About this question

Regularly monitoring the human rights risks to which workers at factories may be exposed is an essential element of a company’s Human Rights due diligence process.

In line with risk-based due diligence, a company’s monitoring process should be informed by the identified risks and the categorization of risk (impact, frequency). The monitoring process should be used to keep track of the extent to which adverse impacts have been resolved, risks have been mitigated and new issues emerge.

This question specifically aims at evaluating whether your company has a monitoring strategy that is informed by the worker-related human rights risk assessment.

• Select one or more of the options that apply to your company’s monitoring and reporting strategy
• Select none if your company’s monitoring and reporting strategy does not include any of the characteristics mentioned

Note:

A company should ensure that a monitoring strategy forms part of an integrated approach to Human Rights due diligence. A company should also be able to disclose:

1. the processes through which they identify what action is needed and appropriate, in response to a particular actual or potential negative impact on value chain workers;
2. their approach to taking action in relation to specific material negative impacts on value chain workers identified, including any action in relation to their own procurement or other internal practices, as well as capacity-building or other forms of engagement with entities in the value chain, or forms of collaborative action with industry peers or other relevant parties;
3. how they ensure that processes to provide or enable remedy in the event of material negative impacts are available and effective in their implementation and outcomes;
4. what action is planned or underway to mitigate material risks for the company arising from its impacts and dependencies on value chain workers and how they track effectiveness in practice;
5. what action is planned or underway to pursue material opportunities for the company in relation to value chain workers; and
6. how they take action to avoid causing or contributing to material negative impacts on value chain workers through their own practices (e.g., procurement, sales, and data use).

Answer options: Is endorsed by leadership of your company, Is publicly available, Is shared with all suppliers, Includes all ILO’s core labor standards and local labor laws.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_MQ

Additional information

Monitoring questions relating to each of the ILO´s core labor standards as well as monitoring questions referring to local labor law that include at least questions related to occupational safety and health, contracts, compensation and working time.

For further information, it is worth reviewing:

• Section 4 of the OECD due diligence guidance for Responsible Supply Chains in the Garment and Footwear Sector
• UNGP operational principle 17 and 20 UNGP
• Associated with WDI Section 12: Monitoring suppliers
• WDI 12.4  Describe the process for monitoring or auditing supplier performance against the document disclosed at 12.3, including beyond the first tier, the standards used for the monitoring process, and whether the results are made public. State the percentage of suppliers independently audited.

Evidence

Either

• A public link to the company’s monitoring strategy including the company’s code of conduct and
• Evidence that it is endorsed by leadership such as a link/copy of a statement of endorsement, minutes noting the approval of leadership, a leadership’s foreword to the strategy/code of conduct

or

• Evidence with the company’s monitoring strategy including the company’s code of conduct

and

• Evidence of oversight by board/senior leadership (e.g., role description of responsible person)

and

• Evidence that the strategy is routinely shared with all suppliers, such as copy/link to the standard information package shared with suppliers and evidence that the strategy and code of conduct was shared, such as copies of emails or screenshots of suppliers portal/ system accessible to suppliers to access the code of conduct

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing, transparency

About this question

Workers are an important stakeholder group that provides feedback throughout your company’s human rights due diligence process. Systematically integrating worker feedback as part of the monitoring process helps companies more effectively identify red flags and corroborate identified issues. This question aims to measure if your company included independent worker feedback as a standard component of its social and labor monitoring activities to inform business decision-making. Independent worker feedback is often a combination of, such as interviews at the factory, meetings outside the factory, and/or trusted (anonymous) online feedback tools.

In some factories, workers may be coached by management to answer questions from auditors. Therefore, monitoring staff should be trained to obtain honest feedback. Additionally, workers should be selected for feedback by monitoring staff, not by management. Worker feedback is an essential source for identifying red flags and corroborating identified issues.

Where workers in some value chain tiers may be more difficult to reach, companies should be ready to disclose how they worked with legitimate representatives or credible proxies to ensure those workers’ voices are included in Human Rights monitoring.

• Answer yes if your company includes independent worker feedback (and/or feedback from credible proxies) systematically in its worker related human rights monitoring to inform business decision-making
• Answer no if your company does not systematically incorporate independent worker feedback in its worker related human rights monitoring to inform business decision-making

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_Mg

Additional information

For further information, see:

• UNGP operational principle 18
• Paragraph meaningful stakeholder engagement in the introduction chapter and Section 2 in the OECD due diligence guidance for Responsible Supply Chains in the Garment and Footwear Sector

Evidence

• A link or copy of the company’s policy document or processes that define how worker feedback is used as part of the company’s worker-related human rights monitoring strategy to inform business decision-making

and

• Evidence of oversight by the board/senior leadership (e.g., ESG Committee minutes, Social Impact/CSR Director report, Board papers)

and

• Evidence of the consistent use of worker feedback in the monitoring strategy, such as notes of interviews, reports/data from online feedback tools. This should include whether engagement occurs with value chain workers or their legitimate representatives directly, or with credible proxies that have insight into their situation; as well as the stage(s) at which engagement occurs, the type of engagement, and the frequency of the engagement.

and

• Evidence that there is a process in place to measure the effectiveness of worker engagement across the value chain, including how the effectiveness of its engagement with value chain workers is assessed.

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing, stakeholder engagement

About this question

As part of their Human Rights due diligence process, companies are expected to cease, prevent or mitigate risk and adverse impacts.

Frequent and high-risk areas in the apparel and footwear sectors include child labor, forced labor, working time, occupational health and safety, freedom of association and collective bargaining, grievances, wages, and sexual harassment and gender-based violence. However, depending on the outcome of the risk and impact assessment, other risks may include, amongst others, bipartite dialogue, worker voice, discrimination, migrant workers, worker accommodation, and worker transportation.

This question aims to measure the extent to which your company has set targets to ensure that prioritized risks and impacts are ceased, mitigated or prevented.

To drive effective progress, targets should be specific, measurable, achievable, realistic and time bound (smart targets). Targets should be approved by the company’s senior management, and relevant employees should be accountable for the monitoring and achievement of KPIs.

When setting targets, companies should consider consistency over time to provide stability. The intended outcomes for value chain workers should be clearly articulated. Companies should also disclose the process of target setting, including how affected stakeholders or their legitimate representatives were involved.

• Answer yes if you can provide evidence that your company has set formal targets for each of the prioritized risks and adverse impacts
• Answer partial yes if can provide evidence that your company has set formal targets for more than half of the prioritized risks and adverse impacts
• Answer no if your company did not set formal targets or has set formal targets for less than half of the prioritized risks and adverse impacts

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_Mw

Additional information

For further information, see:

• Section 3 of the OECD due diligence guidance for Responsible Supply Chains in the Garment and Footwear Sector
• UNGP Operational Principle 19

Evidence

Either

• A link to or copy of the prioritization of the results of the risk and impact assessment

and

• A link to published targets (e.g., ESG strategy or report, worker rights/social strategy or report)

or

• A link to or copy of the prioritization of the results of the risk and impact assessment

and

• Internal strategy or program documentation indicating targets

and

• Evidence of oversight by the board/senior leadership (e.g., ESG Committee minutes, Social Impact/CSR Director report, Board papers)

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing

About this question

This question provides an opportunity for companies with mature value chain labor strategies to showcase advanced practices. It focuses on ‘beyond compliance’ targets for strategic programs aimed at enhancing worker well-being. These targets should span more than one country and/or encompass multiple factories, with a duration of at least one year. The concept of ‘well-being’ includes issues affecting apparel value chain workers both within and beyond the workplace, demonstrating deep engagement with the needs of the affected stakeholder community. Examples may include initiatives addressing community health issues, financial literacy, women’s reproductive health.

Companies should be able to demonstrate engagement with value chain workers in setting targets for beyond compliance worker well-being programs.

When disclosing information about targets, companies should include:

1. the specific intended outcomes to be achieved in the lives of value chain workers;
2. the stability of the targets over time, including consistent definitions and methodologies to enable comparability;
3. the standards or commitments underlying the targets, such as codes of conduct, sourcing policies, global frameworks, or industry codes

• Answer yes if you can provide evidence that your company has set formal targets for beyond compliance worker well-being programs within the scope described above
• Answer no if your company has not set formal ‘beyond compliance’ targets related to worker well-being

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_NA

Additional information

Examples of issues over and beyond compliance are those covered in Step 3 of the SLCP’s Compliance Assessment Tool.

Evidence

Either

• Link to published targets (e.g., ESG strategy or report, worker rights/social strategy or report)

or

• Internal strategy or program documentation indicating targets

and

• Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, Social Impact/CSR Director report, Board papers)

and

• Evidence that stakeholders (workers, their representatives, or credible proxies) were engaged in developing the targets

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing

About this question

Due diligence responsibilities also extend to subcontractors. This question evaluates whether your company assesses and monitors worker-related human rights risks and impacts in subcontractors. Subcontractors refer to contractors hired by your supplier to carry out (part of) the production process for your company’s orders, rather than suppliers deeper in the value chain.

• Answer yes if your company has a process to assess and monitor the worker related Human Rights risks and impacts in subcontractors, or if you company does not allow any kind of subcontracting.
• Answer no if your company has no process to assess and monitor the worker related Human Rights risks and impacts in subcontractors.

Applicability: Brand, Brand and Retailer

Reference ID: swk_My

Additional information

Information on subcontractors in section 1 of the OECD due diligence guidance for responsible supply chains in the garment and footwear sector.

Evidence

Either

• Link to published policy or procedure that describes how your company assesses worker-related human right risks and impacts subcontractors. May be found in CSR/responsible business section of website.

or

• Internal policy or process that describes how your company assesses worker-related human right risks and impacts subcontractors. This should include:

• The processes through which the company identifies what action is needed and appropriate in response to a particular actual or potential negative impact on value chain workers

• The approach to taking action in relation to specific material negative impacts on value chain workers, including any action in relation to its own practices, as well as capacity-building or other forms of engagement with entities in the value chain, or forms of collaborative action with industry peers or other relevant parties.

and

• Evidence that there is a process in place to measure the effectiveness of the processes to provide or enable remedy in the event of material negative impacts, and that remedies are available and effective in their implementation and outcomes.

and

• Evidence of oversight by the board/senior leadership (e.g., role description of the responsible person – CSR/responsible business/social impact Director/VP).

or

• A documented decision by company leadership that subcontractors cannot be used in your company’s production process.

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing

About this question

Once a company has identified and prioritized the worker related human rights risks and impacts in subcontractors, it needs to set targets to cease, prevent or mitigate the prioritized risks and impacts. This question asks whether formal targets have been set in relation to risks and impacts prioritized.

• Answer yes if your company has set targets for each of the prioritized risks and impacts in subcontractors
• Answer no if your company has not set targets for each of the prioritized risks and impacts in subcontractors

Applicability: Brand, Brand and Retailer

Reference ID: swk_Mz

Additional information

• Mechanisms to assess and address risks of harm beyond tier 2 in section 2 of the OECD due diligence guidance for responsible supply chains in the garment and footwear sector
• Information on subcontractors in section 1 of the OECD due diligence guidance for responsible supply chains in the garment and footwear sector

Evidence

Either

• Link to published targets that relate to subcontractors (e.g., ESG strategy or report, worker rights/social strategy or report). If the targets that concern subcontractors are included in the overall worker related human rights targets, this should be clarified/evident in the report

or

• Internal strategy or program documentation indicating relevant targets. If the targets that concern subcontractors are included in the overall worker related human rights targets, this should be clarified/evident in the report

and

• Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, Social Impact/CSR Director report, Board papers)

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing

About this question

Purchasing practices is an umbrella term that refers to how buyers engage with their suppliers. Research has linked poor purchasing practices to adverse human rights outcomes (e.g., if a brand or retailer unexpectedly cancels an order this can make it difficult for their suppliers to make payroll on time). A company’s public commitment to improving its purchasing practices needs targets to ensure that this commitment is translated into measurable improvements and progress.

This question aims to understand if your company has set targets to measure progress on responsible purchasing practices.

To drive effective progress, targets should be specific, measurable, achievable, realistic and time bound. Targets should be approved by the company’s senior management, and relevant employees should be accountable for the monitoring and achievement of KPIs.

• Answer yes if you can provide evidence that your company has set formal targets to improve its purchasing practices
• Answer no if your company has not set formal targets to improve its purchasing practices

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_NQ

Mapping: Principle one (Integration and Reporting) of The Common Framework on Responsible Purchasing Practices including, Principle Five (Shared Responsibility) Better Buying

Additional information

For further information, see:

• Asian Garment Hub
• Common Framework for RPP

Evidence

Either

• Link to published targets that relate to purchasing practices (e.g., ESG strategy or report, worker rights/social strategy or report)

or

• Internal strategy or program documentation indicating relevant purchasing practices targets

and

• Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, Social Impact/CSR Director report, Board papers)

Topic areas

Responsible purchasing practices

About this question

Effective production planning is a key component of responsible purchasing practices. The quality of production planning can directly impact the suppliers’ ability to uphold labor standards. If forecasting is accurate, if the number of changes to the design are limited and if orders don’t change last minute after they were agreed, suppliers have increased ability to plan their production effectively to avoid, for instance, negative impact on overtime or last-minute outsourcing.

This question aims to understand if your company has targets in place to reduce the potential negative impacts of changes to orders, and other production planning related impacts as defined by industry standards such as ACT, FLA, CFRPP and STTI.

To drive effective progress, targets should be specific, measurable, achievable, realistic and time bound. Targets should be approved by the company’s senior management, and relevant employees should be accountable for the monitoring and achievement of KPIs.

• Answer yes if you can provide evidence that your company has set formal targets to improve the effectiveness of its production planning process
• Answer no if your company has not set formal targets to improve the effectiveness of its production planning process

Applicability: Brand, Brand and Retailer

Reference ID: swk_Ng_b

Mapping: Principle three (Integration and Reporting) of The Common Framework on Responsible Purchasing Practices including, Commitment 3  (Better Planning and Forecasting) of the ACT purchasing practices, Sustainable Terms of Trade Initiative key recommendations related to forecasting, order modifications and timelines

Principle 1 (Visibility) and 2 (Stability) Better Buying

Evidence

Provide:

• A link, copy, or screenshot of the targets identified in your human rights monitoring that relate to the accuracy of orders, and preferably include additional targets such as the accuracy of forecasting and the number of changes to the design

Topic areas

Responsible purchasing practices

About this question

Fair payment terms are a key component of responsible purchasing practices. A company’s approach to paying its suppliers can significantly impact their ability to uphold labor standards. For instance, late payments can directly affect the timely payment of wages to value chain workers. Additionally, other unexpected costs, such as unagreed penalties or prepayment of costs that are reimbursed late, may hinder suppliers’ capacity to invest in remediating or improving social and labor conditions.

This question evaluates whether your company has set specific payment terms targets to enhance its purchasing practices. To ensure effective progress, targets should be specific, measurable, achievable, realistic, and time-bound. targets should also be approved by the company’s senior management, and relevant employees should be accountable for monitoring and achieving the associated KPIs.

• Select one or more of the topic areas related to fair payment terms where you can provide evidence that your company has set formal targets to improve its purchasing practices performance
• Select none if there are no formal targets in place related to the topic areas listed related to fair payment terms

Answer options: Payment timelines, Compensation for late payment, Price changes, Additional services, Other payment term related targets as defined by industry frameworks such as ACT, FLA, CFRPP and STTI.

Applicability: Brand, Brand and Retailer

Reference ID: swk_Nw_b

Mapping: Principle four (Fair Payment Terms) of The Common Framework on Responsible Purchasing Practices , Commitment two of the ACT purchasing practices

Sustainable Terms of Trade Initiative key recommendations related to payments and payment terms, Principle four (financials) Better Buying

Evidence

Provide:

• Link/Copy/screenshot of targets as identified in SKW 7 that related to each of fair payment terms defined in the answer options

and

• Policies specifically related to avoiding late payment to SMEs.

Topic areas

Responsible purchasing practices

About this question

Companies that invite suppliers to provide feedback on the impact of their purchasing practices proactively seek to validate and improve their own assessments of progress, supporting well-informed decision-making. To ensure that feedback is honest and reliable, feedback mechanisms must be trusted by suppliers. This trust helps suppliers feel confident that providing feedback will not result in negative consequences for their business relationship with your company.

This question asks whether your company asks its suppliers for feedback on its purchasing practices, and what percentage of suppliers are asked for their feedback.

• Answer yes if your company invites 50% or more of its direct suppliers for feedback on your company’s purchasing practices
• Answer partial yes if your company invites between 10-50% if its direct suppliers for feedback on your company’s purchasing practices
• Answer no if your company invites less than 10% of its direct suppliers for feedback on your company’s purchasing practices

Applicability: Brand, Brand and Retailer

Reference ID: swk_OA_b

Mapping: Principle Two (Equal Partnerships) of the Common Framework for Responsible Purchasing Practices

Evidence

Provide:

• Evidence (e.g., copy, link, screenshot) of an adopted feedback mechanism to collect trusted (anonymous or carried out by a third-party) feedback from suppliers

and

• Evidence that the mechanism is used to inform decision-making processes, such as links to or screenshots of reports, or completed questionnaires

and

• Evidence of the consistent use of supplier feedback in the purchasing practices strategy, such as notes of interviews, reports/data from online feedback tools. This should include whether engagement occurs with value chain workers or their legitimate representatives directly, or with credible proxies that have insight into their situation, as well as the stage(s) at which engagement occurs, the type of engagement, and the frequency of the engagement.

and

• Evidence that there is a process in place to measure the effectiveness of the engagement across the value chain, including how the effectiveness of its engagement is assessed

Topic areas

Responsible purchasing practices, stakeholder engagemen

About this question

To drive sustainable improvement in their value chains, companies must think about the bigger picture and not just take corrective action on specific issues. This question asks whether or not your company has implemented strategic plans, initiatives or programs to deliver its worker related Human Rights targets and refers to initiatives or programs over and beyond corrective action plans.

• Answer yes if you can provide evidence that your company has implemented strategic plans or programs to deliver its prioritized worker-related human rights targets
• Answer no if your company has no strategic plans or programs in place

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_OQ

Additional information

For further information, see:

• UNGP operational principle 19
• Section 3 OECD Due Diligence Guidance for Responsible supply chains in the garment and footwear sector

Evidence

Either

• Links to published CSR/responsible sourcing documentation, policies, or reports, indicating the programs/strategies which your company implements to reach its worker related human rights targets (for example internal audit, annual review, responsible persons)

and

• Evidence of oversight by board/senior leadership (e.g., CSR/responsible sourcing VP/Director’s report to the board, board papers and minutes, contract with and report of third-party implementing organizations)

or

• Internal CSR/responsible sourcing documentation, policies, or reports, indicating the programs/strategies which your company implements to reach its worker related human rights targets (e.g., internal audit, annual review, responsible persons)

and

• Evidence of oversight by board/senior leadership (e.g., HR Director’s report to the board, board papers and minutes, contract with third-party audit company, report by third-party audit company)

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing

About this question

This question is an opportunity to highlight programs implemented by your company that are intended to address specific worker-related human rights risks.

• Select one or more of the activities listed that your company has implemented
• Select none if your company has not implemented any of the activities listed

Answer options: Training of facilities on salient sector risks (child labor, forced labor, freedom of association, gender inequality and harassment), Pay for dedicated facility level improvement programs (such as on OSH, IR, wage systems), Transparent reporting of facilities, Provide favourable loans to facilities to make structural adjustments to improve the health and safety conditions or other important working conditions, Provide funding for remediation or arbitration processes, Provide business incentives to suppliers with good performance on worker rights and working conditions, Other larger scale programs focussing on working conditions across multiple factories and multiple countries, Contractual requirement for assessment and pre-approval of any sub-contracted sites/facilities.

Applicability: Brand, Brand and Retailer

Reference ID: swk_MTA_b

Additional information

For further information, see:

• UNGP operational principle 19
• Section 3 OECD Due Diligence Guidance for Responsible supply chains in the garment and footwear sector

Evidence

Either

• Links to published CSR/responsible sourcing documentation, policies, or reports, indicating the initiatives which your company implements to reach its worker related human rights targets (e.g., training programs, financial documentation specifying contribution, strategy documents, transparency reports/data)

and

• Evidence of oversight by board/senior leadership (e.g., CSR/responsible sourcing VP/Director’s report to the board, board papers and minutes, contract with and report of third-party implementing organizations)

or

• Internal CSR/responsible sourcing documentation, policies, or reports, indicating the programs/strategies which your company implements to reach its worker related human rights targets (for example training programs, financial documentation specifying contribution, strategy documents)

and

• Evidence of oversight by board/senior leadership (e.g., HR Director’s report to the board, board papers and minutes, contract with third-party audit company, report by third-party audit company)

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing

About this question

This question seeks information on whether your company integrates its Human Rights strategy with its fibers and materials sourcing approach, and to what extent its materials sourcing is covered by certified labor conditions standards. Examples of standards would be certifications standards that include human and labour rights, as included in the Textile Exchange Preferred Fiber & Materials Matrix.

• Select the percentage figure that represents the proportion of materials sourced that are assessed and certified by a relevant third-party standard
• Select unknown if this data is not captured by your company, if the data cannot be evidenced, or if there are no certifications in place

Applicability: Brand, Brand and Retailer

Reference ID: swk_MTE_b

Evidence

Either

• Link to published report specifying the % of fibers and materials certified for assessing labor conditions (e.g., ESG report, Annual Report and Accounts, relevant report on corporate website)

and

• Proof of certification

or

• Internal progress report specifying the % of fibers and materials certified for assessing labor conditions with oversight by senior management (e.g., Board ESG Committee papers, ESG ‘Dashboard’, screenshot of satisfaction survey results)

and

• Proof of certification

or

• Report on your company’s progress from a third-party assessment framework, NGO or benchmarking organization

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing

About this question

This question explores how broadly your company embeds its worker-related human rights/labor conditions strategy by asking specifically about activity within the logistics and distribution value chain stage.

Third-party Logistics and Distribution workers in warehouses, shipping, re-processing, delivery, sorting, picking and packing can be at risk of human rights/labor rights infringements. It is critical that companies pay attention to these workers’ conditions and rights as well as workers in supply chain manufacturing roles.

The list of activities are considered examples of good practice in third-party distribution and logistics.

• Select one or more of the options if you can provide evidence that your company implements the selected activity in third-party logistics and distribution settings
• Select none if your company’s worker-related programs do not extend into the third-party logistics and distribution value chain stage

Answer options: Due diligence monitoring against a Supplier Code of Conduct, A systematic approach to increasing the transparency/visibility of logistics and distribution facilities, Labor conditions factors specified as part of tendering process and contract (e.g., wage levels, effective HR management and systems), Mandatory approval process and labor risk assessments in place for any agency providing temporary workers, Engagement with a trade union or workers’ council/forum, Specific initiatives to benefit workers e.g., on mental health, gender equality, anti-discrimination, career development.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_MTI

Evidence

Either

• Links to published CSR/responsible sourcing documentation, policies, or reports, indicating the initiatives which your company implements to reach its worker related human rights targets within the logistics and distribution value chain (e.g.,) training programs, financial documentation specifying contribution, strategy documents, transparency reports/data)

and

• Evidence of oversight by board/senior leadership (e.g., CSR/responsible sourcing VP/Director’s report to the board, board papers and minutes, contract with and report of third-party implementing organizations)

or

• Internal CSR/responsible sourcing documentation, policies, or reports, indicating the programs/strategies which your company implements to reach its worker related human rights targets within the logistics and distribution value chain (e.g., training programs, financial documentation specifying contribution, strategy documents)

and

• Evidence of oversight by board/senior leadership (e.g., HR Director’s report to the board, board papers and minutes, contract with third-party audit company, report by third-party audit company)

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing

About this question

This question aims to measure to what extent the targets and timelines set in your company’s worker related human rights monitoring strategy were met.

• Answer yes if you can provide evidence that 100% of your company annual milestone targets have been fully met
• Answer partial yes if you can provide evidence that at least 50% of your company annual milestone targets have been fully met
• Answer no if less than 50% of your company annual milestone targets have been fully met

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_MTg

Additional information

For further information, see:

• UNGP operational principle 20
• Section 4 of the OECD due diligence guidance for Responsible Supply Chains in the Garment and Footwear sector

Evidence

Either

• Link to published report or update demonstrating targets and milestones related to prioritized worker related human rights risks, and your company’s progress against them for the reporting period (e.g., ESG report, Annual Report and Accounts, social impact/human rights progress update on corporate website)

or

• Internal progress report demonstrating targets and milestones for the prioritized worker related human rights risks, and your company’s progress against them for the reporting period

and

• Evidence of oversight by senior management (e.g., Board ESG Committee papers, ESG ‘Dashboard’, social impact/human rights report Director report to board)

or

• Report on your company’s progress from a third-party assessment framework, NGO or benchmarking organization

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing

About this question

Stakeholder engagement is the process of identifying, analyzing, planning, and engaging with individuals or groups affected by a company’s activities. In the context of labor conditions and value chain human rights, Stakeholders include workers, their representatives (such as trade unions), and expert advisors. This question examines whether your company has engaged with workers and associated stakeholders to inform the development of remediation plans and strategies. Worker involvement ensures that solutions are practical, inclusive, and address workers’ needs effectively. For this to work, worker participation must be embedded in regular dialogue, such as through a formalized bipartite body.

Where workers in some value chain tiers are more challenging to reach, companies should be prepared to disclose how they collaborated with legitimate representatives or credible proxies to include those workers’ voices in Human Rights monitoring.

• Answer yes if you can provide evidence that your company engaged with workers, workers representatives and workers stakeholders in relation to the development of action plans and strategies to remediate breaches of human rights
• Answer no if your company did not engage with workers or their representatives in relation to the development of remediation programs, or if there are no remediation action plans or processes in place

Applicability: Brand, Brand and Retailer

Reference ID: swk_MTk_b

Additional information

For further information, see:

• Section 3 of the OECD due diligence guidance for Responsible Supply Chains in the Garment and Footwear Sector
• For good practices, see Better Work’s advisory services through a bi-partite approach

Evidence

Provide

• A link to a publication, process description, or strategy document that: confirms your company’s commitment to including workers and their representatives throughout the remediation process; and describes how your company involved workers and their representatives throughout the remediation process

and

• Evidence of the consistent use of worker feedback in the remediation process, such as notes of interviews or meetings with worker representatives, copies of the composition of bi-partite committees, or corrective action plans that clearly state the involvement and responsibilities of workers and their representatives. This should include whether engagement occurs with value chain workers or their legitimate representatives directly, or with credible proxies that have insight into their situation, as well as the stage(s) at which engagement occurs, the type of engagement, and the frequency of the engagement.

and

• Evidence that there is a process in place to measure the effectiveness of worker engagement across the value chain, including how the effectiveness of its engagement with value chain workers is assessed.

Topic areas

Worker voice and representation

About this question

The OECD Guidelines recommend paying a wage that “should be at least adequate to satisfy the basic needs of the workers and their families”. This wage level is typically described as a living wage. in many garment-producing countries, minimum wages are insufficient to satisfy the basic needs of workers and their families. Often, the majority of fashion workers earn only the minimum wage, leading to reliance on overtime to meet basic needs. Increasingly, there is international commitment in various forms to the payment of living wages in global supply chains, including through legislative proposals, international responsible business conduct frameworks, industry collective action programs, and rising expectations from consumers.

This question assesses your company’s approach to supporting the payment of living wages in its value chain.

• Select the company has publicly committed to support living wages in its value chain if your company has a publicly available statement expressing that it is committed to supporting the payment of living wages in its supply chain.

• Select the company has identified where the risk of wage gaps is greatest if your company as part of its human rights risk assessment has included wage gap risks.

• Select the company has a plan to close wage gaps in priority areas if your company has developed a plan (incl. targets, timelines and monitoring process) to close wage gaps in priority areas. This can include memberships with wage initiatives such as ACT, IDH’s WARP, FLA’s fair compensation strategy.

• Select the company uses a costing methodology (such as ring fencing labor costs) to reflect wage increases to close the wage gap in the prices if such a costing methodology is to determine prices.

• Select the company can demonstrate progress on the % of workers in the value chain that receive a living wage if the company is measuring in a verifiable way the % of workers in the supply chain with a wage that is progressively increasing towards or beyond living wage as a result of your company’s efforts.

• Select none if your company has not implemented activity or cannot show evidence of activity implementation.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_MTM

Mapping: Principle Five (Sustainable Costing) of the Common Framework for Responsible Purchasing Practices

Additional information

For further information, see:

• Module 7 of the OECD due diligence guidance for the garment and footwear sector on the sector risk ‘Wages’

Examples of collective action programs and tools on wages include:

• ACT: (Action, Collaboration, Transformation) is an initiative between international brands & retailers, manufacturers, and trade unions to address the issue of living wages in the textile and garment sector through Collective Bargaining
• IDH: the sustainable trade initiative has developed a living wage roadmap that can be used by enterprises to close the wage gap, a living wage action guide that helps understand the underlying challenges and best practices and a collective action program on living wages in the apparel and footwear sector
• FLA: Fair Labor Association’s  fair compensation strategy includes an overview of the organizational commitment to fair compensation and includes the goals, tactics, and timelines for these efforts.
• Fair Wear’s living wage related tools can be found here
• Other relevant organizations include wage indicator,  fair wage network , the global living wage coalition

Evidence

Provide

• The company has publicly committed to supporting living wages in its value chain:

• A link to a public commitment that clearly mentions your company’s support for the payment of living wages in its supply chain.

• A link to or copy of the risk assessment section that relates to wages, with evidence of oversight by senior management (e.g., Board ESG Committee papers, ESG ‘Dashboard,’ social impact/human rights/wage report, Director report to board).

• The company has a plan to close wage gaps in priority areas:

• A link or copy of a document that explains your company’s approach to closing the wage gap, with evidence of oversight by senior management (e.g., Board ESG Committee papers, ESG ‘Dashboard,’ social impact/human rights/wage report, Director report to board).

• The company uses a costing methodology (such as ring-fencing labor costs) to reflect wage increases to close the wage gap in the prices:

• A link to or copy of the costing methodology with evidence that it is systematically used (e.g., screenshots of cost price calculations).

• The company can demonstrate progress on the percentage of workers in the value chain that receive a living wage:

• A link to a published report or update demonstrating targets and milestones related to prioritized worker-related human rights risks, including wages, and your company’s progress against living wage targets for the reporting period (e.g., ESG report, Annual Report and Accounts, social impact/human rights progress update on the corporate website).

or

•  An internal progress report demonstrating targets and milestones for prioritized worker-related human rights risks, including wages, and your company’s progress against living wage targets for the reporting period, with evidence of oversight by senior management (e.g., Board ESG Committee papers, ESG ‘Dashboard,’ social impact/human rights report, Director report to board).

Topic areas

Wages and benefits

About this question

Freedom of association (FoA) refers to the basic human right of workers to form and participate in groups. In a value chain context, this refers to the right of a worker to join a trade union or another group to represent them in negotiating with the employer on employment standards, such as wages, hours, benefits, equal treatment, health and safety, and other working conditions. Collective bargaining refers to a process whereby trade unions negotiate employment standards with employers on behalf of their members. Studies have shown that workplace compliance and employment standards are higher where Freedom of Association and collective bargaining are in place.

This question assesses whether your company is implementing strategies and plans to improve the level of Freedom of Association and collective bargaining in its value chain.

Companies should be prepared to disclose actions related to their own purchasing or other internal practices, engagement with entities in the value chain, or collaborative action with industry peers or other relevant parties.

• Answer yes if you can provide evidence that your company has implemented strategic plans or programs to improve freedom of association and collective bargaining that targets countries and/or the suppliers where freedom of association  and collective bargaining has been identified as a salient risks/ where freedom of association and collective bargaining is an impact area
• Answer partial yes if you can provide evidence that your company has developed strategic plans and programs to address freedom of association and collective bargaining and is beginning to implement them, targeting countries/suppliers where freedom of association and collective bargaining has been identified as salient risks/where freedom of association and collective bargaining is an impact area
• Answer no if your company has no strategic plans or programs in place related to freedom of association and collective bargaining, or if you are unable to provide evidence of action taken

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_MTQ

Additional information

For further information, see:

• ILO Convention 87 on Freedom of Association
• ILO Convention 98 on Right to Organize and Collective Bargaining
• Module 6 of the OECD due diligence guidance for the garment and footwear sector on the sector risks ‘Trade Unions and Collective Bargaining’

Evidence

Either

• Links to published CSR/responsible sourcing documentation, policies, or reports, indicating the Freedom of Association (FoA) and Collective Bargaining (CB) programs/strategies which your company implements to reach its FoA and CB targets (e.g., strategy document, internal audit, annual review, responsible persons)

and

• Evidence of oversight by board/senior leadership (e.g., CSR/responsible sourcing/Social program VP/Director’s report to the board, board papers and minutes, contract with and report of third-party implementing organizations)

or

• Internal CSR/responsible sourcing documentation, policies, or reports, indicating the FoA and CB programs/strategies which your company implements to reach its FoA and CB targets (e.g., approved strategy document, internal audit, annual review, responsible persons)

and

• Evidence of oversight by board/senior leadership (e.g., CSR/Responsible Sourcing/Social program VP/Director’s report to the board, board papers and minutes, contract with third-party implementing organization, report by third-party implementing organization)

Topic areas

Worker voice and representation

About this question

Forced labor refers to situations where individuals are coerced to work through violence, intimidation, or more subtle means such as manipulated debt, retention of identity papers, or threats of denunciation to immigration authorities. Modern slavery encompasses forced labor and other forms of exploitation, including human trafficking. The complexity of global supply chains increases the risk of forced labor and modern slavery. This question evaluates whether your company has implemented a specific strategy to address these issues within its value chain.

Companies should be prepared to disclose actions taken in relation to its own purchasing or other internal practices, capacity-building or other forms of engagement with entities in the value chain, or collaborative action with industry peers or other relevant parties.

• Answer yes if you can provide evidence that your company has implemented strategic plans or programs to take action on forced labor/modern slavery that targets the countries and/or suppliers where forced labour has been identified as a salient risks and or an impact area
• Answer partial yes if you can provide evidence that your company has developed strategic plans and programs to address forced labor/modern slavery and is beginning to implement them, targeting countries and/or suppliers where forced labour has been identified as a salient risks and or an impact area
• Answer no if your company has no strategic plans or programs in place related to forced labor/modern slavery, or if you are unable to provide evidence of action taken

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_MTU_b (For: Brand, Brand and Retailer)

 Reference ID: swk_MTU_r (For: Retailer)

Additional information

For further information, see:

• ILO Convention 29 on Forced labor
• ILO Convention 105 on the Abolition of Forced labor
• Module 3 of the OECD due diligence guidance for the garment and footwear sector on the sector risk ‘Forced labor’
• Examples of relevant legislation:
  • UK modern slavery Act 2015
  • US Uygur forced labor prevention act 
  • Australia modern slavery act
• Examples of collective action initiative: Mekong Club
• ILO Global Business Network on Forced labor

Evidence

Either

• Links to published CSR/responsible sourcing documentation, policies, or reports, indicating the Freedom of Association (FoA) and Collective Bargaining (CB) programs/strategies which your company implements to reach its FoA and CB targets (e.g., strategy document, internal audit, annual review, responsible persons)

and

• Evidence of oversight by board/senior leadership (e.g., CSR/responsible sourcing/Social program VP/Director’s report to the board, board papers and minutes, contract with and report of third-party implementing organizations)

or

• Internal CSR/responsible sourcing documentation, policies, or reports, indicating the FoA and CB programs/strategies which your company implements to reach its FoA and CB targets (e.g., approved strategy document, internal audit, annual review, responsible persons)

and

• Evidence of oversight by board/senior leadership (e.g., CSR/Responsible Sourcing/Social program VP/Director’s report to the board, board papers and minutes, contract with third-party implementing organization, report by third-party implementing organization)

Topic areas

Forced labor and human trafficking, child labor

About this question

There are over 190 million women working in global supply chains, often in low-paid, insecure, and unsafe working conditions. issues of gender inequality and power imbalances between predominantly male supervisors/managers and a typically female workforce, compounded by societal norms about ‘appropriate’ work for women, result in women occupying the lowest-paid and most insecure roles. Women are also disproportionately vulnerable to sexual harassment and violence, often with limited bargaining power and union representation. Addressing these systemic challenges is critical to achieving decent work and advancing gender equality, particularly for women.

This question evaluates whether your company has implemented a specific strategy to improve gender equality in its value chain.

Companies should be able to disclose action in relation to specific gender equality risks, including action in relation to its own purchasing or other internal practices, capacity-building or other forms of engagement with entities in the value chain, or collaborative action with industry peers or other relevant parties.

• Answer yes if you can provide evidence that your company has implemented strategic plans or programs to increase gender equality in its value chain that targets the suppliers where gender has been identified as a salient risks and or an impact area
• Answer partial yes if you can provide evidence that your company has developed strategic plans and programs to address gender equality and is beginning to implement them, targetting suppliers where gender has been identified as a salient risks and or an impact area
• Answer no if your company has no strategic plans or programs in place related to gender equality in the value chain, or if you are unable to provide evidence of action taken

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_MTY_b (For: Brand, Brand and Retailer)

Reference ID: swk_MTY_r (For: Retailer)

Additional information

For further information, see:

• ILO Convention 100 Equal Remuneration
• ILO Convention 111 Discrimination
• International Bill of Rights for Women
• Module 2 of the OECD due diligence guidance for the garment and footwear sector on the sector risk ‘Sexual harassment and sexual and gender-based violence’
• Examples of relevant initiatives/organizations:
  • UN Women
  • RISE
  • CARE 
  • OXFAM
  • UN Global Compact

Evidence

Either

• Links to published CSR/responsible sourcing documentation, policies, or reports, indicating the Gender programs/strategies which your company implements to reach its Gender related targets (e.g., strategy document, internal audit, annual review, responsible persons)

and

• Evidence of oversight by board/senior leadership (e.g., CSR/responsible sourcing/Social program VP/Director’s report to the board, board papers and minutes, contract with and report of third-party implementing organizations)

or

• Internal CSR/responsible sourcing documentation, policies, or reports, indicating the Gender programs/strategies which your company implements to reach its Gender related targets (for example approved strategy document, internal audit, annual review, responsible persons)

and

• Evidence of oversight by board/senior leadership (e.g., CSR/Responsible Sourcing/Social program VP/Director’s report to the board, board papers and minutes, contract with third-party implementing organization, report by third-party implementing organization)

Topic areas

Diversity, equity and inclusion

About this question

Child labor exploits children for commercial gain and represents a global human rights issue. As a key risk for international fashion supply chains, this question evaluates whether companies have strategic plans in place to address child labor within their operations and value chain.

Companies should be able to disclose action in relation to specific child labor risks, including action in relation to its own purchasing or other internal practices, capacity-building or other forms of engagement with entities in the value chain, or collaborative action with industry peers or other relevant parties.

• Answer yes if you can provide evidence that your company has implemented strategic plans or programs to take action on child labor in its value chain, that targets the countries and/or suppliers where child labour has been identified as a salient risks and or an impact area
• Answer partial yes if you can provide evidence that your company has developed strategic plans and programs to address child labor and is beginning to implement them targeting the countries and/or suppliers where forced labour has been identified as a salient risks and or an impact area
• Answer no if your company has no strategic plans or programs in place related to child labor in the value chain, or if you are unable to provide evidence of action taken

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_MTc_b (For: Brand, Brand and Retailer)

 Reference ID: swk_MTc_r (For: Retailer)

Additional information

For further information, see:

• ILO Convention 138 Minimum Age
• ILO Convention 182 Worst Forms of Child labor
• UN Declaration on the Rights of the Child
• UN Convention on the Rights of the Child
• Module 1 of the OECD due diligence guidance for the garment and footwear sector on the sector risk ‘Child labor’
• Examples of relevant organizations:
  • UNICEF
  • ILO’s IPEC program
  • Child labor Platform
  • UN Global Compact, Business action to eliminate Child labor
  • The Centre for Child Rights and Business

Evidence

Either

• Links to published CSR/responsible sourcing documentation, policies, or reports, indicating the Child labor programs/strategies which your company implements to reach its Child labor related targets (e.g., strategy document, internal audit, annual review, responsible persons)

and

• Evidence of oversight by board/senior leadership (e.g., CSR/responsible sourcing/Social program VP/Director’s report to the board, board papers and minutes, contract with and report of third-party implementing organizations)

or

• Internal CSR/responsible sourcing documentation, policies, or reports, indicating the Child labor programs/strategies which your company implements to reach its Child labor related targets (e.g., approved strategy document, internal audit, annual review, responsible persons)

and

• Evidence of oversight by board/senior leadership (e.g., CSR/Responsible Sourcing/Social program VP/Director’s report to the board, board papers and minutes, contract with third-party implementing organization, report by third-party implementing organization)

Topic areas

Child labor

About this question

As part of its due diligence process, companies should track if measures taken to address the prioritized risks and impacts have been effective. This question assesses whether your company has met its targets for payment of living wages in its value chain.

• Answer yes if you can provide evidence that 100% of your company annual milestone targets have been fully met
• Answer partial yes if you can provide evidence that at least 50% of your company annual milestone targets have been fully met
• Answer no if less than 50% of your company annual milestone targets have been fully met

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_MjEa

Evidence

Either

• Link to published report or update demonstrating progress for the reporting period on targets and milestones related to payment of living wages, (e.g., ESG report, Annual Report and Accounts, social impact/human rights progress update on corporate website)

or

• Internal progress report demonstrating progress for the reporting period on targets and milestones related to payment of living wages,

and

• Evidence of oversight by senior management (e.g., Board ESG Committee papers, ESG ‘Dashboard’, social impact/human rights Director report to board)

or

• Report on your company’s progress from a third-party assessment framework, NGO or benchmarking organization e.g., website accessibility audit

Topic areas

Wages and benefits

About this question

As part of its due diligence process, companies should track if measures taken to address the prioritized risks and impacts have been effective. This question assesses whether your company has met its targets to support freedom of association and collective bargaining in its value chain.

• Answer yes if you can provide evidence that 100% of your company annual milestone targets have been fully met
• Answer partial yes if you can provide evidence that at least 50% of your company annual milestone targets have been fully met
• Answer no if less than 50% of your company annual milestone targets have been fully met

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_MjEb

Evidence

Either

• Link to published report or update demonstrating progress for the reporting period on targets and milestones related to Freedom of Association (e.g., ESG report, Annual Report and Accounts, social impact/human rights progress update on corporate website)

or

• Internal progress report demonstrating progress for the reporting period on targets and milestones related to Freedom of Association,

and

• Evidence of oversight by senior management (e.g., Board ESG Committee papers, ESG ‘Dashboard’, social impact/human rights Director report to board)

or

• Report on your company’s progress from a third-party assessment framework, NGO or benchmarking organization e.g., website accessibility audit

Topic areas

Worker voice and representation

About this question

As part of its due diligence process, companies should track if measures taken to address the prioritized risks and impacts have been effective. This question assesses whether your company has met its targets to address issues of forced labor and modern slavery in its value chain.

• Answer yes if you can provide evidence that 100% of your company annual milestone targets have been fully met
• Answer partial yes if you can provide evidence that at least 50% of your company annual milestone targets have been fully met
• Answer no if less than 50% of your company annual milestone targets have been fully met

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_MjEc

Evidence

Either

• Link to published report or update demonstrating progress for the reporting period on all targets and milestones related to Forced labor (e.g., ESG report, Annual Report and Accounts, social impact/human rights progress update on corporate website)

or

• Internal progress report demonstrating progress for the reporting period on all targets and milestones related to Forced labor

and

• Evidence of oversight by senior management (e.g., Board ESG Committee papers, ESG ‘Dashboard’, social impact/human rights Director report to board)

or

• Report on your company’s progress from a third-party assessment framework, NGO or benchmarking organization

Topic areas

Forced labor and human trafficking, child labor

About this question

As part of its due diligence process, companies should track if measures taken to address the prioritized risks and impacts have been effective. This question assesses whether your company has met its targets to increase gender equality in its value chain.

• Answer yes if you can provide evidence that 100% of your company annual milestone targets have been fully met
• Answer partial yes if you can provide evidence that at least 50% of your company annual milestone targets have been fully met
• Answer no if less than 50% of your company annual milestone targets have been fully met

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_MjEd

Evidence

Either

• Link to published report or update demonstrating progress for the reporting period on all targets and milestones related to Gender Equality (e.g., ESG report, Annual Report and Accounts, social impact/human rights progress update on corporate website)

or

• Internal progress report demonstrating progress for the reporting period on all targets and milestones related to Gender Equality

and

• Evidence of oversight by senior management (e.g., Board ESG Committee papers, ESG ‘Dashboard’, social impact/human rights Director report to board)

or

• Report on your company’s progress from a third-party assessment framework, NGO or benchmarking organization

Topic areas

Diversity, equity, and inclusion

About this question

As part of its due diligence process, companies should track if measures taken to address the prioritized risks and impacts have been effective. This question assesses whether your company has met its targets to address issues of child labor in its value chain.

• Answer yes if you can provide evidence that 100% of your company annual milestone targets have been fully met
• Answer partial yes if you can provide evidence that at least 50% of your company annual milestone targets have been fully met
• Answer no if less than 50% of your company annual milestone targets have been fully met

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_MjEe

Evidence

Either

•  Link to published report or update demonstrating progress for the reporting period on all targets and milestones related to Child labor (e.g., ESG report,  Annual Report and Accounts, social impact/human rights progress update on corporate website)

or

• Internal progress report demonstrating progress for the reporting period on all targets and milestones related to Child labor

and

• Evidence of oversight by senior management (e.g., Board ESG Committee papers, ESG ‘Dashboard’, social impact/Human Rights Director report to board)

or

• Report on your company’s progress from a third-party assessment framework, NGO or benchmarking organization

Topic areas

Child labor

About this question

To drive sustainable improvement in their value chains, companies must think about the bigger picture and not just take corrective action on specific issues. This question asks whether or not your company has implemented strategic plans, initiatives or programs to deliver its worker related human rights targets in subcontracting factories.

• Answer yes if you can provide evidence that your company has implemented strategic plans or programs to deliver its prioritized worker-related human rights targets in subcontracting factories
• Answer no if your company has no strategic plans or programs in place in subcontracting factories

Applicability: Brand, Brand and Retailer

Reference ID: swk_MjEf

Evidence

Either

• Links to published CSR/responsible sourcing documentation, policies, or reports, indicating the programs/strategies which your company implements to reach its targets related to prioritized worker-related human rights risks and impacts in subcontractors (e.g., strategy document, internal audit, annual review)

and

• Evidence of oversight by board/senior leadership (e.g., CSR/responsible sourcing/Social program VP/Director’s report to the board, board papers and minutes, contract with and report of third-party implementing organizations)

or

• Internal CSR/responsible sourcing documentation, policies, or reports, indicating the programs/strategies which your company implements to reach its targets related to prioritized worker related human rights risks and impacts in subcontractors (e.g., approved strategy document, internal audit, annual review, responsible persons)

and

• Evidence of oversight by board/senior leadership (e.g., CSR/Responsible Sourcing/Social program VP/Director’s report to the board, board papers and minutes,  contract with third-party implementing organization, report by third-party implementing organization)

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing

About this question

As part of its due diligence process, companies should track if measures taken to address the prioritized risks and impacts have been effective. This question assesses whether your company has met its targets for mitigating and remediating prioritized worker-related human rights risks and impacts in subcontracting factories.

• Answer yes if you can provide evidence that 100% of your company annual milestone targets have been fully met
• Answer partial yes if you can provide evidence that at least 50% of your company annual milestone targets have been fully met
• Answer no if less than 50% of your company annual milestone targets have been fully met

Applicability: Brand, Brand and Retailer

Reference ID: swk_MjEg

Evidence

Provide:

• Link to published report or update demonstrating progress for the reporting period on all targets and milestones related to prioritized worker-related human rights risks and impacts in subcontractors  e.g., ESG report,  Annual Report and Accounts, social impact/human rights progress update on corporate website)

or

• Internal progress report demonstrating progress for the reporting period on all targets and milestones related to prioritized worker-related human rights risks and impacts in subcontractors

and

• Evidence of oversight by senior management (e.g., Board ESG Committee papers, ESG ‘Dashboard’, social impact/human rights Director report to board)

or

• Report on your company’s progress from a third-party assessment framework, NGO or benchmarking organization

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing

About this question

Compliance with labor standards and the implementation of social and labor programs carry a cost for your suppliers (e.g., fees for audits, investments to ensure safe and healthy factories, wages). This question aims to understand if your company takes these costs into account when determining prices.

• Answer yes if your company’s costing methodology allows for social and labor related costs to be included
• Answer no if your company’s costing methodology does not allow for social and labor related costs to be included, or if it is not clear that your company’s costing methodology allows for social and labor related costs to be included

Applicability: Brand, Brand and Retailer

Reference ID: swk_MjA_b

Mapping: Principle Five (Sustainable Costing) of The Common Framework on Responsible Purchasing Practices, Sustainable Terms of Trade initiative key recommendation on costs of compliant production, Principle four (Financials) Better Buying

Evidence

Provide:

• Link to/copy of costing methodology or financial policy/regulations and evidence that the methodology/financial policy or regulation is appropriately used (screenshots of cost price calculations)

Topic areas

Responsible purchasing practices

About this question

Based on forecasts, companies block production capacity with suppliers. If this production gets canceled late, the supplier may not be able to use its blocked production capacity for other orders, which results in a financial impact. Within the framework of responsible purchasing, it is important that your company has a policy, that is agreed with suppliers, that specifies when and how suppliers are financially compensated for costs incurred due to unused production capacity.

This question measures to what extent your company has compensated suppliers for costs they incur due to your company not using (part of) the capacity they blocked at a supplier. This type of compensation is important in demonstrating responsible purchasing.

• Answer yes if your company has a compensation policy that details in which cases and for how much suppliers are compensated, that is shared and agreed with suppliers and used appropriately
• Answer my company did not book capacity if your company did not book capacity at its suppliers
• Answer no in all other cases

Applicability: Brand, Brand and Retailer

Reference ID: swk_MjE_b

Mapping: Principle Three (Collaborative Production Planning) of The Common Framework on Responsible Purchasing Practices, Sustainable Terms of Trade initiative key recommendation on confirmation of production capacity, Commitment 3 (Better planning and forecasting) of ACT’s Purchasing Practices, Principle 1 (Visibility) Better Buying

Evidence

Provide:

• Link to/copy of your company’s commitment, or (financial) policy/regulations or financial terms and conditions of contract indicating that suppliers will be compensated for blocked and unused production capacity

and

• Evidence that this commitment/policy/regulation/terms is routinely shared with all suppliers, such as copy/link to the standard information package shared with suppliers

and

• Evidence that the policy/regulation/terms or regulation is appropriately used (screenshots of proof of financial compensation)

Topic areas

Responsible purchasing practices

About this question

Often changing suppliers can hinder your company’s ability to effectively and credibly perform due diligence activities, while also reducing visibility and control of the supply chain. This practice can also have adverse impacts on your suppliers’ ability to make improvements. This question measures the existence and nature of your company’s strategy for building long term relations with its suppliers. It is important that your strategy to build strategic relations with suppliers include definition of benefits for suppliers (which could include financial or production related benefits) and transparent dialogue.

• Answer yes if your company has a purchasing strategy to build long term relations with suppliers. The strategy should have a target aiming for the majority of its sourcing to happen with strategic suppliers in tier 1 as well as increasingly sourcing volume with strategic relations deeper into the supply chain. The strategy should also clearly identify the benefits for strategic suppliers
• Answer no if your company does not have a purchasing strategy to manage long term relationships with suppliers

Applicability: Brand, Brand and Retailer

Reference ID: swk_MjI_b

Mapping: Principle Two (Equal Partnership) of The Common Framework on Responsible Purchasing Practices, Principle 2 (Stability) Better Buying

Evidence

Provide:

• Link to/copy of your company’s policy/regulations regarding long term suppliers and/or conditions of contracts

and

• Evidence that this policy/regulation/terms is routinely shared with all suppliers, such as copy/link to the standard information package shared with suppliers

and

• Evidence that the policy/regulation/terms is appropriately applied

Topic areas

Responsible purchasing practices

About this question

Penalties that are not clear and not agreed by your company’s suppliers can negatively impact their ability to produce responsibly.

This question aims to measure to what extent your company has agreed penalties with its suppliers. It is important to note that, as part of a company’s commitment towards responsible purchasing practices, penalties should be fair and not excessively punitive. For instance, a reduction of the price due to late delivery should be fair with respect to the number of days the delivery is late.

• Answer yes if your company has a clear policy which details its penalty structure that is shared and agreed with suppliers and used appropriately
• Answer no in all other cases

Applicability: Brand, Brand and Retailer

Reference ID: swk_MjM_b

Mapping: Principle Four (Fair Payment Terms) of The Common Framework on Responsible Purchasing Practices, Sustainable Terms of Trade initiative key recommendation related to penalties, Principle 4 (Financials) Better Buying

Evidence

Provide:

• Link to/copy of your company’s (financial) policy/regulations regarding penalties or financial terms and conditions of contracts

and

• Evidence that this policy/regulation/terms is routinely shared with all suppliers, such as copy/link to the standard information package shared with suppliers

and

• Evidence that the policy/regulation/terms is appropriately applied (screenshots of proof of use of penalties)

Topic areas

Responsible purchasing practices

About this question

Pressure on working conditions, such as workers’ wages, can arise from late or unpredictable payment terms. This question evaluates the extent to which your company has clarified and agreed upon payment terms with its suppliers to support responsible purchasing practices.

To ensure fair practices, companies should have a policy explicitly aimed at preventing late payments, particularly to SMEs. Additionally, companies should track and monitor the percentage of payments made in alignment with agreed standard terms, demonstrating accountability and consistency.

• Select one or more of the listed areas if your company has included one or more of these in the contractual arrangement with its suppliers
• Select none if your company has not included ant of the listed areas in the contractual arrangement with its suppliers

Answer options: Payment timelines, Compensation for late payment, Financial responsibilities for delays/quality issues with nominated suppliers, Price changes, Additional services, Other payment term related targets as defined by industry frameworks such as ACT, FLA, CFRPP and STTI.

Applicability: Brand, Brand and Retailer

Reference ID: swk_MjQ_b

Mapping: Principle Four (Fair Payment Terms of The Common Framework on Responsible Purchasing Practices, Sustainable Terms of Trade initiative key recommendations referring to payment terms, Commitment 2 (Fair Payment Terms) of ACT’s Purchasing Practices, Principle 4 (Financials) Better Buying

Evidence

Provide:

• Link to / copy of your company’s (financial) policy/regulations regarding payment terms or financial terms and conditions of contracts

and

• Evidence that this policy/regulation/terms is routinely shared with all suppliers, such as copy/link to the standard information package shared with suppliers

and

• Evidence that the policy/regulation/terms is appropriately applied (screenshots of proof of use of penalties)

and

• Evidence of the percentage of payments that aligned with standard terms/policy during the reporting period.

Topic areas

Responsible purchasing practices

About this question

This question concerns only orders that require the supplier to purchase the material. Advancing payments to cover the cost of raw materials increases the suppliers’ ability to produce responsibly.

• Answer yes if your company has a standard agreement with suppliers that proves that your company advances payments for suppliers that are asked to purchase materials
• Answer partial yes if your company advances payments for materials that need to be purchased as of a certain (longer) period in advance
• Answer no in all other cases

Applicability: Brand, Brand and Retailer

Reference ID: swk_MjU_b

Mapping: Principle Four (Fair Payment Terms) of The Common Framework on Responsible Purchasing Practices, Sustainable Terms of Trade initiative key recommendations referring to payment terms, Commitment 2 (Fair Payment Terms) of ACT’s Purchasing Practices, Principle 4 (Financials) Better Buying

Evidence

Provide:

• Link to/copy of your company’s (financial) policy/regulations regarding payment terms or financial terms and conditions of contracts

and

• Evidence that this policy/regulation/terms is routinely shared with all suppliers, such as copy/link to the standard information package shared with suppliers

and

• Evidence that the policy/regulation/terms is appropriately applied (screenshots of proof of use of penalties)

Topic areas

Responsible purchasing practices

About this question

The issue of reimbursing costs in cases of force majeure has become more important since the Covid-19 crisis started and the impact this had on the apparel industry. There were examples of companies who canceled orders that were already agreed and finished. Examples of costs already made included things like: materials, accessories, and production costs.

This question aims to assess if your company, in the cases where a force majeure was triggered, reimbursed costs that a supplier made to proceed with the orders.

• Answer yes if, in the case of a force majeure, your company reimbursed all costs already incurred by suppliers
• Answer no if, in the case of a force majeure, your company did not reimburse (all the) costs already made by suppliers
• Answer force majeure was not invoked if your company did not have to face a case of force majeure during the reporting period

Applicability: Brand, Brand and Retailer

Reference ID: swk_MjY_b

Mapping: Principle Two (Equal Partnership) of The Common Framework on Responsible Purchasing Practices, Sustainable Terms of Trade initiative key recommendations referring to Force Majeure

Evidence

Provide:

• Link to/copy of your company’s (financial) policy/regulations regarding payment terms or financial terms and conditions of contracts

and

• Evidence that this policy/regulation/terms is routinely shared with all suppliers, such as copy/link to the standard information package shared with suppliers

and

• Evidence that the policy/regulation/terms is appropriately applied (screenshots of proof of use of penalties)

and

• The number of outstanding legal proceedings for late payments.

Topic areas

Responsible purchasing practices

About this question

If your company decides to disengage from a supplier it should do so in a responsible way so as to avoid any negative impact on workers. There may be a variety of business reasons why a company ends its relationship with a supplier. If a company ends a relationship without sufficient notice or preparation, it increases the risks for adverse impact on workers, such as massive lay-offs, impact on payroll or severance pay. In addition, if suppliers worry that business relations might suddenly end, they may offer workers repeatedly short term contracts so as to avoid severance pay and dismissal procedures. With respect to ending relations due to worker related human rights issues, both the UN Guiding Principles on Business and Human Rights and the OECD due diligence guidance point out that companies should end the relationship with business partners only if – even after several attempts – the adverse impacts on people (and the environment) cannot be addressed.

This question assesses whether your company has processes in place to manage disengagement from a supplier responsibly.

• Answer yes if your company has a strategy, in line with the elements provided in the definition, how it manages its exit from supplier relationships. The responsible exit strategy should be translated into appropriate systems (processes, responsible staff) and applied
• Answer no if your company does not have a responsible exit strategy in line with the elements of the definition, or if it did not apply the strategy

Applicability: Brand, Brand and Retailer

Reference ID: swk_Mjc_b

Mapping: Principle Two (Equal Partnership) of The Common Framework on Responsible Purchasing Practices, Commitment 5 (Responsible Exit Strategies) of ACT’s Purchasing Practices

Evidence

Provide:

• Internal CSR/responsible sourcing documentation or policies describing your company’s exit approach

and

• Evidence of oversight by board/senior leadership (e.g., CSR/Responsible Sourcing/Social program VP/Director’s report to the board, board papers and minutes)

and

• Evidence that the strategy/policy is appropriately applied (copy of communication and contracts with suppliers that your company exited from during the reporting period)

Topic areas

Responsible purchasing practices

About this question

To ensure that your company’s commitment to improving its purchasing practices is integrated into its business operations, it is important that relevant staff is informed about progress on targets so that it can be used to make necessary changes to your company’s responsible purchasing practices (RPP) strategy and practices. In addition, sharing data regularly is important to increase awareness of staff and help build a stronger company culture in support of RPP.

• Answer yes if your company provides at least annual updates on progress on targets to CSR staff, purchasing staff and senior management and if it uses updates on progress to make annual adjustments to continuously improve the RPP strategy
• Answer no in all other cases

Applicability: Brand, Brand and Retailer

Reference ID: swk_Mj_b

Mapping: Principle One (Integration and Reporting) of The Common Framework on Responsible Purchasing Practices, Principle 5 (Shared Responsibility) Better Buying

Evidence

Provide:

• Link to published or internal report or update demonstrating progress for the reporting period on all targets and milestones related to your company’s purchasing practices  (e.g., ESG report,  Annual Report and Accounts, social impact/human rights progress update on corporate website)

and

• Evidence that this report was pro-actively shared with relevant staff (copies of emails or papers)

and

• Evidence that the reports were used to inform target setting and/or your your company’s strategy for improving its purchasing practices such as minutes of meetings or adjusted targets/strategies

Topic areas

Responsible purchasing practices, stakeholder engagement

About this question

While there is increasing scientific evidence of the link between a supplier/factory’s ability to meet social and labor standards and the procurement practices of their customers, many brands and retailers still have to start, or are at the early stages of making an RPP strategy. Training of staff on responsible purchasing practices (RPP), including on your company’s RPP commitment and strategy, is an important part of the cultural and systematic change that is required in companies to make their purchasing practices more responsible. Training can be developed internally, but there are also external training sources available.

• Answer yes if staff across relevant departments (incl. purchasing and CSR/responsible business departments) participated in RPP training during the reporting year
• Answer partial yes if only staff from the CSR/responsible business department participated in RPP training during the reporting year
• Answer no if staff did not participate in RPP training this year

Applicability: Brand, Brand and Retailer

Reference ID: swk_Mjk_b

Mapping: Principle One (Integration and Reporting) of The Common Framework on Responsible Purchasing Practices, Commitment 4 (Training on Responsible Sourcing and Buying) of ACT’s Purchasing Practices, Principle 5 (Shared Responsibility) Better Buying

Additional information

Examples of overview of external training, available here.

Evidence

Either

• Documentation outlining training approach, content and attendee type (e.g., Board paper, HR documentation/strategy, public document)

or

• Link or Documentation of training materials
• Outline of training purpose and attendees

Optional supplementary evidence:

• Training records of specified teams, or implementation plans and employee feedback on training. Evidence must show the date of training falls within assessment period.
• Qualitative or Quantitative data that shows evidence of success of training (e.g.,feedback)

Topic areas

Responsible purchasing practices, stakeholder engagement

About this question

Placing orders without insight into a supplier’s or facility’s production capacity can put pressure on supplier’s ability to produce responsibly, for instance, on overtime, payroll and verbal abuse. Particularly since suppliers might be scared to refuse orders even though they know that they might not have sufficient production capacity.

Close collaboration with a supplier with regard to planned production and forecasts of orders at factory level is an important element of responsible purchasing and will help a supplier’s capacity to mitigate excessive peaks and drops in orders and challenging timelines, which are important root causes for labor violations

• Select providing forecasts and updates in advance if it is a standard practice that your company provides timely forecast and regular updates to its suppliers
• Select having clarity of supplier’s production capacity if your company understands restrictions of suppliers production capacity
• Select aiming for production to take place within normal working hours if your company has insights at the moment of placing an order how that might impact your suppliers ability to produce
• Select commitment to spreading order volume if your company has an active approach towards spreading orders to minimize large order fluctuations
• Select mutual agreement for order modifications if your company at the moment of agreeing on changes to the order, the production capacity of the supplier is taken into account to avoid downward pressure
• Select none if you cannot provide evidence of any of the above collaborative activities with suppliers to improve purchasing practices

Applicability: Brand, Brand and Retailer

Reference ID: swk_MzA_b

Mapping: Principle Three (Collaborative Production Planning) of The Common Framework on Responsible Purchasing Practices, Sustainable Terms of Trade initiative key recommendation on confirmation of production capacity, Commitment 3 (Better planning and forecasting) of ACT’s Purchasing Practices, Principle 1 (Visibility), 2 (Stability) and 3 (Time) Better Buying

Evidence

Provide:

• Link to/copy of your company’s policy/regulations/processes for production planning

and

• Evidence that this policy/regulations/processes is/are appropriately applied (screenshots of proof of use, or link to internal systems for production planning)

Topic areas

Responsible purchasing practices, stakeholder engagement

About this question

Close collaboration with a supplier with regard to planned production and forecasts of orders at factory level is an important element of responsible purchasing and will help a supplier’s capacity to mitigate excessive peaks and drops in orders and challenging timelines, which are important root causes for labor violations.

To calculate the percentage of direct suppliers covered by your company’s collaborative production planning process, use the formula:

x = (Σ Direct Suppliers with Production Planning) / (Σ Direct Suppliers) x 100

• Select the percentage figure that represents the proportion of Tier 1 manufacturing that is covered by your company’s collaborative production planning process
• Select unknown if this data is not captured by your company, if the data cannot be evidenced, or if there is no collaborative production planning in place

Applicability: Brand, Brand and Retailer

Reference ID: swk_MzE_b

Mapping: Principle three (collaborative production planning) Common Framework for Responsible Purchasing Practices, Principle 2 (Stability) Better Buying

Evidence

Either

• Link to published report specifying the percentage of tier 1 suppliers covered by the collaborative production planning (e.g., ESG report,  Annual Report and Accounts, relevant report on corporate website)

or

• Internal progress report specifying the percentage of tier 1 suppliers covered by the collaborative production planning with oversight by senior management  (e.g., Board ESG Committee papers, ESG ‘Dashboard’, screenshot of satisfaction survey results)

Topic areas

Responsible purchasing practices

About this question

As part of its due diligence process, companies should track if measures taken to address the prioritized risks and impacts have been effective. This question assesses whether your company has met its targets for the improvement of its Responsible Purchasing Practices (RPP).

• Answer yes if you can provide evidence that 100% of your company annual milestone targets have been fully met
• Answer partial yes if you can provide evidence that at least 50% of your company annual milestone targets have been fully met
• Answer no if less than 50% of your company annual milestone targets have been fully met

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_MzI

Mapping: Principle One (Integration and Reporting) of The Common Framework on Responsible Purchasing Practices

Evidence

Either

• Link to published report or update demonstrating progress for the reporting period on targets and milestones related to Responsible Purchasing Practices  (e.g., ESG report,  Annual Report and Accounts, social impact/human rights progress update on corporate website)

or

• Internal progress report demonstrating progress for the reporting period on targets and milestones related to Responsible Purchasing Practices

and

• Evidence of oversight by senior management  (e.g., Board ESG Committee papers, ESG ‘Dashboard’, social impact/human rights Director report to board)

or

• Report on your company’s progress from a third-party assessment framework, NGO or benchmarking organization

Topic areas

Responsible purchasing practices

About this question

As part of a company’s due diligence responsibilities, it is expected to communicate publicly on its processes, including policies, management systems, most important risks and adverse impacts, strategies to address them, and results.

This question evaluates whether your company communicates publicly about its responsible purchasing practices (RPP) strategy and outcomes. Evidence should include links to published documents that detail your company’s formal targets and progress.

Companies should be prepared to demonstrate how actions taken on purchasing practices have mitigated negative impacts on value chain workers. This may include disclosing the approach taken when a conflict arises between preventing or mitigating negative impacts and other business pressures.

• Select one or more of the topic areas related to responsible purchasing practices where you can provide evidence that your company has set formal targets to improve.
• Select none if your company does not publicly communicate its RPP strategy, or if there is no strategy in place.

Answer options: Sustainable costing, Fair payment terms, Production planning, Equal partnership.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_MzM_b (For: Brand, Brand and Retailer)

 Reference ID: swk_MzM_r (For: Retailer)

Additional information

For further information, see:

• Section 5 of the OECD due diligence guidance for Responsible Supply Chains in the Garment and Footwear Sector

Evidence

Provide:

• Link to published report or update demonstrating progress for the reporting period on targets and milestones related to Responsible Purchasing Practices (e.g., ESG report, Annual Report and Accounts, social impact/human rights progress update on corporate website)

and

• Internal reports, spreadsheets, or other documents that demonstrate your company’s measurement of your company’s payment terms. This includes also the number of legal proceedings currently outstanding for late payments

or

• Third-party report on your responsible purchasing targets and progress published on your company’s website (e.g., by a consultancy, NGO partner or multi-stakeholder initiative that your company participated in)

Topic areas

Responsible purchasing practices, transparency

About this question

As part of a company’s due diligence responsibilities, it is expected to communicate on, amongst other areas, its due diligence process. This includes policies, management systems, most important risks and adverse impacts, strategies to address them and results. This question focuses specifically on public communication related your company’s worker related to human rights risks and impacts.

• Select one or more topics which your company has publicly communicated on the identified worker related human rights risks and impacts.
• Select none if your company has not communicated any of these topics.

Answer options: The company’s access to remediation system, Results of the action plans in its value chain, Results of the action plans in its own operations, Targets and action plans to address the human and labour risks in its own operations, Targets and action plans to address the human and labour risks in its value chain, The most significant human and labour risks identified in its own operations, The most significant human and labour risks identified in its value chain, How value chain workers were involved in assessing the effectiveness of its due diligence approach, How value chain workers were involved in assessing the effectiveness of remediation programs, Number and type of severe human rights incidents affecting value chain workers during the reporting period.

Applicability: Brand, Brand and Retailer

Reference ID: swk_MzQ_b

Additional information

For further information, see:

• Section 5 of the OECD due diligence guidance for Responsible Supply Chains in the Garment and Footwear Sector
• UNGP operational principle 21

Evidence

Provide:

• Link to published report or information presenting the identified worker-related human rights risks and impact as a result of your company’s due diligence (e.g., ESG report, Annual Report and Accounts, social impact/human rights progress update on corporate website)
• Third-party report presenting the identified worker related human rights risks and impact as a result of your company’s due diligence published on your company’s website (e.g., by a consultancy, NGO partner or multi-stakeholder initiative that your company participated in)

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing, transparency

About this question

Disclosing due diligence policies and outcomes is a critical component of a company’s external communication strategy.

This question evaluates the extent to which your company publicly communicates the results of ongoing social and labor risk monitoring within its supply chain. Companies should also be ready to disclose severe human rights issues identified in both upstream and downstream value chain operations.

Companies should demonstrate how they actively work to avoid causing or contributing to material negative impacts on value chain workers through their own practices. Additionally, they should articulate their approach to resolving tensions between Human Rights risks and other business pressures.

• Select one or more of the areas where your company publicly communicates the performance of its supply chain at an aggregate level.
• Select none if your company does not publicly communicate on at least the ILO core labor standards.

Answer options: Forced labor/Modern Slavery, Migrant workers, Child labor, Young worker policy, Living wage, Contracts, Freedom of Association, Collective Bargaining, Bipartite dialogue, Grievance systems, Harassment and abuse, Anti-discrimination, Diversity, Equity and Inclusion, Health and Safety, Training and development, Other human and labor rights issues.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_MzU

Additional information

For further information, see:

• Section 5 of the OECD due diligence guidance for Responsible Supply Chains in the Garment and Footwear Sector
• UNGP operational principle 21

Evidence

Provide:

• Link to published report or information presenting the worker-related human rights performance of your company’s value chain (e.g., ESG report, Annual Report and Accounts, social impact/human rights progress update on corporate website)
• Third-party report presenting the the worker-related human rights performance of your company’s value chain (published on your company’s website (e.g., by a consultancy, NGO partner or multi-stakeholder initiative that your company participated in)

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing, transparency

About this question

This question does not pertain to memberships with audit/assessment bodies or general industry initiatives. Instead, it focuses on formal agreements with stakeholders specifically aimed at improving worker-related human rights in the supply chain. Examples include the Accord on Fire and Building Safety, Global Framework Agreements with unions, Better Work (at a partnership level), or ACT.

When disclosing participation in a multi-stakeholder initiative as part of its actions to address material negative impacts, companies should explain how the initiative is designed to address the identified impacts. Companies should also be prepared to disclose:

•  The aims and targets of the initiative and how it addresses negative impacts;
•  The role of value chain workers or their legitimate representatives in the development and assessment of these initiatives.

• Answer yes if your company has an agreement with an industry stakeholder that supports improving worker related human rights either at global or sectoral level
• Answer no if your company has no agreement with an industry stakeholder that supports improving worker related human rights at the global or sectoral level

 Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_MzY

Additional information

For further information:

• See section on collaboration on due diligence in the introduction of the OECD due diligence guidance for Responsible Supply Chains in the Garment and Footwear sector

Evidence

Either

• Links to published CSR/responsible sourcing documentation or reports, indicating your company’s agreement with stakeholders focussed on improving worker related human rights issues (e.g., strategy document, MoU’s, annual review, responsible persons)

and

• Document or link to information indicating how the topic is addressed through the collaboration with stakeholders

or

• Internal CSR/responsible sourcing documentation, policies, or reports, indicating your company’s agreement with stakeholders focussed on improving worker related human rights issues (e.g., agreement, annual review, responsible persons)

and

• Document or link to information indicating how the topic is addressed through the collaboration with stakeholders

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing, stakeholder engagement

About this question

Duplicative auditing is an important financial and capacity burden for suppliers.

This question measures to what extent your company is supporting industry collective action (e.g. SLCP, Better Work) to reduce duplicative auditing, through continuously reducing its own auditing effort by using existing valid audits.

• Answer yes if you can provide evidence that your company has participated in collaborative initiatives to reduce duplicative auditing
• Answer no if you cannot provide evidence of any collaborative work on duplicative auditing, or if collaboration has not formed part of your strategy

 Applicability: Brand, Brand and Retailer

Reference ID: swk_Mzc_b

Additional information

For further information:

• See section on collaboration on due diligence in the introduction of the OECD due diligence guidance for Responsible Supply Chains in the Garment and Footwear sector

Evidence

Either

• Links to published CSR/responsible sourcing documentation, or reports, indicating your company’s collaboration with industry initiatives to reduce duplicative social and labor (e.g., strategy document, membership documents, MoU’s, annual review, responsible persons)

and

• Evidence that your company is using the audit reports of industry bodies in place of audits specifically done for your own company (e.g., links to internal audit/rating systems demonstrating the use of these audit reports) and, if this industry initiative is a membership model, link to the member page of the industry initiative’s where the name of your company is presented

or

• Internal CSR/responsible sourcing documentation, policies, or reports, indicating your company’s collaboration with industry initiatives to reduce duplicative social and labor (for example strategy document, membership documents, MoU’s, annual review, responsible persons)

and

• Evidence that your company is using the audit reports of industry bodies in place of audits specifically done for your own company

Topic areas

Responsible purchasing practices, stakeholder engagement

About this question

This question is an opportunity to demonstrate that your company works collaboratively with stakeholders on  the specific social and labor risks and opportunities listed.

Examples could include working with a cross-sector group,  a topic specific group, NGO’s, trade unions, a group of businesses, a membership organization, a regulatory body. To select one or more topic, you will need to be able to demonstrate that your company is playing an active role in the collaboration.

• Select one or more topics which your company has collaboratively addressed with other organizations and stakeholders (a proactive program is required, membership alone of an organization addressing these topics is not sufficient)
• Select none if your company has not addressed any of these topics collaboratively, or if collaboration is not part of your company’s strategic approach

Answer options: Forced labor/Modern Slavery, Migrant workers, Child labor, Young worker policy, Living wage, Contracts, Working time, Freedom of Association, Collective Bargaining, Bipartite dialogue, Grievance systems, Harassment and abuse, Anti-discrimination, Diversity, Equity and Inclusion, Health and Safety, Training and development, Other human and labor rights issues.

 Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_Mzg

Additional information

For further information:

• See section on collaboration on due diligence in the introduction of the OECD due diligence guidance for Responsible Supply Chains in the Garment and Footwear sector

Evidence

Either

• Links to published CSR/responsible sourcing documentation, policies, or reports, indicating your company’s collaboration with stakeholders on specific social and labor risks (e.g.,  strategy document, proof of financial or in kind contribution, progress reports, membership documents, MoU’s, annual review, responsible persons)

or

• Internal CSR/responsible sourcing documentation, policies, or reports, indicating your company’s collaboration with stakeholders on specific social and labor risks (for example strategy document, proof of financial or in kind contribution, progress reports, membership documents, MoU’s, annual review, responsible persons)

and

• Evidence of oversight by board/senior leadership (e.g., CSR/Responsible Sourcing/Social program VP/Director’s report to the board, board papers and minutes, contract with third-party implementing organization, report by third-party implementing organization)

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing, stakeholder engagement

About this question

It is the duty of the government to provide protection against human rights abuses through law, policies, regulations, inspection and enforcement of the law. However, there are instances where governments are not meeting this duty which may result in risks and adverse impacts that cannot be remediated at the factory level. Examples may include labor regulations stimulating short term contracts, or an environment that leads to freedom of association violations. In those cases, companies can use their leverage (collectively or individually) with the government to influence the necessary changes.

Examples of active use of leverage include  high level meetings with governmental representatives requesting the change, high level brand/retail delegations to countries for high level meetings with governmental representatives, letters signed by senior leadership in your company, or joint letters of a group of brand/retailers to senior political leadership in countries.

• Answer yes if your company has actively used its leverage to influence regulatory bodies in identified countries to make legal changes to remediate prioritized adverse impacts or mitigate prioritized risks as described by the examples in the guidance
• Answer no if your company has not actively used its leverage to influence regulatory bodies in identified countries to make legal changes to remediate prioritized adverse impacts or mitigate prioritized risks

 Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swk_Mzk

Additional information

For further information:

• See section on collaboration on due diligence in the introduction of the OECD due diligence guidance for Responsible Supply Chains in the Garment and Footwear sector

Evidence

Provide:

• Links to documentation supporting evidence of your company’s involvement such as official letters (co)signed by your company’s senior management, minutes of meetings, agendas of meetings of officials, copy of communication with relevant officials

Topic areas

Forced labor and human trafficking, child labor, employment terms, wages and benefits, worker voice and representation, diversity, equity and inclusion, training and development, health, safety and wellbeing, stakeholder engagement

About this question

This question is an opportunity to demonstrate that your company works collaboratively with stakeholders on strategies to address sector challenges around implementing responsible purchasing practices. Examples could include working with well established organisations that promote specific action on purchasing practices, such as FLA, ACT, Fair Wear, ETI, IDH and others.

• Answer yes if you can provide evidence that your company has actively participated in collaborative initiatives to address the implementation of responsible purchasing practices
• Answer no if you cannot provide evidence of any collaborative work on purchasing practices, or if collaboration has not formed part of your strategy

 Applicability: Brand, Brand and Retailer

Reference ID: swk_NDA_b

Additional information

For further information:

• See section on collaboration on due diligence in the introduction of the OECD due diligence guidance for Responsible Supply Chains in the Garment and Footwear sector

Evidence

Either

• Link to membership/signatory page or annual report published on the website of the relevant multi-stakeholder initiative(s), indicating the topics addressed and your company’s logo/name plus signatory/membership level during the reporting period

or

• Membership/signatory agreement/s including company’s name and level of commitment

and

• Document or link to information indicating how the topic is addressed by the multi-stakeholder initiative/s

Optional supplementary evidence:

• Examples of your company’s data/reporting submission required by the MSI
• Feedback from an NGO on your company’s contribution to the MSI

Topic areas

Responsible purchasing practices, stakeholder engagement

About this question 

It’s widely assumed that the risks for worker related human rights impact is higher deeper into the supply chain. This question explores how deep into the supply chain your company applies its assessment and monitoring activities for worker related human rights risks and impacts.

• Note the % figure that represents the proportion for each of the Tiers that is covered by your company’s worker related human rights assessment and monitoring activities
• Select unknown if this data is not captured by your company or if the data cannot be evidenced

Applicability: Brand, Brand and Retailer

Reference IDs: swdk_a_1, swdk_a_2, swdk_a_3, swdk_a_4, swdk_a_5

Note: unscored question

About this question 

Freedom of workers to join or form a union is a fundamental labor right. Independent unions are important for mitigating worker related human rights risk and remediating impact. They also strengthen the bargaining power of workers, an essential element for a continuous improvement of working conditions.  In addition, the presence of a union can have a positive impact on the supplier by stabilizing industrial relations and resolving workplace problems and grievances.

• Note the % figure that represents the proportion for your company’s Tier 1 supplier has one or more union
• Select unknown if this data is not captured by your company or if the data cannot be evidenced

Applicability: Brand, Brand and Retailer

Reference ID: swdk_b

Note: unscored question

About this question 

Freedom of workers to join or form a union is a fundamental labor right. Independent unions are important for mitigating worker related human rights risk and remediating impact. They also strengthen the bargaining power of workers, an essential element for a continuous improvement of working conditions.  In addition, the presence of a union can have a positive impact on the supplier by stabilizing industrial relations and resolving workplace problems and grievances.

• Note the % figure that represents the proportion of your company’s logistic and distribution providers has one or more union
• Select unknown if this data is not captured by your company or if the data cannot be evidenced

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: swdk_c

Note: unscored question

About this question 

An equal representation of women at management and higher level functions can drive improved working conditions, amongst others where it concerns issues such as gender based violence, specific reproductive health, care or pregnancy related rights and issues. It can also impact business outcomes of suppliers.

• Note the % figure that corresponds with the proportion in management and higher level leadership positions for each of the options (male/female/other genders)
• Select unknown if this data is not captured by your company or if the data cannot be evidenced

Applicability: Brand, Brand and Retailer

Reference ID: swdk_d_1, swdk_d_2, swdk_d_3

Note: unscored question

About this question 

The OECD Guidelines recommend paying a wage that “should be at least adequate to satisfy the basic needs of the workers and their families”. This wage level is usually described as a living wage. In many garment producing countries, minimum wages are not sufficient to satisfy the basic needs of the workers and their families. Often, the majority of garment workers earn the minimum wage, which leads to workers needing to work overtime to cover their basic needs. There is increasingly more international commitment in various forms to the payment of living wages in global supply chains, including through legislative proposals, international responsible business conduct frameworks, industry collective action programs, and expectations from consumers.

• Note the % of the workforce in tier 1 suppliers who receive a living wage as defined by an internationally recognized methodology
• Select unknown if this data is not captured by your company or if the data cannot be evidenced

Applicability: Brand, Brand and Retailer

Reference ID: swdk_e

Note: unscored question

About this question

It’s widely assumed that the risks for worker related human rights impact is higher deeper into the supply chain. This question explores how deep into the supply chain your company actively collaborates with other companies or organizations to address specific social and labor risks.

• Note the % figure that represents the proportion for each of the Tiers that is covered by collaboration with other companies or organizations to address specific social and labor risks
• Select unknown if this data is not captured by your company or if the data cannot be evidenced

Applicability: Brand, Brand and Retailer

Reference ID: swdk_f_1, swdk_f_2, swdk_f_3, swdk_f_4, swdk_f_5

Note: unscored question

About this question 

This question evaluates the effectiveness of your company’s response to worker rights-related issues within the supply chain. Examples of such issues could include working conditions, wage concerns, forced labor, child labor, excessive working hours, or instances of labor rights being compromised

To calculate the percentage of worker rights-related issues that were successfully remediated or are in the process of remediation during the reporting period, use the following formula:

• Note the percentage figure based on the ratio of remediated and currently being remediated issues to the total issues detected in your supply chain, including both zero tolerance and critical issues.
• Leave blank only if this data is not captured by your company, or if the data cannot be evidenced.

Applicability: Brand, Brand and Retailer

Reference IDs: swdk_remediation_pct

Note: unscored question