HanesBrands’ Social Compliance Programs
While 80 percent of HanesBrands’ total unit volume comes from production facilities that we own and operate or from fully dedicated contractors, the company and its licensees do source directly from third-party facilities as well. Hanes is a pioneer in managing a worldwide supply chain for social compliance, having had a very in-depth and thorough facility auditing program for nearly 20 years. We are committed to remaining a leader in the apparel industry.
Our Global Code of Conduct, Global Standards for Suppliers, and the Fair Labor Association code of conduct drive the expectations we set for all of our owned and contractor facilities. We insist on compliance and work aggressively to correct deficiencies that our internal and independent external audit teams uncover. Our facilities are each audited two to three times a year by a combination of internationally recognized external auditing firms, our regional internal auditors, and the Fair Labor Association and/or the Worldwide Responsible Accredited Production program. These audit teams conduct more than 600 audits each year, covering topics that range from health and safety, to compensation and working hours, to dormitory conditions, to child labor, to fire and emergency preparedness.
Our compliance program goal is to work with facilities to drive continuous improvement, but we will stop doing business with a factory if they fail to correct deficiencies in a timely manner or if we discover “zero-tolerance” issues such as child labor, sexual or physical assault, or auditor bribery. We have disapproved 20 factories in the past 18 months.
In a continuing effort to further enhance our program, we are an active and committed participant in the Fair Labor Association, working with its new SCI factory evaluation process. We have also spent more than a year developing a new and very detailed scored auditing tool that will allow us to objectively score a facility across a range of compliance parameters, including not only social and labor issues, but also environmental practices and responsibility. The rollout of this new scoring methodology will begin in 2013 and will generate data that will significantly enhance our ability to track a facility’s progress over time, to objectively drive improvement, and to incorporate compliance parameters into our buying decisions.