SEAL: Social Standards Exchange of Experience in Southeast Asia and Practical Learning
Quick tour to implementation of a
Social Management System
Why implement a Social Management System (SMS)?
A Social Management System (SMS) sets basic standards for:
- Abolition of child labor as well as
- Forced labor
- Occupational health and safety
- Freedom of association and the right to collective bargaining
- Discrimination
- Disciplinary practices
- Working hours
- Compensation and
- Management System
An organization must introduce a social management system to ensure compliance and continuous improvement in delivering the above-cited aspects. The requirements are based on the:
- Various conventions and recommendations of the International Labor Organization (ILO)
- Universal declaration of Human Rights and
- Convention on the Rights of the Child of the United Nations (UN)
Business Benefits of Implementing a Social Management System
Customers Business Benefits
Reduce the costs of monitoring to ensure
that products sold under the company’s
name or brand are produced in a way
customers expected.
Leads to greater confidence that the supplied products and services are produced in a fair and safe working environment. Better corporate image and enhanced reputation due to continuous improvement, the need of regular internal and third party audits, and compliance/certification.
Supplier’s Business Benefits
Chance to gain competitive edge, attract new customers and enter new markets while giving the company and its managers “social peace of mind” Significantly reduce cost of managing different social requirements.
Gives the company a better position in the labor market. Attracts well-trained and skilled staff - a factor that is seen as the key success factor in the next millennium. Increase employees’ loyalty and commitment to the company which will enhance the organization’s productivity and lead to better customer relations.
Basis for the Requirements of an SMS
The requirements of an SMS are, to a wide extent, based on 13 conventions and recommendations of the International Labor Organization (ILO):
- 1. Minimum Age and Recommendations
- 2. Occupational Safety and Health Recommendation
- 3. Forced Labor Convention
- 4. Freedom of Association and Protection of the Right to Organize Convention
- 5. Right to Organize and Collective Bargaining Convention
- 6. Equal Remuneration Convention
- 7. Abolition of Forced Labor Convention
- 8. Discrimination (Employment and Occupation) Convention
- 9. Workers’ Representatives Convention
- 10. Minimum Age Convention
- 11. Occupational Safety and Health Convention
- 12. Vocational Rehabilitation and Employment Convention and
- 13. Home Work Convention
Besides these conventions and recommendations, a social management system requires a company to respect the following:
- Universal Declaration of Human Rights and
- United Nations Convention on the Rights of the Child
Preparing the Implementation
Before starting the implementation it is advisable to take some preparatory steps which should include an initial screening. In the process the existing social management system is assessed against above elements.
The current practice and procedures are benchmarked against the local reglatory requirements and ILO recommendation and conventions. The outcome is a gap-analysis that is the core part of the report to be submitted to the top-management.
Beside the initial assessment report should include the first estimate of cost and benefits. Base on that report the senior management has the appropriate information to device whether to go on or stop the project.
Planning the Implementation
The first step in planning the implementation is the assignment of the management representative to be in charge of the social responsibility and /or accountability, the SMS, and its requirements.
The core element of every management system is social a social policy that gives guidance in strategic and day-to-day management decisions and action. Based on this social policy and the initial social assignment, the company should determine the social priorities and objectives.
These priorities should operationalized through social targets, to achieve this targets, action has to be taken by establishing social programs that improve the company’s social performance.
Implementing : ”Do-Check-Act”
To implement the SMS an organizational structure and clear responsibilities must be put in place.
The person in charge of SMS must establish a system for document and operational control and for internal and external communication channels. A
base documentation of the SMS is advised.
To make sure that every system works as intended the person in charge should conduct training covering the requirements of the SMS itself.
A continuous monitoring system should assure that the requirements of the SMS are met and corrective action is taken in case of non-conformance.
Additionally to the internal monitoring a continuous control of the suppliers and the sub contractors is required by the standards.
In that process the company requirements laid in an SMS are met by their business as well (including financial stakeholders, such as banks and shareholders).
On the mandatory basis the company can even expand this control to their customers. If the company discovers nonconformance, immediate corrective action must be undertaken.
Beside this continuous monitoring and control, the company should conduct a yearly social performance review (an assessment against the SMS as well as the goals and objectives). The review serves as basis for top-management review.
Download the SMS overview image [840 kb PNG]
Download the detailed SMS poster [500 kb PDF]