makeITfair

3. Nokia provide full public disclosure of its supply chain.

Providing full public disclosure of supply chain sends a strong message that a company stands behind its CSR policy and takes it responsibilities as a manufacturer seriously.

A full public disclosure of supply chain makes it easier to monitor working conditions. It also encourages open dialogue with NGOs and other stakeholders to work on the problems. Some large companies (like Nike) have bravely disclosed their entire supply chains. Hewlett-Packard has lead the way among electronic manufacturers by disclosing its most important suppliers already. The factories that manufacture electronics often produce for several competing brands, so disclosing the supply chain is not about disclosing trade secrets.

Why are codes of conduct and auditing not enough?

• All of the five largest mobile phone manufacturers have their own code of conduct that cover basic worker's rights. According to research by makeITfair, the codes of conduct were not observed in the factories visited and the workers were not aware of them.
• Companies often audit their first-tier suppliers only. However, the most serious offences against workers' rights can usually be found the lower down the supply chain one goes, including the production of raw materials.
• Even though the factories investigated by makeITfair were all first and second level suppliers, the reported violations againts the ethical codes were still very serious. This speaks volumes about the effectiveness of traditional auditing.
• Suppliers report that multinationals demand improvements to the working conditions and environmental protection without being willing to pay for these. There is an expectation that production costs will go lower each year while ths standards get stricter. Instead of unrealistic expectations, companies should invest in their suppliers operating in developing countries.

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Suggestions for further reading:

makeITfair report Silenced to Deliver

http://www.hp.com/hpinfo/globalcitizenship/supplychain/transparency.html