Sex Education

Today was one of those days that make it all worthwhile. I feel inspired, that my work is meaningful and that there's a sense of purpose behind what I do.

For a bit of context, let me rewind a day. Yesterday I took one of those very touristy organized trips to the Mekong Delta where foreigners are basically bused and boated from one gift shop to another. It was a very pretty tour, but I just wish there were a more authentic way to see different parts of the world. I did, however, enjoy our tour guide's perspective on Vietnam. At one point she discussed the country's problem with population control, contributed in part by an unwillingness to discuss sex in Vietnamese culture. As a consequence, not only is unwanted pregnancy on the rise, so are STDs like HIV/AIDS.

My tour guide's comments perfectly set up today's factory visit. We recently partnered with a Vietnamese factory to invest in HERproject, a factory-based health education program for women in developing countries, and today I had the chance to observe a training session.

Since the training was conducted entirely in Vietnamese, I didn't understand the content, but I got a sense of the discussion from the condoms, leaflets and birth control pills that were being used as props and handed out. Later, I was debriefed on the content, which was pretty consistent with my junior high school health education class. It mostly concerned how to use condoms, how to avoid STDs and how to prevent unwanted pregnancy.

I was worried that the training session would be fruitless, given my understanding of the discomfort surrounding talking about sex. The women in the session, however, seemed very engaged throughout the doctor's presentation. And when it came time for questions, they were eager to learn more! The participants seemed hungry for this information and it was clear that these concepts were new to them. I was relieved to see this level of engagement and felt good that our investment was not in vain.

Today's visit also included a meeting with the factory's management team, who shared some of their experiences in implementing the program. Sure, they cited some frustrations, but most of them had to do with logistics and not the core content of the training. Everyone seemed to believe in the importance of delivering health training. There are opportunities to deliver the program more smoothly, but nothing that cannot be overcome.

But what I didn't expect was to hear the factory managers cite this investment as a potential competitive advantage. Even though the training program was launched only a few months ago, they already saw participants taking these learnings back to their families and communities. The factory was beginning to earn a reputation as a preferred employer and people in the community appreciated the added investment in worker education. In a time when all factories, across all industries, are facing tremendous challenges in recruiting Vietnamese workers, this is an obvious business benefit.

When I first considered entering the field of CSR over a decade ago, I never would have imagined that I'd spend a day at work sitting in a sex ed class in Vietnam, but today has turned out to be one of the most gratifying days of my career.

Sustainable Wool Farming

Or ... who'd have ever thought my career would put me in such close proximity to sheep?

A few weeks ago, I went to Australia and visited several wool farms that practice sustainable land management. I learned all about the dangers of over-grazing, how both summer and winter native grasses help sustain food supply throughout the year, breeding techniques that eliminate the need for certain chemical treatments, the benefits of combining a flock of sheep with a flock of cattle (or a few alpaca!), natural ways to reduce soil erosion and that you don't call paddocks "fields."

In contrast to one of the farms we visited, the neighboring field used conventional techniques, including chemical pesticides and infrequent paddock rotation. The differences in the two fields was staggering. One was lush, with knee-high grasses and the other had only little shrubs and very short grasses.

The visits were very interesting and I learned a lot more than I ever expected to. My visit was initially to explore animal welfare issues in the wool industry, but took a truly educational turn once I had the chance to meet with farmers who are committed to improving the land they inherited from their fathers.

Coming into the trip, I didn't realize that the farms were family-run businesses, often passed down through several generations of farmers. At each farm, we were warmly greeted by the farmer, his wife and their adorable children. Over coffee or tea, we discussed issues like sustainable farming, wool prices, yarn quality and animal welfare. Then, we'd have a chance to actually see the paddocks, the sheep and field conditions.

The people I had the fortune to meet were so welcoming and open and generous that I feel very lucky to have spent time with them. For each of the three farms I've visited, it's clearly a family affair with wives and kids contributing to the overall well-being of the farm. It's actually a very idyllic lifestyle and one that's much simpler than the faster-paced city life I'm used to.

When we discuss wool and garments at work, we really don't discuss the human element of the farmers who toil away day after day and whose entire livelihoods depend on raising high quality sheep. We also don't get the chance to see how sustainable farming techniques can help replenish a countryside that has been exploited for generations before - to see how a new way of thinking is turning the land back to a lush, grassy landscape. And we certainly cannot see how much the farmers truly care for their flock and how animal welfare is an important element of how they run their business.

Moving Beyond Social Compliance

Most companies, even if they do not have a "CSR department" have a program in place to monitor social compliance in their global supply chains. For these companies, it is important to protect their brands' reputations by ensuring that the factories manufacturing their goods, often in developing countries, respect workers' rights, pay legal wages and abide by environmental legislation. It's also often from these departments that companies develop a more holistic CSR strategy.

I've spent the past two days in Ho Chi Minh City at the Better Work Vietnam International Buyers' Forum.  The Better Work program is described as:

"... a unique partnership between the International Labour Organization (ILO) and the International Finance Corporation (IFC).  It unites the expertise of the ILO in labor standards with that of the IFC in private sector development."

That's not a very telling description, but basically it's an effort to develop a sustainable, industry-wide mechanism to promote stronger industrial relations and good working conditions for garment factories in targeted countries (Vietnam, Cambodia, Jordan, Haiti).

Today, apparel retailers have different codes of conduct that they expect their contract factories to adhere to as a condition for doing business. To ensure that these factories are upholding the expectations expressed in these different codes of conduct, retailers employ auditors (either company employees or third-party audit firms) to visit factories and check conditions against their respective codes. With many retailers sharing the same factories, you can imagine that factories are visited dozens of times each year by auditors and out of each visit comes a list of "corrective action plans" for the factory to implement in order to remain in good compliance with retailers' codes.

This approach creates an environment where factories seek to solve specific problems in preparation for the next audit, but they may not take the time to understand root causes of non-compliance. Instead of understanding why they're unable to control overtime hours, factories may look for short-term solutions in order to "pass" the next audit.

The Better Work program seeks to shift the dialogue away from "auditing" and "monitoring" to truly finding long-term, sustainable solutions to poor factory working conditions.  In addition to conducting factory assessments (similar to a typical audit, but much more detailed and thorough), Better Work provides factories with consulting services and training (both for management and workers) in order to build factories' capabilities to manage working conditions and industrial relations.

Furthermore, retailers that subscribe to the Better Work program, agree to stop auditing factories and rely instead upon the Better Work assessments for insight into factory working conditions. This alleviates the factories from repetitive auditing and the International Labor Organization provides a credible approach that provides companies with the confidence that factories are being held to internationally accepted labor standards.

To me, it's a win-win situation, but these past two days have highlighted some challenges to broader adoption of this approach. Companies have had social compliance audit programs in place for decades and some are unwilling to let go of their own programs. People who represent companies and auditors have a vested interest in seeing the current environment prevail (They may fear for their jobs.), so they're not necessarily interested in promoting an industry-wide practice. Companies insist that their standards are stricter than the ILO standards and are unwilling to compromise on some points in order to support the Better Work framework.

The Better Work program has its work cut out for them, but I'm hopeful that retailers will embrace this approach more fully and the industry can move beyond the never-ending cycle of social compliance audits toward an internationally accepted, industry-wide system that focuses on the most important goal: improving the lives of garment workers.

The Independent, Third-party Factory Audit

We employ a third-party social compliance audit firm to conduct social and environmental audits of our factories. In some cases, the purpose of these audits is to check our primary auditor's performance and in others, we rely entirely on these third-party audits. Through using a third-party audit firm, we aim to introduce a neutral party to avoid conflicts of interest and to ensure that we bring in an impartial perspective that does not have a financial stake in our relationship with the supplier.

On Friday, I accompanied our third-party audit firm for a shadow audit in China. It was the first time I'd visited a factory with a neutral party (instead of a company-appointed representative or a company employee) and it proved to be fairly educational.

From the outset, the tone of the visit was very different. Usually, auditors have a pre-existing relationship with factory management. The auditors have been to the factory before, they've worked together over the years and it's a collegial, if not friendly, relationship. With a third-party audit firm that has no previous relationship, the visit has a much less friendly tone.  It's strictly professional and both sides clearly are assessing each other throughout the visit.

The factory staff seemed much more nervous than on other audits I've shadowed. It could have been because this was the first time we had ever asked the factory to be audited, or it could have been my presence, representing a customer. Whatever the case, the entire day took on a much more formal environment than I was used to.

When it came time for lunch, the factory management team offered to take us to lunch, but our audit firm steadfastly refused. Typically, I will break bread with the factory managers to build our relationship and to discuss matters like production levels, hiring challenges, compliance issues, etc. in a more casual setting. Our audit firm has a policy to have lunch on its own, again to avoid any conflicts of interest.

And in the closing meeting, when we typically discuss next steps, corrective action plans and timing for implementation, we ended up pointing out the violations we'd found and leaving it at that.  We cannot guarantee that the audit firm will return to ensure that the corrective action plans have been implemented. In some cases, companies will send their own representatives to ensure follow-up. In this case, we could only say what we'd found and the conversation never turned to remediation or true improvement.

Friday's visit really highlighted for me some of the shortcomings of the third-party audit system. I still believe they play an important part of any social compliance program, but to rely completely on them would probably not truly work toward improving factory workplace conditions.

We Are the World

Everyone talks about the "global economy" and how business is linked with the various countries around the world - either as commercial markets or as sourcing markets. In all my CSR positions, I've had the opportunity to consider the world beyond my own country borders, but never have I had to dig as deeply into country information before my current position.

I sit squarely in our supply chain organization and am focused on helping the company consider entry into and exit out of different countries from a sourcing perspective. And I'm now in the middle of a "country risk assessment" project where I've been tasked with assessing the risks of doing business in those countries where we're currently sourcing and those under consideration.

It's an interesting project and I get to learn about countries like Mauritius and Jordan, but it's been a laborious piece of work as well. Each country requires several hours of research and of course there are many other pressing demands on my time. I've started to engage external purveyors of country risk analysis to see if I can streamline the research process and am now in the position of receiving approximately 20 e-mail newsletters a week that alert me to macroeconomic shifts in different countries around the world.

The problem with these research and information sources is that I simply don't have time to filter through the wealth of information out there. And most of these sources don't do a good job of narrowing down available information to make it easily digestible or relevant to my industry. My full-time job could be to sift through information about China, but unfortunately, I have other things to do.

As I pull these country profiles together for an upcoming meeting (one that's far too close on the horizon), a growing concern is how I'm ever going to keep these profiles current and how I will be able to manage ongoing communication of their contents to my colleagues. It's a weird responsibility, being the keeper of country risk information - and one that I'm not totally convinced plays to my strengths.

After all, how does one person stay abreast of all the economic and political developments in several dozen countries, while considering all the potential implications on our supply chain and business? There has to be an easier way!