SOCIAL LABELLING

The act or process of affixing labels on products or on packaging to inform consumers that the products were manufactured under working conditions that satisfy a given set of social standards.

"There are however some historical examples of voluntary social labels that originated in the industrialized countries and referred to products produced in those same countries. One such label is a ‘union label' that still exists in a modified form and was in very widespread use in the United States before garments began to be manufactured in volume overseas. This label was sewn into every garment manufactured by members of a large American trade union, the International Ladies' Garment Workers' Union, and one of its early versions read: ‘Look for the Union Label When You Shop For Women's and Children's Apparel...Symbol of Decency, Fair Labor Standards and the American Way of Life.' An attempt to create a new label for garments made in the United States, the ‘No Sweat' label, is now under discussion."
(Hilowitz, J., Labelling Child Labour Products, ILO, 1997, visited 2011-05-06)

"Social labelling programmes operate as verification systems for the social performance of enterprises by using a highly visible means of communication: a physical label concerning the social conditions surrounding the production of a good or the rendering of a service. Labels may feature symbols such as logos, trademarks and, in some cases, text, which seek to differentiate the product or service from others."

Social labels are principally aimed at consumers and/or potential business partners and may be affixed to products or their packaging, displayed at the retail site, or assigned to enterprises (usually producers or manufacturers).
(Diller, J., A social conscience in the global marketplace? Labour dimensions of codes of conduct, social labelling and investor initiatives, ILO, visited 2011-06-02)

Social labelling is an important mechanism to respond to consumers who wish to buy ethically. Like any market, the market for ethically produced goods can be stimulated by information in advertising. Greater consumer awareness of labour conditions fuels its growth.

The practice of social labelling is usually referred to as voluntary because the producer, wholesaler or retailer who places a social label on a good or service does so by choice, rather than in response to government legislation or import requirements. Codes of conduct are another form of voluntary action aimed at corporate social responsibility; however, codes of conduct are created by a company itself whereas social labels are created by third-party organizations.
(adapted from Diller, J., A social conscience in the global marketplace? Labour dimensions of codes of conduct, social labelling and investor initiatives, ILO, visited 2011-06-02)

Regulation

The oversight of a third party organization is necessary in order to ensure that the social standards which are the object of social labelling have actually been realized or are being maintained in the countries of production. Several regulatory systems have been put in place: national and international standardization organizations, which create standards; audit organizations, which certify that companies are in compliance with these standards; and other organizations, which certify accreditation bodies. (please note: the web site given brings up another link which does not lead to this subject, and neither does the search engine in it]

Social labelling is a difficult issue, since there is no harmonized system. Different labelsrepresent different aspects of socially responsible behaviour, and pertain to specific goods. In contrast to eco-labels which recognize efforts to avoid detrimental effects on the environment and for which many national initiatives exist (such as the Nordic Swan, Ecocert and the EU eco-label, the Flower) there is no similar national system for social labels. The only exception is Belgium, where a government bill on a voluntary social label based on ILO core labour standards has been introduced.

Whereas the Social Accountability Standard 8000 (SA 8000) is a way of measuring the social actions of a company, social labels pertain to the product itself as well as to its whole production chain.