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Ralph Lauren 46/100

(NYSE:RL) 11 of 20 (2016)

Ralph Lauren Corp. (Ralph Lauren) ranks 11th on the benchmark, with an average score compared to all 20 companies benchmarked (46/100), but ranking highest out of the four luxury brands. The company has leading practices in place with regards to supplier selection (the company assesses potential suppliers on aspects related to foreign migrant workers), reimbursement of recruitment fees, and verifying corrective action plans through field monitors. Ralph Lauren has an opportunity to improve by disclosing the names and locations of its first-tier suppliers, assessing and disclosing forced labor risks in its supply chain, and improving its practices on the themes of recruitment and worker voice.

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46 /100

2016 Ranking: 11 of 20

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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.

METHODOLOGY

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.

2018 BENCHMARK

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.

METHODOLOGY

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.

2018BENCHMARK

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 22 indicators across the seven themes. For each theme, 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

OVERALL 61
INDICATORS
Awareness and Commitment
50
Supply Chain Standards
80
Management and Accountability
100
Training
50
Stakeholder Engagement
25

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.

OVERALL 50
Traceability
75
Risk Assessment
25

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.

OVERALL 44
Purchasing Practices
25
Supplier Selection
50
Integration into Supplier Contracts
50
Cascading Standards through the Supply Chain
50

Recruitment

The company's approach to reducing exploitation by recruitment agencies and eliminating workers' payment of fees for their jobs.

OVERALL 25
Recruitment Approach
25
Recruitment Fees
50
Recruitment Audits
0

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.

OVERALL 28
INDICATORS
Communication of Policies
50
Worker Voice
0
Worker Empowerment
0
Grievance Mechanism
60

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.

OVERALL 50
Auditing Process
100
Audit Disclosure
0

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.

OVERALL 63
Corrective Action Plans
100
Remedy Programs
25

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