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Global Compact International Yearbook 2009

The road to Copenhagen is the catchphrase: Climate Change is the top issue of inaugural edition, on the market since 1th of august 2009. In a very personal and exclusive foreword, UN Secretary-General Ban Ki-moon stresses the urgency of multilateral action: „One underlying message of this Yearbook is that a global, low-carbon economy is not only technologically possible, it makes good business sense“, said Ban. „We need the voice and energy of business to help us combat climate change.“ Sir Anthony Giddens adds the importance of the upcoming Copenhagen Climate Summit: „It is an important year, and everybody knows it because it is the year of Copenhagen. It’s a key for climate change policy. I do hope the Copenhagen negotiations will be successful, but there are reasons I have to be worried. “ Another key issue of this edition is the global economic crisis: 2008 will be remembered as the year of crises. The breakdown of financial institutions and markets and the subsequent worldwide economic downturn have put the spotlight on issues that the United Nations Global Compact has long advocated as essential responsibilities for modern business and today’s global markets: comprehensive risk management, long-term performance, and ethics. Georg Kell, Executive Director of the Global Compact, writes: „Restoring confidence and trust in markets requires a shift to long-term sustainable value creation, and corporate responsibility must be an instrument towards this end. If the crisis is any indication, it is now time to build on the advances made over the past 10 years by companies and investors in the area of ESG performance and bring this discipline to the mainstream. “

The road to Copenhagen is the catchphrase: Climate Change is the top issue of inaugural edition, on the market since 1th of august 2009. In a very personal and exclusive foreword, UN Secretary-General Ban Ki-moon stresses the urgency of multilateral action: „One underlying message of this Yearbook is that a global, low-carbon economy is not only technologically possible, it makes good business sense“, said Ban. „We need the voice and energy of business to help us combat climate change.“ Sir Anthony Giddens adds the importance of the upcoming Copenhagen Climate Summit: „It is an important year, and everybody knows it because it is the year of Copenhagen. It’s a key for climate change policy. I do hope the Copenhagen negotiations will be successful, but there are reasons I have to be worried. “

Another key issue of this edition is the global economic crisis: 2008 will be remembered as the year of crises. The breakdown of financial institutions and markets and the subsequent worldwide economic downturn have put the spotlight on issues that the United Nations Global Compact has long advocated as essential responsibilities for modern business and today’s global markets: comprehensive risk management, long-term performance, and ethics. Georg Kell, Executive Director of the Global Compact, writes: „Restoring confidence and trust in markets requires a shift to long-term sustainable value creation, and corporate responsibility must be an instrument towards this end. If the crisis is any indication, it is now time to build on the advances made over the past 10 years by companies and investors in the area of ESG performance and bring this discipline to the mainstream. “

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TMS Group<br />

Lead by Example<br />

The purpose of the venture between TMS and its key customers is to provide a working<br />

strategy to implement the Business Social Compliance Initiative (BSCI). The key is a<br />

partnership in respecting human dignity, managing risk, and maximizing the opportunities<br />

in the supply chain by taking a proactive and ethical approach.<br />

By Jeffrey Revels<br />

The TMS Group has established itself as<br />

one of the leading sourcing organizations<br />

for apparel and fashion accessories in<br />

Asia. With offices in the United States,<br />

Hong Kong, China, India, Bangladesh,<br />

and Indonesia, the thriving group delivers<br />

fashionable products and services at<br />

the highest quality level to customers<br />

worldwide.<br />

The TMS Group is a preferred supplier<br />

with a number of well-known and fashionable<br />

international apparel brands.<br />

The TMS Group global customer-base<br />

markets products in five continents and<br />

more than 40 countries, in virtually every<br />

corner of the globe.<br />

The TMS Group partnered with all key<br />

customers in implementing the BSCI<br />

with all of its suppliers. The pilot venture<br />

commenced in late 2006, and the formal<br />

launch was in November 2007. All participants<br />

are strongly committed to social<br />

responsibility as an integral element of<br />

long-term business success. BSCI is not a<br />

just a social, ethical, or business-driven<br />

set of values and ideals. It is also a moral<br />

responsibility inherent for any corporate<br />

citizen, and one that ultimately must<br />

respect human dignity. BSCI has a wideranging<br />

and comprehensive approach to<br />

the introduction, implementation, and<br />

sustained achievement of Corporate Social<br />

Responsibility (CSR). The TMS Group<br />

exercises its role thru a partnership and<br />

mentoring approach with its suppliers<br />

on a global basis.<br />

The key element within the collaboration<br />

between committed suppliers and<br />

the TMS Group is the internal global<br />

compliance philosophy that focuses<br />

on supplier education, coaching, and<br />

achieved compliance. This approach is<br />

enhanced by audits in standards and<br />

policies in the following areas: employee<br />

rights, compensation, workplace environment,<br />

economics, and eco/environment<br />

sustainability. Through this<br />

aspect of supplier education, the power<br />

of the commonly referred to “WIIFM"<br />

principle is unleashed with suppliers.<br />

The “WIIFM” (“What’s in it for me”)<br />

principle demonstrates to suppliers the<br />

measurable advantages of BSCI in the<br />

core areas of:<br />

• Optimizing working conditions<br />

• Increasing productivity<br />

• Higher product quality<br />

• Higher satisfaction for workers and<br />

consumers<br />

• Obtaining a “preferred supplier status”<br />

The combined success of this approach<br />

is reflected in the BSCI Self Assessment<br />

and Code Declarations for 100 percent<br />

of existing and new suppliers. The performance<br />

of the supply chain is one of<br />

the main CSR concerns that the TMS<br />

Group and key customers manage and<br />

measure across their businesses with all<br />

suppliers. The key is that, as partners,<br />

we must lead by example, and that we<br />

are ethical, transparent, and accountable<br />

in our daily work, and pass this<br />

philosophy on to our supply base as a<br />

requirement.<br />

The TMS group strategy<br />

Taking the “lead by example” approach,<br />

we utilize the combined framework of<br />

the <strong>Global</strong> <strong>Compact</strong>/BSCI to create partnerships<br />

aligned with clear and measurable<br />

global standards that are addressed<br />

in a proactive way with suppliers. This<br />

developed strategy to implementing BSCI<br />

is part of an overall three-tier Corporate<br />

Social Responsibility philosophy that<br />

addresses three core areas:<br />

(A) Protection: Human Rights, reputation,<br />

and liability risk management<br />

(B) Builders: Enhance corporate reputation,<br />

strengthen efficiency for quality/<br />

cost/cycle time<br />

(C) Innovation: New supplier certifications,<br />

products, or expanding capacity<br />

and skills within existing suppliers<br />

and re-certification<br />

72<br />

<strong>Global</strong> <strong>Compact</strong> <strong>International</strong> <strong>Yearbook</strong> <strong>2009</strong>

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