Instructions HAND IN HAND (HIH) Inspections - Rapunzel

CONTENTS• RAPUNZEL HAND IN HAND program: basics (slide 2)• HAND IN HAND criteria (slide 5 ff.)• Inspection (slide 9 ff.)– Inspection procedures (slide 10 ff.)– Terms of Reference (slide 17, 18)– HIH Checklists (slide 19)– Specific aspects (slide 20, 21)– Inspection report (slide 22, 23)• Contacts at RAPUNZEL (slide 24)Bio. Fair. RAPUNZEL

RAPUNZEL HAND IN HAND program• Private Fair trade program of RAPUNZEL since 1992: organic farming & fair trade• Company owned organic and fair trade label• 100 % organic products – since the beginning• HAND IN HAND Criteria based on SA 8000, the core labour standards of ILO andthe guidelines for social justice of IFOAM• Partners from the beginning: cooperatives and farmer groups, family-runbusinesses, processing and exporting companies• Criteria according to organizational structure (not for each product)• Direct contact with the producers / direct import• RAPUNZEL bears the costs for HIH inspection and certification• HAND IN HAND Fund (supports eco-social projects worldwide)Bio. Fair. RAPUNZEL

RAPUNZEL HAND IN HAND programAll relevant information on HAND IN HAND (criteria, checklists and documents)can be downloaded by the inspector from the HAND IN HAND internet login on:www.rapunzel.de/hih/User name: hih1992Password: 020811rapuBio. Fair. RAPUNZEL

HAND IN HAND criteriaRevised July/September 2011Applied for HIH inspections(including revised version ofchecklists) since November 2011Can be found in the internet loginon the Rapunzel web pageBio. Fair. RAPUNZEL

HAND IN HAND criteria - Structure1. General Requirements: for both partners (e.g. respect of human rights,compliance with all legal requirements)2. Validity and termination of the HIH partnership3. Requirements for RAPUNZEL (e.g. long term trade relations, payment offair price, written purchase contracts)4. Requirements for the HIH suppliers: (see next slide)5. Subcontracted companiesBio. Fair. RAPUNZEL

Requirements for the HIH suppliers4.1 General criteria: to be fulfilled by all HIH suppliers (e.g. organiccertification, transparency and traceability, labelling)4.2 Specific criteria for farmer cooperatives and associations (e.g. democraticstructure, information on HIH, equitable distribution of profis); if thecooperative employs persons, as well the criteria for enterprises withemployees/workers apply4.3 Specific criteria for contract farmer groups (e.g. approved farmer list etc.)4.4 Specific criteria for enterprises with employees/workers (e.g. employmentcontracts, register of workers, freedom of association, wages, paymentconditions, working hours and overtime, social security, health and safetyat working place)Bio. Fair. RAPUNZEL

HAND IN HAND criteria – Type of criterionSymbol Explication – criterion Example Applies toDDevelopment criterion: less graveaspect which shall be fulfilled in thelong term (-7 years)Cooperatives activelyencourage women to becomemembersHIH suppliersD→MINDevelopment criterion: has to befulfilled in the medium term (1-3 J.),then becomes a MIN criterionSustainability managementsystemHIH suppliersMINMinimum criterion: unconditionalrequirement for a HIH partnershipOrganic certification, no slashand burn practices, no forcedlabourRapunzel Naturkost andHIH suppliersD-MIN / D criteria become MIN criteria over time: time frames are defined by eachHIH supplier individually and administered by RAPUNZELBio. Fair. RAPUNZEL

HAND IN HAND InspectionRealized once every 2 years at each HIH supplierRapunzel seeks to combine the HIH inspectionwhenever possible with IMO organic/FFL (Fairfor Life) or FLO Fairtrade inspections (combinedaudits with IMO / FLO-CERT inspectors).If the RAPUNZEL HIH supplier is not certifiedorganic or FFL by IMO or Fairtrade by FLO-CERT,RAPUNZEL organizes the HIH inspectionindividually with independent inspectors.Usually the HIH inspection is carried out duringthe period of harvesting and processing in orderto review the whole production process and tomake interviews with both permanent andseasonal staff.Bio. Fair. RAPUNZEL

Inspection procedures – Flow ChartBio. Fair. RAPUNZEL

Inspection proceduresThe steps relevant only for combined inspections with IMO / FLO-CERT aremarked with (CI):1. RAPUNZEL makes an annual audit plan at the beginning of each year forthe due HIH inspections. It includes the inspections which could becombined with IMO organic / FFL or Fairtrade inspections.(CI) The audit plan is sent to IMO or FLO-CERT respectively.2. (CI) IMO / FLO-CERT contacts the auditors foreseen to carry out the IMO /Fairtrade audits regarding their interest to carry out the HIH audit as well3. (CI) IMO / FLO-CERT passes the contact data of the inspectors to RAPUNZELBio. Fair. RAPUNZEL

Inspection procedures4. RAPUNZEL contacts the respective auditors. If the foreseen auditor has notyet conducted a HIH inspection before, RAPUNZEL sends the form„qualification profile“ to the auditor which he fills and sends back toRAPUNZEL5. After approval of the inspector, RAPUNZEL sends the Terms of Reference(ToR) for the respective HIH inspection to the auditor (and in copy to IMOin case of IMO inspection). The ToR contain information on production andprocessing / exporting sites and facilities to be inspected, number ofinterviews with farmers / workers, checklists and documents to be filledand delivered and an estimate of the audit daysBio. Fair. RAPUNZEL

Inspection procedures6. (CI) RAPUNZEL coordinates with IMO and FLO the provisions regardingremuneration of the auditor, travel days, daily rate.7. The inspector and RAPUNZEL conclude an inspection contract for therespective HIH inspection based on the ToR (amendments regarding theaudit time are possible if agreed with RAPUNZEL) or(CI with IMO) IMO sends its offer for the combined inspection to RAPUNZELreferring to the RAPUNZEL ToR, and an inspection contract is concludedbetween the inspector, IMO and RAPUNZEL.8. RAPUNZEL passes the contact data of the HIH supplier to the inspector inorder to coordinate the inspectionBio. Fair. RAPUNZEL

Inspection procedures9. Training of the auditors: RAPUNZEL organises a training for the HIHauditors each year (at the beginning of each year, skype training)10. After the inspection was conducted, the inspector sends the inspectionreport (filled checklists and additional documents according to the ToR)directly to RAPUNZEL. This is done no later than 6 weeks after the audittook place.Bio. Fair. RAPUNZEL

Inspection procedures11. RAPUNZEL checks the completeness of the inspection report12. RAPUNZEL transmits the inspection report to the external certifierbio.inspecta (Bernd Jauch) for evaluation. Possible clarification questionsare directly addressed by bio.inspecta to the inspector.Bio. Fair. RAPUNZEL

14. Invoicing:Inspection proceduresIndividual inspections: The inspector sends the invoice including copies ofall bills (hotel, transport etc.) to RAPUNZEL. If all inspection documentsare complete, RAPUNZEL immediately transfers the money.CI: The inspector (or in case of IMO inspections IMO) sends the invoiceincluding copies of all bills (hotel, transport etc.) to RAPUNZEL. All costsare invoiced to RAPUNZEL that can directly be allocated to the HIHinspection. Half of the travel costs and travel days of the combined audit(in case of IMO organic inspections the agreed upon share) is invoiced toRAPUNZEL and the other half to IMO / FLO-CERT respectively.Bio. Fair. RAPUNZEL

Terms of Reference (ToR)The Terms of Reference define the contents of the HIH audit to be carried out andthe documents to be delivered to Rapunzel.Rapunzel defines individual ToR for each HIH Supplier and sends them to theinspector prior to the HIH inspection.Bio. Fair. RAPUNZEL

Generally, the audit shall include:¸¸Terms of Reference (ToR)Visit of the production, storage, processing, export facilities of the HIH supplier (includingsub suppliers or subcontracted companies), see individual ToR per HIH supplier sentVerification of implementation of the HIH criteria during the inspection by:¸¸ Document reviews (staff lists, pay rolls, bookkeeping documents, etc.)¸ Interviews with:• Management• Staff (permanent, seasonal/casual); N° of interviews: √n of all staff and at least 10;single and group interviews• Members/suppliers; N° of interviews: √n of all certified organic members deliveringorganic product to RAPUNZEL, and at least 10; single and group interviews• If applicable: Field workers employed by the suppliers of raw materials to the HIHsupplierSpecial emphasis on compliance with conditions imposed on grounds of last inspectionBio. Fair. RAPUNZEL

• Checklist for enterprises with employees/workers→ Applicable to processors, exporters, plantations, family-run businesses withemployees/workers as HIH suppliers with own or purchased raw materials,subcontracted companies• Checklist for suppliers of raw materials to HIH suppliers / contractual farmers• Checklist for cooperatives/associations→ Applicable to HIH suppliers, suppliers of raw materials to the HIH supplier)• Checklist for members of cooperativesHAND IN HAND ChecklistsPlease find all Checklists in the internet login!Bio. Fair. RAPUNZEL

Specific aspectsPlease be aware:• Sustainability Management system (criterion 4.1.3.2. D-MIN): There mightespecially be comprehension questions from the HIH Supplier regarding thiscriterion. Please treat this criterion flexibly – for us it is as a first stepimportant to discuss the handling of sustainability issues at the partnerorganisation in order to set up a simple system. In case of clarificationquestions please don‘t hesitate to contact us.Bio. Fair. RAPUNZEL

Specific aspects• Closing meeting: please discuss non conformities identified during the HIHinspection with the HIH supplier or the sub supplier respectively (HIHcontact person, management). The HIH supplier / sub supplier shall proposecorrective actions for each identified non conformity.• Please print the filled Checklist including the proposed corrective actionsand let it be signed by the HIH supplier / sub supplier. Please leave a copy ofthe checklist at the HIH supplier / sub supplier.Bio. Fair. RAPUNZEL

HIH Inspection reportDocuments to be filled and delivered to RAPUNZEL by the inspector (inspectionreport):¸HIH Checklist(s) - type of checklist depending on type of organization; seeindividual ToR sent by Rapunzel for each HIH audit:¸¸¸digital version of the main checklists (Cooperatives / Enterprises withemployees)scanned original with signature of the HIH supplier on the last page(original documents don‘t have to be sent to Rapunzel)digital or scanned versions of the single checklists member ofcooperative / sub supplier_contract farmerBio. Fair. RAPUNZEL

HIH Inspection reportDocuments to be filled and delivered to RAPUNZEL by the inspector (inspectionreport):¸¸¸¸Control and update of the Price/Cost Overview (Price sheet) filled by theHIH supplier (digital version)Control and evaluation of the Premium sheet filled by the HIH supplier(digital or scanned version)Qualitative report (confidential) of the inspector‘s overall impression(digital version)Photos (cultivation, processing etc.) as jpegBio. Fair. RAPUNZEL

Questions?If you have any questions, please don‘t hesitate to contact us:Stefanie Colombo: stefanie.colombo@rapunzel.de, 0049–(0)8330-529-1259Barbara Altmann: barbara.altmann@rapunzel.de, 0049–(0)8330-529-1255Bio. Fair. RAPUNZEL