EMPTY STATE
COMPARISON TOOL

Ralph Lauren 58/100

(NYSE:RL) 12 of 43 (2018)

Ralph Lauren Corp. (Ralph Lauren), a US-based clothing company, ranks 12th out of 43 companies. It discloses more information on its forced labor policies and practices than its peers on all themes except Recruitment. Compared to 2016, the company improved its score by 12 points. Since 2016, the company has improved by disclosing information on its supply chain workforce and on the number of workers interviewed during audits, requiring suppliers in its first, second, and third tiers to sign its standards, taking steps toward incentivizing suppliers with a strong compliance record, working with suppliers to monitor and audit employment and recruitment agencies, and disclosing remedy outcomes for workers. Notably, the company is among those achieving the highest score on the theme of Monitoring. Additional steps the company could take to address forced labor risks in its supply chains include strengthening its disclosure and practices on the themes of Traceability & Risk Assessment, Recruitment, and Worker Voice.

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58 /100

2018 Ranking: 12 of 43

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46

Ralph Lauren was evaluated both in 2016, when it ranked 11th out of 20 companies, and in 2018, when it ranked 12th out of 43 companies. Compared to 2016, the company improved by 12 points to score 58/100. Ralph Lauren has improved by disclosing information on its supply chain workforce and on the number of workers interviewed during audits, requiring suppliers in its first, second, and third tiers to sign its standards, taking steps toward incentivizing suppliers with a strong compliance record, working with suppliers to monitor and audit employment and recruitment agencies, and disclosing remedy outcomes for workers.

2016 BENCHMARK

58

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

2016

46

Ralph Lauren was evaluated both in 2016, when it ranked 11th out of 20 companies, and in 2018, when it ranked 12th out of 43 companies. Compared to 2016, the company improved by 12 points to score 58/100. Ralph Lauren has improved by disclosing information on its supply chain workforce and on the number of workers interviewed during audits, requiring suppliers in its first, second, and third tiers to sign its standards, taking steps toward incentivizing suppliers with a strong compliance record, working with suppliers to monitor and audit employment and recruitment agencies, and disclosing remedy outcomes for workers.

2016BENCHMARK

2018

58

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 70
INDICATORS
Commitment
100
Supply Chain Standards
100
Management and Accountability
75
Training
50
Stakeholder Engagement
25

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 44
Traceability
37.5
Risk Assessment
50

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 74
Purchasing Practices
45
Supplier Selection
100
Integration into Supplier Contracts
50
Cascading Standards through the Supply Chain
100

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 13
Recruitment Approach
0
Recruitment Fees
25
Monitoring and Ethical Recruitment
25
Migrant Worker Rights
0

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 28
INDICATORS
Communication of Policies
75
Worker Voice
0
Freedom of Association
25
Grievance Mechanism
10

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 100
Auditing Process
100
Audit Disclosure
100

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 75
Corrective Action Plans
100
Remedy Programs and Response to Allegations
50

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