Two decades ago it was standard practice for an apparel
company to publicly deny any responsibility to workers in
its supply chain. After years of worker and consumer activism,
the debate has shifted and a number of companies have now
developed extensive corporate social responsibility (CSR)
programs. A handful of companies are using these systems
to facilitate positive changes for workers. With Free2Work
statistical data, we present an overview of apparel companies'
current range of responses to arguably the most egregious
ongoing abuse of workers: modern slavery.
Free2Work grades are an indication of the extent to which
companies have traced their suppliers and established management
systems throughout their supply chains. If used together,
these systems can theoretically prevent child and forced
labor. It is important to note however that, outside of
a few metrics, Free2Work is only able to gather information
on management systems and not on the working conditions
they are designed to ameliorate; this is because the overwhelming
majority of companies are not transparent with working condition
information. Except in a few cases, companies have not made
monitoring reports, corrective action plans, or line-by-line
statistics on the implementation of code standards available
to the public. Without this information, a direct analysis
of the impact of these management systems on child labor,
forced labor and many broader worker rights is not possible.
Free2Work does gather information on one concrete working
condition that is also arguably the most accurate impact
barometer: wages. Wages are of chief concern to workers,
as evidenced by the fact that the payment of a living wage
is demanded by virtually every major labor rights group.1
Interestingly, our data finds that while a handful of the
CSR management systems we assess correlate with a known
improvement in wages, most do not: only a small number of
brands report guarantees of higher-than-minimum wages at
the factory level (see pg 3). This leads us to question
whether the internal purpose of many of these systems is
merely public image management. Regardless of the motive,
it is clear that while in some cases the resources spent
on CSR systems are significantly benefitting workers, in
the majority of cases the impact on wages and broader working
conditions is uncertain.
This report provides detailed information on fifty apparel
companies' CSR practices: it assesses each management system
in four categories: Policies, Traceability & Transparency,
Monitoring & Training, and Worker Rights. Each Free2Work
indicator correlates with a piece of a system that should,
if appropriately used, enable improvement in working conditions
and the elimination of modern slavery. We hold that child
and forced labor are far less likely in supply chains that
are highly visible to companies and where workers have a
voice to negotiate working conditions and speak out against
grievances.
As the Clean Clothes Campaign has stressed, these components
will likely only create positive impact if used in conjunction.2
For example, a company can have strong written policies
against modern slavery and gather information about supplier
working conditions through in-depth monitoring, but unless
it uses these standards and information to correct grievances,
we would not expect it to create impact. Free2Work category
grades represent the health of pieces of a system rather
than the system as a whole, and should be evaluated within
this broader context: while many brands have adopted the
right policies and thus the most common Policies grade we
allot is an A, the most common Worker Rights grade is an
F.
Alongside a statistical overview of Free2Work data, this
report offers more detailed snapshots of what some of the
better-scoring companies are doing in specific compliance
areas. A few of these featured companies are truly ahead
of the curve in their use of best-practices. Several, however,
are not comprehensively upholding worker rights; we provide
examples of model initiatives and in some cases we have
found that companies supporting model initiatives in one
place are far from following best practice in other places.
Despite these inconsistencies, we want to encourage companies
to support stronger initiatives, such as the Freedom of
Association Protocol in Indonesia or the Fire and Building
Safety Agreement in Bangladesh. These issue-specific, direct
stakeholder-brand-supplier agreements represent a new path
for enabling workers' voice: an essential step in ensuring
against forced or bonded labor or other contract abuse.
We also want to encourage companies to begin to measure
and report the impact of their CSR systems, particularly
in terms of wage gains for workers. These programs are only
useful where they are creating concrete change for workers.
Despite the current information gap, the Free2Work data
we present is important because it is the most comprehensive
picture of these systems to date. We can see from it that,
unlike in decades past, most well-known apparel companies
now admit responsibility to their supply chain workers,
and many are putting resources into facilitating change--
even at the inputs and raw materials levels of their supply
chains, where modern slavery is most rampant. We want to
applaud the industry's step in this direction. Our hope
is that the trend will continue, and that companies will
use our ratings and analysis to improve, and to follow today's
best-practice leaders into creating concrete improvements
for workers tomorrow.
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