Freedom of Association
Li & Fung discloses an industrial relations project for its Bangladeshi suppliers, which it developed with the NGO Just Solution. The project includes training for its suppliers' middle management on topics such as freedom of association, participation committees, and grievance mechanisms. The company notes that the project has been piloted in 232 factories and will be expanded further.
Corrective Action Plans
Li & Fung discloses that suppliers must rectify non-compliances within three to six months and may receive capacity-building training during that time. The company states that it monitors and supports factory improvement progress and verifies the implementation of corrective action plans with follow-up audits. It discloses that it may terminate a business relationship with a supplier if corrective actions are not taken by the supplier on zero-tolerance issues such as forced labor. It specifies that, in these cases, it agrees on "responsible exit plans" with suppliers and notes that, in 2017, it discontinued relationships with 2% of its suppliers.