APPAREL

Themes Key Findings

2016 Apparel & Footwear

The companies' average overall score across the benchmark methodology's seven themes, which were selected to capture the key areas where companies need to take action to eradicate forced labor from their supply chains: commitment and governance; traceability and risk assessment; purchasing practices; recruitment; worker voice; monitoring; and remedy. There are a total of 22 indicators across the seven themes. For each theme a company can score a total of 100 points.

46

Overall Score 2016 Apparel & Footwear
66 Theme Score

Summary of Results

This theme has the highest overall score, and 18 out of the 20 companies have a supply chain standard in place. Thirteen of the standards are considered easily accessible from the website, and seven include evidence that they are approved by a senior executive.
However, only 12 of the 20 companies benchmarked have publicly demonstrated their awareness of and commitment to addressing forced labor, among them adidas and H&M. adidas has a Group Policy on Forced Labor and Human Trafficking which states that adidas strictly prohibits the use of forced labor and human trafficking in all company operations and in its global supply chain. The document further specifies that adidas prohibits and will act against all forms of modern day slavery where the company has the ability, leverage, and authority to do so. H&M's Human Rights Policy explains that the company's human rights approach is based on the UN Guiding Principles on Business and Human Rights and that the ILO's Declaration on Fundamental Principles and Rights at Work. The company commits to respect human rights in all aspects of its operations and to work with suppliers to ensure human rights are respected in its supply chain. H&M has identified forced labor as one of ten salient human rights issues for its business.
Nine companies have clear managerial responsibility and accountability, which provides a high level of assurance that the company is able to implement its policies and standards related to human trafficking and forced labor effectively. An additional six companies report on having a managerial structure to address forced labor, but provide limited details.
It is positive that 14 out of the 20 companies benchmarked train relevant internal decision-makers, and eleven companies train suppliers on risks, policies, and standards related to human trafficking and forced labor. Notably, adidas and H&M provide training to suppliers below the first tier.
In the last three years, seven companies have engaged with trade unions, local NGOs, and/or policymakers in countries in which their suppliers operate on forced labor and human trafficking. It is positive that a number of companies engage stakeholders at local level. This happens mostly in Asia (Taiwan, Bangladesh, India, Thailand, Vietnam, Cambodia, Indonesia, and Myanmar) as well as in Jordan and Mexico. Many of those local level engagements were undertaken through multi-stakeholder initiatives, such the Ethical Trading Initiative's Tamil Nadu Multi-Stakeholder program or the ILO's Better Work project in Jordan, which focuses on fair recruitment.
Engagement with policy makers and unions is more limited. Some companies have engaged governments in Turkmenistan and Uzbekistan via the Responsible Sourcing Network or the Cotton campaign, and a few companies report engaging with global unions. Nine companies actively participated in one or more multi-stakeholder or industry initiatives focused on forced labor and human trafficking, such as the Ethical Trading Initiative, the Fair Labor Association, the ILO Better Work Initiative, and/or the Better Cotton Initiative. Notably, adidas reports engaging with an international electronic brand who is the main customer in a shared supplier in Malaysia. Adidas asked the electronic brand to adopt more stringent policies on eliminating foreign worker deductions, and the electronic company subsequently agreed that the shared supplier fully absorb government fees levied against foreign workers in Malaysia.

Awareness and Commitment

The company publicly demonstrates its awareness of and commitment to addressing human trafficking and forced labor.

The company: Has publicly demonstrated its awareness of and commitment to addressing human trafficking and forced labor.

Low: 0
High: 100
78

Supply Chain Standards

The company has supply chain standards that require suppliers throughout its supply chain to uphold workers' fundamental rights and freedoms (as articulated in the ILO Declaration on Fundamental Principles and Rights at Work), including the elimination of forced labor. The standards have been approved by a senior executive and are easily accessible on the company's website.

The company's supply chain standard: (1) requires suppliers to uphold workers' fundamental rights and freedoms (those articulated in the ILO Declaration on Fundamental Principles and Rights at Work), including the elimination of forced labor, (2) has been approved by a senior executive, (3) is easily accessible from the company's website, and (4) is reviewed and updated regularly.

Low: 0
High: 100
64

Management and Accountability

The company has established within its managerial structure clear responsibilities and accountability for the implementation of its supply chain policies and standards relevant to human trafficking and forced labor.

The company: Has a committee, team, program or officer responsible for the implementation of its supply chain policies and standards relevant to human trafficking and forced labor.

Low: 0
High: 100
65

Training

The company has training programs in place to ensure that relevant decision-makers within the company and in its supply chain are aware of risks related to human trafficking and forced labor and are effectively implementing the company's policies and standards.

Training programs include: (1) the training of all relevant decision-makers within the company on risks, policies, and standards related to human trafficking and forced labor, and (2) the training and capacity building of suppliers on risks, policies, and standards, related to human trafficking and forced labor.

Low: 0
High: 100
66

Stakeholder Engagement

The company engages with relevant stakeholders on human trafficking and forced labor. This includes engagement with trade unions, local NGOs and policy makers in countries in which its suppliers operate, as well as active participation in one or more multi-stakeholder or industry initiatives.

In the last three years, the company has: (1) engaged with trade unions, local NGOs and/or policy makers in countries in which its suppliers operate on forced labor and human trafficking, and (2) actively participated in one or more multi-stakeholder or industry initiatives focused on forced labor and human trafficking.

Low: 0
High: 100
58

Supplier Training: Leading Practice

Adidas

As part of its Modern Day Slavery Supply Chain Evaluation program launched in 2016, adidas is forging partnerships with its first-tier suppliers to support targeted training for second-tier suppliers and subcontractors. In addition, the company is providing direct training for material second-tier suppliers and developing collaborative models to address potential risks of forced labor in the third tier raw materials supply chain with a focus on conventional cotton, leather, and natural rubber.

Recommended Action

Stakeholder Engagement

Engage on forced labor and human trafficking with trade unions, local NGOs, and/or policy makers in countries in which suppliers operate.