Report on the Implementation of the derogation to ... - Trade Websites

Final <strong>Report</strong>
RoO Derogation under the PACP-IEPA
8000 does not include broader governance requirements relating to the environment or antibribery/anti-corruption.
In March 2011, an internal pre-audit was facilitated by the PNA Office for seven PNA fish processing
facilities, including RDTC, SSTC, Frabelle and IFC in PNG. The purpose of the pre-audit was to
‘diagnose’ how each processing facility’s working conditions and management systems fare against
the BCSI and SA 8000 standards to determine whether or not they are in a position to enter into an
audit. Under the pre-audit, all four PNG plants scored between 70-90% for eight out of the nine SA
8000 requirements. However, the compliance scores for social accountability management systems
(i.e. social accountability-related policies, procedures and manuals) were low at around 25%. This is
because PNA plants are new to implementing social accountability systems and are yet to establish
associated management systems. 88
In the past several months, PNA processors have been working on addressing gaps identified in the
pre-audit. The intention is then for processors to commence the audit proper with a BSCI selfassessment,
prior to the initial audit conducted by a third-party SAAS-accredited auditor. It is
anticipated that the PNG plants will likely comply with the BSCI standard and opt to progress to
acquiring SA 8000 accreditation, given that it represents a higher standard than BSCI. 89
It should be noted that the value of the SA 8000 accreditation process has been debated over time.
On the positive side, SA 8000 has the potential to improve conditions for workers, as well as
promoting socially responsible company reputations and brand images. However, SA 8000 has also
been criticised for only measuring a select group of social factors (i.e. labour force issues), while
excluding broader social issues that are more difficult to quantify such as environmental impacts,
effects on neighbouring communities, chain of custody social standards and ethical investment
practices. In addition, the certification process can be quite costly. 90
4.5 Other Social Issues
In addition to labour-related issues of direct importance to workers employed by canneries, there
are broader social issues, both positive and negative, associated with tuna processing operations in
PNG.
To date, considerable attention has been given to broader social issues in Madang through past and
recent studies, media reports, anecdotal recounts and, in the course of this review, stakeholder
interviews. However, there has been comparatively little coverage of broader social issues
associated with tuna processing activities in Wewak and Lae.
4.5.1 Corporate social responsibilities of tuna processing companies
As part of their investment agreements with the PNG Government, tuna processing companies are
required to exercise a degree of corporate social responsibility, by committing to generating
additional benefits to local communities, over and above employment offered within the canneries.
88 PNA Office, pers. comm. August-October 2011.
89 PNA Office, pers. comm. August-October 2011.
90 Campling et al. 2007: 218.
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