Sustaining Competitive and Responsible Enterprises II (SCORE II Indonesia)

Being more vulnerable to external shocks, Small and Medium Enterprises (SMEs) in developing countries have been finding it difficult to sustain operations due to the global financial crisis and the quality of their jobs is being compromised. The large majority of employment for both women and men is however found in SMEs. Current research is showing that innovations in work organization, continuous workplace learning, good labour-management relations, and respect for workers’ rights are important ways of raising productivity while promoting decent work. The broad problem that this project will address is how to minimize the impact of the financial crisis by fostering responsible and thus sustainable workplace practices in SMEs in order to improve their productivity and competitiveness in a manner that contributes to sustainable economic development. The development objective of SCORE is that SMEs are more sustainable through being cleaner, more productive and competitive and provide more sustainable and decent employment. The project is expected to achieve the following outcomes: a) Industry associations can market and coordinate enterprise upgrading services to their local members. b) Service providers can effectively deliver training and advisory services for workplace upgrading on a commercially sustainable basis. c) Labour inspectorate services work with mass media to disseminate progressive workplace practices. SCORE is currently completely funded by the Swiss State Secretariat for Economic Affairs (SECO) and implemented in six countries, Colombia, Ghana, South Africa, Indonesia, India and China. A global component coordinates the project and serves as a knowledge hub. The Norwegian Agency for Development Cooperation (NORAD) will provide funding to expand SCORE. Funding will support the global SCORE component, activities in the six current SCORE countries and introduce SCORE to Viet Nam. Each country will implement the programme in minimum one sub sector and at least two clusters targeting 10-15 enterprises in each cluster. The following overall impact is expected in participating enterprises: - Business growth as a result of improved competitiveness and better access to markets - Overall improvement in the culture of worker-management collaboration leading to continuous improvement as well as reduced labour absenteeism and turnover - Improved quality in terms of reduced defects and improved on time delivery - Improved productivity through better environmental management (reduced waste and energy consumption) and better workplace management (reduced labour accidents and sick leave) The project supports the local DWCP in each country. It will work with UNIDO to revise and implement the capacity building interventions on productivity and environmental management. ITCILO will be the main partner for manual development and training of policy makers on the promotion of sustainable enterprises and the labour dimension of CSR. In each implementation country the project will work with the appropriate Ministry and national sector associations for replication. On the local level industry associations and service providers will be capacitated to promote and deliver services on a commercial basis to build responsible competitiveness among SMEs. The project has a sustainability strategy, but acknowledges that the timeframe is limited to ensure a sustainable business service programme. The project will be advised by a Tripartite Advisory Committee at the national and global level.

Project symbol

INS/10/50/NAD

Admin unit

CO-Jakarta

Start date

01/07/2010

End date

31/12/2013

Total allocation

542988

Total expenditure

Status

Closed

542988

Development Partners

Norway, Norwegian Agency for Development Cooperation

Country/Countries

Indonesia

Outcomes

Employment Promotion