Our commitment to human rights and fair labor practices doesn’t end at our property line. We expect our subcontractors and suppliers to adhere to our Global Supplier Standards, which govern safety, working conditions, wages and more.
Our RBIS business operates a thorough oversight program for the subcontractors to whom it often outsources production of clothing labels, tags and other finished goods. Through the program, we provide subcontractors with information and training to help them understand and comply with our standards. Third-party auditors then visit subcontractor facilities on our behalf. They inspect living conditions in employee dormitories, wages and working hours, employee insurance coverage, fire safety and more. We promptly suspend business with suppliers found to be noncompliant with certain criteria, such as child labor and fire safety. When suppliers are found to be noncompliant in other less critical areas, we work with them to help bring them into compliance. We believe working with key partners on improving their compliance is the most effective way to create change in our industry.
Since 2014, RBIS has audited 196 of its subcontractors, which account for 95 percent of the RBIS’s subcontractor spending.
In 2016, RBIS conducted a baseline assessment of its social compliance program, comparing it to those of peer companies. The analysis revealed that the RBIS program leads in its industry in terms of both depth and frequency of audits.
Our LGM business introduced its own oversight program for top suppliers in 2016, based on a platform developed by the third-party consultant EcoVadis. The approach rates suppliers based on their answers to an online questionnaire covering a range of labor and human rights issues that align with our Global Supplier Standards. Our policy is to intervene with suppliers that reveal themselves to be high risk and help them improve. If improvements are not made within a specified time frame, our policy is to terminate our relationship with the company. (LGM also uses EcoVadis to rate suppliers’ environmental performance; see “Scoring our suppliers’ environmental performance” here). In 2016, we introduced EcoVadis to our top 100 suppliers, representing 80 percent of LGM’s procurement spending. We’ll ask for information from our next 100 suppliers by the end of 2017, cumulatively covering 95 percent of our procurement spending.