Lead by Example

The purpose of the venture between TMS and its key customers is to provide a working strategy to implement the Business Social Compliance Initiative (BSCI). The key is a partnership in respecting human dignity, managing risk, and maximizing the opportunities in the supply chain by taking a proactive and ethical approach.

The purpose of the venture between TMS and its key customers is to provide a working strategy to implement the Business Social Compliance Initiative (BSCI). The key is a partnership in respecting human dignity, managing risk, and maximizing the opportunities in the supply chain by taking a proactive and ethical approach.

The TMS Group has established itself as one of the leading sourcing organizations for apparel and fashion accessories in Asia. With offices in the United States, Hong Kong, China, India, Bangladesh, and Indonesia, the thriving group delivers fashionable products and services at the highest quality level to customers worldwide.

The TMS Group is a preferred supplier with a number of well-known and fashionable international apparel brands. The TMS Group global customer-base markets products in five continents and more than 40 countries, in virtually every corner of the globe.

The TMS Group partnered with all key customers in implementing the BSCI with all of its suppliers. The pilot venture commenced in late 2006, and the formal launch was in November 2007. All participants are strongly committed to social responsibility as an integral element of long-term business success. BSCI is not a just a social, ethical, or business-driven set of values and ideals. It is also a moral responsibility inherent for any corporate citizen, and one that ultimately must respect human dignity.

BSCI has a wide-ranging and comprehensive approach to the introduction, implementation, and sustained achievement of Corporate Social Responsibility (CSR). The TMS Group exercises its role thru a partnership and mentoring approach with its suppliers on a global basis.

The key element within the collaboration between committed suppliers and the TMS Group is the internal global compliance philosophy that focuses on supplier education, coaching, and achieved compliance. This approach is enhanced by audits in standards and policies in the following areas: employee rights, compensation, workplace environment, economics, and eco/environment sustainability.

Through this aspect of supplier education, the power of the commonly referred to “WIIFM" principle is unleashed with suppliers. The “WIIFM” (“What’s in it for me”) principle demonstrates to suppliers the measurable advantages of BSCI in the core areas of:

• Optimizing working conditions
• Increasing productivity
• Higher product quality
• Higher satisfaction for workers and consumers
• Obtaining a “preferred supplier status”

The combined success of this approach is reflected in the BSCI Self Assessment and Code Declarations for 100 percent of existing and new suppliers. The performance of the supply chain is one of the main CSR concerns that the TMS Group and key customers manage and measure across their businesses with all suppliers. The key is that, as partners, we must lead by example, and that we are ethical, transparent, and accountable in our daily work, and pass this philosophy on to our supply base as a requirement.

Taking the “lead by example” approach, we utilize the combined framework of the Global Compact/BSCI to create partnerships aligned with clear and measurable global standards that are addressed in a proactive way with suppliers. This developed strategy to implementing BSCI is part of an overall three-tier Corporate Social Responsibility philosophy that addresses three core areas:

1. Protection: Human Rights, reputation, and liability risk management
2. Builders: Enhance corporate reputation, strengthen efficiency for quality/cost/cycle time
3. Innovation: New supplier certifications, products, or expanding capacity and skills within existing suppliers and re-certification

The main drivers that support the TMS Group philosophy are the fundamental universal drivers such as the UN Universal Declaration of Human Rights, the International Labour Organization conventions, and parallel certifications such as SA8000. They focus on the importance of proactively managing and removing sources of Human Rights/dignity risk. This covers social, environmental, and ethical risk factors.
They are a critical part of the program and integrated into the internal and informal audit processes and supplier education curricula.

Since the formal launch of implementing BSCI in November 2007, the TMS Group compliance and key customer compliance programs have implemented the following framework for delivery and attainment of BSCI standards:

• TMS Group initial screening, follow-up audits, and curriculum development for suppliers
• TMS Corrective Action Plan training and support with factory management
• BSCI self-assessments
  
• BSCI initial audits, and follow-up audits
• On-site, unannounced inspections
• Supplier forums on compliance and country legislative changes
• Re-certification and continuing education

For “high-risk” areas that are identified as being in danger of not meeting or failing to maintain the TMS Group or BSCI standards, the approach is even more proactive. Further actions include bi-weekly on-site assessments or training to identify to what extent suppliers in these areas are meeting the standards and to prompt corrective action (short/long term) to address any shortfalls.

Within nine months of formally implementing BSCI, the TMS Group achieved 67 percent compliance of all suppliers with either BSCI and/or SA8000 standards; 33 percent are progressing towards satisfactory compliance, with an anticipated 90 percent target for full compliance by January 2009.

The TMS Group, in collaboration with key customers, continues to develop its internal Compliance Team, applying this year's requirements for advanced SA8000 Auditor Certification for all compliance officers, along with continuing education curricula.

Why is it CSR? The TMS Group supply-chain activities respect human dignity and combine education-based strategies that proactively address risk to Human Rights and reputation. In some instances, the BSCI and TMS Group social requirements go beyond current legislative requirements. BSCI is uniquely tailored to meet the particular relationships with suppliers. Respecting human dignity, while continuing to deliver business results to all stakeholders, is achievable and sustainable.