERS SA8000 WRAP
Type of organisation Multi-stakeholder organization of
NGO, trade unions and private
sector representatives.
Organisation of 700
companies.
Reference for
standards with ILO
conventions
Adhere to all ILO conventions Only comply with them.
Minimum Age (child
labour)
15 years. (13-15 year odds to work
under certain conditions- no more
than 2 hours work in a day)
14 years.
Freedom of
association and
collective bargaining
Require management to allow
workers to join trade unions and
bargain collectively.
 Also requires factories
located in countries where
these are restricted to
facilitate parallel means of
employee organisation.
Require management to
allow workers to join trade
unions and bargain
collectively.

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Working Hours 48 hours a week and overtime no
more than 12 hours
72 hours a week or 14 hours
a day.
Minimum Wage As cited in ILO Minimum Wage
Fixing Convention 131
As local minimum wage.
Health & Safety Requires basic emergency exit plans,
fire extinguishers, warnings signs on
dangerous machines, personal
protective equipments, first aid,
access to clean water and clean
toilets, ergonomic seating, and a
health and safety committee or
management structure.
 A system to ensure continual
improvement.
Same but don‘t require a
factory to have any system
for improvement.
Management Devotes an entire principle to
management system.
Are not as detailed as SA
8000.
Suppliers,
Subcontractors, and
Home-Workers
Encourage and enforce compliance
in the supply chain.
Does not provide its auditors
with methods to verify
compliance.
Registration Charge only for its guidance
document for US$ 100.
Register online and pay fee
of US $895.
 Get certification in
next 6 months or pay
another US $895.
Other Does not cover environmental
standards, custom laws and security
regulations.
Also cover those areas.

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Table 2: Comparison of SA8000 & BSCI
PARAMETERS SA8000 BSCI (Code Of Conduct, 2009)
Type of organisation Multi-stakeholder organization
of NGO, trade unions and
private sector representatives.
Developed by Foreign Trade
Association. (BSCI
INFORMATION SHEET)
Legal Compliance Adhere to all ILO conventions Applicable laws and regulations,
industry minimum standards, ILO
and UN conventions and any other
relevant statutory requirements
whichever requirements are more
stringent.
Minimum Age (child
labour)
15 years. (13-15 year odds to
work under certain conditions-
no more than 2 hours work in a
day)
According to ILO and UN
conventions and/or national laws
Freedom of
association and
collective bargaining
workers to join trade unions
and bargain collectively.
 Also requires factories
located in countries
where these are
restricted to facilitate
parallel means of
employee organisation.
workers to join trade unions and
bargain collectively.
 In accordance with ILO
conventions 11, 87, 98, 135
and 154
Working Hours 48 hours a week and overtime
no more than 12 hours.
According to national law but
should not exceed 48 hours a week
and overtime no more than 12
hours.
Minimum Wage As cited in ILO Minimum Shall meet or exceed legal

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Wage Fixing Convention 131 regulations and industry standards.
Health & Safety Requires basic emergency exit
plans, fire extinguishers,
warnings signs on dangerous
machines, personal protective
equipments, first aid, access to
clean water and clean toilets,
ergonomic seating, and a
health and safety committee or
management structure.
 A system to ensure
continual improvement.
In accordance with ILO
conventions 155, 184 and ILO
recommendations 164 and 190
 System to detect, avoid or
respond potential threats
shall be established.
Management
Systems
Devotes an entire principle to
management system.
Also ensures that supplier
company shall define and
implement a policy for social
accountability.
Integral parts of this Code Of
Conduct
 Declarations of the supplier
company
 Terms of implementation
 Consequence of non
compliance
Registration Fee Charge only for its guidance
document for US$ 100.
According to annual turnover
Certifications Yes No (Producers Information Sheet-
Get Started with BSCI)
Applicability Any organisation Company having annual turnover
above 500,000 Euros. (Sevices

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And Fee, 2011)
Other Does not cover environmental
standards, custom laws and
security regulations.
Covers for waste management,
handling and disposure of
chemicals and other dangerous
material, emissions and effluent
treatments.
Also covers anti-bribery and anti
corruption policy.
3.4. SOCIAL COMPLIANCE & INDIAN APPAREL EXPORTERS
Indian exports has seen decline from last three years. USA and EC have been major importers
for Indian apparel manufacturers.
Several reasons were considered to be responsible for that like:
 Recession
 Increase Labour/production cost etc.
 Doubt about the work environment and other compliance standards.

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3.4.1. INDIAN APPAREL EXPORTS
3.4.1.1. 61 ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, KNITTED
OR CROCHETED
Table 3: Contribution of Apparels to Indian Exports- (EXPORT IMPORT DATA
BANK Version 6.0 - TRADESTAT, 2012)
COMMODITY 2009-2010
%
SHARE
2010-2011
%
SHARE
%
GROWTH
ARTICLES OF
APPAREL AND
CLOTHING
ACCESSORIES,
KNITTED OR
CORCHETED.
21,77,661.74 2.5755 21,71,796.69 1.9007 -0.27
India's Total
Export
8,45,53,364.38 11,42,64,897.18 35.14
Table 4: Indian Apparel Export (Commodity: 61 ARTICLES OF APPAREL AND
CLOTHING ACCESSORIES, KNITTED OR CORCHETED)
SR.
NO.
COUNTRY VALUES IN
RS. LACKS
2008-2009
VALUES IN
RS. LACKS
2009-2010
VALUES IN
RS. LACKS
2010-2011
GROWTH
IN 10-11
1 AUSTRALIA 7,093.16 10,583.53 14,380.79 35.88
2 BELGIUM 47,248.58 45,690.63 65,696.63 43.79
3 CANADA 68,060.38 60,867.32 56,156.17 -7.74
4 DENMARK 34,233.25 31,325.42 33,603.54 7.27
5 FINLAND 12,516.36 11,103.18 11,673.91 5.14
6 FRANCE 1,87,229.21 1,54,301.46 1,31,861.47 -14.54
7 GERMANY 3,18,027.48 2,77,506.84 2,18,811.27 -21.15
8 IRELAND 31,533.39 29,002.78 9,802.30 -66.2
9 ITALY 1,17,768.27 1,14,004.18 97,626.82 -14.37
10 KAZAKHSTAN 10,153.15 9,157.73 11,944.75 30.43
11 MEXICO 17,307.79 10,984.98 14,962.89 36.21

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12 NETHERLAND 91,973.42 83,035.54 79,925.91 -3.74
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NETHERLAND
ANTIL
4,652.36 5,249.58 16,470.44 213.75
14 OTHERS 1,33,402.19 1,36,935.20 1,48,022.07 7.49
15
PANAMA
REPUBLIC
7,874.89 5,078.94 12,042.72 137.11
16 POLAND 11,428.24 8,871.50 10,096.39 13.81
17 SAUDI ARAB 42,612.82 34,563.57 39,742.93 14.99
18 SINGAPORE 12,006.00 10,686.87 16,114.35 50.79
19 SOUTH AFRICA 18,703.76 22,696.67 21,539.99 -5.1
20 SPAIN 77,565.35 87,806.28 78,258.66 -10.87
21 SWEDEN 17,994.43 15,797.77 15,235.96 -3.56
22 SWITZERLAND 38,167.80 14,987.25 12,462.38 -16.85
23 TURKEY 9,029.52 5,824.28 9,331.24 60.21
24 U ARAB EMTS 1,68,748.54 1,79,333.88 2,32,194.50 29.48
25 U K 2,83,020.49 2,60,406.14 2,07,326.03 -20.38
26 U S A 5,58,061.56 5,51,859.92 6,06,512.29 9.9
TOTAL 23,26,412.39 21,77,661.44 21,71,796.40 -0.27
Graph 1: Indian Apparel Exports during last 3 years
23,26,412.39
21,77,661.44 21,71,796.40
20,50,000.00
21,00,000.00
21,50,000.00
22,00,000.00
22,50,000.00
23,00,000.00
23,50,000.00
2008-2009 2009-2010 2010-2011
VALUE(Rs.LACKS)
YEAR

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Graph 2: Country wise % share of Indian Apparel Export
Graph 3: Country wise 3 year analysis of Indian Apparel Export
AUSTRALIA
1% BELGIUM
3%
CANADA
3%
DENMARK
2%
FINLAND
1%
FRANCE
6%
GERMANY
10%
IRELAND
0%
ITALY
4%
KAZAKHSTAN
1%
MEXICO
1%NETHERLAND
4%
NETHERLANDANTIL
1%
OTHERS
7% PANAMA
REPUBLIC
1%
POLAND
0%
SAUDI ARAB
2%SINGAPORE
1%
SOUTH
AFRICA
1%
SPAIN
4%
SWEDEN
1%
SWITZERLAND
1%
TURKEY
0%
U ARAB EMTS
11%
U K
10%
U S A
28%
0.00
2,00,000.00
4,00,000.00
6,00,000.00
8,00,000.00
10,00,000.00
12,00,000.00
14,00,000.00
16,00,000.00
18,00,000.00
20,00,000.00
VALUE(Rs.LACKS)
COUNTRY
2010-2011
2009-2010
2008-2009

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Graph 4: Country wise increase or decrease % for Indian Apparel Export
From the above graphs we can conclude that Indian apparel export is losing its base from
India. It may be of because of certain reasons.
Table 5: 5 year analysis of Indian Apparel Exports to USA (Commodity: 61
ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, KNITTED OR
CORCHETED)
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Values in
Rs. Lacs
5,07,939.07 4,87,396.33 5,58,061.56 5,51,859.92 6,06,512.29
%Growth -4.04 14.5 -1.11 9.9
Total
export of
commodity
16,37,171.50 17,20,644.81 23,26,412.67 21,77,661.73 21,71,796.69
%Growth 5.1 35.21 -6.39 -0.27
%Share of
country
31.03 28.33 23.99 25.34 27.93
-100
-50
0
50
100
150
200
250
GROWTH(%)
COUNTRY

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Total
export to
country
85,36,848.54 83,38,806.93 96,45,841.97 92,41,651.34 1,16,36,247.86
%Growth -2.32 15.67 -4.19 25.91
%Share of
commodity
5.95 5.84 5.79 5.97 5.21
Graph 5: Comparative analysis of last 5 years of Indian Apparel Exports to USA
In 2009-10, we can see that a little decline of graph than 2008-09. This was the period when
US put India in Executive Order List 13126 for child labour instances. (Shramana Ganguly
Mehta, 2011)
5,07,939.07
4,87,396.33
5,58,061.56 5,51,859.92
6,06,512.29
0.00
1,00,000.00
2,00,000.00
3,00,000.00
4,00,000.00
5,00,000.00
6,00,000.00
7,00,000.00
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
VALUE(Rs.LACKS)
YEAR

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Table 6:5 year analysis of Indian Apparel Exports to UK (Commodity: 61 ARTICLES
OF APPAREL AND CLOTHING ACCESSORIES, KNITTED OR CORCHETED)
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Values in Rs.
Lacs
1,56,757.68 1,95,947.97 2,83,020.49 2,60,406.14 2,07,326.03
%Growth 25 44.44 -7.99 -20.38
Total export
of commodity
16,37,171.50 17,20,644.81 23,26,412.67 21,77,661.73 21,71,796.69
%Growth 5.1 35.21 -6.39 -0.27
%Share of
country (1 of
3)
9.57 11.39 12.17 11.96 9.55
Total export
to country
25,42,129.00 26,96,748.35 30,34,457.97 29,47,631.02 32,52,144.69
%Growth 6.08 12.52 -2.86 10.33
%Share of
commodity (1
of 6)
6.17 7.27 9.33 8.83 6.38

25
3.4.1.2. COMMODITY: 62 ARTICLES OF APPAREL AND CLOTHING
ACCESSORIES, NOT KNITTED OR CORCHETED.
Table 7: Indian Exports (62 ARTICLES OF APPAREL AND CLOTHING
ACCESSORIES, NOT KNITTED OR CORCHETED)
COUNTRY VALUES IN
RS. LACS
2008-2009
VALUES IN RS.
LACS
2009-2010
VALUES IN
RS. LACS
2010-2011
GROWTH
FOR 10-11
AUSTRALIA 20,294.97 21,564.02 19,791.79 -8.22
BELGIUM 60,456.65 55,033.61 69,657.74 26.57
BRAZIL 14,074.99 16,204.56 16,606.38 2.48
CANADA 55,319.62 52,612.63 53,042.92 0.82
DENMARK 74,038.24 82,867.80 85,711.77 3.43
FRANCE 1,77,003.21 1,84,255.67 1,74,578.06 -5.25
GERMANY 1,98,476.09 2,24,644.33 2,60,012.69 15.74
HONG KONG 9,179.54 9,432.48 12,929.37 37.07
IRELAND 7,501.10 13,648.20 14,491.84 6.18
ITALY 86,486.45 81,309.29 85,975.72 5.74
JAPAN 56,590.61 57,587.31 56,422.24 -2.02
KUWAIT 13,583.73 17,901.53 13,057.72 -27.06
MALAYSIA 20,157.10 29,190.70 21,484.42 -26.4
MEXICO 17,128.33 17,901.99 21,442.49 19.78
NETHERLAND 1,05,218.78 1,08,602.19 1,15,119.08 6
SAUDI ARAB 73,368.40 84,160.26 71,318.70 -15.26

26
SINGAPORE 13,487.11 21,562.32 19,126.15 -11.3
SOUTH
AFRICA
14,665.27 16,535.87 18,772.27 13.52
SPAIN 1,52,953.05 1,69,799.89 1,67,847.85 -1.15
SWEDEN 31,990.04 40,604.58 43,261.36 6.54
TANZANIA
REP
18,875.23 14,977.40 13,552.58 -9.51
TURKEY 18,861.23 20,223.41 24,373.54 20.52
U ARAB EMTS 2,66,508.23 2,80,786.86 2,47,054.05 -12.01
U K 3,10,918.18 3,47,297.62 3,69,257.67 6.32
U S A 6,89,862.29 7,08,373.82 6,92,378.81 -2.26
OTHER 2,05,556.89 2,28,469.51 2,47,839.03 8.48
Total 27,12,555.33 29,05,547.85 29,35,106.24 1.02
Graph 6: 3 year analysis Line Diagram for Indian Apparel Exports (HS CODE 62)
0.00
5,00,000.00
10,00,000.00
15,00,000.00
20,00,000.00
25,00,000.00
VALUE(Rs.LACKS)
COUNTRY
2010-2011
2009-2010
2008-2009

27
Graph 7: % Share of each country
Graph 8: % Growth of each country for 10-11
AUSTRALIA, 19,791.79
BELGIUM, 69,657.74
BRAZIL, 16,606.38
CANADA, 53,042.92
DENMARK, 85,711.77
FRANCE, 1,74,578.06
GERMANY, 2,60,012.69
HONG
KONG, 12,929.37
IRELAND, 14,491.84
ITALY, 85,975.72 JAPAN, 56,422.24
KUWAIT, 13,057.72
MALAYSIA, 21,484.42
MEXICO, 21,442.49
NETHERLAND, 1,15,11
9.08
SAUDI ARAB, 71,318.70
SINGAPORE, 19,126.15
SOUTH
AFRICA, 18,772.27
SPAIN, 1,67,847.85
SWEDEN, 43,261.36TANZANIA
REP, 13,552.58
TURKEY, 24,373.54
U ARAB
EMTS, 2,47,054.05
U K, 3,69,257.67
U S A, 6,92,378.81
OTHER, 2,47,839.03
-40
-30
-20
-10
0
10
20
30
40
50
GROWTH(%)
COUNTRY

28
Graph 9: Comparison last 3 years of non knitted & crotched articles
 A recent study shows that in 2009, total 56 orders of T&C got rejected due to failure
of NTMs. (Gordhan K Saini, December 2009) . The study also shows the distribution
of various NTMs.
Figure 2: Types of NTMs by cases
27,12,555.33
29,05,547.85
29,35,106.24
26,00,000.00
26,50,000.00
27,00,000.00
27,50,000.00
28,00,000.00
28,50,000.00
29,00,000.00
29,50,000.00
30,00,000.00
2008-2009 2009-2010 2010-2011
VALUE(Rs.LACKS)
YEAR

29
It has been estimated that more than 100 million children worldwide are employed as full
time labours. The vast majority is in Asia, Africa, South America and most of them are
engaged in apparel, toy making & handmade carpet industry. Garment manufacturing consists
of several small activities, which need little or no skill. Child labours are engaged in those
activities. (K N Chatterjee and Suman Bhattacharya, December, 2007)
In Tamil Nadu, girls and young women are employed on a large scale to work in the garment
industry. The tradition of employing young girls is locally known as ‗Sumangali Scheme‘-
introduced by textile and garment manufacturers about 10 years ago in Coimbatore and
Tirupur districts. An academic survey reveals that 10-20% of these workers aged between 11-
14 years. They are also being forced to work 12 hours a day at the daily wage of Rs 60/-.
Among them 60% belongs to ‗schedule caste‘ and they also face several labour right
violations. SOMO and ICN are international NGO working towards the human right issues.
(SOMO and ICN, 2011)
This report concluded that India Exporters are not maintaining the ethical business. This
declines the image of Indian Exporters in multinational brand like GAP, PUMA etc.

31
4. SA8000
The SA8000 standard and verification system is a credible, comprehensive and efficient tool
for assuring humane workplaces. Social Accountability 8000 (SA8000) has been developed
by Social Accountability International (SAI), known until recently as the Council on
Economic Priorities Accreditation Agency.
SA8000 is promoted as a voluntary, universal standard for companies interested in auditing
and certifying labour practices in their facilities and those of their suppliers and vendors. It is
designed for independent third party certification.
4.1. PURPOSE & INTENT
The intent of SA8000 is to provide a standard based on international human rights norms and
national labour laws that will protect and empower all personnel within a company‘s scope of
control and influence, who produce products or provide services for that company, including
personnel employed by the company itself, as well as by its suppliers/subcontractors, sub-
suppliers, and home workers.
 Based on the principles of international human rights norms as described in
International Labour Organisation conventions, the United Nations Convention on the
Rights of the Child and the Universal Declaration of Human Rights. (Corporate Social
Responsibilty- News & Resources)
 Verifiable through an evidenced-based process. (Social Accountability 8000, 2008)
 Apply universally regardless the size of organisation, geographic location or industry
sector.
Complying with the requirements for social accountability of this standard will enable a
company to:
 Develop, maintain, and enforce policies and procedures in order to manage those
issues which it can control or influence;
 Credibly demonstrate to interested parties that existingcompanypolicies, procedures,
and practices conform to the requirements of this standard.

32
4.2. EVOLUTION & HISTORY
Rising public concerns about unethical working condition at working places in developing
countries led to the establishment of Council on Economic Priorities Accreditation Agency in
1997 (K N Chatterjee and Suman Bhattacharya, December, 2007) to draw up a universal code
of practice for labour conditions in the manufacturing industries.
 Standard was first published in 1997 and subsequently revised in 2001.
 After that it was revised in 2008.
 The transition period of SA 8000:2001 was 1 year. After 2009, no certification against
SA 8000:2001 was considered as valid. (IQNet Ltd POLICY ON THE TRANSITION
TO SA 8000:2008, 2008)
 The nine Social Accountability Requirements remain the same – no additional
sections have been added, and no existing ones have been removed. However, some
have been modified, based on the experience of users of the standard since 2001.
4.3. SOCIAL ACCOUNTABILITY INTERNATIONAL
SAI is a non-governmental, multi-stakeholder organization whose mission is to advance the
human rights of workers around the world. It partners to advance the human rights of workers
and to eliminate sweatshops by promoting ethical working conditions, labour rights, corporate
social responsibility and social dialogue.
 Works to protect the integrity of workers around the world by building local capacity
and developing systems of accountability through socially responsible standards.
 Established one of the world's preeminent social standards- the SA8000®
standard for
decent work, a tool for implementing international labour standards.
o Improved the lives of over a million workers in 65 countries.
 SA8000 guides employers to consider the importance of each job and to recognize the
equal dignity of each person involved in the supply chain - from the worker to the
retailer to the consumer.
 SA8000 standard leverages the power of business and consumers to purchase products
made from workplaces that enrich, not denigrate, the livelihoods of people.

33
 Provided training to over 20,000 people, including factory and farm managers,
workers, brand compliance officers, auditors, labour inspectors, trade union
representatives and other worker rights advocates. (About Us)
SAI recognizes that voluntary compliance standards are only one part of what is needed to
raise labour law compliance around the world. To that end, SAI has developed locally-
grounded programs, such as Project Cultivar, to work on the broader context surrounding
compliance. The goal of these programs is to build an enabling environment for labour rights
by:
 Strengthening local capacity and leadership to support employer compliance efforts
and enable worker participation;
 Promoting social dialogue as a foundation for sustainable change; and
 Connecting government enforcement with incentive-driven voluntary compliance.
4.4. NORMATIVE ELEMENTS AND THEIR INTERPRETATION
The company shall comply with national and all other applicable laws, prevailing industry
standards, other requirements to which the company subscribes, and this standard. When such
national and other applicable laws, prevailing industry standards, other requirements to which
the company subscribes, and this standard address the same issue, the provision most
favourable to workers shall apply.
The company shall also respect the principles of the following international instruments:
 ILO Convention 1 (Hours of Work – Industry) and Recommendation 116 (Reduction
of Hours of Work)
 ILO Conventions 29 (Forced Labour) and 105 (Abolition of Forced Labour)
 ILO Convention 87 (Freedom of Association)
 ILO Convention 98 (Right to Organise and Collective Bargaining)
 ILO Conventions 100 (Equal Remuneration) and 111 (Discrimination – Employment
and Occupation)
 ILO Convention 102 (Social Security -Minimum Standards)

34
 ILO Convention 131 (Minimum Wage Fixing)
 ILO Convention 135 (Workers‘ Representatives)
 ILO Convention 138 and Recommendation 146 (Minimum Age)
 ILO Convention 155 and Recommendation 164 (Occupational Safety and Health)
 ILO Convention 159 (Vocational Rehabilitation and Employment -Disabled Persons)
 ILO Convention 169 (Indigenous and Tribal Peoples)
 ILO Convention 177 (Home Work)
 ILO Convention 182 (Worst Forms of Child Labour)
 ILO Convention 183 (Maternity Protection)
 ILO Code of Practice on HIV/AIDS and the World of Work
 Universal Declaration of Human Rights
 The International Covenant on Economic, Social and Cultural Rights
 The International Covenant on Civil and Political Rights
 The United Nations Convention on the Rights of the Child
 The United Nations Convention on the Elimination of All Forms of Discrimination
Against Women
 The United Nations Convention on the Elimination of All Forms of Racial
Discrimination
4.5. DEFINITIONS
 Definition of company: The entirety of any organisation or business entity responsible
for implementing the requirements of this standard, including all personnel employed by
the company.
 Definition of personnel: All individual men and women directly employed or contracted
by a company, including directors, executives, managers, supervisors, and workers.

35
 Definition of worker: All non-management personnel.
 Definition of supplier/subcontractor: An organisation which provides the company with
goods and/or services integral to and utilised in or for the production of the company‘s
goods and/or service.
 Definition of sub-supplier: A business entity in the supply chain which, directly or
indirectly, provides the supplier with goods and/or services integral to and utilised in or
for the production of the supplier‘s and/or the company‘s goods and/or services.
 Definition of corrective and preventive action: an immediate and continuing remedy to
a non-conformance to the SA8000 standard.
 Definition of interested party: An individual or group concerned with or affected by the
social performance of the company.
 Definition of child: Any person less than 15 years of age, unless the minimum age for
work or mandatory schooling is stipulated as being higher by local law, in which case the
stipulated higher age applies in that locality.
 Definition of young worker: Any worker over the age of a child, as defined above, and
under the age of 18.
 Definition of child labour: Any work performed by a child younger than the age(s)
specified in the above definition of a child, except as provided for by ILO
Recommendation 146.
 Definition of forced and compulsory labour: All work or service that a person has not
offered to do voluntarily and is made to do under the threat of punishment or retaliation,
or is demanded as a means of repayment of debt.
 Definition of human trafficking: The recruitment, transfer, harbouring or receipt of
persons, by means of the use of threat, force, other forms of coercion, or deception for the
purpose of exploitation.
 Definition of remediation of children: All support and actions necessary to ensure the
safety, health, education, and development of children who have been subjected to child
labour, as defined above, and have been subsequently dismissed.

36
 Definition of home worker: A person who is contracted by the company or by a
supplier, sub-supplier or subcontractor, but does not work on their premises.
 Definition of SA8000 worker representative: A worker chosen to facilitate
communication with senior management on matters related to SA8000, undertaken by the
recognized trade union(s) in unionised facilities and, elsewhere, by a worker elected by
non-management personnel for that purpose.
 Management representative: A member of senior management personnel appointed by
the company to ensure that the requirements of the standard are met.
 Worker organisation: A voluntary association of workers organised on a continuing
basis for the purpose of maintaining and improving their terms of employment and
workplace conditions.
 Collective bargaining agreement: A contract for labour negotiated between an employer
or group of employers and one or more worker organisations, which specifies the terms
and conditions of employment.
4.6. SOCIAL ACCOUNTABILITY REQUIREMENTS
4.6.1.CHILD LABOUR
Criteria:
 The company shall not engage in or support the use of child labour as defined above.
 The company shall establish, document, maintain, and effectively communicate to
personnel and other interested parties, policies and written procedures for remediation of
children found to be working in situations which fit the definition of child labour above,
and shall provide adequate financial and other support to enable such children to attend
and remain in school until no longer a child as defined above.
 The company may employ young workers, but where such young workers are subject to
compulsory education laws, they may work only outside of school hours. Under no
circumstances shall any young worker‘s school, work, and transportation time exceed a
combined total of 10 hours per day, and in no case shall young workers work more than 8
hours a day. Young workers may not work during night hours

37
 The company shall not expose children or young workers to any situations – in or outside
of the workplace – that are hazardous or unsafe to their physical and mental health and
developed.
4.6.2. FORCED AND COMPULSORY LABOUR
Criteria:
 The company shall not engage in or support the use of forced or compulsory labour as
defined in ILO Convention 29, nor shall personnel be required to pay ‗deposits‘ or lodge
identification papers with the company upon commencing employment.
 Neither the company nor any entity supplying labour to the company shall withhold any
part of any personnel‘s salary, benefits, property, or documents in order to force such
personnel to continue working for the company.
 Personnel shall have the right to leave the workplace premises after completing the
standard workday, and be free to terminate their employment provided that they give
reasonable notice to their employer.
 Neither the company nor any entity supplying labour to the company shall engage in or
support trafficking in human beings.
Intent:
 All forms of forced or compulsory labour under every condition are intended to be
prohibited by these provisions of SA8000. As part of that principle, SA8000 requires that
every prospective worker be fully informed of the terms and conditions of the offered
employment before his recruitment, pre-employment process and employment.
 The intent of the definition of forced or compulsory labour (which are interchangeable
terms representing a single concept) is to include all forms of forced labour, including the
use of compulsory prison labour by private business entities, debt bondage or indentured
servitude.
 The following types of threats are also all prohibited under SA8000:
i. Monetary sanctions, physical punishment, withholding of papers, loss of rights or
privileges and restrictions on movements.

38
ii. The addition of Human Trafficking is to raise awareness and to ensure that
employers take active steps to ensure they have no association with any labour
supplier or subcontractors using labour suppliers who may be trafficking workers.
This is intended to ensure that workers are free to leave:
 To terminate their employment with a company upon the one condition that they
give reasonable notice of their intention to leave their jobs;
 Leave the work site at the end of his/her routine, normally scheduled workday; and
 Remove him/her from imminent danger.
4.6.3. HEALTH AND SAFETY
Criteria:
 The company shall provide a safe and healthy workplace environment and shall take
effective steps to prevent potential accidents and injury to worker‘s health arising out of,
associated with, or occurring in the course of work, by minimising, so far as is reasonably
practicable, the causes of hazards inherent in the workplace environment, and bearing in
mind the prevailing knowledge of the industry and of any specific hazards.
 The company shall appoint a senior management representative to be responsible for
ensuring a safe and healthy workplace environment for all personnel, and for
implementing the Health and Safety elements of this standard.
 The company shall provide to personnel on a regular basis effective health and safety
instructions, including on-site instruction and, where needed, job-specific instructions.
Such instructions shall be repeated for new and reassigned personnel and in cases where
accidents have occurred.
 The company shall establish systems to detect, avoid, or respond to potential threats to the
health and safety of personnel. The company shall maintain written records of all
accidents that occur in the workplace and in company-controlled residences and property.
 The company shall provide at its expense appropriate personal protective equipment to
personnel. In the event of a work related injury the company shall provide first aid and
assist the worker in obtaining follow-up medical treatment.
 The company shall undertake to assess all the risks to new and expectant mothers arising
out of their work activity and to ensure that all reasonable steps are taken to remove or
reduce any risks to their health and safety.

39
 The company shall provide, for use by all personnel, access to clean toilet facilities,
access to potable water, and, where applicable, sanitary facilities for food storage.
 The company shall ensure that any dormitory facilities provided for personnel are clean,
safe, and meet the basic needs of the personnel.
 All personnel shall have the right to remove themselves from imminent serious danger
without seeking permission from the company.
Intent:
 The intent of all of the elements of this requirement is twofold. First, to clarify and
amplify the role of the employer as the responsible party in managing worker‘s
occupational safety and health. This includes protecting worker‘s occupational health by
some pro-active measures, such as training and instruction. Second, it adds some new
management responsibilities to more effectively provide these protections.
 This requirement also provides some specific elements of the health and safety
management system, e.g., naming a health and safety management representative, that
enable management to establish, maintain and demonstrate its compliance with the
requirement. Meeting these goals actively and proactively involves the workers, who
should receive updated information, training and instruction in response to changes in the
workplace, accidents or their jobs. This function is to be regularly addressed, which
requires regular planning and documentation.
4.6.4.FREEDOM OF ASSOCIATION & RIGHT TO COLLECTIVE BARGAINING
Criteria:
 All personnel shall have the right to form, join, and organise trade unions of their choice
and to bargain collectively on their behalf with the company. The company shall respect
this right, and shall effectively inform personnel that they are free to join an organisation
of their choosing and that their doing so will not result in any negative consequences to
them, or retaliation, from the company. The company shall not in any way interfere with
the establishment, functioning, or administration of such workers‘ organisations or
collective bargaining.

40
 In situations where the right to freedom of association and collective bargaining are
restricted under law, the company shall allow workers to freely elect their own
representatives.
 The company shall ensure that representatives of workers and any personnel engaged in
organising workers are not subjected to discrimination, harassment, intimidation, or
retaliation for reason of their being members of a union or participating in trade union
activities and that such representatives have access to their members in the workplace.
Intent:
 The intent of SA8000 is to promote ongoing, constructive social dialogue between
workers collectively and management.
 Employers must demonstrate that they have actively developed and implemented the
required and necessary actions aimed at ensuring that their worksites provide a truly free
and protected environment for the choice of unionization to be free, genuine, and fairly
considered.
 The elimination of the employer requirement, which appeared in previous editions of
SA8000, to ―facilitate parallel means of worker associations in those states where it is
not possible to establish free and independent trade unions, has been replaced by the
requirement that in those states a company shall allow workers to freely elect
representatives.
 This is intended to mandate that employer‘s honour and provide a safe workplace for
workers‘ full exercise of their rights to ―worker representatives with the same gravity
and restraint as employers in states that do permit free and independent trade unions, and
for workers to directly elect their representatives at the company level. Worker‘s choice
of their representatives shall also mean that their representatives be chosen from amongst
their number of workers, not from supervisory or managerial ranks. In every case,
employers should not interfere in workers‘ exercise of these rights.
 That gravity and restraint is further defined by the provision prohibiting employer‘s
interference, on its own or through third parties, in affecting or competing with the full
exercise of workers‘ rights. This prohibition would include supervisory and managerial
personnel from being considered or acting as worker representatives. The essence again is
to make clear the exact and limited role that employers play in permitting workers to
exercise their rights.

41
 While none of the provisions in this standard require the establishment of a trade union,
SA8000‘s implementation of worker‘s rights clearly and strongly seeks to:
a) Protect workers‗ right to all aspects of freedom of association, including their rights to
organize and represent themselves in collective negotiations with management;
b) Ensure that management does not intervene in any way in the nomination, election,
operation, administration or financing of workers‗ representation;
c) Protect against adverse activities that discriminate against worker representatives and
members of worker organizations, particularly trade unions. These might include
discrimination in the training or promotion of worker representatives or union
members or their assignment to less preferred work roles or work sites.
d) Ensure that management does not unreasonably refuse to bargain collectively with
worker‘s organizations.
4.6.5. DISCRIMINATION
Criteria:
 The company shall not engage in or support discrimination in hiring, remuneration, access
to training, promotion, termination, or retirement based on race, national or social origin,
caste, birth, religion, disability, gender, sexual orientation, family responsibilities, marital
status, union membership, political opinions, age, or any other condition that could give
rise to discrimination.
 The company shall not interfere with the exercise of personnel‘s rights to observe tenets
or practices, or to meet needs relating to race, national or social origin, religion, disability,
gender, sexual orientation, family responsibilities, union membership, political opinions,
or any other condition that could give rise to discrimination.
 The company shall not allow any behaviour that is threatening, abusive, exploitative, or
sexually coercive, including gestures, language, and physical contact, in the workplace
and, where applicable, in residences and other facilities provided by the company for use
by personnel.
 The company shall not subject personnel to pregnancy or virginity tests under any
circumstances.

42
Intent:
 SA8000 seeks to ensure equal and respectful treatment for all workers in all matters.
They shall be hired only on the basis of their job-related competence, attributes or skills.
They shall not be penalized or treated in any different manner due to bias. Employees
shall be employed, trained, promoted and compensated solely on the basis of their job
performance. They must be free from all types of indecent verbal, physical and sexual
harassment and other discriminatory practices.
 The definition now explicitly prohibits discrimination on the bases of social origin, birth,
family responsibilities, marital status and any other condition.
 Some of these additions are meant to add further non-discrimination protections for
female job applicants and workers. ―Family responsibilities, which is usually applied to
mean a woman‗s children and ―marital status, which is usually applied to wives, are far
too often used to eliminate a female job applicant from consideration or as the basis for
penalizing a woman worker if, for example, she needs to return home for a sick child.
Since the status of having children or being married is so commonly used solely against
women, these newly included discrimination barriers are intended to ensure an even-
handed approach towards treating female and male workers without bias. Of course, men
should also not suffer discrimination on the grounds of family responsibilities which they
discharge, for example as a parent of caregiver.
 It is also the intent of this Discrimination Standard to require employer‘s compliance with
SA8000‘s inclusions of national law and ILO Conventions, even when applied in nations
and situations where discrimination may be honoured locally as an unquestioned tradition.
In some cases, even national law may reflect these biases, such as statutes that permit men
to earn more money than women workers when performing the same or equal tasks.
 No matter the source of discrimination nor how culturally entrenched it may be, one
cannot be SA8000 certified without strictly applying its discrimination provisions.
4.6.6. DISCIPLINARY PRACTICES
Criterion:
 The company shall treat all personnel with dignity and respect. The company shall not
engage in or tolerate the use of corporal punishment, mental or physical coercion, or
verbal abuse of personnel. No harsh or inhumane treatment is allowed.

43
Intent:
 It is the intent of the standard that job applicants and current workers should be made
aware of the disciplinary policies and procedures in sufficient detail to inform them about
the behaviours that are subject to discipline or poor performance evaluations. Employers
must have written and defined disciplinary rules, including an appeal process for workers
not agreeing with employer‘s disciplinary charges or negative performance reviews.
 It is also intended that all employer actions—from giving employee performance reviews
to imposing disciplinary measures--should demonstrate respect for worker‘s mental,
emotional and physical well-being. These actions should be applied consistently and not
arbitrarily to every employee, without any discrimination.
 It clearly prohibits companies from using employment agencies or suppliers that engage
in disciplinary practices that are unacceptable to SA8000. The employer‘s responsibility
to completely honour this prohibition does not stop at the company‘s workplace door.
4.6.7. WORKING HOURS
Criteria:
 The company shall comply with applicable laws and industry standards on working hours
and public holidays. The normal work week, not including overtime, shall be defined by
law but shall not exceed 48 hours.
 Personnel shall be provided with at least one day off following every six consecutive
days of working. Exceptions to this rule apply only where both of the following
conditions exist:
a) National law allows work time exceeding this limit; and
b) A freely negotiated collective bargaining agreement is in force that allows work time
averaging, including adequate rest periods.
 All overtime work shall be voluntary, shall not exceed 12 hours per week, nor be
requested on a regular basis.
 In cases where overtime work is needed in order to meet short-term business demand and
the company is party to a collective bargaining agreement freely negotiated with worker
organisations (as defined above) representing a significant portion of its workforce, the
company may require such overtime work in accordance with such agreements. Any such
agreement must comply with the requirements above.

44
Intent:
 SA8000 aims to limit the widespread abuse of working hours, particularly overtime. Its
rule that overtime hours must, in the vast majority of cases, be truly and demonstrably
voluntary is to be strictly interpreted. The one exception to this rule is in cases where a
collective bargaining agreement allows for required overtime under certain, clearly
defined conditions. Even then however, the company should:
a) Make allowances for the personal and domestic circumstances of individual workers,
as much as feasible; and
b) Not allow overtime hours to exceed 12 hours per week. Accordingly the commonly
referenced ―60 hours rule‖ should be the exception, not the rule and may, when the
state‘s legal standard workweek is less than 48 hours, be less than 60 hours. The
reason for limiting working hours is to promote better work-life balance and reduce
worker‘s stress-related occupational conditions and accident rates.
 A similar provision adds that employers must comply with national laws on public
holidays. It is intended that workers normally receive all public holidays off (or some
equivalent in compensatory time or wages) as are set by relevant legal authorities.
4.6.8. REMUNERATION
Criteria:
 The company shall respect the right of personnel to a living wage and ensure that wages
paid for a normal work week shall always meet at least legal or industry minimum
standards and shall be sufficient to meet the basic needs of personnel and to provide some
discretionary income.
 The company shall ensure that deductions from wages are not made for disciplinary
purposes. Exceptions to this rule apply only when both of the following conditions exist:
a) Deductions from wages for disciplinary purposes are permitted by national law; and
b) A freely negotiated collective bargaining agreement is in force.
 The company shall ensure that personnel‘s wages and benefits composition are detailed
clearly and regularly in writing for them for each pays period. The company shall also
ensure that wages and benefits are rendered in full compliance with all applicable laws

45
and that remuneration is rendered either in cash or check form, in a manner convenient to
workers.
 All overtime shall be reimbursed at a premium rate as defined by national law. In
countries where a premium rate for overtime is not regulated by law or a collective
bargaining agreement, personnel shall be compensated for overtime at a premium rate or
equal to prevailing industry standards, whichever is more favourable to worker‘s interests.
 The company shall not use labour-only contracting arrangements, consecutive short-term
contracts, and/or false apprenticeship schemes to avoid fulfilling its obligations to
personnel under applicable laws pertaining to labour and social security legislation and
regulations.
Intent:
 Although the payment of a living wage is fully intended, the standard recognizes that not
all SA8000 certification applicants can revise their wage structures immediately.
Consequently, a step-by-step approach is permitted, provided: minimum wage is paid; an
analysis of worker‘s wage needs has been completed; and a target and strategy are in
place to advance wages and show progress over time.
 The premium wage overtime work provision has been significantly changed in the 2008
version of SA8000. It now states that the premium rate is defined by national law or
when unregulated by law or a collective bargaining agreement, it can be equal to the
premium rate of the prevailing industry, whichever is more favourable to workers, i.e., the
highest. It is intended that workers shall be paid at the most advantageous premium rate.
This new language is also intended to provide the basis for establishing and paying a
premium rate when neither national law nor a collective bargaining agreement states such
a rate.
 As to the prohibition against certain contract worker and apprenticeship schemes, the
standard is intended to clarify the prohibition against the many ways worker‘s wages or
benefits are reduced through these mechanisms and apply that prohibition to every
circumstance, including homework. Mainly, labour-only contracts or apprenticeship
schemes cannot be used to avoid paying regular wages and benefits. They also cannot be
used to fulfil ongoing, routine tasks integral to the work of a company for any period of
time. It is intended that those who continually fulfil those tasks must have their
relationship with the company formalized as employees, with all wages and benefits due

46
employees. This language is also intended to ensure that employer‘s short-term contracts
or home worker and apprenticeship schemes are not used for avoiding worker‘s payments
and benefits or for denying worker‘s rights to freedom of association and collectively
bargain.
4.6.9. MANAGEMENT SYSTEMS
Criteria: Policy
 Top management shall define in writing, in worker‘s own language, the company‘s policy
for social accountability and labour conditions, and display this policy and the SA8000
standard in a prominent, easily viewable place on the company‘s premises, to inform
personnel that it has voluntarily chosen to comply with the requirements of the SA8000
standard. Such policy shall clearly include the following commitments:
a) To conform to all requirements of this standard;
b) To comply with national and other applicable laws and other requirements to which
the company subscribes, and to respect the international instruments and their
interpretation;
 To review its policy regularly in order to continually improve, taking into consideration
changes in legislation, in its own code-of-conduct requirements, and any other company
requirements;
 To see that its policy is effectively documented, implemented, maintained,
communicated, and made accessible in a comprehensible form to all personnel, including
directors, executives, management, supervisors, and staff, whether directly employed by,
contracted with, or otherwise representing the company;
 To make its policy publicly available in an effective form and manner to interested
parties, upon request.
4.6.9.1. MANAGEMENT REPRESENTATIVE
The company shall appoint a senior management representative who, irrespective of other
responsibilities, shall ensure that the requirements of this standard are met.
4.6.9.2. SA8000 WORKER REPRESENTATIVE
The company shall recognize that workplace dialogue is a key component of social
accountability and ensure that all workers have the right to representation to facilitate

47
communication with senior management in matters relating to SA8000. In unionised
facilities, such representation shall be undertaken by recognized trade union(s). Elsewhere,
workers may elect a SA8000 worker representative from among themselves for this purpose.
In no circumstances, shall the SA8000 worker representative be seen as a substitute for trade
union representation.
4.6.10. MANAGEMENT REVIEW
Top management shall periodically review the adequacy, suitability, and continuing
effectiveness of the company‘s policy, procedures, and performance results vis-à-vis the
requirements of this standard and other requirements to which the company subscribes.
Where appropriate, system amendments and improvements shall be implemented, the worker
representative shall participate in this review.
4.6.11. PLANNING AND IMPLEMENTATION
The company shall ensure that the requirements of this standard are understood and
implemented at all levels of the organisation. Methods shall include, but are not limited to:
a) Clear definition of all parties‘ roles, responsibilities, and authority;
b) Training of new, reassigned, and/or temporary personnel upon hiring;
c) Periodic instruction, training, and awareness programs for existing personnel;
d) Continuous monitoring of activities and results to demonstrate the effectiveness of
systems implemented to meet the company‘s policy and the requirements of this
standard.
The company is required to consult the SA8000 Guidance Document for interpretative
guidance with respect to this standard.
4.6.12. CONTROL OF SUPPLIERS/SUBCONTRACTORS AND SUB-SUPPLIERS
 The company shall maintain appropriate records of suppliers/subcontractors‘ (and, where
appropriate, sub-suppliers‘) commitments to social accountability, including, but not
limited to, contractual agreements and/or the written commitment of those organisations
to:
a) Conform to all requirements of this standard and to require the same of sub-suppliers;
b) Participate in monitoring activities as requested by the company;

48
c) Identify the root cause and promptly implement corrective and preventive action to
resolve any identified non-conformance to the requirements of this standard;
d) Promptly and completely inform the company of any and all relevant business
relationship(s) with other suppliers/subcontractors and sub-suppliers.
 The company shall establish, maintain, and document in writing appropriate procedures
to evaluate and select suppliers/subcontractors (and, where appropriate, sub-suppliers)
taking into account their performance and commitment to meet the requirements of this
standard.
 The company shall make a reasonable effort to ensure that the requirements of this
standard are being met by suppliers and subcontractors within their sphere of control and
influence.
 In addition to the requirements of above, where the company receives, handles, or
promotes goods and/or services from suppliers/subcontractors or sub-suppliers who are
classified as home workers, the company shall take special steps to ensure that such
home workers are afforded a level of protection similar to that afforded to directly
employed personnel under the requirements of this standard. Such special steps shall
include, but not be limited to:
a) Establishing legally binding, written purchasing contracts requiring conformance to
minimum criteria in accordance with the requirements of this standard;
b) Ensuring that the requirements of the written purchasing contract are understood and
implemented by home workers and all other parties involved in the purchasing
contract;
c) Maintaining, on the company premises, comprehensive records detailing the identities
of home workers, the quantities of goods produced, services provided, and/or hours
worked by each home worker;
d) Frequent announced and unannounced monitoring activities to verify compliance with
the terms of the written purchasing contract.

49
SOCIAL ACCOUNTABILITY
ACCREDITATION SERVICES

50
5. SOCIAL ACCOUNTABILITY ACCREDITATION SERVICES (SAAS)
It is an accreditation agency founded to accredit and monitor organizations as certifiers of
compliance with social standards, including the Social Accountability 8000 standard for
ethical working conditions. Initially SAAS came into existence as a department within Social
Accountability International (SAI) in 1997. Later in 2007, was formally established as its own
not-for-profit organization (SAAS Social Accountability Accreditation Services). SAAS is
now an independent decision-making agency, linked to SAI only through contractual
arrangements.
5.1. RESPONSIBILITIES & ACTIVITIES
SAAS manages and directs accreditation activities for applicable social standards and
verification codes, such as SA8000 and InterAction PVO Standards, including
 Granting,
 Maintaining,
 Extending,
 Reducing,
 Suspending and withdrawing of accreditation.
Its primary activities are:
 To accredit and monitor organizations seeking to act as certifiers of compliance with
social standards, including the Social Accountability 8000 standard for ethical
working conditions, and other such verification standards;
 To offer accreditation services to certification bodies (CBs);
 To determine the qualifications of such organizations to perform full, reliable, and
impartial audits of employers against specified social standards;
 To provide confidence to all stakeholders in SAAS accreditation decisions and in the
certification decisions of its accredited CBs;
 To continually improve the SAAS accreditation function activities and systems, in
compliance with ISO/IEC Guide 17011 and SAAS Procedure 201, ―Accreditation of
Certification Bodies of Social Accountability Systems‖;

51
 To be impartial and fair to all applicant and accredited certification bodies (ABOUT
SAAS).
SAAS staff is responsible for day-to-day operations, the objectives of which are:
 To gain international recognition of the accreditation program and its value to society;
 To expeditiously resolve any complaints and address their root causes;
 To improve, each year, the reliability and quality of accredited certifications;
 To deliver all our services in a professional and timely manner that furthers the
mission of social standards.
5.2. OVERSIGHT PROCESS OF SAAS
SAAS is overseen by Board of Directors, legally responsible for the fiscal and programmatic
oversight of the organization. SAAS also confers with an Accreditation Advisory Committee
and Accreditation Review Panel in setting policy and making accreditation determinations.
SAAS‘s accreditation activities are monitored by the ISEAL Alliance through a series of peer
reviews to ensure compliance with ISO Guide 17011.
5.2.1.BOARD OF DIRECTORS
The SAAS Board of Directors consists of at least three persons, with responsibilities and
membership as defined in the by-laws of the Corporation. It evaluates the performance of
SAAS and its management, which includes a review of activities and operations for the last
year and future work plans, policies and budget. The Board of Directors may contract out to
other organizations for management and services for SAAS, as needed. (Board)
5.2.2.ACCREDITATION ADVISORY COMMITTEE
The committee was established to advise on and assist in development of strategies and
procedures for sustaining strengthening oversight of SAAS-accredited Certification Bodies.
 Reviews current procedures on oversight and recommends best practices for SAAS to
exercise oversight of accredited certification bodies to ensure consistent, high quality
audits by qualified auditors. (Accredation Advisory Committee)

52
This Advisory Committee consists of technical experts, stakeholders and representatives of
the bodies that own the Standards to which SAAS provides accreditation services. The
Committee has access to the necessary expertise for advising SAAS on accreditation matters.
The Committee membership includes representatives from civil society and the business
sectors and members participate on a volunteer basis for a three-year period. The committee
members nominate and elect a chair and members may represent themselves or the
organization for which they work.
5.2.3.ACCREDITATION REVIEW PANEL
SAAS convenes an Accreditation Review Panel (ARP) whose members review audit reports
of the Certification Bodies and any applications for accreditation in order to recommend
whether or not to accredit a CB on behalf of SAAS. The ARP provides advice and counsel to
SAAS on such reports and applications, and makes accreditation recommendations on the
basis thereof to the Executive Director. (Accredation Review Panel). The ARP is comprised
of at least three members, nominated by the Executive Director and appointed by the Board
of Directors, consisting of one or more independent technical experts and two representatives
of the bodies that own the Standards to which SAAS accredits (one from the business sector
and one from civil society).
5.3. ACCREDATION ACTIVITIES & PROCESS
SAAS verifies the CBs competence through the series of various audits which review the
management, processes, and training of the certification process of the CB. This enables CB
to evaluate the implementation of SA8000, or other accredited social systems and which, in
turn, ensures compliance with all elements of the system. SAAS publics all the detailed
information related with assessment and accreditation processes (mentioned above). To
assure the accordance of its operations with ISO Guide 17011, it participates in a peer
evaluation system, created by ISEAL Alliance.

53
Figure 3: Oversight Process of SAAS Accreditation System
ISEAL Peer Review
Social Accountability
Accreditation Services
Certification Bodies
(CBs)
Certification Clients
Request Application Prepare Documents
Submit Application, Fees & Documents
Submit Application, Fees & Documents
Meets
Criteria?
Corrective Action
Desk Audit/ Document Review
NO
YES
YES

54
Meets
Criteria?
Corrective Action
Witness Audit (Monitor CB auditing a Facility)
Meets
Criteria?
Corrective Action
Deliberation on Accreditation
Issuance of Certificate
Maintenance of Accreditation
NO
NO
YES
YES
YES
YES
Figure 4: Basic Overview of Accreditation Application Process

55
5.3.1.ACCREDITATION COST
To accredit and monitor CBs, SAAS charges following fees:
 APPLICATION PURCHASE FEE: SAAS charges $100 as purchase fee of the
application.
 APPLICATION FEE: The application fee, which is payable upon the submission of the
application for accreditation, is dependent upon the size of organization; and fee must be
received with the application in order for the application to be considered.
Table 8: Application Fee for Accreditation
Size FEE (USD)
50 or fewer employees 2,500
51-250 employees 7,500
251 or more employees 15,000
 AUDITOR FEE: The audit fees, for accreditation (including reaccreditation) and
surveillance, are $1400 per auditor per day plus $650 per day for travel.
o CBs are directly responsible for the cost of travel including airfare, meals, and
hotels, and the cost of interpretation if needed.
 ROYALTY FEE: There is an SA8000 royalty fee of $5,000 or 3% of gross auditing fees,
annually (excluding reimbursement of auditor expenses).
 DOCUMENT FEE: SAAS charges extra charge for the listed documents along with
application package.
Table 9: Document Fee
Document Fee (USD)
SA8000: 2008 Standard 20
Guidance Document for SA8000 100

56
 Certification Body auditors and staff are required to attend SAAS-accredited or approved
auditor, advanced auditor, and professional development training courses. The average
cost of attending a course is approximately $1,200 to $2,000 per person. CB managers
and field auditors must also attend SA8000 calibration meetings, the purpose of which is
to conform and calibrate the interpretations of requirements used in auditing by SA8000
auditors. Generally there is no fee for attending these meetings, although travel expenses
may be incurred by the attendee.
 REACCREDITATION FEE: payment is required prior to the reissuance of
accreditation certificate every four years by organization with.
Table 10: Application Fee for reaccreditation
Size FEE (USD)
50 or fewer employees 1,000
51-250 employees 3,300
251 or more employees 6670
5.3.2.AUDIT ITEMS & AUDIT DAYS
The number of audit days required varies by several factors:
 The number of documents received in the document review,
 The size of the organization being audited (in an office audit), where the CB is in the
audit cycle (whether it is an accreditation or surveillance audit),
 The audit plan (for a witness audit), and
 The number of travel days required to get to the audit.
Table 11: Audit Items & Average Required Days (L. Bernestien, 2010)
AUDIT ITEMS AVERAGE NO.OF AUDITOR DAYS
Document Audits 1-2 days
Office Audit 1-2 auditors for 2-3 days

57
Witness Audit 2 auditors for 2-3 days
Report Writing 1-2 days
5.4. CERTIFICATION BODIES
Only those organisations, which are accredited through SAAS, can provide the certification to
the applied organisation/firm. The current list and contact information of SAAS-
accredited certification bodies (CBs) is provided below.
Table 12: List of Current CBs- SAAS Accredited (Accredited Certification Bodies)
CB SCOPE OF
ACCREDITATION
INITIAL DATE OF
ACCREDITATION
EXPIRY DATE OF
ACCREDITATION
ABS Quality
Evaluations, Inc
Global January 1, 2007 December 30, 2012
ALGI Global November 1, 2004 Reaccreditation in
Progress
APCER Global February 1, 2007 January 31, 2013
BSI Global March 1, 2005 Reaccreditation in
Progress
Bureau Veritas
Certification
Global March 1, 1999 January 31, 2015
CISE (Centro per
l'Innovazione e lo
Sviluppo
Economico)
Global March 1, 2001 March 31, 2014
DNV (Det Norske
Veritas AS)
Global September 30, 1998 Reaccreditation in
Progress
EUROCERT S.A. Global November 17, 2009 November 16, 2012

58
Global Certification
Limted T/A
GlobalGROUP
Global April 1, 2012 March 31, 2016
HKQAA (Hong
Kong Quality
Assurance Agency)
China December 1, 2007 November 30, 2014
Institute of Quality
& Control Ltd.
(IQC)
Regional, Israel &
Jordan
December 13, 2010 December 12, 2014
Intertek (Intertek
Testing Services)
Global November 1, 1999 December 31, 2014
IQNet Ltd Global May 1, 2007 April 30, 2014
LRQA (Lloyd's
Register Quality
Assurance Ltd.)
Global June 16, 2008 June 15, 2015
SGS-SSC Global June 30, 1998 June 34
STR-Registrar, LLC
(STR)
Global June 30, 1998 Reaccreditation in
Progress
TUV NORD CERT
GmbH
Global January 1, 2001 December 31, 2013
TUV Rheinland
Group
TUV SUD Group
(TUV Sud South
Asia)
5.4.1.CRITERIA TO CONDUCT AUDIT & ISSUE CERTIFICATE
To conduct an SA8000:2008 audit and issue the certificate of SA8000:2008, the following
criteria must be met:
a. The CB shall be responsible for disseminating the SA8000:2008 drafters note to all
SA8000 auditors.

59
b. Each audit team conducting an SA8000:2008 shall consist at least a Lead Auditor,
who shall be trained on the elements of SA8000:2008 elements. This training shall
consist of:
i. Update training provided by SAI/SAAS for those SA8000 auditors, who
have attended the SA8000 basic training prior to January, 2009 (For those
auditors, who attended the basic auditor training after January, 2009, there
is no need to attend one day update training because the basic training
includes the information about SA8000:2008).
ii. Internal training of auditor by CB employing SA8000 auditor to disseminate
and calibrate the new processes and internal procedures related with
SA8000:2008.
c. All SA8000 team auditors on the audit team conducting an audit to SA8000:2008
shall be trained on the elements of SA8000:2008. This training shall include at
minimum:
i. Training of auditor by CB employing SA8000 auditor on elements and
interpretation of SA8000:2008 (the update training is open to all auditors,
including team auditors who may substitute the internal training by CB on
SA8000:2008 with the update training; however, as noted in b ii. it is
required for the qualification of lead auditor).
ii. Internal training of auditor by CB employing SA8000 auditor to disseminate
and calibrate new processes and internal procedures related to
SA8000:2008.
d. All managers of the SA8000 program and those staff involved in technical review of
SA8000 reports shall be required to take the update training.
5.4.2. RECORDS MAINTAINED BY CBs
The CBs shall maintain, as a minimum, the following records:
i. Copies of scheduled audits showing time and assigned auditor.
ii. Auditors qualification records (full-time and sub-contract).

60
iii. The quotation file to the organization, including the audit days and how they were
calculated, and audit day fees.
iv. Notes/minutes from stakeholder consultation and other pre-audit research.
v. Explanation of basic needs wage calculation.
vi. Pre-assessment reports, if conducted.
vii. The report of stage 1 readiness review, including the evidence that all of the
requirements of SA8000 and other applicable social standards are addressed by
certification applicant‘s processes.
viii. The audit plan (agenda) demonstrating auditor itinerary details, time frames, subjects
(processes) covered, and personnel involved.
ix. The final audit report, including the opening and closing attendance records, positive
reporting notes and checklists completed by each auditor and the audit team
recommendation regarding certification.
x. Copies of all nonconformities issued, surveillance audit reports, follow up reports, and
other documentations leading towards the verification of effectiveness of the
correction of nonconformities.
xi. Audit logs/notes as maintained by each audit team member.
xii. A copy of certification decision process.
xiii. A copy of certificate issued.
xiv. The audit team member‘s initial approval and continuous performance evaluation.
xv. Clients, interested parties, organisation and worker‘s complain including the actions
taken to resolve.
xvi. A register of SA8000 and all other applicable social standards certified organization.
All the records mentioned above, stored in hard copy or electronically, must be readily
accessible during an office assessment by SAAS. This must be considered when establishing
a decentralized office. The records mention must be retained for the life of certificate plus at
least 3 years.

61
Records shall be accessible at the designated office and remain legible, readily identifiable
and retrievable. These documents must be made available to SAAS to allow adequate review
and oversight and to provide appropriate evidence of compliance by the CB and its personnel.
 One of the CB staff shall be designated to interface with SAAS. This designated staff
will be direct contact for SAAS and will be responsible for the control of all activities
related with social standard certification, except where necessary for scheduling and
logistics. The office where designated staff is based shall be visited annually.
While documents should be in English, some smaller, regional organisation may maintain its
document in the regional language due to cost containment. In this case, appropriate
translation must be made available in order to ensure that representative of SAAS can
evaluate those effectively. The CB shall maintain an effective procedure for identification,
storage, protection, retrieval, retention time and disposition of records.
5.5. CERTFICATION PROCESS
For the Certification, an organisation must follow the below mentioned process.
Figure 5: Steps of Certification
IMPLEMENTATION OF STANDARDS
Through SA8000 Certification
Through Corporate Involvement Program
(CIP)
APPLICATION
A facility wishing to seek certification to SA8000 must apply to a SAAS-accredited
auditing firm, or certification body.

62
5.5.1. APPLICATION
CB shall require the applicant to provide the information to enable it to establish the
following:
 Desired scope of certification.
 Name, address, sites, significant aspects, legal obligations.
 Information relevant for field of certification, resources, and relationship in a
corporation.
 Information concerning outsourced processes
 Applicants to provide the information concerning any management system
consultancy received.
5.5.1.1. APPLICATION REVIEW
CB shall review the application to ensure that:
 Information sufficient for an audit.
 Requirements provided to the applicant.
 Any known differences are resolved.
 CB has competence and ability to provide the certificate.
 Scope, locations, audit time, threats to safety or impartiality has been taken into
account.
 Records of justification to accept client are maintained.
After the review of application, the CB shall determine the competence needed for the audit
team and for the certification team, followed by the appointment of the audit team having the
totality of needed competences. After that the CB shall ensure the appointments of persons
for making the certification decisions that have the competences needed.
5.5.2. SA8000 CERTIFICATION PROGRAM
The certification process must follow the ‗Functional Approach‘ for the whole lifecycle of
certification, as mentioned in ISO/ISE 17021.

63
Figure 6: Life Cycle of Certification (L. Bernstein, 2007)
The entire management system for SA8000 shall be accessed at minimum of once every three
years. The audit cycle shall be based upon the dates of initial certification decision. The time
interval between initial certification and recertification or between two recertification audits
shall not exceed three years from issue, except that a grace period of 3 months may be
allowed with proper documented justification.
5.5.2.1. INITIAL CERTIFICATION AUDIT
Figure 7: Stages of Initial Certification Audit
• Starting
priod (1st
Year)
INITIAL
CERTIFICATION
AUDIT
• 1st & 2nd Year
SURVIELLANCE
AUDIT • 3rd/Last Year
(Prior to
Expiration)
RECERTIFICATION
AUDIT
STAGE 1
Readiness
Review
STAGE 2
Site Audit
INITIAL
CERTIFICATION
AUDIT

64
Stage 1 Audit shall be performed to:
 Audit management system documentation.
 Evaluate the sites and personnel to determine the preparedness for the stage 2 audit.
 Review client‘s understanding and identification of key performances or significant
aspects regarding the scope and operation of the management system.
 Collect necessary information regarding the scope and related statutory and regulatory
requirements of the client‘s operations.
 Review allocation of resources and agree with the client upon the details for the Stage
2 audit.
 Provide a focus for planning the Stage 2 audit by gaining the understanding of the
client‘s management system, site operations and significant aspects.
 Evaluate if internal audits and management reviews are being performed and that the
level of implementation substantiates the client is ready for the Stage 2 audit.
Stage 1 audit findings shall be documented and communicated to client, including
identification of any areas of concern.
 The time needed to resolve any area of concern, identified in stage 1 audit, must be
considered in determining the arrangement for Stage 2 audit.
Stage 2 audit mainly serves the purpose of evaluation of the implementation, including the
effectiveness of the client‘s management system. The Stage 2 audit shall take place at the
sites of the client.
The Stage 2 audit shall include, at least:
 Evidence of conformity to all requirements.
 Performance against key objectives and targets.
 Performance as regards legal compliance.
 Operational control of processes
 Internal auditing and management review.
 Management responsibility for client‘s policies.
 Links between requirements, policy, performance objectives and targets consistent
with the expectations of the standard, legal requirements, responsibilities, and
competence of personnel, operations, performance data and internal audit conclusions.

65
The audit team shall analyze all information and audit evidence form Stage 1 and Stage 2
audits and agree upon conclusions. The information provided by audit team for granting the
initial certification must have:
 Audit reports (Stage 1 & Stage 2)
 Comments on non-conformance, corrections and corrective actions
 Conformation of information used in application review
 No of employees for determining the audit duration.
 Use of consultancy
 Audit team recommendations for or against certification.
5.5.2.2. SURVEILLANCE AUDITS
CB shall develop its surveillance activities so representative areas and functions are
monitored on a regular basis and take into account changes. Surveillance shall include on-site
audits and may include
 Enquiries to the clients on aspect of certification.
 Reviewing client‘s website and promotions.
 Request to the client for documents and records.
 Other means of monitoring performance.
Surveillance audits are on-site audits, but not necessarily full system audits and shall be
planned with other surveillance activities so that CB can maintain confidence that
management system continues to fulfil the requirements between recertification audits.
Figure 8: Minimum Required Elements of Surveillance Audit
Internal audits &
management
review
Actions on NCRs
from previous
audit
Complaints
Effectiveness
acheiving cleint's
objective
Progress at
continual
improvement
Continuing
operational control
Changes
Use of marks &
reference to
certification

66
Surveillance audits shall be conducted at least once a year.
 Date of first surveillance audit following certification shall not be more than 12
months from the last day of Stage 2 audit (date of closing meeting).
5.5.2.3. CERTIFICATE MAINTENANCE
CB shall maintain certification based on demonstration that the client continue to satisfy
requirements. CB may maintain certification based on a positive conclusion by the audit team
leader without further independent review, provided:
 For any issue that may lead to suspension or withdrawal, the audit team leader
initiates review by competent personnel different from those carrying out audits.
 Competence CB personnel monitoring the effectiveness of the CB‘s surveillance
program.
5.5.2.4. RECERTIFICATION
A recertification audit shall be planned and conducted to evaluate continual fulfilment of all
requirements, to confirm continued conformity and effectiveness of the management system
as a whole and continued relevance for the scope. The recertification audit shall consider
performance over the period of certification and include the review of previous surveillance
audit reports.
5.5.3. AUDIT PROCESS
Certification shall apply to all parts of a continuous process or premises. The entire process
must be complaint in order to get the certification.
 For example, in a situation with several assembly lines, all must be audited for
certification.
 In a continuous process of fabrication, finishing and packing, the entire process must
be audited.

67
Figure 9: Industry Supply Chain
The demography of RMG sector reveals that the workforce is young, semiskilled and
unorganized. To adopt and fully implement the social compliance and labour standards at
this step of chain, it is necessary to increase the awareness at initial steps/sections. So for this
purpose, it becomes unavoidable to audit those sectors also.
For multiple site audit schemes (multi-site sampling), sites shall be audited in accordance
with the predefined sampling procedures, in order to cover all the sites efficiently in required
time period.
Audit planning and execution shall take into account all workers on-site as well as off-site,
including all type of workforce. It shall cover all the sift running at floor. The audit plan shall
be developed by discussions and information gathered from local and regional experts &
stakeholders. The following points shall be taken into consideration of discussion:
a. Wage levels
RAW MATERIAL
TEXTILE PLANTS
APPAREL
MANUFACTURING
UNITS
EXPORT CHAINS
RETAIL STORES
CUSTOMERS

68
b. NGO & Trade Union Consultations
c. Language Needs
d. History of Organization
5.5.4. NON CONFORMITY & CORRECTIVE ACTION REQUEST (CAR)
Figure 10: Classification of Non-Conformities
All nonconformities shall be recorded. Nonconformities may not be closed during the audit in
which they were issued. The CB shall require the organisation to submit the root cause
analysis and evidence of corrective actions. Audit nonconformity (Corrective Action request-
CAR) finding shall have three distinct parts:
a. Statement of Nonconformity.
b. The requirement or specific reference to the requirement in SA8000.
c. The objective evidence observed that supports the statement of nonconformity.
MAJOR
The absence (or total break down) of
asystem to meet SA8000 requirement. A
number of minor nonconformities
against one requirement can represent a
total breakdown of system.
A nonconformity that judgement and
experience indicate is likely either to fail
in meeting the goals and requirements of
social management system or to reduce
its capability.
A nonconformity that posses iminent
threat to healt & safety of workers.
MINOR
A failure in some part of the
organisation's social
management system relative to
certification , which is not
systematic in nature.
A single observed lapse in
following one item of a
company's social management
system.

69
5.5.5.IMPLEMENTATION & MAINTENANCE PLAN
The comprehensive Implementation Program is designed for companies in the early stages of
the SA 8000 process.
Figure 11: Elements of Implementation Plan
i. Gap Analysis: compares the organization‘s current social accountability system,
if any, to SA 8000 requirements, identifies nonconformities and recommends
actions to achieve conformity.
ii. SA 8000 Overview: describing social accountability system and certification
requirements.
iii. Social Accountability Policy Development: creating a document that describes
social accountability policy, procedures, requirements, goals and structures.
iv. Procedures Development: covering methods, strategies and principles used to
perform social accountability system activities.
v. Registrar Liaison: contacting an accredited third-party firm that audits the social
accountability system, its documentation and implementation for SA 8000
certification.
Gap Analysis
SA 8000
Overview
Social
Accountability
Policy
Development
Procedures
Development
Registrar
Liaison
Senior
Management
Representative
Selection
Procedures
Implementation
Internal Audit
Assistance
Corrective
Action
Assistance,
Preassessment
Consulting
During the
Certification
Audit

70
vi. Senior Management Representative Selection: choosing the person with day-
to-day responsibility for social accountability system development and
implementation, as well as liaison between management and the registrar.
vii. Procedures Implementation: ensuring social accountability system conformity
to SA 8000.
viii. Internal Audit Assistance: monitor social accountability system implementation
for conformity to SA 8000.
ix. Corrective Action Assistance: eliminate social accountability system
nonconformities found during internal audits.
x. Preassessment of social accountability system implementation to prepare for the
certification audit.
xi. Consulting during the Certification Audit of the social accountability system,
facilities, records and other documentation.
Once SA 8000 certification has been achieved, the social accountability system must be
maintained.
Figure 12: Elements of Maintenance Plan
INTERNAL
AUDITS
• Internal audits are a crucial component in social
accountability system checks and balances, for
discovering a major nonconformity during an internal
audit can prevent certification from being revoked during
the subsequent surveillance audit.
CORRECTIVE
ACTIONS
• Performed after surveillance audits to close out
nonconformities.

72
6. CERTIFICATION STATISTICS
Table 13: Current Scenario of World-wide Certification for all sectors
Facilities Currently Certified 2785
Countries Represented 62
Industries Represented 65
Workers Employed 16,48,086
Table 14: Worldwide country wise Certifications for Accessories Manufacturing
Industries
COUNTRY CERTIFICATIONS
Bangladesh 1
China 22
Hong Kong 6
India 9
Italy 1
Taiwan 2
Vietnam 3

73
Graph 10: %Share of each country
Table 15: Country wise worldwide certification for Apparel Manufacturing
COUNTRY CERTIFICATIONS
Bangladesh 2
Belgium 1
China 98
Greece 1
Hong Kong 4
India 225
Indonesia 2
Italy 15
Lithuania 1
Pakistan 61
Bangladesh
2%
China
50%
Hong Kong
14%
India
20%
Italy
2%
Taiwan
5%
Veitnam
7%

74
Peru 1
Romania 1
Sri Lanka 8
Switzerland 2
Tanzania 1
Thailand 5
Tunisia 3
Turkey 2
United Kingdom 3
Graph 11: %Share of each country in Apparel Certification
Bangladesh
0.44%
Belgium
0.22%
China
21.59%
Greece
0.22%
Hong Kong
0.88%
India
49.56%
Indonesia
0.44%
Italy
3.30%
Lithuania
0.22%
Pakistan
13.44%Peru
0.22%
Romania
0.22%
Sri Lanka
1.76%
Switzerland
0.44%
Tanzania
0.22%
Thailand
1.10%
Tunisia
0.66%
Turkey
0.44%
United Kingdom
0.66%
Vietnam
3.96%

75
6.1. INDIAN CERTIFICATIONS
Table 16: Industry-sector wise certification gained by India
INDUSTRY CERTIFICATIONS
ACCESSORIES 9
AGRICULTURE 3
APPAREL 225
AUTOMOTIVE 5
BUILDING MATERIALS 6
BUSINESS SERVICES 3
CEMENT 8
CHEMICALS 10
CONSTRUCTION 5
CONSULTING 1
ELECTRICAL EQUIPMENTS 1
ELECTRONICS 2
ENERGY 17
FOOD 11
FOOD SERVICES 1
FOOTWEAR 41
FURNISHINGS 3
GAMING ACTIVITIES 1
HOUSEWARES 3

76
INDUSTRIAL EQUIPMENTS 3
INFORMATION TECHNOLOGY 1
JEWELRY & WATCHES 3
LEATHER 27
LIGHTING 1
LOGISTICS 1
METAL PRODUCTS 14
METAL & MININGS 15
PACKAGING 2
PAPER PRODUCTS 3
PAPER PRODUCTS/ PRINTING 4
PLASTIC 5
REAL ESTATE 1
SPORTING GOODS & EQUIPMENTS 2
TEXTILE 171
TOBACCO 5
TOYS 1
WRITING INSTRUMENTS 2

77
Table 17: Year wise certifications Gained by industries of India (all sectors)
YEAR CERTIFICATION
2011 94
2010 153
2009 152
2008 75
2007 45
2006 32
2005 23
2004 23
2003 18
2002 4
2001 3
Graph 12: Scatter diagram (regression analysis) of year wise certifications
94
153152
75
45
32
232318
43
y = 14.35x - 28739
R² = 0.749
-40
-20
0
20
40
60
80
100
120
140
160
180
2000 2002 2004 2006 2008 2010 2012
NOOFCERTIFICATION
YEAR

Graduation Project (SA 8000 & it's frame work for Indian Apparel Manufacturing)

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