Application of

International Labour Standards

at the Enterprise Level

Lessons from ILO Experience

Emily Sims

MULTI

OverviewOverview

This presentation will briefly cover: Understanding the application of ILS to

enterprises Issues in incorporating ILS in

management systems– Enterprises– Value chains

Tools available from ILO

Application of ILS to FirmsApplication of ILS to Firms

National legislation

Enterprise

PrinciplesNon-binding

Ratified Conventions

BindingILS

Application of FundamentalConventions to FirmsApplication of FundamentalConventions to Firms

National legislation

Enterprise

Principles

Moral obligation

ConventionsObligation

Forced labourChild labour

DiscriminationFreedom of Association

Collective Bargaining

RISKRISKRISKRISK

Mitigate?

Manage?Assess?

Cost?

Liabilities?

Competitive Position?

RISKRISKRISKRISK

To every problem, there is a solution that is simple, direct and wrong. 

H.L. Mencken

Key Lessons on Incorporating ILS in Management Systems

Key Lessons on Incorporating ILS in Management Systems

Ensure responsible companies have access to capital even if there are problems of compliance in the country

Ensure that compliance mechanisms don’t wipe out SMEs

Invest in risk assessment and client capacity building for mitigation and managment

Firm FIRM VALUESFIRM VALUES

BUSINESS STRATEGYBUSINESS STRATEGY

EXPECTATIONSEXPECTATIONSOF BUYERS, LENDERSOF BUYERS, LENDERS

MARKET PRESSURESMARKET PRESSURES

EFFECTIVE MANAGEMENT SYSTEM

ENGAGEMENT OF WORKERS, INCLUDING THEIR REPRESENTATIVES

FULL RESPECT OF WORKERS’ RIGHTS PRODUCTIVE AND COMPETITIVE ENTERPRISES

PRINCIPLES OF ILSPRINCIPLES OF ILS

Implementing ILS in Firms

Implementing ILS in Value ChainsImplementing ILS in Value Chains

Glo

bal

E

con

om

y

End Consumer

National Boundary

National Sector

Operating in a business environment consisting

of:  

Meta-level 

Macro-level 

Meso-level 

Micro-level

Large scale multi-outlet

retailer

Small-scale retailer

Specialised Buyers

Buyers / Import Agents

Trans- National

Company

Local Markets

Small-scale Producer

Small-scale Producer

Large-scale and/or Multi Plant

Producer

Raw Material Suppliers Traders

Preliminary Producer

Trader or Export Agent

Tools: large-scale interventionsTools: large-scale interventions

Factory Improvement Programme

Tools: building local capacityTools: building local capacity

Key potential partners for IFCKey potential partners for IFC

ILO Employers’ and Workers’ organisations Public and private institutions

Good luck!Good luck!