HanesBrands’ Social Compliance Programs
Over 80 percent of HanesBrands’ total unit volume comes from production facilities that we own and operate or from fully dedicated contractors. This means we have far greater control over the working conditions in these facilities. Owned facilities mean the brick and mortar is ours, run by our management teams and staffed by our employees. For our remaining volume, HanesBrands and its licensees also source directly from third-party facilities. 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 more than 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. It should be emphasized that these standards apply to all facilities, owned and contracted. 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/or the Fair Labor Association. 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 over 70 factories in the last year.
In a continuing effort to further enhance our program, we are an active and committed participant in the Fair Labor Association, working with its SCI factory evaluation process. We also spent more than two years 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.