EMPTY STATE
COMPARISON TOOL

Michael Kors 24/100

(NYSE:KORS) 27 of 43 (2018)

Michael Kors Holdings Ltd. (Michael Kors), a UK-based designer and retailer of branded apparel and accessories, ranks 27th out of 43 companies and discloses less information on its forced labor policies and practices than its peers. The company's score is based on its performance on the themes of Recruitment and Remedy, on which it scores higher than average. Notably, the company commits to increase its disclosure on its efforts to ensure recruitment fees are reimbursed to migrant workers in its supply chains. Additional steps the company could take to address forced labor risks in its supply chains include disclosing policies and practices on the themes of Traceability & Risk Assessment, Purchasing Practices, and Worker Voice.

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24 /100

2018 Ranking: 27 of 43

HOW DO THEY COMPARE?

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The average score for the sector was 37/100 compared to 49/100 in 2016. The number of companies assessed in 2018 increased from 20 to 43. Since 2016, the methodology has been strengthened, making it more difficult for companies to achieve the same score. The 19 companies benchmarked in both 2016 and 2018 saw their average score increase from 49/100 to 56/100, which is significant given the changes to the methodology.

METHODOLOGY

2018

24

The average score for the sector was 37/100 compared to 49/100 in 2016. The number of companies assessed in 2018 increased from 20 to 43. Since 2016, the methodology has been strengthened, making it more difficult for companies to achieve the same score. The 19 companies benchmarked in both 2016 and 2018 saw their average score increase from 49/100 to 56/100, which is significant given the changes to the methodology.

METHODOLOGY

THEME AND INDICATOR SCORE

The benchmark methodology has seven themes, selected to capture the key areas where companies need to take action to eradicate forced labor from their supply chains. There are a total of 23 indicators across the seven themes. For each theme, a company can score a total of 100 points.

Commitment and Governance

This theme evaluates a company's commitment to addressing forced labor, whether it discloses supply chain standards, and to what extent it has management processes and board oversight, training programs, and engagement with stakeholders on forced labor in place.

OVERALL 34
INDICATORS
Commitment
50
Supply Chain Standards
70
Management and Accountability
0
Training
50
Stakeholder Engagement
0

Traceability and Risk Assessment

This theme measures the extent to which a company demonstrates an understanding of its suppliers and their workforce by disclosing relevant information (such as supplier names or sourcing countries) and assesses and discloses forced labor risks across its supply chains.

OVERALL 0
Traceability
0
Risk Assessment
0

Purchasing Practices

This theme assesses to what extent a company adopts responsible purchasing practices (such as providing price premiums and procurement incentives) and integrates supply chain standards into supplier selection and supplier contracts, and whether it cascades them down the supply chain.

OVERALL 19
Purchasing Practices
0
Supplier Selection
75
Integration into Supplier Contracts
0
Cascading Standards through the Supply Chain
0

Recruitment

This theme measures a company's approach to reducing the risk of exploitation of supply chain workers by recruitment agencies, eliminating workers' payment of fees during recruitment processes throughout its supply chains, and protecting the rights of migrant workers.

OVERALL 45
Recruitment Approach
30
Recruitment Fees
75
Monitoring and Ethical Recruitment
25
Migrant Worker Rights
50

Worker Voice

This theme measures the extent to which a company engages with workers in its supply chains, enables freedom of association, and ensures access to effective and trusted grievance mechanisms.

OVERALL 0
INDICATORS
Communication of Policies
0
Worker Voice
0
Freedom of Association
0
Grievance Mechanism
0

Monitoring

This theme evaluates a company's process for auditing suppliers, including whether audits include non-scheduled visits, review relevant documents such as wage slips or contracts, interview workers, and audit lower-tier suppliers and provide disclosure on the outcomes of supplier audits.

OVERALL 30
Auditing Process
50
Audit Disclosure
10

Remedy

This theme measures the extent to which a company has corrective action plans and processes for non-compliant suppliers and ensures remedy is provided to workers in its supply chains who are victims of forced labor. Publicly available allegations of forced labor in a company's supply chains that occurred in the past three years, and how a company has responded to and addressed those allegations, are also assessed as part of this theme.

OVERALL 38
Corrective Action Plans
75
Remedy Programs and Response to Allegations
0

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