Tag: csr

What’s a Living Wage?

A question that comes up often when sourcing abroad is determining what the living wage is and how well suppliers stack up.

Article 23 of the United Nations Universal Declaration of Human Rights states that “everyone who works has the right to just and favorable remuneration ensuring for himself and for his family an existence worthy of human dignity.” And, it’s even noted that Plato and Aristotle discussed the concept as they both argued for “an income that considers needs, particularly those that ensure the communal good.”

How are Living Wages calculated?

“A living wage is the minimum income necessary for a worker to meet their basic needs. This is not the same as subsistence which refers to a biological minimum. Needs are defined to include food, housing, and other essential needs such as clothing. The goal of a living wage is to allow a worker to afford a basic but decent standard of living. Due to the flexible nature of the term ‘needs’, there is not one universally accepted measure of what a living wage is and as such it varies by location and household type.”

Social Accountability International identifies the Living Wage calculation as follows:

To verify wages for suppliers, auditors check records over a period of time and conduct employee interviews. Applicable standards include SA8000, ISO 26000, various or organizational-specific such as WalMart or the Electronics Industry Citizenship Coalition.

Social Accountability International posts Living Wage Reports for various areas within China, Africa, Vietnam, etc.  View the SAI page here. 

Within the United States, MIT provides Living Wage estimates based on states here. 

To learn more about supplier social audits and view example example reports, visit Pro QC’s website. 

What is Responsible Sourcing & How Do You Manage It Effectively?

Our latest video discusses a topic increasing in relevancy. Responsible Sourcing is also a topic we’ll be discussing next week at ASQ’s annual World Conference on Quality & Improvement.  Visit us in Booth 607, or attend one or both of our sessions on Monday, May 1st.

3pm – 4pm

M26: Managing Supplier Social Responsibility: On-Site Audits

5:30pm – 6:45pm

AF04: Incorporating SR Into Daily Life

Resolving issues w/ QC in the textile/garment industry

The International Journal of Information, Business and Management recently reported on the garment industry and the impact on quality in the current environment.

Garment factories in Bangladesh have been the site of rights abuses and fatal accidents. The industry also faces its share of traditional business challenges, including mounting international competition and a lack of formal quality management systems, researcher Hasanuzzaman writes. Common challenges to adopting quality management systems – such as Six Sigma – include a lack of financial resources, infrastructure, and education, according to the author’s interviews with factory managers. Those who had implemented quality management, however, reported better customer and employee satisfaction, better waste management, and faster delivery.

CGMA Magazine highlights the ongoing issues noted in the textile/garment supply chain despite attempts to implement corrective actions via quality management:

The Quality – Social Responsibility Connection

As a guest blogger on the ASQ site this month, my post discusses the connection between quality and social responsibility, in addition to highlighting ideas for action as it relates to individual accountability.  Check out the article here.  For additional info regarding the quality – SR connection, I reference the following articles:

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Investing in Sustainability & Social Responsibility

A recent TED Talk that caught our attention includes Chris McKnett making a solid case for investing in sustainability.  In fact, several TED related talks focus on this topic and do an exceptional job demonstrating the benefits of this long-term strategy.

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In McKnett’s talk, he highlights three additional components to sustainable investing that add to the commonly accepted and used financial indicators. He prefaces the discussion effectively disputing many of the common objections we hear.  He argues sustainability and sustainable investing is “less complicated than you think, has better performance than you can believe and is more important than we can imagine.”