Joint Audit Cooperation

The aim of the JAC is to verify, assess and promote sustainability standards and best practices across the supply chains of common suppliers to the ICT (Information and communications technology) industry. The JAC members focus on long term improvements in the different layers of the ICT Supply Chain at an international level. This benefits suppliers, as well as the telecom operators, in reducing the need of multiple and varied audits as well as sharing best practices and reducing cost.

JAC is formed by nine telecom operators: Belgacom, Deutsche Telekom, France Telecom/Orange, KPN, Swisscom, Telecom Italia, Telenor, TeliaSonera and Vodafone Group. These operators have agreed that sustainability supersedes competition and to apply a shared approach to driving sustainability improvements in the supply chain. The members have all signed a Memorandum of Understanding.

How JAC works

The JAC process is a coordinated on-site audit programme focusing on the social, ethical and environmental sides of the business. The audits are based on a common verification, assessment and development methodology, including follow up of corrective actions. Each member has the responsibility, on behalf of the others, to lead a complete audit process at its own cost towards suppliers identified among the JAC members.

The on-site audit follows these guidelines:

• Preparation: Acquiring knowledge of the manufacturing site to be audited.
• Skilled auditors: The audits are conducted by international audit companies, specialized in social and environmental issues in the manufacturing country.
• Confidentiality: Non-Disclosure Agreements are signed with suppliers in order to restrict audit results to JAC members only.
• Methodology: Check lists defined by the JAC members based on the SA 8000 and ISO 14001 standards. On-site audits include management interviews and worker interaction.
• Reporting: Describing the audit findings based on objective evidence.
• Collaboration and development with the suppliers: Based on the audit results, corrective action plans are defined by the suppliers to resolve any gap highlighted in the audit report, and followed up by each JAC member until the suppliers have fulfilled the requirements. Collaboration is based on the mutual understanding of Corporate Responsibility risk management as one key factor for a responsible and sustainable development.

The JAC members meet regularly to set the JAC audit agenda, validate audit reports and follow up on corrective action plans. Twice a year, the JAC Steering Committee, consisting of senior management representatives from member companies, meet to verify the results of the audit campaign and take decisions on next steps.

JAC is producing results

The first JAC audit campaign was initiated in July 2010. Since then, JAC members have conducted 64 on site audits covering more than 50 different manufacturing plants directly or indirectly owned by major multinational ICT companies.  Various types of non-conformities have been reported especially on working hours, health and safety and wages, as well as few cases relating to discrimination and under age working. Corrective action plans have been defined and their implementation is regularly verified with the support of a third party auditor. In addition, JAC is currently exploring other ways to address the sustainability issues by efforts that go beyond the audit such as establishing regular dialogue between workers and top management of suppliers. JAC will continue efforts towards a wider and deeper implementation of sustainability standards in the telecommunication industry supply chain.