Fast Retailing discloses that it has engaged with the Responsible Sourcing Network on the issue of forced labor in the Uzbek cotton industry. The company commits to not knowingly sourcing Uzbek cotton for the manufacturing of its products until the government of Uzbekistan ends the practice of forced child and adult labor in its cotton sector. Fast Retailing is also a member of the Fair Labor Association, thus committing to improving working conditions in its supply chain.
Supplier Selection and Cascading Standards
Fast Retailing discloses that it implements pre-contract monitoring for all new business partners, which includes an assessment of forced labor and human trafficking risks. The outcome of its pre-contract monitoring determines whether a factory is eligible to do business with Fast Retailing. In addition, the company discloses that its Uniqlo brand shares production plans in advance with suppliers and negotiates production allocations with them.
Fast Retailing discloses its suppliers have to ensure all business activities conducted by subcontractors such as homeworkers are undertaken in compliance with the company's code of conduct. The company also discloses it ensures that its suppliers have their own policies and standards and that those are aligned with the company's code of conduct.
Corrective Action Plans
Fast Retailing discloses that, when serious violations are identified in its supply chains, the company "sends the CSR sourcing team on fact-finding missions and reviews the partnership contract […]. After implementing the review, Fast Retailing works with the factory to prevent the recurrence of the violations." The company provides an improvement period depending on the gravity of the violation and verifies the implementation of the corrective actions through a follow-up audit. Where a supplier fails to implement corrective actions, the company will terminate the business relationship.