Lululemon Athletica Inc.
NASDAQ : LULU
2016 Apparel & Footwear
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Company Ranking
4 out of20 Companies
Company Score
SUMMARY
Lululemon Athletica Inc. (Lululemon) ranks third on the benchmark, demonstrating a higher level of transparency on its approach to managing forced labor and human trafficking risks in its supply chain relative to its peers. Notably, Lululemon is among the few companies achieving the highest scores on the themes commitment and governance, as well as traceability and risk assessment. In addition, it has the third-highest score on the recruitment theme. The company has developed a Foreign Migrant Worker Standard for Taiwan, which requires suppliers to develop a foreign migrant worker policy and, where practical, to directly recruit and hire foreign migrant workers. The company can improve its performance and disclosure in the areas of recruitment, remedy, and worker voice, which is the only area where Lululemon scores below average.
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SCORE HISTORY
THEME & indicator score
The benchmark methodology has seven themes, selected to capture the key areas where companies need to take action to eradicate forced labour from their supply chains. The themes are comprised of a total of 12 key indicators. For each indicator, a company can score a total of 100 points.
Commitment and Governance
The company's top-level commitments on forced labor, supply chain standards, management processes, training programs and stakeholder engagement.
Awareness and Commitment | 100 / 100 |
Supply Chain Standards | 100 / 100 |
Management and Accountability | 100 / 100 |
Training | 100 / 100 |
Stakeholder Engagement | 100 / 100 |
Traceability and Risk Assessment
The extent to which the company traces its supply chain and conducts forced labor risk assessments, and discloses information about these processes.
Traceability and Supply Chain Transparency | / 100 |
Transparency | / 100 |
Purchasing Practices
The company's awareness and action on purchasing practices that can exacerbate forced labor risks, and its process for selecting suppliers, integrating standards into contracts and cascading them down the supply chain.
Purchasing Practices | 100 / 100 |
Supplier Selection | 100 / 100 |
Integration into Supplier Contracts | 50 / 100 |
Cascading Standards Through the Supply Chain | 100 / 100 |
Recruitment
Recruitment Approach | 100 / 100 |
Recruitment Fees | 50 / 100 |
Recruitment Audits | 0 / 100 |
Worker Voice
The extent to which the company proactively communicates with workers through the supply chain, enables freedom of association and ensures access to effective and trusted grievance mechanisms.
Communication of Policies | 100 / 100 |
Worker Voice | 0 / 100 |
Worker Empowerment | 0 / 100 |
Grievance Mechanism | 0 / 100 |
Monitoring
The company's process for auditing (including whether it includes non-scheduled visits, document review, worker interviews) and disclosure about the audit process and findings.
Auditing Process | 75 / 100 |
Auditing Disclosure | 60 / 100 |
Remedy
The extent to which the company has corrective action plans for non-compliant factories, as well as processes for remedying workers who are victims of forced labor, and reports on remedies provided.
Corrective Action Plans | 100 / 100 |
Remedy Programs | 0 / 100 |