wfto guarantee system approval and sanctions how we can guarantee members
TRANSCRIPT
WFTO Guarantee SystemApproval and Sanctions
How we can guarantee members
Guarantee System
• Robust enough to carry a label?
• Membership system - must ensure:– That members comply with the FT Principles– That we can remove non compliant members
• Our reputation depends on all members
Risk and costs
• Some members may present greater risk to our reputation– large FTO with many product lines all using the label – greater risk than an FTO not using label or a primary producer
organization.
• Initial risk assessment to determine monitoring schedule– preliminary assessment of high risk does not mean there is a risk– audit may discover that a potentially risky FTO is very compliant – while a seemingly low risk small FTO may have serious non compliances– therefore risk level for each FTO kept under review, especially after audits
Risk analysis tool
Risk factors Preliminary analysis - significant factors plus category of member:• number of (producer) organizations from which products are purchased
• number of different product lines
• level of control of the product flow and supply chain
• use of label
• % of purchase of primary products (value) from non WFTO members or from non FT verified sources
And later adjusted by adding:• Serious non compliance, results of audit, peer visit or issues raised
through complaints.
Monitoring scheduleMonitoring cycle for trading members
Low risk Medium risk High risk
Self Assessment Every 2 years Every 2 years Every 2 years
Monitoring audit Every 4 years; after 2 good audits/visits reduced to every 6 years
Every 4 years (alternating with Peer visit)
Every 2 years(alternating with Peer visit)
Peer visit Every 4 years; after 2 good audits/visits reduced to every 6 years
Every 4 years (alternating with Audit)
Every 2 years(alternating with Audit)
Monitoring frequency
Assessment frequency for trading members
Low risk Medium risk High risk
Monitoring audit or Peer visit
Every 3 years; (after 2 successful initial audits/visits)
Every 2 years Every year
Approval cycle
• Approval cycle follows monitoring schedule, looking at SAR alongside Peer or Audit report
• Low risk approved every 3 years
• Medium risk approved every 2 years
• High risk approved every year
Approval process
• Guarantee System Manager will set monitoring schedules
• He/she will review SAR with latest external report
• Recommend approval or refer to Standard and GS committee
• GS committee recommend approval or sanctions to Board
Sanctions• Where non compliances are found:
– Actions for Improvement plan– Corrective actions for more serious non compliance + time limit
• If not corrected, sanctions procedure commences:– Step 1 Formal communication regarding problems and
immediate corrective action required– Step 2 Notification of sanctions procedure – formal notice– Step 3 Sanctions may include, depending on severity:
• Temporary suspension of membership • Restrictions on use of label• Demotion to provisional membership • Termination of membership.
Complaints
There are 2 types of complaint:• Those about the Fair Trade compliance of a
registered WFTO member.
• Those complaining about the operation of the WFTO Guarantee System.– Complaints can relate to personel or WFTO services
– Complaints relating to registration decisions of WFTO are covered in the Appeals procedure.
FT Accountability Watch
• Complaints against members can be submitted through FTAW platform– allows all members, concerned stakeholders or the public
to raise issues or concerns about a WFTO member’s compliance with the WFTO Standard in confidence.
– The comments are stored in the online system and handled in a recorded way through the system.
• Audit may be required and result in Sanctions procedure
Appeals
• Right of appeal against Board decision regarding membership (i.e. temporary suspension or suspension, demotion to provisional membership, termination of membership), arising from the Guarantee System Approval or Sanctions procedures.
• Appeals committee elected by the AGM.
• Appeals committee decision is final.