Our Responsible Sourcing Program establishes expectations and accountability and provides the resources and training for our associates and suppliers.
By including in our supply chain the values of respect for the individual, the implication is social and environmental responsibility in the performance of our suppliers. We thereby challenge them to commit to the highest standards of responsibility, compliance with audits, and conducting comprehensive evaluations so we can meet the objective of responsible sourcing throughout the entire supply chain.
For this reason we have a manual -Supplier Standards- which outlines the minimum operating standards expected of our suppliers and their factories, as pertains to the ethical treatment of workers, occupational safety, environmental responsibility, and proper operating practices in the language of the employees, displayed in a visible spot within the workplace.
These standards are parallel to auditing standards used by us to measure the extent of compliance by suppliers of Our Brands. If any manufacturing establishment fails to comply with our labor, environmental or ethical standards, corrective measures must be performed to rectify said performance. Otherwise, said vendor shall no longer be allowed to supply us with merchandise.
In general, the Responsible Sourcing audits are not announced, and they are conducted by third parties. The frequency of the repetition of an audit is based on the seriousness of previous findings. Results are assigned a color-based score, as per the seriousness of the issues found. These scores are used to assist in decision-making processes. It is the responsibility of the supplier to work with the factories so as to correct issues outlined in audit findings.
In early 2015, we began to evolve our Responsible Sourcing Program, so as to center it around areas presenting the greatest potential risks for society, safety, and environmental compliance.
We evaluate how the effectiveness and stability of the corresponding government, the rule of law, and corruption control affect the risk of non-compliance in supplier facilities of each country.
For risk management in the supply chain beyond our own audits, programs, and training, we have established alliances with other companies, governments, and NGOs to approach complex matters that no company can accomplish alone. We believe this collaborative approach will foster greater impact on our supply chain, making it even more effective.