-
 Nike
only begins doing business with manufacturing plants when they
meet requirements for product quality, price, time delivery and
CSR standards. CSR standards apply to the working environment
and conditions, employee wages and benefits, worker/management
relations, health, safety, and compliance with labor
regulations. In addition, Nike requests its suppliers to invest
in training for both workers and management, and that the
suppliers contribute to the communities where they are located
to show their commitment to remaining in those communities
long-term, similar to Nike's commitment to remaining in the
countries where Nike has a presence, and the localities where
Nike suppliers are operating. For the last six years, Nike
Vietnam and its plants have provided more than US$100,000 per
year for basic education of their workforce. Over the past seven
years, Nike has also supported a micro-credit program for poor
women in Cu Chi and Dong Nai provinces.
Nike's CoC is a voluntary agreement between Nike and its
suppliers. It is considered an effective tool for ensuring that
suppliers follow government regulations related to CSR,
especially those that concern employer/employee relations. It
should be understood that this CoC does not replace the
Vietnamese Labor Code.
Worldwide there over 1,000 CoCs that have been developed by
different multinational companies and organizations, most of
which are based on ILO conventions. Nike's CoC is among 10 CoCs
that have been highly praised because it is used in more than 50
countries where Nike has manufacturing operations. MOLISA and
the Vietnam General Confederation of Labor (VGCL) have assessed
Nike's CoC as being very good; some of its requirements are even
higher than those of Vietnam's Labor Code, e.g. the minimum age
for workers according to the Labor Code is 15; while at Nike
minimum worker ages are 16 and 18 for apparel and footwear
industries respectively.
Ms. Ho Thi Thu Uyen, Public Relations Manager, Nike Vietnam
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 As
a world leading home furnishing products company based in
Sweden, IKEA sources goods from all over the world. We are
purchasing from Vietnam synthetic textiles, metal products,
ceramics, wooden and plastic light consumer products; the total
worth is over US $ 120 million per annum. To be an IKEA
supplier, an enterprise must meet our requirements for
environment, social and working conditions. These requirements
are non-negotiable-they are a must. The reason that CSR is so
important is that developed countries have paid dearly for
inappropriate consideration of environmental and social
conditions, and we don't want to repeat these mistakes.
Many businesses will say that it is too difficult or too costly
to meet our CSR standards, but it's not so difficult. The big
issue is changing the mindset. We want our suppliers to show
commitment to CSR and we show them a step-by-step approach to
achieve this that is not necessarily costly. IKEA's CSR
requirements (IWAY) are set in a staircase model that defines a
4-step approach. From Step 1, which includes start up
requirements and an action plan, our suppliers are given two
years to get to Step 2. The final step in the ladder is ISO14001
certification. Many of our suppliers in Vietnam currently do not
have ISO 14001, which is okay because many of them don't need it
yet. We give them the support necessary to move up the ladder
over time.
Even when it comes time to spend the money, enterprises should
think of it not as a cost but as an investment, since it will
pay off in terms of more business. My view is that CSR standards
could become compulsory in five years worldwide, so if you don't
start to do something now, you may not survive in the near
future.
I hear many Vietnamese manufacturers complain that Chinese
manufacturers supply at lower prices and in larger volumes. Yes,
that's true - its tough for Vietnamese companies to compete in
this regard. So why not use CSR - being a "good citizen"
business - as a niche to compete?
Mr. August Wingardh, Chief Representative, IKEA Hanoi
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