Paper prepared for HomeNet South Asia Lin Lean Lim

October 2019

Promoting Decent Work For Homeworkers In Global Garment

And Textile Supply Chains:Corporate Codes Of Conduct And Other Initiatives

International Development Research Centre

Centre de recherches pour le développement international

1. INTRODUCTION 01

2. HOMEWORKERS IN GARMENT AND TEXTILE SUPPLY CHAINS 042.1. Theirdecentworkdeficits 052.2. Whydecentworkwillbenefitbothhomeworkersandbrands 07

3. CORPORATE CODES OF CONDUCT IN GARMENT AND TEXTILE SUPPLY CHAINS 103.1. Corporate codes of conduct and homeworkers 143.2. Beyondcodes:initiativesofbrands 203.3. Industry-wide codes of conduct 26

4. BEYONDBRANDS:NON-CORPORATEINITIATIVES 284.1. Worker-driveninitiatives 284.2. Multi-stakeholderinitiatives 304.3. Multilateralinitiatives:internationalinstruments 364.4. Country-levelinitiatives:nationallegislation 42

5. HOWHOMEWORKERSCANUSECODESANDOTHERINITIATIVES 45 REFERENCES 51

APPENDICES1. Thehumanandlabourrightscomponentsofcodesofconduct ofinternationalgarmentandtextilebrands 572. BurberryEthicalTradingCodeofConductHomeworkerPolicy 803. Worker-driveninitiative:StrengtheningtheUNGuidingPrinciples OnBusinessandHumanRightstoprotecthomeworkers 824. WorkerSocialResponsibility(WSR)versusCorporateSocial Responsibility(CSR)andMulti-stakeholderInitiatives 835. ETImodelpolicyonhomeworking-forusebyretailersandsuppliers 866. CleanClothesCampaignFullPackagetoLabourCodesofConduct: Crediblestakeholderparticipation 88

Contents

ACT Action,Collaboration,Transformation

CCC CleanClothesCampaign

CSR Corporate Social Responsibility

ETI EthicalTradingInitiative

FLA FairLabourAssociation

FLO FairtradeLabellingOrganizations/FairtradeInternational

GFA GlobalFrameworkAgreement

H&M Hennes&MauritzGBCAB

HNSA HomeNet South Asia

ILO InternationalLabourOrganization

LS&Co. LeviStrauss&Company

MGMA MyanmarGarmentManufacturersAssociation

MNE MultinationalEnterprise

MSI Multi-stakeholderInitiative

NCP NationalContactPoint

NICE NordicInitiativeCleanandEthical

NSW New South Wales

OECD OrganizationforEconomicCooperationandDevelopment

OHCHR OfficeoftheHighCommissioneronHumanRights

PCI PrivateComplianceInitiative

RBC Responsible Business Conduct

SAI SocialAccountabilityInternational

UNGPs UnitedNationsGuidingPrinciples

UNICEF UnitedNationsChildren’sFund

WHO WorldHealthOrganization

WIEGO WomeninInformalEmploymentGlobalizingand

Organizing

WSR Worker-DrivenSocialResponsibility

WWB WorkerWell-Being

ACRONYMS

1 The literature also refers to global value chains, global commodity chains or global production networks. In this paper, we use the term global supply chains.

“Who made my clothes” is a question increasingly asked by consumers, especiallyafter the spate of serious industrial accidents killingthousands of workers, many of them in the garmentdistricts of Bangladesh (famously, Tazreen and RanaPlaza). Shareholders, investors and large investmentfundsarealsojudgingcompaniesnotonlyonthebasisofprofitsbutalsosocialaccountability.Garmentandtextileglobal supply chains have been the focus of attentionnotonlybecauseofthemanymillionsofworkers,mainlywomen, involved but also because of the high risk ofabuses in the context of fast fashion (characterizedby multiple seasons and short lead times), cut-throatcompetition,lowmargins,relentlesspricepressuresandthe constant search for low costs.1

Internationalbrandcompanieshaveadoptedcorporatesocialresponsibility(CSR)measuresforthegovernanceoftheirsupplychains.CSRprogrammesreflectinternationalnorms and standards and use a number of strategies,includingcodesofconduct(sometimestermedcodesofbusinessethics)andprivatecomplianceinitiatives(PCIs)

INTRODUCTIONto implement these codes. However, these initiativesoftenplacetheirattentionmainlyonworkerslocatedinfactories,andCSRcodesofconductoftenestablishlabourstandards and rights that do not distinguish betweenworkers in different tiers of the supply chain and indifferentworklocations.Ofthemanymillionsofworkersengagedinglobalsupplychains,thoseinthelowesttiersareoftennotvisibletothebrandstheyproduceforandarecertainlynotvisibletoendconsumersbecausetheyworkinoff-sitefacilitiesintheirhomes,publicspacesoutsideof their homes or small workshops close to their homes. Thesehomeworkers,who,overwhelmingly,arewomen,areamongthemostvulnerableandmarginalizedworkerswith fewemployment rightsand irregularand insecurework. The garment and textile sector is a key sector for homeworkers, but many global supply chain companies fear the code compliance risks associated with homework and often impose anti-homeworker policies.

Codes of conduct and traditional methods of PCIs

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focusing on audits/policing of code compliancehave had some success for upper-tier, factory-basedworkers.But thechallengeremains toextenddecentworkingconditionstothoseatthebottomoftheglobalapparel supply chains. The impacts of the codes and PCIsonworkers,especiallyhomeworkers,dependon,amongotherfactors,ontransparencyandtraceabilitythroughoutalllevelsofthechain;onwhoisrecognizedandtreatedasaworker;onwhetherthecodesprovidefortheparticularitiesofhomework;onwhetherthereare effective due diligence mechanisms; and, veryimportantly, on the participation of theworkers andtheir representative organizations in the governancemechanismsalongtheentirechain.

The primary aims of this paper are to examine the implications and impact of corporate codes of conduct of major international brands in global garment and textile supply chains on the fair and decent treatment of homeworkers and to identify corporate and non-corporate

measures that can more effectively promote labour standards and rights that take into account the particularities of homework.

Thepaperstartswithabriefdescriptionofthesituationof homeworkers in global supply chains and sets outwhythepromotionofdecentworkforhomeworkers isawin-winpropositionforboththeworkersthemselvesand international brands. It then reviews the codesof conduct of some major garment and textile brandcompanies based on publicly available informationdrawn mainly from company websites. It assesses the contents of these codes to determine whether and how theyaddress labour rightsandworkingconditionsand,inparticular,whether they takeaccountof thespecificissuesofhomeworkersintheirsupplychains.Ithighlightsexamplesofhowinternationalbrandsaregoingbeyondtraditional PCIs and using more collaborative andinclusive approaches involving their suppliers, workersandmultiplestakeholdersinthewiderlocalcommunity.It also notes that there are industry-wide codes for the

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Home-based workers from SABAH Nepal modelling handmade saris made by them. Photo credit: SABAH Nepal

garmentindustryinparticularcountries.

The paper then goes on to identify other governanceapproaches and initiatives that promote decent workin global supply chains.The paper draws attention toworker-driven social responsibility (WSR) initiativesthat are attempting to address the weaknesses ofinternational brands’ CSR and PCIs. Non-corporateentities and multi-stakeholder groups includingconsumeradvocates,humanrightsorganizations,NGOs,organizedlabour,universitiesandstudentbodieshavealso exerted pressure on supply chain companies toobservehigherandbroaderstandardsfortheirworkers;these multi-stakeholder initiatives (MSIs) can includecampaigns, publication of annual review reports andcertification.Multilateralinitiativesalsoexist,includinga number of international instruments based on ahumanrightsframework,thatrepresentthe“softlaw”governingtheconductofcorporationsinglobalsupplychains.Thesevarious initiatives all emphasize the keyroleofpublicgovernance:codesandotherinstrumentsarenotasubstitutefornorshouldtheybeconsideredtooverridedomesticlawandregulation.Itisthestate’sduty to promulgate and enforce national labour lawsandregulations.

The paper’s final section summarizes and highlights some pointers for advocacy and action on using CSR codes of conduct as well as other instruments and practical initiatives to promote decent work for homeworkers.

ThepaperincludesalargeAppendixsectiononthevarioustypesofcodesandotherinitiativesfrompubliclyavailablewebsites.Thepurposeofthisdetailedinformationistoidentifythosecodesandinstrumentsandtheprovisions/clauses/recommendations that can be referred to andusedbyhomeworkersandtheirorganizationsineffortsto encourage and support corporations and otherstakeholders to promote decent work.

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Asian countries commissioned by HomeNet South Asia (HNSA)andWomeninInformalEmploymentGlobalizingandOrganizing(WIEGO)suggestthatthereareatleast41million home-based (self-employed and subcontracted) workers outside agriculture in South Asia alone,representingsome15percentoftotalnon-agriculturalemployment. The data also suggest that homeworkersrepresentbetween14per cent (Bangladesh) to33percent (India and Pakistan) of all home-based workers and ashighas45percent(India)to60percent(Pakistan)ofwomenhome-basedworkers.However,thedatatypicallydonotdistinguishwhetherthehomeworkersproducefordomesticorglobalsupplychainsorforboth.

Homeworkers produce, add value to, assemble,package and sort goods for a range of industries:stitching, embroidery and embellishing garments andweaving textiles; stitching shoe uppers and footballs;producing craft products; processing and preparingfood items; rolling incensesticks, cigarettesandcigars;assembling or packaging electronics, automobile partsandpharmaceuticalproducts; andmore.Data for Indiaindicate that some 45 per cent of the 37.4 millionhome-basedworkers(in2012)wereinvolvedinmakinggarmentsandtextilesandthatofthese,overfivemillionwere homeworkers in India’s domestic and globalgarmentandtextilesupplychains.

Homeworkers are a sub-set of “home-based workers,”which means self-employed or own-account workers who buy their own raw materials and supplies and sell theirownfinishedgoods,mainlytolocalcustomersandbuyers.2 Homeworkers are sub-contracted, piece-rateoutworkers who are deeply embedded in productionprocessesproducinggoodsandservicesforbothglobalanddomesticsupplychainsfromwithinandaroundtheirown homes. Under themost common sub-contractingarrangement, homeworkers provide the workplace,pay for utilities, and buy/rent and maintain their ownequipment. They receive work from contractors, whoprovide the work orders and raw materials, specify theproductstobemadeanddeliverthefinishedgoodstofirmsfurther up the supply chain. 3 The supply chains are buyer-driven.Thebuyer,oftenaninternationalbrandcompany,places the orders, determines the specifications, thetiming, the price and any conditions (including labourconditions)thatthecontractor/suppliermustadhereto.Therefore, thebuyers’ decisionsaffect the structureoftheentirechain,includingthewelfareoftheworkers.

Statistics are sadly lacking on the total numbers andeconomic significance of home-based workers and, inparticular,ofhomeworkers.Anoften-citedfigureisthatthere are more than 300 million home-based workers in theworld.AnalysesofrecentnationaldatainfourSouth-

2 Many home-based workers, however, fall in a grey intermediate zone between being fully independent self-employed and fully dependent sub-contracted employees. For example, when homeworkers have insufficient work orders from the contractor, they work independently selling in the local market. 3 For a detailed description of homeworkers, including how they are inserted into supply chains and their conditions of work and some quantitative data, see Women in Informal Employment Globalizing and Organizing 2016 and Harvey 2019.

HOMEWORKERS IN GARMENT AND TEXTILE SUPPLY CHAINS

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THEIR DECENT WORK DEFICITS

Despite their significant numbers and their integralproduction role in supply chains, homeworkers toil inthe obscurity of increasingly long and complex supplychains and ambiguous employment relationships. Theyaresubjecttoanumberofdecentworkdeficits:

As the founderofNestexplains, “manyconsumers,and brands for that matter, are not necessarilyaware thatproductionhappening ina factorydoesnot always stay there. Significant portions of thiswork–20-60percentofgarmentproductionalone– is estimated tobe subcontracted tohome-basedworkers. It is also not a straight line between thefactory and homeworker, which makes the home-based producer evenmore invisible and his or herworkeventrickiertoregulate. Whenworkleavesthefactory, it passes through often severalmiddlemenanditoftenenterstheinformaleconomy.Theinformaleconomyisfullof‘greyareas’becauseitisnotsubjecttonationalorlocallabourlaws.Thepresenceofmanysubcontractorsaloneoftendiffusesresponsibilitysothatnoonefeelsaccountableforensuringthatbasiccodes like wage records or systems for reportinggrievancesareinplaceorupheld.”4

As homework takes place in the private domesticsphere, it is invisible and difficult to access.The difficulty of access has several importantimplications. Homeworkers not only lack access toresources, including information and training, butalso,andimportantly,havelittleaccesstounionsorotherworker organizations, so that often they arenot organized. Even when homework is legislatedor regulated, labour inspection by governmentauthoritiesisverydifficult.Thedifficultiesofauditingcode compliance also make many companies ban homework in their supply chains.

A particular difficulty associated with homeworkingconcernsidentifyingtheemploymentrelationship.5 In

4 This is Range 2018. 5 International Labour Organization 2012b, p.3.6Harvey 2019, p.2.

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increasinglylongandcomplexsupplychains,thereis often a triangular employment relationship through theuseof subcontractorsoragents and wherethelegalemployer(theinternationalbrandor the direct supplier) is separate from the entity (the subcontractor) for whom the work is carried out by those at the bottom of the production chain.The lead firmmay then not recognize thehomeworkers hired through the subcontractorssince its contract is only directly with the main supplier.Suchtriangularemploymentrelationshipslimit the responsibility of the international brands forworkers throughout the supply chain.Furthermore, the suppliers or subcontractorsthemselvesoftenavoidtheobligationsofaregularemployment relationship by treating workersas independent contractors when in fact their situationisthesameasthatofregularemployees.In suchadisguisedemployment relationship, theemployer is sometimes purposely not identifiable or the worker is forced into declaring himselfor herself as self-employed in order to obtain work. Many homeworkers may also not be in a continuous employment relationship, whichmakes identification of the relationship difficult. Since theyarenot legally recognizedasworkers,they are not able to claim labour rights or socialprotectionortohaveaccesstoskillsupgrading.

Homeworkers, especially women, often representa buffer workforce in global supply chains toaccommodate just-in-time ordering, fluctuationsin orders and prices and stiff competition amongsuppliers. Treated as a flexible reserve, they arehighlyvulnerableworkerswithno securityofworkor earnings. According to Harvey, “in many ways,homeworkers epitomize the unequal landscape ofglobal production — formal firms benefit from theskillsandflexibilitytheyprovide,whiledenyingthemcorelabourrights.”6

7 Chen 2014, p.2.

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AccordingtoChen,homeworkers“mustcovermanycostsandabsorbmanyrisksofproduction,buttheydosofromapositionoflimitedleverage:withlittleornobargainingpower,nopolicypresenceandlimitedvoiceandvisibilityoutsidetheimmediatehouseholdor neighbourhood.” 7 Isolated from other workers in their sectorandhaving limitedknowledgeof themarket, prices and economic value of what theyproduce,theyarenotabletobargainforhigherpieceratesorbetterprices.Theydonotknowtheendbuyeroftheirproducts;theyareoftennotevenawarethattheyarepartofglobalsupplychains.

Homeworkers are paid by piece and the rate is lower on average than what factory workersin the same chains receive. The costs and riskshomeworkers bear eat into the low piece rates they receive. Their earnings are low and oftenerratic. They are not able to work their way out

ofpovertydespiteworking longandunregulatedhours. Any level of income security is hard tocomeby—workorderscanbecancelledsuddenly,finishedgoods rejectedbycontractorswith littleexplanation or payment delayed for months onend.Yettheirfamiliestendtorelyheavilyontheirearnings.

Because their homes are also their workplaces,the small size andpoor quality ofmost homes andinfrastructure (electricity,water, transportation) canhave an impacton their ability to takebulkorders;can lead to disruptions in both work and family routines; can affect the quality of the products;and can pose occupational health and safety threats not just to the workers but also to their family members. Their homes can also be located far from the contractors, so transport costs andtraveltimecanrepresentseriousconstraints.

DECENT WORK DEFICITS FACED BY HOMEWORKERS After leaving the factory, work goes through several middlemen before it comes to homeworkers. This adds to the invisibility of home-based work.

Homeworkers have little access to unions or other worker organisations.

Homeworkers work in disguised employment relationships which makes identification of the employer purposely difficult.

Homeworkers are highly vulnerable with no security of work or earnings, as they are treated as flexible reserve workforce.

Homeworkers absorb several risks of production, but have no bargaining power to ask for higher piece rates for their work.

Homeworkers are not able to work their way out of poverty despite working long and unregulated hours; this is due to low and erratic earnings.

Limited space and infrastructure of homes of homeworkers can affect their ability to take bulk orders, and can pose safety threats to them and their family members.

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WHY DECENT WORK WILL BENEFIT BOTH HOMEWORKERS AND BRANDS

Despite these decent work deficits, homework is ofcritical importance—not just to theworkersbut also toleadfirmsandtheirsuppliers.

Especiallyforwomen,home-basedworkmaybetheironlyemployment option. Working from home allows themto fulfil theirdomesticandreproductiveresponsibilitiesespecially where care for dependent family members is notavailable.Furthermore,insomesocieties,culturalandsocialnormsmay restrictwomen fromworkingoutsidethehomeortransportationdifficultiesmaypreventthemfromaccessingworkinfactoriesinthecities.Importantly,incomefromhomeworkiscriticalforthesurvivalofmanypoorfamilies,especiallyinruralareas.

For the lead firms and their suppliers, recognizinghomeworkersandpromotingdecentworkforthemcanbecriticalforsupplychainsustainability:

whencompaniesoperateinaneconomically,sociallyandenvironmentallyresponsiblemanner,andtheydosotransparently,ithelpsthemsucceed.Managementandmitigationofsocialandenvironmentalriskfactorsareincreasinglyimportantforbusinessestosucceed

abroad,asthecoststocompaniesoflosingthatsociallicense,bothintermsofsharepriceandthebottomline,couldbesignificant.Asmanyfirmstakeadvantageofglobalopportunities,there is an increasing understanding that incorporation of responsible business practices into investments and operations abroad not only benefits the local economies and communities, but makes good business sense. 8

Further, as Lim argues, responsible international brand companiesunderstand that supply chain sustainability goeswell beyond environmental risks andwaste costs.They recognize that compliance with labourstandards is key to the way the world does business today and that fair and decent treatment of workers isnotjustanethicalimperative;itisgoodbusiness.It contributes to long-term value creation and itgreatly influences consumer choices. When labour rights are respected, supply chains are more robust, reliable and resilient. 9

8 Nieweler 2015. 9 Lim 2015a, p.1.

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10World Bank 2003, p.1.11Ethical Trading Initiative 2018.

Consumers are not only interested in the quality of the products they purchase but also the work behind the brand names, so companieshavemoreandmorereasontobeconcernedabout how they are perceived. Shareholders, investorsand large investment fundsarealso judgingcompaniesnotonlybytheprofitstheygeneratebutbytheirethicalbusiness conduct.

Firms that observe international norms and promotesustainability see business benefits to these practices,including recognition in increasingly competitivemarkets as responsible firms to do business withthat also continue to make productivity and qualitygains.On theotherhand,firms that are found to abuse labour rights can face not only reputational damage but also protests, boycotts, attacks on corporate property, divestment campaigns, hostile shareholder resolutions and the enactment of sanction laws.10

A ban on homeworkers is certainly not the answer for getting international brands to take responsibility for

labourandhumanrightsviolationsintheirsupplychains.Banning suppliers from outsourcing to homeworkerswill not only adversely affect particularly poor women,but it will also not benefit supply chain brands. First,not using homeworkers would deprive lead garment and textile firms and their suppliers of traditional skills and expertise, such as in stitching, embroidery, weaving and textile hand painting, which cannot be mechanized in factories and which offer unique valuein increasingly competitive markets. Second, “banningsuppliers from using homeworkers will not eliminatehomework. The drivers for outsourcing homework inthepastwillstillbeimportantdriversfortheforeseeablefuture.Besides,banninghomework is likely to lead to itbeing done clandestinely, thus further exploiting thehomeworkers.” 11 Very importantly, banning homeworkamountstoaserioushumanrightsviolationasitdeprivestheworkersnotonlyofworkbutalsoofalivelihood—andin the context of commitment from all parties to the Sustainable Development Goals and the Agenda 2030 promise to “leave no one behind,” brands cannot afford to be found guilty.

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Tailors at stitching centres put together garments using hand-embroidered pieces created by home-based workers.

CORPORATE CODES OF CONDUCT IN GARMENT AND TEXTILE SUPPLY CHAINSA corporate code of conduct is a codified set of ethical standards voluntarily undertaken by a company to operate in an economically, socially and environmentally sustainable manner. Since a code is voluntarily generated by a company itself, it is not directly subject to legal enforcement. While codes of conduct are nosubstituteforadequatelyenforcedprotectionundernational law, they play a critical complementary roleto national legislation, helping ensure amore effectivecomplianceregimeandalsoofferingworkersleverageforseekingbetterworkingconditions.AccordingtotheILO,codes of conduct

embody the recognition that lead firms havesome responsibility for labour standards in their supply chains. PCIs provide more potential toinvest both financial and human resources incompliance initiatives, as compared to constrainedpublic budgets allocated to labour inspection andadministration.Also,manyleadfirmshaveextensivein-house expertise and training capacity to ensurethat their employees comply with the company code of conduct. 12

Acodeofconductisintegratedintoabrand’ssourcingand

purchasingpolicyandrepresentspartofthecontractualagreement between the brand and its suppliers andbuyingagentsintheglobalsupplychain.ThebrandleadfirmusesPCIs toenforcecompliancewith thecodeofconduct.PCIsarebecomingunavoidablecomponentsofleadfirms’supplychainmanagementsystems.13

TheriseofPCIshasbeenaccompaniedbythegrowthofthesocialauditing industry. Intheabsenceofeffectivelabour inspectionbystateauthorities,whichoften lackadequateresourcestoconductrigorousinspections,andinlightoftheweaknessoftradeunionsduetorestrictionsand repression inmany countries, international brandsincreasingly rely on private audit firms to monitor thelabour,healthandsafetysituationsatworkplaces.

Most audit systems rank the results in terms of their riskor severity—for example, low,mediumandhighorminor, major and critical. High or critical risk findingscan result in immediate halt orders or non-placement of orders; these findings normally relate to out-and-outchild labour,forcedlabourunderslaveryconditionsor fully locked-down facilities posing serious safetyconcerns.Inthecaseoffindingsrelatingtolessseriousnon-complianceissues,theleadfirmusuallyestablishesarecommendedcorrectiveactionplanwithaspecifictime

12 International Labour Organization 2016, p.49.13 Supply chain management encompasses all the processes and planning coordinated by lead firms to influence and control the operations of their suppliers and subcontractors.

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frameagainstwhichthesupplierorsubcontractormusttakecorrectivemeasurestobecomecompliant.Thetimeframeofthecorrectiveactionplanwoulddependontheseverityoftheissue.Minorissues,suchasanincompletefirstaidkit,wouldbegivenashorttimetocorrectwhilemore significant findings that may require time andmoneyortechnicalcapacitytoimprovewouldbegivenconsiderably more time and perhaps even assistancefromtheleadfirm.

Appendix 1 shows the human and labour rightscomponentsofthecodesofalistofmajorinternationalbrandsinglobalgarmentandtextilesupplychains:H&MHennes&MauritzAB,LeviStrauss&Co.,EileenFisher,Burberry,JCrew,Marks&Spencer,Gap(includingBananaRepublic and Old Navy), Target, Fast Retailing Group(a Japanese holding company owning Uniqlo, J Brand,ComptoirdesCotonniers,G.U.,PrincesseTam-Tam,andTheory),InditexGroup(aSpanishmultinationalclothingcompany whose subsidiaries include Zara, Bershka,Massimo Dutti, Pull&Bear, Stradivarius), Country RoadGroup (anAustralian groupwhich includes five brands–CountryRoad,Mimco,Politix,TreneryandWitchery),

14 These multi-stakeholder codes are discussed in Section 4.2 of the paper

Walmart Stores Inc., Nike (including the Nike Brand,JordanBrand,HurleyandConverse),IKEAandPatagonia.Severalofthesebrands,inadditiontohavingtheirowncodesofconduct,aremembersoforhavesigneduptomulti-stakeholder,internationalcodesorstandardssuchastheEthicalTradingInitiative(ETI)BaseCodeofLabourPractice, Social Accountability International SA8000Standard, Fairtrade Standards and the Nest Code ofConduct for Handworkers. 14

The codes commonly startwith a general statementindicating the brand’s commitment to conductingethical business with respect for human and labour rights and environmental sustainability. They referto the international standards or benchmarks that form the bases of the codes, commonly the UNUniversal Declaration of Human Rights and the ILODeclarationonFundamentalPrinciplesandRightsatWork and its core Conventions. They also stipulatethat suppliers/vendors must comply with nationallawsandregulations,thatthestandardsrepresenttheminimum,andthateffortsshouldbemadetoachievebeyond the minimum.

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No forced, bonded, compulsory, prison, or illegal labour.All employment should be voluntary. Someof the codes also specify that suppliers must ensure that workers are not required to make deposits/financialguarantees/paymentstoemployers, labourprovidersoragenciestoobtainwork,andmustnotretain original copies of identity documents (suchaspassports, identitycards,etc.).Therecanalsobementionofhumantrafficking.

No child labour. The provisions normally spell outthatnoperson shouldbeemployedbelow the legalminimumageforemploymentortheageofcompletionofcompulsoryeducation(and/0rnotundertheageof15years).Productionpartnersmustimplementrobustageverificationchecksatalltimestoensurethispolicyisupheld.Thereisrecognitionof“therightsofeverychild to be protected from economic exploitationand from performing any work that is likely to be

THE HUMAN AND LABOUR RIGHTS COVERED IN CODES COMMONLY INCLUDE THE FOLLOWING:

hazardousortointerferewiththechild’seducation,ortobeharmfultothechild’shealthorphysical,mental,spiritual,moral or social development.” 15 Several ofthecodesstipulatethatworkersbelowtheageof18years should not performwork thatmay jeopardizetheirhealthorsafetynorworkinnightshifts.

Safety and health measures. Safe and hygienicworking environments shall be provided, bearingin mind the prevailing knowledge of the industryand of any specific hazards. Suppliers shall ensurecompliance with applicable laws and regulationsrelating to health and safety issues includingclassification,work-placeriskanalysis,reportingandinspections by authorities. The required correctiveactionsfromsuch inspectionsshallbedocumentedand completed within the set timeframe. Theemployer shall take a proactive approach tohealthand safety by implementing policies, systems andtrainingdesigned toprevent accidents, injuries andprotect worker health.

Working time.Working hours should complywithnational lawsandbenchmark industry standardsorwhichever affords greater protection. In any event,workers shall not on a regular basis be required towork in excess of forty-eight hours per week andshallbeprovidedwithatleastonedayoffforeveryseven-day period on average. Overtime shall bevoluntary, shall not exceed twelvehoursperweek,shall notbedemandedona regularbasis and shallalwaysbecompensatedatapremiumrate,pursuanttotheprovisionsoftheprevailingregulationsinforce.Workers may refuse overtime without any threatof penalty, punishment or dismissal. Other than inextraordinary circumstances, the sum of regularand overtime hours in aweek shall not exceed 60hours.Theemployeesshallbegrantedandcorrectly

compensated for any types of paid leave towhichthey are legally entitled. Examples of such leaveinclude annual leave, maternity/parental leave andsickleave.

Wagesandbenefits.Arelativelystandardprovisionisthat“suppliersmustpayworkersafairwageandbenefits and have a transparent process to ensurethatworkers fully understand thewages that theyreceive.Suppliersmustcompensatealltheirworkersbyprovidingwages,overtimepay,alllegallyrequiredbenefits andpaid leavewhich respectivelymeetorexceed the national legal minimum wage, and allapplicablelawsandregulations.Ifindustrybenchmarkstandards and/or collective agreements are inplace, provided they are higher than the minimumwage, these must be followed. Wages should bepaid regularly and on-time.” 16 The codes can also specify that suppliers should provide all workerswithwrittenandunderstandable informationabouttheirwages conditions upon their recruitment anddetailed information about the particulars of theirwageseverytimethatthesearepaid.Thereshouldbe no disciplinary deductions from pay.The codescanalsostipulatetheprovisionof legallymandatedbenefits,includingholidaysandleaves,andstatutoryseverancewhenemploymentends.The IKEAcodealsomentionsmedicalinsurance,socialinsurance,pensions, etc.17 Nine out of the fifteen brandsanalysedmakespecificreferencetotheprovisionofalivingwage/wagesufficienttocoverworkers’basicneedsandprovidesomediscretionaryincome.Threeofthesecompaniesspecificallycallforactiontoworktowardsthepaymentofalivingwageratherthanaminimumwage.18

Freedomof associationand the right to collectivebargaining. All the corporate codes examined

15 See, for example, H&M Hennes & Mauritz GBC AB 2016.16 Marks & Spencer 2018.17 IKEA N.d..18 H&M Hennes & Mauritz GBC AB 2016, Nike 2017 and Patagonia 2013.

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uphold the fundamental right of all workers tofreedom of association and collective bargaining.A detailed provision in the Inditex Group Codeof Conduct is worth highlighting: “Manufacturersand suppliers shall ensure that their employees,without distinction, have the right of association,union membership and collective bargaining. Noretaliationmayarisefromtheexerciseofsuchrightand no remuneration or paymentwhatsoever maybeoffered to theemployees inorder tohinder theexerciseofsucharight.Likewise,theyshalladoptanopenandcollaborativeattitudetowardstheactivitiesof Trade Unions.Workers’ representatives shall beprotectedfromanytypeofdiscriminationandshallbe free to carry out their representative functionsintheirworkplace.WheretherightstoFreedomofAssociationandCollectiveBargainingarerestrictedunder law, the appropriate channels to ensure areasonableand independentexerciseofsuchrightsmustbedesigned.”19

No discrimination of any kind. All the corporate codes emphasize that conditions of employmentmust be based on an individual’s ability to do thejob, not on the basis of personal characteristics.The employment relationship should be basedon the principle of equal opportunity and fair treatment. The employment conditions includerecruitment,hiring,compensation,training,benefits,advancement, termination and retirement. Thebasesfornon-discriminationcommonlyincluderace,caste,nationalorigin,religion,age,disability,gender,maritalstatus,sexualorientation,unionmembershiporpoliticalaffiliation.Marks&Spencerhasaspecificgenderpolicyinitscode:“Suppliersmustnotrequirea pregnancy test or discriminate against pregnantworkers except where required by applicable lawsor regulations or prudent for workplace safety. Inaddition, suppliers must not require workers or

potential workers to undergo medical tests thatcouldbeusedinadiscriminatorywayexceptwhererequiredbyapplicablelawsorregulationsorprudentforworkplaceorfoodsafety.Suppliersshouldhaveanequal opportunity employment policy that promotes gender equity in employment practices, and statesmaternityleaveprovisionandsupportforchildcarewhere appropriate.” 20Othercodeprovisionsworthhighlightingincludethefollowing:“Womenandmenshall receive equal pay forwork of equalvalue;” 21 and “all employment decisions must be made based on the principle of equal employment opportunity,and shall include effective mechanisms to protectmigrant,temporaryorseasonalworkersagainstanyform of discrimination (ILO Conventions 100 and111).” 22

No harsh or inhumane treatment, no harassment. All the codes also have non-harassment clausesthat state that employees should be treated with respectanddignityandthatthecompanydoesnotaccepttheusebysuppliers,theirsubcontractorsorother business partners of humiliating or corporalpunishment,andthatnoemployeeshallbesubjecttophysical,sexual,psychologicalorverbalharassmentor abuse.

Clearly, the text of the codes is intended to providedecentworkinglobalsupplychains.

However, critical questions, which are examined in the following sections, remain: Do the codes apply specifically to homeworkers?

How relevant are the provisions for homeworkers? and

How effective is implementation of the codes?

19 Inditex N.d.20 Marks & Spencer 2018.21 Nike 2017. 22 Patagonia 2013.

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CORPORATE CODES OF CONDUCT AND HOMEWORKERS

Of the codes examined, nine out of the fifteen specifyapplicationtohomeworkers.Anotherthreeindicatethatthecodecoversnotonlysuppliersbutalsosubcontractorsand sub-suppliers (who often subcontract work tohomeworkers) and “suppliers’ facilities and the facilitiesofsuppliers’contractorstoensuresuppliers’compliancewith these standards.” 23 24 Two of the codes refer only tofactoryworkersandfactory-basedprogrammes,andone code categorically states that the company doesnot use any form of home-working arrangement fortheproductionof itsbrandedoraffiliateproducts. 2526

Itisalsostrikingthatseveralofthecodesputemphasison migrant workers rather than on homeworkers, theconcernwithmigrantworkersbeinglinkedespeciallytoanti-slavery/forcedlabourissues.The codes that incorporate homeworkers do so in differentways,meaningthatthecoverageandtreatmentafforded to homeworkers would differ. Firstly, thecodesimposetransparencybystipulatingthatsuppliersand subcontractors must provide information on anyhomeworkinthesupplychaininadvanceofproductionand emphasize that the use of homeworkers is at thediscretionofthecompany.Atransparencyrequirement,which stipulates suppliers and subcontractors not onlymaintain relevant documentation on the homeworkersbut also that the supplier and subcontractors are subject to audits and unannounced visits to all sites at anytime, should enable the company to track and accesshomeworkers and assess their working conditions.But the transparency provision may not benefithomeworkers since a detrimental consequence could be that the company bans the use of homeworkers. Nohomeworkerpolicies,however,arenot theanswer;brands that are members of the Ethical

Trading Initiative (ETI) have found that banning homework has “led to concealment of homeworking, which makes it more difficult to tackle and improve homeworkers’ conditions and presents a hidden risk to your company’s reputation.” 27

Eileen Fisher, in addition to its Code of Conduct, hassigned the Nest Code of Conduct for Handworkers,which“addressesthedistinctcharacteristicsofhomeorsmallworkshopproductionvaluechains.”28Appendix2highlightstheBurberryCode,whichhasaspecificsectionon homeworkers.29 The Burberry Code is unique in that it not only states that all of its business associates should ensure that all of their homeworkers are subject to its EthicalTradingCode of Conduct and should be issuedclear employment contracts, but it also covers home-

SOME BRANDS THAT INCLUDE HOMEWORKERS IN THEIR CODE OF CONDUCT • Eileen Fisher• Burberry Code• J. Crew• Inditex Group• H&M• Country Road Group

23 H&M Hennes & Mauritz GBC AB 2016, Eileen Fisher N.d., J. Crew 2016, Marks & Spencer 2018, FAST RETAILING Group N.d., Inditex N.d., Country Road Group 2015, IKEA 2011 and Burberry N.d.24 Target 2014, Walmart 2005, Patagonia 2013.25 Levi Strauss 2017b and Gap 2016.26 Nike 2017.27 Ethical Trading Initiative, 2010b.28 The Nest Code is described in Section 4.2.29 The Burberry Code also has a specific detailed section on a Migrant 27 Worker Policy.

based workers. In the case where the homeworker is self-employed,thehome-basedworkerandthebusinessassociatemust have a formal contract in place settingout the termsof their business engagement. Examplesof how other brands are addressing homeworkers arehighlightedbelow:

J. Crew: “In limited circumstances we may accept of the use of homeworkers at our discretion. Werequirethedisclosureofanyhomework inadvanceof production, along with basic information aboutthestructureofthehomeworkarrangement.”30

Inditex Group: “Manufacturers and suppliers shall not assign any work to third parties without theprior written authorization of Inditex. Those whooutsource any work shall be responsible for the enforcement of the Code by these third partiesand their employees. Likewise, manufacturers andsuppliers shall apply the principles of this Code to any homeworker involved in their supply chain, andshallgivetransparencytothe locationsandworkingconditionsofsaidhomeworkers.”31

H&M: “All suppliers and other business partners are obliged to keep H&M informed at all timesof where each product is being produced,including subcontracting and homework. Relevantdocumentation must be maintained for auditingpurposes.Wereservetherighttomakeunannouncedvisits to all units producing goods or services forH&M,atanytime.”32

Country Road Group: “Suppliers shall not sub-contract the manufacture and/or supply of goods or serviceswithout the prior written authorisation from theCountryRoadGroup.WhereHomeWorkexistswithinthesupplychain,itmustbecarriedoutvoluntarily.”33

Some of the codes are also specific in restricting subcontracting without prior approval of the brand because the brand’s contract is with the main supplier and monitoring of code compliance tends to be difficult for subcontractors who could be using homeworkers or producing in off-site facilities. Thecodes,asshownbelow,may

also specify that suppliers and subcontractors cannot further subcontract orders to others and thereby add yet anothertiertoalreadycomplexsupplychains:

Patagonia: “Patagoniadoesnotpermitsubcontractingwithoutourpriorwrittenapproval.Allsalesman-sampleand bulk production orders must be placed withinfacilities thathavebeenpre-approvedbyPatagonia,without exception. Direct suppliers are requiredto continuously monitor approved subcontractorsand sub-suppliers for social and environmentalresponsibilityusingstandardsthatmeetorexceedourCode and Benchmarks.” 34

Marks & Spencer: “Suppliersmustagreewithus inadvancetheproductionsiteorsites tobeused foreach order: no subcontracting of our orders fromtheseagreedlocationsisallowed.”35

Country Road Group: “Suppliers shall not sub-contractthemanufactureand/orsupplyofGoodsorServiceswithoutthepriorwrittenauthorisationfromtheCountryRoadGroup.”36

Where the codes do recognize homeworkers, they emphasize equal treatment of homeworkers with other workers in a supply chain and that all provisions of the code should be extended to homeworkers. As shown in the codes below, responsibility for enforcement lies, first and foremost, with the main suppliers directly contracted with the brands:

H&M: “It is the responsibility of H&M’s suppliersand other business partners to inform their subcontractors aboutH&M’sCodeofConduct andPolicy forHomework,and toensure that theseareimplemented in every factory and workplace thatproduces,finishespacksorotherwisehandlesgoodsor performs services for H&M.Workers employedthroughanagentorcontractoraretheresponsibilityofH&M’ssupplierandotherbusinesspartners,andarethuscoveredbythisCode.”37

Fast Retailing Group: “When production partnerssubcontractproductionorders submittedbyanyFastRetailing 4/4 group company to subcontractors or

30 J. Crew 2016.31 Inditex N.d.32 H&M Hennes & Mauritz GBC AB 2016. 33 Country Road Group 2015.34 Patagonia 2013.35 Marks & Spencer 2018.36 Country Road Group 2015.37 H&M Hennes & Mauritz GBC AB 2016.

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A Home-based worker in Fulia, West Bengal weaves at her handloom - these saris and stoles are sold by domestic and global retail brands

homeworkers, such production partners shall ensurethat all the business activities by the subcontractorsor homeworkers are in accordance with this code of conduct and shall cause all of them to comply with this codeofconductonproductionpartners’responsibility.Any use of subcontractors or homeworkers by productionpartnersshallbereportedtoFastRetailingpriortotheirengagement.”38

Inditex Group: “Manufacturers and suppliers shall apply the principles of this Code to any homeworker involved in their supply chain, and shall givetransparencytothelocationsandworkingconditionsof said homeworkers.” 39

Country Road Group: “The standards and provisions in this Code of Practice apply equally to Home Workers as well as other wage earners, including; discrimination; child labour; freedom of association and the right to collective bargaining; fair living wages, hours of work, health and safety and working conditions; employment relationships and disciplinary practice.” 40

Although these codes stipulate that the standards andrightsapplyequallytohomeworkersastootherworkersin the supply chain, the particularities of homeworkcomplicate actual implementation and often indicatetheneedforspecificprovisionsifacodeistoeffectivelycoverhomeworkers.Becauseofthiscomplexity,theILOHomeWorkConvention,1996(No.177)emphasizestheneedto“takeintoaccountthespecialcharacteristicsofhomework.” 41

Asignificantparticularityisthenatureoftheemploymentrelationshipofhomeworkersinthesupplychain.Unlessthere is an established employment relationship, therecannotbeenforcementofreciprocalrightsandobligationsbetweenthe“employer”and“employee.”Thelongerandmore complex the supply chain, themore difficult it isto trace thedependencyandfixultimate responsibilityforenforcingtheserightsandobligations.42 Asexplainedearlier,homeworkersoftenfindthemselvesinadisguised

employment relationship because the subcontractorscan designate homework as independent work whilethebrandsmaynotrecognizehomeworkersinordertolimitthebrand’sownresponsibility.Itisthereforecriticalthat codes stipulate that all production arrangementsinvolving the suppliers, sub-suppliers, contractors,subcontractors,agents,etc.shouldbeidentified,reportedand approved by the main company. There should becompleteandpropermappingof thesupplychain.Thecodes also need to stipulate that documentation bemaintained of all workers involved in any part of theproduction process including of their locations andworkplaces.Suchtransparencyandvisibilitywouldmeanthat the international brand recognizes homeworkersasemployedinitssupplychainandthatithasultimateresponsibilityforensuringthatitscodeappliesequallytohomeworkers as to other workers further up the chain.

To ensure that suppliers and subcontractors do not avoid their responsibilities to workers, some of the codes explicitly state that “work must be based on a recognised employment relationship established in compliance with national legislation and practice and international labour standards.” 43

The codes, like those below, can also stipulate thatthe type of employment relationship should not be structured (for example, triangular and/or disguisedemployment relationships) to avoid labour or socialprotectionobligations:

Burberry: “Obligations of the regular employment

38 FAST RETAILING Group N.d.39 Inditex N.d.40 Country Road Group 2015.41 International Labour Organization 2012a.42 Ibid.43 Marks & Spencer 2018.

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relationship as provided under labour or socialsecurity laws and regulations shall not be avoidedthrough the use of labour-only contracting,subcontracting or homeworking arrangements,or through apprenticeship schemes where thereis no real intent to impart skills or provide regularemployment. Nor shall any such obligations beavoided through the excessive use of fixed-termcontracts of employment.” 44

Inditex Group: “Manufacturers and suppliersundertake that all the employment formulas they use arepartoftheapplicablelocallaws.Thus,theyshallnotimpairtherightsofworkersacknowledgedunderlabour and social security laws and regulations byusingschemesthathavenorealintentiontopromoteregular employment in the framework of regularemploymentrelationships.”45

A written employment contract could serve as proofof theemployment relationship.However,manyof thecodes analysed are silent on this.Only five out of thefifteen corporate codes examined have a provision forwrittenemploymentcontracts.

H&M: “All employees are entitled to a writtenemployment contract, in the local language,stipulating the employment terms and conditions.The employer has a responsibility to ensure that all employees are aware of their legal rights andobligations.”46

Marks & Spencer: “Work performed must be on the basis of a recognised employment relationshipestablishedincompliancewithnationallegislationandpracticeandinternationallabourstandards.Suppliersmustensureallworkerson their sitesareprovidedwithwrittenandunderstandable informationabouttheiremploymentconditions,includingwages,hours,and holidays, before they enter into employment;andaboutdetailsof theirwagesfor thepayperiodconcernedeachtimethattheyarepaid.”47

IKEA: “WorkersattheIKEAsuppliershallbeemployedaccording to applicable laws and regulations andthere shall be a contract (offer or appointmentletter)written accordingly. The IKEA supplier shall,prior to employment, provide written information

to the workers regarding wages and the terms ofemployment.Clarifications:Awrittencontract shallcontaineverythingspecifiedin local legislation,andasaminimumthefollowing:nameofemployer,nameofworker,birthdate,position,salary,workinghours,overtimecompensation,benefitsandnoticetime.”48

Admittedly,thenatureofhomeworkwithinthedomesticspherealsoraisesotherdifficultiesinimplementingcoderules.Forexample, it isevidentlydifficultto implementrules concerning hours of work for homeworkers. Butinternational brands serious about promoting equality of treatment between homeworkers and other supply chain workers could refer to the ILO Recommendation No. 184 that accompanies Convention No. 177 on Home Work, which states that “a deadline to complete a work assignment should not deprive a homeworker of the possibility to have daily and weekly rest comparable to that enjoyed by other workers”(Paragraph23). 49 The Burberryhomeworkerpolicycovers“excessiveovertime”andstipulatesthat“verifiablesystemsshouldbeinplacetoensurethatHomeworkersarenotprovidedwith more work than would exceed 48 hours weekly.Anywork provided beyond that should not exceed anadditional12hours(total60hoursperweek).Anyhours

44 Burberry N.d.45 Inditex N.d.46 H&M Hennes & Mauritz GBC AB 2016.47 Marks & Spencer 2018.48 IKEA 2011.49 International Labour Organization 2012b, p.4.

EXAMPLES OF BRANDS THAT MANDATE WRITTEN EMPLOYMENT CONTRACTS FOR HOMEWORKERS• H&M• Marks & Spencer• IKEA

over 48 hours should be compensated at an overtimepremiuminlinewithlocalornationallaw.”50

With regards to health and safety, since brands andsuppliers/subcontractorsdonothavecontroloverprivatehomes,theobligationsofthebrandsandtheirsuppliers/subcontractors are obviously not the same as whenworkers are based in factories or employer-providedworkplaces. However, ConventionNo. 177 states thatgeneral legislationonhealthandsafetyatworkappliestohomework,takesaccountofitsspecialcharacteristics,andhastoestablishconditionsunderwhichcertaintypesof work and the use of certain substances are prohibited in home work for reasons of health and safety. The Burberry homeworkerpolicy,forexample,statesthatapprovalfortheuseofhomeworkers“shouldincludeverificationthatthelocationofworkissafe,hygienicandappropriateforthe type of work process to be undertaken.” 51

Piece rate remunerationof homeworkers is an issueofparticular concern. The Burberry homeworker policy stipulates that “verifiable systemsshouldbe inplace toensure that all Homeworkers are able to meet at least minimumwage”and isalsonoteworthy in includingtheprovision that: “Each Homeworker shall be providedwith all the materials and machinery required for the Homeworker to carry out the work process at no cost to theHomeworker.Fortheavoidanceofdoubtthisincludes

50 Burberry N.d.51 Ibid.52 Burberry N.d.53 IKEA 2011.

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nodeductionsfromtheHomeworkerswagesbeingmadein respect of such materials and machinery.” 52

Workinthehomeenvironmentofteninvolvesnotonlythe principal worker but also other family members helping out. This complicates compliance with thecode provision prohibiting the use of child labour.Thebrandstendtoplacehighpriorityonthisaspectoftheircodes, and it is often for this reason that they imposeanti-homeworkerpolicies.The brands that do recognize homeworkers in their chains emphasize that their suppliers should proactively prevent child labour and at the same time also safeguard young workers.Forexample,IKEAIWAYstipulatesall measures to prevent child labour shall beimplemented taking into account the best interestsofthechild.TheIKEAsuppliershallnotmakeuseofchild labour and take the appropriate measures to ensure that no child labour occurs at their own place ofproductionoroperationsorattheirsubcontractors’place(s) of production or operations. IKEA supportsthe legal employment of young workers. The IKEAsuppliershallprotectyoungpersonsoflegalworkingage,untiltheageof18,fromanytypeofemploymentor work which by its nature or circumstances in which it is carried out, is likely to jeopardise their health,safety or morals.53

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BEYOND CODES: INITIATIVES BY BRANDS

“A code is only words if actions don’t speak,” andtraditionalPCIshaveproveninadequate.”54 Both internal and external barriers need to be addressed for thecodes towork in reality. Internally, the lead firmmustaddress the inherent tensions between the commercial interests that guide purchasing and sourcing decisionsand its CSR objectives. Current purchasing/sourcing practices tend to undermine the capacity of the supplier to comply with labour standards. For example, if theprocurementdepartmentofaleadfirmconstantlymakeslatechangestothedesignofaproductortothevolumeofanorderordemandsashortdeliverytime,suppliersmayendupfeelingthatthere isno incentiveorsimplyare not able to comply to code requirements, whichleads toadverse impactsonworkers suchasexcessivehours, unpaid overtime, inadequate earnings, illegalsubcontracting,etc.Toaddresstheseissues,thereneedsto be better cooperation and understanding betweentheprocurementdepartment, theCSRdepartmentandthe suppliers. Initiatives adopted internallywithin leadfirms include the following: embedding responsibilityfor promoting code compliancewith those responsibleforpurchasing/sourcingdecisions;and,atEileenFisher,“assessing our internal processes to understand howour purchasing practices impact the well-being of theworkerswhomakeourclothes;providing incentives toprocurementstafffortakinglabourstandardsintoaccountwhenplacingorderswithsuppliers;andconductingjointaudits between the procurement and CSR teams.” 55

To make visible the invisible homeworkers and to detect labour rights abuses, a complete mapping of

54 Nieweler 2015.55 Eileen Fisher N.d.56 The suggested measures came from workshops conducted by Shift, an independent non-profit centre for business and human rights and co-hosted with the Corporate Social Responsibility Initiative of Harvard’s Kennedy School of Government in support of the UN Guiding Principles on Business and Human Rights. The workshops involved teams from various international brands with global supply chains. Shift 2012.

the supply chain requires cooperation from the suppliers themselves and from any licensees, vendors, buying agents or other intermediaries who deal with suppliers. However, in many instances, competingmotivations, disincentives, or different business driversmaymakethiscooperationlessforthcoming.Forinstance,eitherforcommercialreasonsorinadeliberateattempttocircumventthestandardsandrequirementsofbuyers,suppliers are often reluctant to disclose informationabout their own supply chains. Despite contractual obligations, undisclosed suppliers and subcontractors,nottomentionthehomeworkers,areafrequentreality.

Oneapproachtopromoteinternalandexternalbuy-intoamorecompletemappingofthesupplychainandcodecompliance istoemphasizethecommercialratherthanthehumanorlabourrightsperspectives:56 Indevelopingthatbuy-in,companyleadersemphasizethecritical importanceofspendingasmuchtimeonthe ‘why’asonthe ‘how’–conveyinganunderlyingrationale for the importance of mapping the supplychain that resonates for key audiences. Specifically,they have found that simply contractually obligatingsuppliers to disclose their supply chains, whilenecessary,hasprovenineffectiveandinadequate.Forboth internal audiences and external suppliers, thismay require conveying the importance of mappingthe supply chain through a commercial lens, ratherthanahumanrightslens.Forinstance,onecompanyemphasizestheimportanceofknowingalllevelsofthesupplychaininordertosafeguardquality,andengagesthe quality control team, which is regularly in thefield,toreportbacknewsuppliersthatareuncovered

during site visits. Othersmake the case in terms ofcommercialefficiencies, limitingcommercialbusinessriskandensuringthesustainabilityofsupply.57

Making the business case for proper mapping of thesupply chain andeffective implementationof the codeofconduct ispartofacollaborativeapproachthat leadfirms are adopting with suppliers. Instead of merelymakingsupplierssignacodeofconductasaconditionforsecuringbusiness,leadfirmsareintroducingdialoguewith potential suppliers around code provisions evenbeforeofferingcontracts:Thisapproachcreatesanopportunityforaconversationbetweencompanyandsupplierabouttheunderlyingprinciplesineachsetofstandards,andanopportunityto create a sense of shared purpose. Some other companies build these types of conversation intosupplieropportunitiesforbusinessatthefrontendofthe process.One requires suppliers to participate intwo workshops sponsored by the company on social andhumanrightsstandardsandcompliance,inorderto be eligible to bid for business.Another companysuggested building human rights compliance criteriaandconversationsintothebiddingprocess,beforethebusiness has been awarded. Each of these approaches recognizestheopportunitytocreateadialoguewithsuppliersatacriticalmomentintherelationship,whentheleverageofthecompanyispotentiallyatitshighpoint,todiscussexpectationsandpotentialroadblockstomeetingthem.58

Thetypeofcontractleadfirmssignwiththeirsuppliersiscrucial inpromotingcodecompliance.Forexample, inarecentstudyonhowapparelbrandpurchasingpracticescandrive labourabuses,HumanRightsWatchsuggeststhat the contracts should include standard terms and conditionsthataccountfortheinevitablefinancialcostshumanrightscompliancecreatesforsuppliersandatthesame time address supplier demands that contractualarrangements be made fairer and more transparent.HumanRightsWatchidentifiesanumberofclausesthatcould be included in suchwritten contracts to improvepredictabilityandclarityontermsandconditions.59The pricingpolicyinacontractisofkeyimportance.Suppliers

often report that they accept orders below the cost ofproductionjustsothattheycanhaveordersinthefaceofstiffcompetition,butwhentheyareproducingbelowcost, they are in even less of a position to fulfil codestandards for their workers.60

Inacollaborativeapproach,leadfirmsareworkingwithsuppliers to assess gaps, build capacity and incentivizeimprovements in code compliance. They are givingattention to capacitybuildingmeasures as anessentialpart of their supply chain management systems. Thisinvolves working with local suppliers to enable themto understand and start complying with human rightsstandards so that they can become a sustainable part ofthecompany’slocalsupplybase.AsWalmartasserts,“webelievethatstayingengagedwithsupplierscanhaveamorepositiveimpactonworkersthanabandoningthesupplierrelationship.”61 Walmart further describes how it is enhancing the capacityof its suppliers through itsResponsibleSourcingAcademy:There are several ways we help empower supplierstopromoteworkerdignity.TheResponsibleSourcingAcademy provides suppliers with access to trainingresources, best practice guidance, and educationalmaterialsdevelopedbythirdpartiesandbyWalmart.The Academy covers topics such as audit guidance– including the Global Compliance Guidance Tool

57 Ibid., p.6.58 Shift 2012, p.12.59 Human Rights Watch 2019, pp.55-56.60 See, for example, Ethical Trading Initiative 2017, p.8..61 Walmart N.d.

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– forced labour, health and safety, and supply chaincontrols. Many of these resources are offered inmultiple languages….. In addition, ResponsibleSourcingassociatesconducttrainingandonboardingsessions with suppliers around the world.” 62

However, one-time training alone is not enough for suppliers and subcontractors to understand and appreciate a code and to be able to take action to address code violations. FieldworkonIKEAoperationsinIndonesia found that training and support of suppliers,especiallysub-suppliers,hastobeonanon-goingbasistobeeffective:TraininginIWAYhasbeenprovidedtothemainsuppliersand sub-suppliers. The main supplier companies haveappointedstaffwithspecificresponsibilitiesfortraining the sub-suppliers andworkers and checkingontheirknowledgeandpractice.However,notallsub-suppliershavebeentrained;one-timetraining isnotadequate;andwhatthesub-suppliersrememberfromthetrainingandpracticeisoftenlimited.63

The results of the study also underscored the importance ofpromotingbuy-inandnotmerelycompliance:

Suppliers and sub-suppliers are much more likely to observelabourstandardsiftheyseeitnotmerelyasan obligation but good for business. One importantmeasurewillbetoreviewthecontentsandmanneroftraining(‘trainingisaninvestment,auditingisacost’)inIWAYthatIKEAprovidesforthesuppliersandsub-suppliers to ensure that the emphasis is not just on what must be done but on why it should be done and to discuss with them (not just instruct) the barriers and difficultiestheyfaceandhowitcanbedonetoachieve‘win-win’outcomes.64

Grievance and investigation mechanisms can also be an important aspect of strengthening code compliance and in particular to give workers a voice. Patagonia, which was listed in the top three among200 international brands in the Fashion TransparencyIndex2019andwhoseproductsarefairtradecertified,

has established aGrievance SystemToolkit, defined asfollowed: A series of training, guidance and assessmentdocuments that our factories use to ensure workers canfreelysharetheirconcernswithmanagement,andthattheseissueswillbeaddressedinatimelymanner.Usingthetoolkit,eachofourfactorieshasconsideredthebestgrievancemechanismstoputinplacefortheirunique circumstances, including worker committees,trained complaint handlers, regular worker forumsor surveys, open-door policies and hotlines…Givingworkers more ways to share their concerns increases theirchancesofdoingso.Anopen-doorpolicyisnotenough. A survey is not enough.Wewant them tohavemanychoicestovoicetheirconcerns,sotheyfeelcomfortableandbegintoestablishtrustwithfactorymanagement.6566

In addition to the grievancemechanisms implementedand monitored at the factory level, Patagonia set upa supply chain hotline. Accessible for any worker in the worldtocallatanytime,thelineallowsfieldmanagerstoinvestigateeveryincident,findoutwhyithappened,visit the factory, figure out a solution and protect theworker. As part of its accreditation, the Fair LabourAssociation (FLA) reviews the grievances Patagoniareceiveseveryyear tobesure they followuponeverycall.Toencourageotherbrandstoimplementprogramsthatelevateworkers’voicesandactivelyworktogethertochangeconditionsforworkersintheapparelindustry,PatagoniahasalsoshareditsGrievanceSystemToolkit.

There is a growing list of examples of howbrands areshifting from a narrow risk-reduction approach to aninclusivebenefit-creationmodelinformedbylocalneedsand implemented in collaboration with workers and awiderangeofstakeholders in localcommunities.Oftenthisinclusiveapproachoriginatesinthesocialsphereofworkers’livesandtheintheplaceswheretheyliveratherthanonthefactoryfloor,anditfocusesonthearea-basedlabour markets from which their workers are drawn.67 The inclusiveapproachstronglyemphasizes the importanceofworkingwithabroadrangeofstakeholders,includingcooperationamongbrandswithinthesameindustry.

62 Walmart N.d.63 Lim 2015b, p.12.64 Ibid., p.20.65 Fashion Revolution CIC 2019. See also Section 4.2 for a description of the Fashion Transparency Index.66 Horn 2018.67 Tewari 2017, p.2.

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IKEA: InNorth India, IKEAdecided to put in placea wider set of alliances that would help them make allofthecommunitiesintheirentirecarpet-makingregionchild-labourfree.AsTewariwrites, [IKEA]builtaseriesofallianceswithavarietyof

actors:universityprofessors,WHOandUNICEF’sIndia offices, other NGOs andmost importantlywithdistrictadministratorsandstategovernmentofficerstobringinavarietyofexistingprogramsrelatedtohealth,education,school lunches,andsocial security.Theyhad identified thepresenceofpunishingdebtas thedeeper, rootcausethatled families to send their children to work. They workedwith the state government andUNICEFtohelpbuildself-helpgroupswherethroughsmallsavingslocalwomencouldaccumulateenoughtoopen bank accounts and borrow at lower interest rates to pay off higher debt loans. They alsoworkedwithUNICEF to build bridge schools tohelp prepare the children to get back to school.This work was not restricted to the households of workers who were directly employed by IKEA’s supplier factories. It involved workingwith all households in the carpet-making belt –irrespectiveofcurrentconnectiontoIKEA’swork.(Theywereall“potentialworkers”/suppliers).Thegoal was to help make progress in eliminating

(orat leastblunting) theconditions in theentirebelt that generated the incentives on both thesupply and demand side for the use of child labour inproduction….Theeffortsareawork inprogress,andtheyboremixedsuccess,butintheorchestratingofmanyservicesandexistingpublic(andmultilateral)programsonhouseholds in theregion,manyimportantbenefitswerebroughttothecommunitiesthatdidnotexistbefore.68

Eileen Fisher: The company outlines its policies aroundworkersinitssupplychainasfollowing: We have been paying close attention to the

workersinoursupplychainsince1997.Overtheyears,wehavedeterminedthatwhatworksbestfor us are: (1) Committed, values-based supplychain partners, such as our fair-trade partnerin Peru – Indigenous Designs – or one of ourartisan suppliers in India – Indigo Handloom.These businesses were founded specifically tocreateviableopportunitiesforindigenouspeoplethrough the creation of exquisite products.Weare proud toworkwith them and to add valuetotheirimportantworkintheircommunities;(2)StrongNGOpartnershipswithorganizationslikeVerite,whichhasbeenakeytrainingpartnerforourChinasuppliersandtheirworkers,andLabourLink, which has enabled us to conduct mobilephone surveys among workers in two of our

EXAMPLES OF BRAND INITIATIVES TO IMPROVE WORKING CONDITIONS IN SUPPLY CHAINSIKEA IKEA decided to put in place a wider set of alliances that would help them make all of the communities in their entire carpet-making region child-labour free

Eileen Fisher Create viable opportunities for indigenous people through the creation of exquisite products. A focused programme called, ‘Choose Handloom’, which they created in partnership with Indigo Handloom and other India partners, to provide credit support and community health services to a community of weavers in NE India.

Levi Strauss Initiated a Worker Well-Being (WWB) Programme partnering with suppliers and local organizations to design and deliver programs that meet worker needs the programme is factory-based and does not currently appear to cover homeworkers.

68 Tewari 2017, p.3-4.

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Home-based worker in Rajasthan, India working on cushion covers for a Dutch home-furnishings brand

69 Conscious Collective Co. 201670 Eileen Fisher N.d.71 Levi Strauss N.d.(a)72 Pressman 2018. 73 ACT N.d.; and Human Rights Watch 2019, pp.58-59

India supply chains. These partnerships allow us to hear directly from workers about their needs andtheirexperiencesinawaythatwemightnototherwisebeable tohaveaccess; (3)A focusedprogrammecalled,‘ChooseHandloom’,whichwecreatedinpartnershipwithIndigoHandloomandother India partners, to provide credit supportand community health services to a communityofweaversinNEIndia.Oneofour2020goalsisto increaseworkervoicewithinoursuppliersbyensuringthereareeitherwell-functioninglabourunionsorworkercommitteesinplacewithinoursupplier workplaces.69

TheChooseHandloomprogrammeisthebrainchildofthe brand’s Social Consciousness Department, which,amongotherinitiatives,is“payingattentiontovulnerablepopulations outside of factory walls, especially thehomeworkers in rural India who handloom many of ourscarves. [It is]currentlypartneringwithnonprofitsfor [its]HandloomProject,whichaims tocreatemoresustainable working conditions for homeworkers inWestBengalivillages.”70

Levi Strauss: Since 2011 Levi Strauss has initiateda Worker Well-Being (WWB) Programme as anew approach to supply chain engagement. TheProgrammeisoutlinedbelow: WWB goes beyond labour compliance and

collaborateswithsupplierstoimplementprogramsthatimprovethelivesofapparelworkers.LS&Co.believes that investments in worker well-beingenableamoreconducivebusinessenvironment,generatingsharedvalueforworkersandfactories.Todriveimprovementstoworkerandcommunitywell-being,WWBsetsmoreholisticexpectationsfor suppliers.71

The Worker Well-Being Programme takes a uniqueapproach by partnering with suppliers and localorganizations to design and deliver programs thatmeetworkerneeds.Before the implementationofanyprogram,suppliersdistributeasurveytofactoryworkersinordertogetfirst-handinformationabouttheirneeds.Once challenges are identified, the suppliers partnerwithlocalnon-profitsandNGOsinordertoimplementprogrammes that will meet the needs identified. In

2018,theCEOofLeviStrauss,speakingataconference,reportedthattheprogramme

includes a 10-week course to teach workers in some of theworld’spoorestcountriesabouthealth,hygiene,andsanitation,aswellascommunicationandcriticalthinking. For factory owners, the program morethan pays for itself by creating a happier, healthierworkforce…. By investing back in their employeesandhelpingthemliveabetterlife,thathadapositivewe’ve demonstrated a $3 to$4per dollar investedreturnoninvestment.72

Unfortunately, available documentation indicates thattheprogrammeisfactory-basedanddoesnotcurrentlyappeartocoverhomeworkers.

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Action, Collaboration, Transformation (ACT):ACT is a ground-breaking agreement betweenglobalbrands (which includesomeof thebrands inAppendix1:H&M, InditexandTarget)and retailersand trade unions to transform the garment, textileandfootwearindustryandtoachievelivingwagesforworkersthroughcollectivebargainingattheindustrylevelthatislinkedtopurchasingpractices.WhiletheACTinitiativeisnon-bindingandhasyettodeveloparobustmonitoringandpublicreportingframeworkinconsultationwitharangeofstakeholders,itisthefirstattemptofitskind.ACTbrandsarealsorequiredto conduct a “self-assessment” of their purchasingpractices based on an evaluation tool.ACT brandshavefurtherundertakentodevelopcountry-specificsourcing commitments for countries where thereexist collective bargaining agreements that carrythree key criteria: wage growth and a negotiatedcollective bargaining commitment; full respect forfreedomofassociation;andarobustmonitoringandenforcement mechanism.73

5 COMMITMENTS OF THE ACT AGREEMENT• Accounting for workers’ wages as

itemized costs• Offering fair terms of payment• initiating better planning and

forecasting• Undertaking training on responsible

sourcing and buying• Creating responsible exit strategies

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INDUSTRY-WIDE CODES OF CONDUCT

Thesearecodesdrawnupbyassociationsofcompaniesin the textile and fashion industry in response to theserious andwidelypublicized social andenvironmentalchallengesthe industryfacesandtoacknowledgetheirCSR.Thesecodesemphasizetheirvoluntarynature.The

Germancode,forinstance,statesthat“attheplacesatwhichtheyconducttheirbusiness,companiescontributevoluntarily–andasindividuallyfeasible–tothewellbeingandsustainabledevelopmentoftheglobalcommunity.”78Italsoclarifiesthat“inanumberofplaces,thisCodeof Conduct cites international agreements. Theseagreements,whicharereferencedinthefootnotes,areasaruleorientedandbindingonsovereignstatesandnot on companies.Accordingly, these citations shouldbeunderstoodasofferingbusinessesacontextualfocusonly to the extent that this is possible for a privatecommercial enterprise.” 79

TheNordic, Swiss andGerman codes offer guidelinestomembercompanieswithin the respectivecountriesbutalsostipulatethatthecodesapplytoallthebranchestablishments and business units of the enterprise that areboundbyitandthataresignedtobythatenterprisein a self-declaration. For example, the NICE Manualstipulatesthat“thuswhenwereferto‘you’intheNICEManual, it designates not only you as a supplier butalso your business partners and subcontractors in your owncountryandinternationally.Youareresponsibleforensuringasustainable,responsibleandethicalbusinessthroughoutyoursupplychain.”80

A reviewof theNICECode ofConduct andManual isworthdrawingattentiontoas ithighlightssomeofthecommon weaknesses of such instruments. The code and morespecificallythemanualfall short in pointing out how to implement suchstandardsinpractise;orinaddressingthepitfallsthatcanoccur,howtoidentifyissuesandhowtoaddress

74 Russell 2015. 75 Nordic Fashion Association. 2012.76 Schoeller Textil AG 2016.77 Gesamtverband textil+mode 2010.78 Ibid.79 Ibid.80 Ravasio 2012.

SOME PROMINENT INDUSTRY WIDE CODES OF CONDUCTThese codes are voluntary instruments offered to members of the industry that set out principles of ethical business. These principles refer to international instruments and are very much along the lines of company codes of conduct.• NICE (Nordic Initiative Clean

and Ethical) Code of Conduct and Manual for the Fashion and Textile Industry,

• The Swiss Textiles Code of Conduct

• The German Confederation Code of Conduct for the Textile and Fashion industry

• The Myanmar Garment Code of Conduct. 74757677

themmosteffectively.Ratherthan lists,casestudieswould probably fill in themissing details how to goabout in ‘real life’ in addressing these issues on siteat supplying factories. In short,while theManual iswellmeant, andcertainly fromanacademicpointofviewcompleteandsuitableformanagementtrainingorsimilar, it isvery littlepractical,andmissesoutonthemostimportantofallthings:Howtogoaboutinpractiseinmakingsurethatalltheserequirementsareactuallyandphysicallyimplementedinthefacilitiesofa supplier ... the principles laid out in this document are sobasic,andhavebeenpromotedpreviouslyoverandagainbyavastrangeoforganisations,thatitbegsthequestionoftherationalebehindwritingupyetanotherCode of Conduct. 81

The Myanmar Garment Code of Conduct is perhaps the first of its kind in that, rather than being a code imposed by international brands on its suppliers, the Myanmar Code is developed by the suppliers themselves in a country with a rapidly growing apparel production industry. Supported by the SMART Myanmar project, which is funded by the European Union,and with training provided by the ILO, the Myanmar

81 Ibid.82 SMART Textile & Garments N.d. 83 Russell 2015. 84 Russell 2015.

GarmentManufacturersAssociation(MGMA)developedthe code to set out responsible and ethical business practices with the “hope to open themselves up to a‘massive influx’ of international orders coming fromEuropeandtheUS,whereretailersandbrandsdemandsocially responsiblemanufacturing practices from theirproducers.” 82 83 MGMA believes companies sign thecode because it means theywill be able to export totheEuropeanandUSmarkets.But,unlikethecorporatecodes examined earlier, which often indicate that theinternationalbrandwillceasepurchasingfromsupplierswhohaveseriouscodeviolations,theMyanmarCode’ssignificant concerning feature is that it is totally relianton thevoluntary responsible behaviour of the suppliercompanies,withnoformofredressfornon-compliance.Even thewordingof theMyanmarCode isweaker: “Inthecaseofinfringementsdirectlyrelatedtoacompany’sbusinessactivities,companiesshouldusetheirinfluencetoencouragetheresponsibleactorstomitigaterisksorremedyrightsviolations inthesupplychain.”TheCodefurther specifies that “assuming their responsibility toinfluence a transparent supply chain, the companiesrefrain from unauthorized subcontracting to thirdparties.Wheneversubcontractingworkloads,companiesappeal to these thirdparties to respect thevaluesandrequirements outlined in this Code of Conduct.” 84

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BEYOND BRANDS: NON-CORPORATE INITIATIVESThis section draws attention to the various othergovernance initiatives and instruments to promotedecent work in global supply chains. The initiativesand instrumentscanbe identifiedbasedupon the leadactorsineachapproach:theworkersthemselves;multi-stakeholder groups including consumer advocates,

human rights organizations, NGOs, organized labour,universities and student bodies; governments whoare responsible for enforcing national labour laws andregulations; and multilateral organizations and theirinternationalinstruments.Thetypesofleadactorsoftenoverlapandmayormaynotbecomplementary.85

WORKER-DRIVEN INITIATIVES

Some labour rights organizations express concern that private initiatives lack accountability.AccordingtotheILO,theseoften do not contain inclusive processes whichencourageworkerparticipationorpublicdisclosureofinformation. Frequently,workers are not involved inthedesignofthePCI,andmaylackanopportunitytovalidateorcommentonreports,orinfluencedecision-making processes. When audits take place, non-standardandcontractworkersareoftennotconsulted,ortheyarereluctanttoraiseconcernsforfearoflosingtheir jobs. 86

Worker Driven Initiatives to Promote Decent Work In Supply Chains• HomeNet South-East Asia and HomeNet South

Asia, WIEGO

85 International Labour Organization 2016, p.40. 86 Ibid., p.48.87 Women in Informal Employment Globalizing and Organizing 2016

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• UN Guiding Principles on Human Rights and Business an even stronger instrument for protecting homeworkers

• GFA between H&M, IndustriALL Global Union and Industrifacket Metall on Compliance and Implementation of International Labour Standards

• Worker-Driven Social Responsibility (WSR) Network

At the 2016 International Labour Conference GeneralDiscussion on Decent Work in Supply Chains,homeworker representatives presented a platform ofdemands that had been agreed upon by a meeting ofhomeworker representative organizations from elevenSouth and South-east Asian countries.87 Subsequently,theILOhasrecognizedhomeworkersasanintegralpartofproductioninglobalsupplychains.Inaddition,togetherwith HomeNet South-East Asia and HomeNet South

Asia,WIEGOhasdevelopedasetof recommendationsto make the UN Guiding Principles on Human RightsandBusinessanevenstrongerinstrumentforprotectinghomeworkers(seeAppendix3).

In addition, Global Framework Agreements (GFAs)betweenglobaltradeunionfederationsandinternationalbrandsaimtopromotedecentworkinglobalsupplychains.OnesuchagreementexampleistheGFAbetweenH&M,IndustriALL Global Union and IndustrifacketMetall onComplianceandImplementationofInternationalLabourStandards at the Suppliers ofH&MHennes&MauritzGBCAB.88InthisGFA,H&Mrecognizestheglobalunionasitslegitimatepartnerfordiscussionsregardinghumanandtradeunionrightsintheworkplace.AlthoughtheGFAdoesnotspecificallymentionhomeworkers,itdoesstatethat“thetermsandconditionsoftheGFAshallcoverallproductionunitswhereH&M’sdirectsuppliersandtheirsubcontractorsproducemerchandise/readymadegoodssold throughout H&M group’s retail operations, andtrade unions/worker representatives present at theseproductionunits.”89

In another example, a new worker-driven initiativecalled the Worker-Driven Social Responsibility (WSR)Network,which launched at the endof 2017, aims tohaveworkersplayacentralroleindevelopingworkplacecodesofconductandinoverseeingenforcementofthesecodes. The WSR Network was founded on the belief that“CSR, ineffectaformofcorporateself-regulation,has failed to address the ongoing human rights crisisin global supply chains in large part because it doesnotputworkers– theverypeoplewhose rights are inquestion andwho have themost direct knowledge oftherelevantenvironment–atthecentreofdevelopingandenforcingsolutionstotheproblem.”90 TheNetwork’saim is to substitutevoluntary corporate self-regulationwith enforceable agreements between corporationsandworker representatives — in other words, to holdcorporationsaccountableasamatterofcontractrather

88 H&M Hennes & Mauritz GBC AB 2015.89 IndustriALL Global Union 2015.89 WSR N.d. (f).91 WSR N.d. (e); WSR N.d. (d).92 WSR N.d. (a).

thanrelyingontheirgoodgraces.

The essential features of the WSR approach are outlined below: Worker organizations must be the driving forcein the creation, monitoring and enforcement ofprogrammes designed to improve their wages andworkingconditions;

Brands and retailers must sign legally bindingagreements with worker organizations, and thoseagreements must require the brands to providefinancialsupporttotheirsupplierstohelpmeetthelabourstandardsestablishedbytheprogrammeandto stop doing business with suppliers who violatethosestandards;

Monitoring and enforcement mechanisms mustbe designed to provideworkers an effective voicein the protection of their own rights, includingextensive worker education on their rights underthe programme, rigorous workplace inspectionsthat are effectively independent of brand andretailer influence, public disclosure of the namesand locationsofparticipatingbrandsand suppliers,anda complaintmechanism that ensures swiftandeffectiveactionwhenworkersidentifyabuses.

Recognition and support of the WSR approachhas been increasingly widespread, with more andmore organizations and individuals supporting itas “a moral and functional necessity.” 91 The WSR websiteprovidesacomparisonoftheWSRapproachversus CSR andmulti-stakeholder initiatives (MSIs)(seeAppendix4).TheWSRNetwork listsasoneofits success stories theAccord on Fire andBuildingSafety inBangladesh,whichwas launchedwith 43corporate signatories from 13 different countriesand 10 labour signatories, including 2 global unionfederationsand8Bangladeshfederations.92 But it is clearthatthereisstillalongwaytogofortheWSRapproachtotrulyimpactthelivesofhomeworkersatthebottomofsupplychains.

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MULTI-STAKEHOLDER INITIATIVES (MSI)

Multi-stakeholder groups have also played key roles in exerting pressure on supply chain brands to improve working conditions and correct labour rights abuses. These groups include consumer advocates,human rights organizations, NGOs, organized labour,universitiesand studentbodies.MSIs take the formofcodes,certification,campaignsandpublicationofannualassessmentandreviewreports.

AmongtheforemostMSIsistheEthicalTradingInitiative(ETI), which has been a driving force in ethical trade,influencing business to act responsibly and promotedecent work. The members of ETI include: more than 80 global companies and well-known brands such as Burberry, Gap, H&M, Inditex and Marks & Spencer and also supplier companies such as Li & Fung; Union federations representing over 180 million workers worldwide and through them, actively engaged affiliated unions; and NGOs operating in more than 40 countries, including large charities like Save the Children, CARE International and Oxfam. WIEGO is also anETImember.ETI’sapproachispresentedbelow:93 Definingbestpracticeinethicaltrade: All corporate membersofETIagreetoadopttheETIBaseCodeofLabourPractice,whichisfoundedonILOstandards.TheETIBaseCode isviewedasaglobal referencestandardthatiswidelyusedasabenchmarkagainstwhich to conduct social audits anddevelopethicaltrade action plans. ETI members have collectivelyestablishedgoodpracticeanddevelopedresources,including a number of useful guides and practicaltoolsandtrainingtohelpcompaniespromoteethicaltrade and decent work. Of particular interest tothis paper is the very large number and range ofhomeworker-related resources. 94ETI’smodelpolicyon homeworking for use by retailers and suppliersis replicated in Appendix 5. The ETIHomeworker Guidelines: What Suppliers Can Do sets out the steps suppliers can take to address homeworker

93 Ethical Trading Initiative N.d.94 Ethical Trading Initiative 2010c.

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KEY MULTI STAKEHOLDER INITIATIVES FOR PROMOTING DECENT WORK IN SUPPLY CHAINS• Ethical Trading Initiative (ETI)• Social Accountability International

(SAI)• Fairtrade Labelling Organizations

International, now simply known as Fairtrade International (FLO)

• Clean Clothes Campaign (CCC)• Nest Ethical Compliance Standards

for Home• Fashion Revolution represented by

two separate organizations in the United Kingdom: Fashion Revolution CIC and Fashion Revolution Foundation.

issuesandalsoprovideshelpfulmeasuresformakingtheiractionsmoreeffective.95

Helpingworkers to help themselves: ETI supports initiatives that raise workers’ awareness of theirrightssothattheyarebetterabletonegotiatewithmanagement. It also brokers resolutions wherethere are major breaches of trade union rights bycompanies.

Building strategic alliances and persuading and influencing key partners: ETI builds alliances in key sourcing countries and internationally toaddress problems that occur, not only in individualworkplacesbutinentirecountriesandindustries.Itraises awareness of how everyone can play a partinprotectingworkers’rightsandworkscloselywithgovernments and international labour agencies toinfluencepolicyandlegislation.

Driving improvements in the performance ofmember companies: Members report annually on their performance in implementing theBaseCode.ETIexpectsmemberstoimprovetheirperformanceovertimeandhasadisciplinaryprocedureforthosethat fail to make sufficient progress or to honourtheirmembershipobligations.

Another MSI is Social Accountability International(SAI),establishedin1997.96SAIhasavision“ofdecentworkeverywhere–sustainedbyanunderstandingthatsocially responsible workplaces benefit business whilesecuringfundamentallabourrights.”Its main tool is the multi-industry SA8000 Standard, a leading social certification standard for certified organizations to demonstrate their fair treatment of workers across industries in any country. In addition topublishing SA8000, SAI offers a wide selection ofresourcestohelporganizationsmaintainandcontinuallyimprove their social performance, including capacitybuilding,stakeholderengagement,collaborationbetweenbuyers and suppliers, and thedevelopmentof tools toensurecontinuedimprovement.SAIviewsindependentaccredited certification to the SA8000 Standard as a

critical element contributing to the company’s broaderobjectives of improving global labour conditions.Organizational buyers, independent codes of conduct,andprivatesectorinitiativeshaveincreasinglyrecognizedSA8000’s multi-sector applicability and responded togrowing public interest by integrating SA8000 criteriaintotheircomplianceprocesses.Similarly,governmentswishingtoencourageandstrengthensocialperformancein the workplace have created incentive programmesspecifically recognizing companies with an accreditedSA8000certification.97

Fairtrade Labelling Organizations International, nowsimply known as Fairtrade International (FLO), is anumbrella organization whose mission is to set theFairtradeStandardsand tosupport, inspectandcertifyethical production across supply chains.98 FairtradeStandards contain minimum requirements, which allproducerorganizationsmustmeettobecomecertified,and progress requirements, in which producers mustdemonstrateimprovementsovertime.Thereareseveraltypes of Fairtrade Standards, including standards forcontract situations, for importers and for the differentproducts. Fairtrade Standards for hired labour situations specify the usual labour rights and also that a joint body be set up with representatives from both the management and employees to decide on how the Fairtrade Premiums will be spent to benefit workers. FairtradeinspectionandcertificationarecarriedoutbyFLO-CERT,an independent, for-profit body created by FairtradeInternational. FLO-CERT certifies that both producersandtradershavemetwithFairtradestandards.FLO-CERTinspectionsandcertificationfollowtheinternationalISOstandardsforproductcertificationbodies.99

The main aspects of the Fairtrade system are the Minimum Price and the Premium. The Fairtrade Minimum Price is aguaranteedpricetobepaidforafewproductssuchascoffee.TheFairtrade Premiumisanextrapaymentover

95 Ethical Trading Initiative 2010a. See in particular Table 2, pp.12-14. There is also a separate set of Homeworker Guidelines for Retailers. 96 Social Accountability International N.d. 97 Social Accountability International N.d.98 Fairtrade International N.d.99 Fair Trade Certified N.d.

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A home-based worker in Nepal knits products using traditional Nepali fibre called “Allo” - these Allo prod-ucts form a large part of Nepal’s export market

themarketprice.Theresidualafterextracostsincurredin producing and marketing Fairtrade have been metmust be spent on social projects for social and economic development in the producing communities. Theproducersthemselvesdecidehowthesefundsaretobespent.100 Fairtrade producer organizations are requiredtobe able to showwhathappened to themoney, andFLO-CERTissupposedtocheckwhethertheyhavesuchatrackingsysteminplace.

The CleanClothes Campaign (CCC) is a global alliancededicatedtoendinglabourabusesofworkersintheapparelandsportswearindustryandtoprovidingconsumerswithaccurateinformationconcerningtheworkingconditionsunder which the apparel and sportswear they purchase are made.101 The CCC brings together trade unions and NGOs covering a broad spectrum of perspectives and interests, including women’s rights, consumer advocacy and poverty reduction. As a grassroots network in both garment producing andconsumer markets, CCC “can identify local problemsand objectives and transform them into global action;… educate and mobilize consumers, lobby companiesandgovernments; andofferdirect solidarity toworkersastheyfightfortheirrightsanddemandbetterworkingconditions.” 102 There are national CCCs in at least 16countries,mainly inEurope,withan internationalofficebasedinAmsterdam.Amongthebetter-knownandactiveCCCsistheUK-basedLabourBehindtheLabel.103

A major instrument of the CCC is its 1998 Code of Labour Practices, meant to be adopted and implemented by

companies, industry associations and employer organizations. The CCC makes it clear that thecode isnotmeanttobeasubstituteforinternational intergovernmental co-operation nor forinternationallegislation.Althoughthecodedoesseektoaffordworkers protection from oppression, abuse andexploitationwherenational lawsare inadequateorarenotenforced, itdoesnot seek tobecomea substitutefor national laws or the national labour inspectorate.Thecodeisnotasubstituteforsecureandindependenttrade unions nor should it be used as a substitute forcollective bargaining. The code’s applicability is alsoclearly spelled out:Throughthecoderetailersandmanufacturersdeclaretheir responsibility for theworking conditions underwhichtheapparel,sportswearandshoestheysellareproduced. This responsibility extends to all workersproducing products for the company, regardless oftheirstatusorrelationshiptothecompanyandwhetheror not they are employees of the company. The code would therefore apply to home-based workers and to workers who are engaged either informally oron a contracted basis. The code applies to all of the companies’contractors,subcontractors,suppliersandlicensees world-wide.104

In 2008, CCC promulgated a Full Package Approachto Labour Codes of Conduct.105 The Package offersguidelines onwhat companies can do to better assess,implement andverify compliancewith labour standardsin their supply chains and to eliminate abuses where andwhen theyarise.Theguidelinesprovide fourmajorpoints: a comprehensive, credible and transparentcode; implementationof the code; credible stakeholder

100 The international brand Patagonia, for instance, introduced its Fair Trade Certified sewn products in 2014 and pays a premium for every product made in factories certified to the Fairtrade Standard. Patagonia reported that the funds from the premium have been an important means of giving workers a voice to express their needs - “those funds are managed by a democratically elected worker committee that comes together to voice opinions on how to spend the money after assessing the needs of the workers in the factory, and ultimately decides how it is spent. For the first time in many workers’ lives, this process opens up conversations with management about critical issues affecting their day-to-day lives”. Horn 2018.101 Clean Clothes Campaign N.d.102 Ibid.103 Labour Behind the Label N.d.104 Clean Clothes Campaign 1998.105 Clean Clothes Campaign 2008.

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106 Clean Clothes Campaign, 2008107 Nest N.d. (c).108 Nest defines handworkers as members of the supply chain who work predominantly with their hands, as opposed to relying exclusively on the use of machines. Homeworkers are a subset of handworkers or artisans who conduct their work from a home-based setting rather than carrying out their work in a central or community-based production workshop.109 Nest 2019a.

participation;andfreedomofassociationandcollectivebargaining. Of particular interest for this paper is thesectiononStakeholderParticipation,whichaccomplishesthefollowing(seeAppendix6forfullreplication): highlightsthebenefitsforcompaniestojoincrediblemulti-stakeholderinitiatives;

explainstheimportanceofcooperatingwithworkers’rightstraininginitiativesandtheconditionsforsuchtrainingtobeeffective;

reminds companies that their codemonitoring andverificationprogrammeshould include reporting tocustomers, shareholders, stakeholders, the publicandtheaffectedsuppliersandworkers;

stressesthenecessityofinvolvingworkersaswellaslocal tradeunionsand labourrightsgroupsastheirinvolvement improves the quality of social audits,the handling of complaints and strategies towardsremediation;and

emphasizesthatworkersandotherstakeholdersshould have access to secure, anonymous,confidential, and independent mechanism forregisteringcomplaintswhentheybelievetheirrightsarebeingviolated.106

A more recent initiative gaining growing prominenceand traction is the Nest Ethical Compliance Standardsfor Home and Small Workshops and the Nest Seal of EthicalHandicraft.107 Nest is a non-profit that partnerswithdesignersandbrandsonsupportingcraftsmanship(handwork)andmakinghomeandsmallworkshop-basedlabour for the fashion and home industries visible andsafe.Nest also focuses on improving thewell-being ofwomenworkers beyond factories. It has an impressivelist of national and international personalities on its

trustee and advisory boards and partner organizationsand foundations. At the United Nations in December2017,NestofficiallylaunchedtheNestEthicalHandcraftProgramme,whichincludesasetofstandardstopromoteethical production in the homes and small workshopswhere handworkers produce their wares.108

The Nest Ethical Compliance Standards for Home and SmallWorkshopsweredevelopedthroughameticulouslydetailedprocess, inwhichNestimplementedasteeringcommittee of brand partners (including Eileen Fisher,Patagonia and Target) to pilot the programme. It alsoconducted numerous assessments across a rangeof business structures, craft types and countries.109 Further, theNestprogrammeworkshand-in-handwithhandworkers, empowering them to draw from theirexperienceandexpertiseinordertodevelopprocessesthat have the greatest likelihood of adoption whilestill conforming to theNest Standards.To address thecomplexitiesofdecentralizedsupplychains,thestandardsuse a matrix outlining responsibilities for multiplemembersofcomplexsupplychains.Thematrixincludesmultiple middlemen, intermediaries or subcontractorsbetween the business and the final worker. All Standards require implementation down to the worker level, and the responsibility rests on intermediaries to ensure that compliance is met for the whole supply chain beyond the factory. The Standards must also be adhered to in all small workshops. If the business is employing multiple subcontractors, the Standardsrequire all subcontractors follow the same guidelines.Nesthasalsobeencontinually reviewing itsprocesstomakeimprovementsandcallingonsupplychainexperts

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110 Nest 2019b.111 Nest, N.d. (b).112 Fashion Revolution N.d.113 Fashion Revolution CIC 2019.

to weigh in on the Standards. The result is updatedStandards intended toboth support industryefforts toaddresshomeandsmallworkshop-basedproductionandtostreamlineNest’sprocessfortraininghandworkers.110 Thisupdatedversionmoreclearlydefinesexpectationsand requirements of vendors and subcontractors alike.Further,ifabusinessmeetsathresholdlevelofcomplianceafter the completion of a qualified assessment, Nestwillawardasealofassurance, theNest Seal of Ethical Handicraft for the specific verified product line. Sincethelaunchofthestandards,sixartisanbusinesseshavebecomeNestCertified.MajorbrandslikeWestElmhavealsobegunusingtheNestSealofEthicalHandcraft.

Nest also has a specific code for artisans andhomeworkers. TheNest Code of Conduct forArtisansand Homeworkers “is designed to address the uniquecharacteristics of the artisan production value chain,which includes labour in both small workshop and homework settings.”111 The Code “promotes the importanceofproductionundersafe,lawfulandhumaneconditionswithin the context the unique operations ofthe dimension of global commerce impacting artisans.”The code clearly indicates that artisan production includes home-based and piece-rate production. Problematically, however, the overall language of the code focuses on “artisans” and does not clarify whether all homeworkers are to be considered artisans and therefore covered by the Code.

FashionRevolution isanot-for-profitglobalmovementwith teamsnow inover100countriescampaigning forsystematicreformofthefashionindustrywithafocusontheneedforgreatertransparencyinthefashionsupplychain.112 It was founded in 2013 in response to the Rana Plaza disaster, and it is represented by two separateorganizationsintheUnitedKingdom:FashionRevolution

CIC and Fashion Revolution Foundation. These twoorganizations spearhead the global network of officialFashion Revolution Country Offices and the volunteerCountry Coordination teams. All Fashion Revolutionorganizationsworktoensurethatclothesaremadeinasafe,clean and fair way. The #whomademyclothes campaign is organized every year on April 24th, the anniversary of the Rana Plaza factory collapse. Here, brands and producers are encouraged to use the hashtag #whomadeyourclothes and to demonstrate transparency in their supply chains. In 2019, the campaign ran for aweek instead of a day.

FashionRevolutionalsopublishestheFashionRevolutionTransparency Index every year.113 The Fashion Transparency Index 2019 reviews and ranks 200 of the biggest global fashion and apparel brands and retailers according to how much information they disclose about their suppliers, their supply chain policies and practices, and their social and environmental impact. It does not evaluate brands’ ethical or sustainabilityperformance but rather how much informationthey disclose publicly about their human rights andenvironmental policies, practices and impacts. Theassessment of brands and retailers is performed across five key areas: policy and commitments; governance;traceability; know, show and fix; and spotlight issues.The results are not that surprising: the average scorefor all 200 brands and retailers is 21 per cent out of 250 possible points, proving that there is still muchwork to be done.And unfortunately, the results showthat among companies there appears to be little, if nospecific attention, to homeworkers even though theIndexhighlightsgenderequality,femaleempowerment,freedomofassociationandthepaymentoflivingwages.

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MULTILATERAL INITIATIVES: INTERNATIONAL INSTRUMENTS

At the multilateral level, several international institutions have initiatives to promote internationally-harmonized standards for good governance in global supply chains. These instruments have a humanrightsframeworkbasedontheUNUniversalDeclaration

114 Von Broembsen et al. 2019, p.20.

ofHumanRightsandtheILODeclarationonFundamentalPrinciplesandRightsatWorkanditscoreConventions.These instruments constitute “soft law,” meaning that they are not legally binding—and only one of them explicitly covers homeworkers.

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WHY ARE MUTILATERAL INSTRUMENTS IMPORTANT?The language of human rights provides a universal standard of behaviour and a floor of rights that is dis-embedded from market rationales.114

• The provisions of the instruments do implicitly cover homeworkers and can be drawn upon for advocacy to recognize homeworkers as integral to supply chains and to promote their rights to decent work.

• Recognition at the global level is often a precursor to securing recognition and rights at the national level.

• They enable civil society to participate in national-level implementation processes.

The UN Guiding Principles on Business and Human RightsisthefirstUN-endorsedcorporatehumanrightsresponsibility initiative. The UN Guiding Principles(UNGPs) articulate distinct but complementary dutiesand responsibilities of States and business enterprises,and apply to all States and business enterprises, bothtransnational and others, regardless of size, sector,location,ownershiporstructure.115AlthoughtheUNGPsarenotlegallybinding,theybuildontheimplicationsofexisting legal obligations that states have undertakenunderinternationalhumanrightslaw,includingexplicitlyreferencingthefundamentalprinciplesandrightsatworkandimplicitlyincludingmanyotherlabourrights,suchastherighttoasafeandhealthyworkplace.

Although the UNGPs do not explicitly refer tohomeworkers, the principles can be drawn upon tocoverthoseatthebottomofsupplychains.116Accordingto the UN Guiding Principles, the responsibility of abusiness enterprise to respect human rights extendsbeyond its first-tier relationships to cover all of itsactivitiesandrelationships.UnderGuidingPrinciple13,business enterprises are expected to “avoid causingorcontributing to adverse human rights impacts throughtheirownactivities,andaddresssuchimpactswhentheyoccur.”Inreferencetosupplychains,Principle13statescompanies should also “seek to prevent or mitigateadversehumanrightsimpactsthataredirectlylinkedtotheiroperations,productsor servicesby theirbusinessrelationships,eveniftheyhavenotcontributedtothoseimpacts.” Here, “business relationships” are broadlydefinedandunderstoodtoincludeabusiness’sowndirectactions and relationships with business partners, withentitiesinitssupplychain,andwithanyothernon-StateorStateentitydirectlylinkedtoitsbusinessoperations,products or services.117 In addition, businesses should“seektounderstandtheconcernsofpotentiallyaffectedstakeholdersbyconsultingthemdirectlyinamannerthat

takesintoaccountlanguageandotherpotentialbarriersto effective engagement.” It’s important to note thisconsultation requirement couldpresent anopportunityforhomeworkersorganizationstoparticipateintheduediligenceprocesses.118

It is also important to note that the internationalinstruments described below incorporate the UNGPs,andinthattheydoso,itcanbearguedthatjustastheUNGPs implicitlycoverhomeworkers,sotoocantheseotherinstrumentsbeusedtoadvocatefortherecognitionandprotectionofhomeworkers.

In 2000, the UN Secretary-General launched the UN Global Compact, calling upon companies to conducttheirbusinessrespectingTenPrinciplesonhumanrights,labour, environment and anti-corruption, which followtheILO’sFundamentalPrinciplesandRightsatWork.119

CompaniessigningtheGlobalCompactaresupposedtoreportontheprogresstheymakeontheTenPrinciples.In2010,anadvisorygrouponsupplychainsustainabilitywasestablishedasaplatformforintegratingtheTenPrinciplesintosupplychainmanagementsystems.In2012,severalhundred companies were de-listed for failure to fulfilminimum reporting requirements. Since that time, thenumber of companies joining the Global Compact hascontinued to increase and thehomepageof theGlobalCompact’swebsiteliststheCompactas“theworld’slargestcorporatesustainabilityinitiative.”TheILOservesjointlywiththeOfficeoftheUnitedNationsHighCommissionerfor Human Rights (OHCHR) as the secretariat for theGlobal Compact’s Human Rights and Labour WorkingGroup and provides extensive technical assistance. Atcountry level, theGlobalCompactLocalNetworkshelpcompanies understand what responsible business means withindifferentnational,culturalandlanguagecontexts.The Networks also facilitate outreach, learning, policydialogue, collective action and partnerships. Throughthe Networks, companies can make local connections

115 Office of the High Commissioner on Human Rights 2011. 116 Appendix 3 highlights suggestions from homeworker organizations and WIEGO on how the UNGPs can be strengthened to better protect homeworkers. 117 International Labour Organization 2016, pp.60-61.118 Von Broembsen et al., 2019, p.8.119 United Nations Global Compact N.d.

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with other businesses and stakeholders from NGOs,governmentandacademia,andtheycanreceiveguidancetoputtheirsustainabilitycommitmentsintoaction.WhileLocalNetworksareindependent,self-governedandself-managedentities,theyworkcloselywiththeUNGlobalCompactinNewYorkandactasapointofcontactforUNGlobalCompactsignatoriesinacountry.

The ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (MNE Declaration)wasadopted in1977andupdatedseveraltimes, most recently in March 2017.120 It is the only ILO instrument concerning MNE operations that wasnegotiated on a tripartite basis, and it is the mostcomprehensive instrument on labour and employmentissuesasitprovidesguidancetoenterprises,governmentsof home and host countries and to employers’ andworkers’ organizations. Although directed primarily atMNEoperations, italsoapplies tonationalenterprises,including those commercially linked to MNEs. TheMNE Declaration clearly distinguishes between theroles of governments and enterprises: governmentsare responsible for creating, legislating and enforcingan enabling environment for responsible business;companiesareencouragedtorespectworkers’rightsintheirownoperations.Theprinciplesof theDeclarationprovideguidanceinsuchareasasemployment,training,conditions of work and life, industrial relations andgeneral policies. The guidance is founded substantiallyonprinciplescontainedininternationallabourstandards.The Declaration recommends that national tripartiteconstituents establish national focal points to promoteits principles, engage in capacity-building, disseminateinformationandfacilitatetripartitedialogue.

The 2017 revised version of the MNE Declarationincorporates the UNGPs and includes a human rightsdimension that establishes responsibility on the part of

corporations to identify, mitigate, prevent and accountforadversehumanrightsimpactsintheirsupplychains.Italsoestablishesmeaningfulconsultationwithpotentiallyaffectedgroupsasintegraltotheduediligenceprocess.Therefore, although the MNE Declaration does notspecificallymentionhomeworkers,thecasecanbemadethattheDeclaration,liketheUNGPs,canbeapotentialmechanism for advocacy to recognize homeworkers asintegraltosupplychainsandtorecognizetheirclaimsfordecentworkaslegitimate.121

TheOECDGuidelinesforMultinationalEnterprisesapply tosome47OECDandnon-OECDcountriesthatadhereto the OECD Declaration on International InvestmentandMultinationalEnterprises.122 The unique feature of theGuidelinesisthattheyareaddressedbygovernmentstomultinationalenterprisesoperatinginorfromadheringcountries. The Guidelines are the only multilaterallyagreed-on and comprehensive code of responsiblebusinessconduct thatgovernmentshavecommittedtopromoting. The Guidelines’ recommendations expressthesharedvaluesofthegovernmentsofcountriesfromwhich a large share of international direct investmentoriginates andwhich are home tomany of the largestMNEs. The Guidelines provide non-binding principlesand standards for responsible business conduct (RBC) in aglobal context consistentwithapplicable lawsandinternationallyrecognizedstandards.The2011updatedGuidelines include a human rights chapter consistentwith the UNGPs, and, therefore, can be extended toimplicitly apply to homeworkers.

TheOECDGuidelinesalsoapplytheUNGPs’risk-baseddue diligence process to supply chain managementby requiring signatory countries to establish NationalContact Points (NCPs) that can take differentinstitutional forms. Adhering governments establishthe NCPs to promote and implement the Guidelines

120 International Labour Organization 2017. 121 Von Broembsen et al. 2019, p.11.122 Organization for Economic Cooperation and Development 2011.

and to provide a mediation and conciliation platformfor resolvingpractical issues thatmay arise.TheNCPsreviewcomplaintsofcorporatenon-compliancebytradeunions,NGOs, governments and evenmembersof thepublic.Althoughparticipationintheprocessisvoluntary,MNEs engage to prevent reputational risk, or to avoidformallegalcharges.Someofthesecomplaintprocesseshave resulted in dialogue or mediation between theparties, and in some cases, corporations have agreedto remedy the violation and pay compensation toaffected individuals or groups. The NCPs, therefore,havethepotentialto“beastrategicsiteofstruggleforhomeworkersandallies,inparticularbecausetheOECDDueDiligenceGuidance forResponsibleSupplyChainsintheGarmentandFootwearSector–akeysectorforhomeworkers–explicitly recognizes thathomeworkersarelegitimateworkersinglobalsupplychains.”123

The OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector is the product of a multi-stakeholder consultativeprocess that took place in 2017. 124 The Guidance isintended to be practically oriented, with an emphasison collaborative constructive approaches to complexchallenges. It encourages collaboration by MNEs atthree levels: (i)at thesectoral level topoolknowledge,increaseleverageandscale-upeffectivemeasures;(ii)atthe union level, to directly enter into agreementswithtrade unions to facilitate worker involvement in thedesign and implementationof due diligence processes,to implement standards on workers’ rights and holdenterprisesaccountable to them,or to raisegrievancesagainst enterprises in relation to workers’ rights; and(iii) at the stakeholder level through MSIs to facilitatecollaborationbetweenstakeholders inordertoaddressspecific sector risks or implement specific steps in theduediligenceprocess.TheGuidancealsodrawsattentionto the fact that women account for the majority of the labourforce inthegarmentandfootwearsupplychain,

and it emphasizes that the vulnerability of womenworkersinaparticularcontextshouldbesystematicallyconsideredatallstagesofduediligence.

The Guidance includes a specific Module on Responsible Sourcing from Homeworkers, which includes both a “framework for preventing and mitigating human rights and labour abuses when engaging homeworkers” and recommendations for enterprises to follow in designing and implementing their due diligence processes. The framework establishes that “homeworkers shouldbeviewedasanintrinsicpartoftheworkforceentitledtoreceiveequaltreatment.” 125TheModuleadvocatesthathomeworkers“should be formalized in order to achieve good termsand conditions of employment” through legal identity,recognition of their worker status and contracts and/or authorizations that would facilitate the legalizationof their work. The framework text also explains thatformalization is a process and that legalization “shouldnot impose expectations for homeworkers that cannotbemetandthereforemarginalisehomeworkers further(e.g. the obligation towork in a particular centre maymarginalise homeworkers who can only work fromhome).” 126Theframeworkalsostatesthefollowing:theorganisationofhomeworkersisanimportantstepthat provides them with visibility and recognitionandenablessocialdialogue inordertoachievegoodterms and conditions of employment.Given the unique needs and circumstances of homeworkers, the organisation of homeworkers may look differently from other organised workforces. The first steps in organising is often taken by community or women’s groups who are in a position to organise local groups which can later come

123 Von Broembsen et al., 2019, p.9.124 Organization for Economic Cooperation and Development 2018. The OECD has also developed tailored guidance to help enterprises build responsible supply chains in other sectors, specifically: minerals from conflict-affected and high-risk areas; extractive; agriculture; and finance. 125 Organization for Economic Cooperation and Development 2018, pp.184-188.126 Ibid., pp.184-185.

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together as a federation or trade union. Given the predominance of women homeworkers in the sector, in many contexts organisers should be women.127

The recommendations for enterprises relate to twoareas for action: to identify potential and actualharms;andtoseektopreventormitigateharmintheenterprise’s own operations and in its supply chain.Under the first area, enterprises are encouraged toidentify production processes and sourcing countrieswhere homeworkers are likely be prevalent and athigher risk of being exploited and to assess whethersuppliershavemeasuresinplacetosourceresponsiblyfrom homeworkers. Second, the recommendationsstipulate that enterprises should build the capacity oftheir suppliers to establish a “prequalification system”for intermediaries (who would include subcontractors) involved in hiring homeworkers; establish internalprotocols for outsourcing of work to homeworkers;establish transparency requirements for those intermediaries who contract work to homeworkers;andprovidetrainingforthemontheirlegalobligationsandtheenterprise’sRBCpolicy.Therecommendationsalsoencourageenterprisestoidentifyandpartnerwithlocalinitiativessuchasforrightstraining,skillstraining,legalizationandserviceprovision.

Undoubtedly, the Guidance is significant in recognizing homeworkers as integral to supply chains but, unfortunately, its potential for promoting decent work is limited not just by its soft law status but also by a number of other omissions in the framework and recommendations:for example, while it mentions the importance oforganizing homeworkers,MNEs are not encouragedto recognize existing representative organizations

of homeworkers as legitimate partners in the duediligenceprocess,includingdiscussionsontheformthattransparencyrequirementsandgrievanceproceduresshould take. And, a key recommendation should be that MNEs require their suppliers to mention the name of their brand in sub-contracting agreements – a requirement in the Australian supply chain legislation. Homeworkers would then be able to identify thebrand, research itscommitmentsto decent work, and register complaints through itscomplaint mechanisms.128

127 Von Broembsen et al. 2019, pp. 10-11.128 Ibid., p.185.

SOME KEY MUTILATERAL INSTRUMENTS FOR PROMOTING DECENT WORK FOR HOMEWORKERS IN SUPPLY CHAINS• The UN Guiding Principles on

Business and Human Rights• UN Global Compact• ILO Tripartite Declaration of

Principles concerning Multinational Enterprises and Social Policy (MNE Declaration)

• OECD Guidelines for Multinational Enterprises

• OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector

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Producer Companies are setting up compliant, worker-owned community centres for homeworkers to access decent work within global supply chains. Location: Rajasthan, India.

COUNTRY-LEVEL INITIATIVES: NATIONAL LEGISLATION

Aholisticgovernancesystemforglobalsupplychainsshouldbeatlocal,national,regionalandinternationallevels.As emphasized at different points in this paper, codes are no substitute for national laws, and, in fact, most of the codes indicate that suppliers and subcontractors are expected to comply with national and local laws and regulations at all times.Forexample,the Inditex Group code of conduct stipulates thefollowing:provisions of this Code constitute only minimumstandards. Should national regulations or anyother applicable Law or any other commitments

129 Inditex N.d.130 Von Broembsen et al. 2019, pp.13-19.

undertaken or applicable, including collectivebargaining agreements, govern the same issue,the provision which offers greater protection forworkers shall apply. Inditex assumes, as part ofits internal norms, the content of national andinternational Agreements and Conventions towhich ithasadhered, and that theyareapplied inits relationship with manufacturers and suppliers,committingtotheirpromotionandcompliance.129

National legislation, then, must also be examined. Todo so, this section draws mainly from the article byVonBroembsen,HarveyandChen,whoidentifythreenationallegalapproaches.130

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WHAT ARE THE THREE APPROACHES TO NATIONAL LEGISLATION FOR PROMOTING DECENT WORK FOR HOMEWORKERS IN SUPPLY CHAINS?

First approach - Expansion of Legislation to Include Homeworkers The approach’s aim is to tackle disguised employment relationships and create

labour rights for homeworkers as if they were employees. This legislation expansion has been accomplished in countries such as Bulgaria, Chile, Brazil, Nicaragua, Uruguay and South Africa.

Second Approach - Specific Legislation for Homeworkers The second approach is for a country to legislate specifically to protect

homeworkers, Thailand The third approach is to combine a “due diligence” human rights approach with a mandatory code

New South Wales (NSW) and South Australia

Homeworkers must be given a written contract, andwhereacontractgivesthehireran“undueadvantage,”the court has the power to order that the terms of the contract only be enforced in so far as the terms of the contractarereasonable; It is a criminal offence to pay homeworkers lessthan the statutory minimum wage. Payment mustbemadeatthehomeworker’splaceofworkwithinsevendaysofdeliveryofthefinishedproducts,andlimiteddeductionsmaybemadeforsuchpayments;

Homeworkersmustbeinformedifworkishazardousor involves toxic substances, and the hirer mustprovidesafetyequipment.Ifhirerscontravenetheseprovisions, theywill have to paymedical expenses,rehabilitationorfuneralexpenses;

The Ministry of Labour must draft “secondarylaws”orregulationsfor theActtocome intoeffect,whichshouldbeoverseenbya tripartitecommitteecomprisingDirector-GeneralsfromseveralMinistries,threehomeworkerrepresentativesandthreehirers;

Whereaparticularcasebyahomeworkeragainstahirer is believed tobe “for the commongood,” theStatewillappointalegalrepresentativetorepresentthe homeworker in the Labour Court.

The third approach is to combine a “due diligence”human rights approach with a mandatory code thatcontainsstringentenforcementmechanismsashasbeenenacted through theEthical Clothing Trades Extended Responsibility Scheme in New South Wales (NSW) and South Australia. 132 The NSW Code (and the Southern AustraliaCode,whichissimilar)issubordinatelegislation,enacted by way of proclamation under the IndustrialRelations (EthicalClothingTrades)Act2001.Thereforeitisamandatorycodeandcomplianceisobligatoryasamatteroflaw.TheinnovativefeaturesoftheCodeworthnotingincludethefollowing: TheCodeappliesnotjusttothe“leadfirm”orthe“effective

business controller” at the top of the chain but also to the suppliersandcontractorslowerdownthechain;

The terms “retailer,” “supplier” and “contractor” are widely defined, making it difficult for these parties

131 Government of Thailand 2010. 132 Labour Exploitation Accountability Hub N.d.

Thefirstapproachexpandsthetraditionalemploymentand/or labour relations legislation that coversemployeestoincorporatesubcontractedwork,includinghomeworkers.Theapproach’saimistotackledisguisedemployment relationshipsandcreate labour rights forhomeworkersasiftheywereemployees.ThislegislationexpansionhasbeenaccomplishedincountriessuchasBulgaria, Chile, Brazil, Nicaragua, Uruguay and SouthAfrica. InBulgaria, forexample,the Association of Home-based Workers Bulgaria and its allies, including international NGOs, successfully campaigned for the government to ratify ILO Homework Convention, 1996 (No.177). Ratificationtookplacein2009.In2011,theBulgariangovernmentamended its Labour Code to cover subcontracted“dependent” workers, stipulating that dependentworkersmusthaveacontractandmustenjoythesameentitlements as employees, including entitlementsderived through collective bargaining agreements orthroughsocialsecuritylegislation.

Thesecondapproachisforacountrytolegislatespecificallytoprotecthomeworkers,asThailandhasdone.HomeNetThailand,togetherwithanumberofallies,engagedinadecade-longcampaignfortherecognitionandlegislativeprotection of homeworkers. In 2010, the Thai Home Workers Protection Act was passed to provide equalprotectiontohomeworkersandfactoryworkers.131 The Actisinnovativeinanumberofrespects:

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to avoid their obligations as might be possible through creative corporate structuring;

Theprovisionsofthecodearemandatoryandapplytoallpersonsengagedinthemanufacturingofclothingproducts in Australia and the supply and retail sale of thoseproductsinNSW;

ItsduediligenceapproachiswiderthanthatenvisagedintheUNGPs;itrequiresfirmstoreportbothtothestate and to labour unions and non-compliance is a criminaloffence;

The Code also spells out obligations on the partof retailers, including that “where a retailer becomes aware that an outworker has been engaged on less favourable terms than the conditions described under the applicable award or other industry instrument, the retailer is obliged to report the matter to the NSW union or the government.” 133

Von Broembsen et al. (2019) compare the differentnational legislation covering homeworkers and pointout several weaknesses of the Bulgarian and Thailegislations.First, in theThaiandBulgarian legislations,ifthehomeworker’scontractiswithasubcontractorora“hirer,”thentheclaimsforlabourrightswouldbeagainstasupplychainactorwhooftenenjoysaslittlebargainingpower as the homeworkers.Unless the homeworker isable to establish an employment relationship directlywith the factory, she/he would be hard-pressed toclaim the same rights as factory employees. Second,if the homeworker works intermittently for differentcontractors, she/hemay not be able to satisfy a courtthat anyone is theemployer.TheAustralian legislation,bycontrast,regulatestheentiresupplychainratherthanjusttheemploymentrelationshipsothatthehomeworkercan claim against anyone regarded as the employer.Third,theBulgarianandThailegislationplacetheburdenof enforcement on homeworkers whereas the Australian legislationmakesvarious supply chain actors—retailers,factories, suppliers, contractorsandeven thestateandtradeunions—responsibleforenforcement.

133 Von Broembsen et al. 2019, p.17.

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GuidedbythereviewofCSRcodesofconduct,PCIs,andothernon-corporateinitiativesfoundabove,wecanidentifythefollowingkeytakeawaysthatmaybeusefulforhomeworkersandtheirorganizations inadvocacyandactionstepsastheyseektopromotetheirrighttodecentworkandtoberecognizedasintegraltoglobalsupply chains:

HOW HOMEWORKERS CAN USE CODES AND OTHER INITIATIVES

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KEY TAKEAWAYS FOR HOMEWORKERS FOR USING CODES OF CONDUCT1. Use Channels and Platforms to amplify your voice2. Organise into trade unions, cooperatives, social enterprises, and other such

membership-based organisations3. Make the “business case” for decent work and fair supply chains4. Ensure inclusion of language that acknowledges the peculiarities of home-based

work, in codes and instruments5. Modify advocacy strategy based on cultural, regional and legal context6. Work with brands on implementation of the code till the level of homeworkers7. Run active awareness camapaigns about the provisions of these codes for

homeworkers themselves8. Lobby to your own governments to strengthen public governance of supply

chains rather than to be driven by the concern of losing foreign investments

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Firstandforemost,anykindofadvocacy,particularlythat addressing lead firms in global supply chains,requiresthattherearechannelsorplatformsthroughwhichhomeworkersandtheirorganizationscanhavetheirvoicesheard.Suchchannelsandplatformscanbefoundinthefollowingexamples: those corporate codes of conduct that not only call for freedom of association and theright to collective bargaining but that also haveimplementation strategies aiming “to increaseworker voice within our suppliers by ensuringthere are either well-functioning labour unionsorworkercommitteesinplacewithinoursupplierworkplaces.” 134EileenFisherandPatagoniaoffera number of different mechanisms, including asupply chain hotline, a grievance system toolkitand regular worker forums and surveys forworkersatall levels tovoice theirconcernsandfor the brands to work with them to address these concerns;135

theMSIsthatemphasizethenecessityofinvolvingworkersthroughoutthesupplychainbecausethisinvolvement improves supply chain transparency,the quality of social audits, the handling ofcomplaints and strategies towards remediation.AstheCleanClothesCampaignargues,“sincetheultimate purpose of codes and monitoring is toimprove conditions andprotect the rights of theworkerswhomakethecompany’sproducts,thoseworkersmusthaveanactiveroleintheday-to-daymonitoringprocess;”136

themultilateralinstrumentsthatstresssignatorycompanies should “seek to understand the concerns of potentially affected stakeholdersby consulting them directly in a manner thattakes intoaccount languageandotherpotential

barriers to effective engagement; establishesmeaningfulconsultationwithpotentiallyaffectedgroups as integral to the due diligence process;orestablishesNationalContactPoints (NCPs)atcountrylevelthatprovideworkersaplatformforraisingandresolvingissues.137138139

To have their voices heard, homeworkers need tocometogetherandbeorganized.To overcome their characteristic invisibility due to isolation within their homes, women homeworkers need their own strong membership-based organizations.Itis,of course, essential that homeworker organizationsbe legally recognized by the state and also bycorporations as trade unions that have the rightto collective bargaining. The inauguration of HomeNet International in 2020 should be a landmark event in raising the profile of homeworkers and getting recognition from corporate and non-corporate actors in supply chains. Alliances with formal trade unions will be importantbecauseformaltradeunions’institutionalpower and leverage would strengthen the claimsof homeworkers. The regional HomeNets andtheir affiliated national organizations could alsoconsider establishing direct linkages with MSIs sothey can speak for themselves rather than haveother organisations speak for them. For example,by joining initiatives such as the Worker-DrivenSocial Responsibility (WSR) Network, the NestEthical Handicraft Programme or participatingin the Fashion Revolution #whomademyclothescampaign,theregionalHomeNetswouldhavewiderchannelsforraisingawarenessofthesignificanceand

134 Eileen Fisher N.d.135 Horn 2018.136 Clean Clothes Campaign 2008. 137 Office of the High Commissioner on Human Rights 2011, p.20.138 International Labour Organization 2017.139 Organization for Economic Cooperation and Development 2011.

particularitiesoftheirtypeofworkandoftheissuesthatareofgreatestconcerntothem.140 141 142

Advocacy requires making the case that decentworkisawin-winpropositionbothforhomeworkersand for supply chain sustainability. Fair and decent treatment of workers is not just an ethical imperative; it is good business. Internationalbrandswhotreatworkersfairlyanddecentlycanberecognizedbyconsumers,shareholders, investors and business partners associally responsible and as achieving sustainableproductivity and quality gains. Adequate evidenceshows that firms found to abuse labour rights canfacenotonlyreputationaldamagebutalsoprotests,boycotts, attacksoncorporateproperty,divestmentcampaigns, hostile shareholder resolutions and theenactmentofsanctionlaws.Atthesametime,thecasehastobemadethatforinternationalbrandstotakeresponsibilityforlabourandhumanrightsviolationsintheirsupplychains,abanonhomeworkersisnottheanswer.Notonlywillthehard-wonrightsoffactoryworkers further up the chain be compromised but homework will simply go underground, and brandswillthenfacethepressuresposedbytheunregulatedbottomendofthesupplychain.

It is not enough to advocate that corporate codesof conduct include homeworkers and accord homeworkers “equal treatment with other workers in the supply chain.” It is important that the particularities of homework that make homeworkers especially

vulnerable are taken into account even in the language of the code. In advocatingwithinternationalbrands,theHomeNetscan point to specific codes that are sensitive tothese particularities (the next section highlightsvarious examples of code language that could becited).TheBurberryEthicalTradingCodeofConductHomeworkerPolicy(Appendix2)explicitlystatesthat“workmustbebasedona recognizedemploymentrelationship” and all suppliers and subcontractorsmust provide allworkerswithwritten employmentcontractsfullysettingoutthetermsandconditionsof employment. However, since homeworkerstend to face difficulties claiming their rights if theemploymentrelationshipisonlywithsubcontractors(who themselves often are in weak bargainingpositions),itwouldbeusefultopushforrecognitionand coverageat theentire supply chain level, suchas is provided for in the Australian legislation.143

MSIstandardsandmultilateralinstrumentscanalsoprovideusefullanguageforbrandsdevelopingcodesof conduct.Examples include theETIModelPolicyon Homeworking, the ETI Homeworker Guidelines(Appendix5)andtheOECDDueDiligenceGuidancefor Responsible Supply Chains in the Garmentand Footwear Sector with its specific Module onResponsibleSourcingfromHomeworkers144145

Thedifficulties and issues homeworkers face differin different contexts. It is, therefore, importantthat advocacy effortswith corporations take thesecontextual differences in account, especially inidentifyingstrategiesthatcouldmakearealdifference

140 Worker-Driven Social Responsibility Network N.d. (e)141 Nest N.d. (a)142 Fashion Revolution N.d

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inthelivesofparticulargroupsofhomeworkers.Forexample, homeworkers who live in more remoteareasmight savetimeandcostof transportation ifapproved subcontractors delivered and collectedfromthem.Inthiscase,advocacyshouldbefocusedon this issue. In other contexts, where the stateandevencorporationsarepushing for livingwagesratherthanminimumwages,homeworkersandtheirorganizationsshould likewisebe focusingadvocacyefforts.

Recognizing that “a code is only words if actionsdon’tspeak”andthattraditionalPCIshaveproveninadequate, the HomeNets should focus onmeasureswheretheycanworkwithcorporationstoenactthecodes.Becauseenlightenedcorporationsare themselves emphasizing the importance ofknowing where and how each of their productsis being produced, a starting point might be toenhance transparency and traceability in the supply chain. Equally useful are codes that emphasizethat “manufacturers and suppliers shall apply the principlesofthisCodetoanyhomeworkerinvolvedin their supply chain, and shall give transparencyto the locations and working conditions of saidhomeworkers.” 146 But is just as important that the corporations themselves need to requiretheir suppliers to include the name of their brand in subcontracting agreements as it is only thenthat homeworkers will know where to direct their efforts.Alltoooftenhomeworkershavenoideatowhomandwheretheirproductsarebeingsuppliednor of the eventual selling price. It might also be

worthexploringthepotentialforreachingouttothebetterknownandresponsiblesocialauditsystemsincludingthesocialauditsforcertificationpurposes,suchasthoseconductedforSA8000,FLO-CERTorthe Nest Seal.

Homeworker organizations should lobbycorporations to extend their awareness raising andtrainingprogrammestocoverhomeworkers.AstheCleanClothesCampaignargues,“sincetheultimatepurpose of codes and monitoring is to improveconditionsandprotecttherightsoftheworkerswhomake the company’s products, thoseworkersmusthave an active role in the day-to-day monitoringprocess.Inordertodoso,theymustbeawareoftheirrights under the code, ILO Conventions and locallaws.” 147Manycorporationshavedevelopedtrainingmaterialscoveringthehumanrightsandhealthandsafetyprovisionsof theircodesandevenmake itacondition of contract that suppliers must undergothetrainingandtrainingtotheirworkers—althoughcurrently this training is limited to factory-basedworkers. Homeworker organizations could offer tocollaboratewithcorporationsandsupplierstoprovidetraining to homeworkers; greater understandingon the part of homeworkers could go a long waytowards self-observance of code provisions. Thetrainingshouldfocusnotjustonwhatmustbedonebutonwhyitmustbedone.Thetrainingmustalsoopen up discussion on the barriers and difficultieshomeworkersfaceandwhatcanbedonetoachieveawin-winsituation.Importantly,“thistrainingshouldalso take into account the gendered nature of the

143 NSW Government 2001.144 Ethical Trading Initiative 2010d.145 Organization for Economic Cooperation and Development 2018, pp.184-188.146 Inditex N.d., p.6.147 Clean Clothes Campaign 2008. (See Appendix 6.)

workforceinthis industryandculturalandreligiouspreconditions(suchasseparatetrainingsessionsforwomen and men in Muslim countries).” 148

With many international brands adopting moreenlightenedcollaborativeand inclusiveapproaches,there could be various opportunities for theHomeNets and local homeworker organizationsto engage, particularly at the community level.Theirstrengthwouldbetheirability to identify thepressinglocalissues,takingintoaccountculturalandother sensitivities, their linkages with communitystakeholdersandtheirorganizationalability tohelpimplement the brand’s CSR initiative. The benefitsandspin-offscouldbemulti-fold: the reputationofthe brand could be enhanced; the well-being andproductivityofallworkers,factoryandhome-basedcould improve; traditional craftsandskills couldbepreserved;thesupplychaincouldbemoreefficientand sustainable; and the relationship between thebrandandall theirworkersandorganizationscouldbestrengthened.

Last but not least, homeworker organizationsneed to lobby their own national governments tostrengthenpublicgovernanceofsupplychainsratherthantobedrivenby theconcernof losing foreigninvestments.Homeworkerorganizationsmust alsoencourage governments to promote and enforcerelevant labour laws and regulations and providea conducive environment for responsible businessconduct. Advocacy like this works: homeworkerorganizations and their national and internationalallies have been the main driving force in thecountries that have adopted national legislationspecificallyfortheprotectionofhomeworkers.

148 Clean Clothes Campaign 2008.

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Producer companies often set up their own retail brands to supplement the income from B2B sales. Photo loca-tion - Sadhna, Udaipur, India.

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APPENDIX 1: THE HUMAN AND LABOUR RIGHTS COMPONENTS OF CODES OF CONDUCT OF INTERNATIONAL GARMENT AND TEXTILE BRANDS

A1.1. General Policy Statement

H&M Hennes & Mauritz AB Code of ConductH&M’sbusinessconceptistoofferfashionandqualityatthebestprice.Qualityalsomeansthatourproductsmustbemanufacturedinawaythatisenvironmentallyandsociallysustainable.Wehavearesponsibilitytowardseveryonewhocontributestooursuccess.Wearethereforecommittedtoworkingcloselywithoursuppliersandbusinesspartnerstoachievealong-term,sustainablesocialandenvironmentalstandardinthefactoriesthatmanufactureH&M’sproductsandintheoperationsofotherbusinesspartners

Levi Strauss & Co. Labour Standards - Terms of EngagementThepurposeofthisGuidebookistoassistindividuals,includingfactorymanagers,licenseesandagents,toimplementtheTermsofEngagement(TOE)infactoriesproducingLeviStrauss&Co.(LS&Co.)products.TheTOErequirementsareratedtoindicatehowseriouslyLeviStrauss&Co.viewseachparticularissue:ZTVZeroToleranceViolation;IAImmediateAction;andCIContinuousImprovement.LeviStraussalsohasaWorkerWell-Being(WWB)Programmesince2011whichwasconceivedbyLS&Co.asanewapproachtosupplychainengagement.WWBgoesbeyondlabourcomplianceandcollaborateswithsupplierstoimplementprogramsthatimprovethelivesofapparelworkers.LS&Co.believesthatinvestmentsinworkerwell-beingenableamoreconducivebusinessenvironment,generatingsharedvalueforworkersandfactories.Todriveimprovementstoworkerandcommunitywell-being,WWBsetsmoreholisticexpectationsforsuppliers.Overtime,LS&Co.expectsthatallitsvendorsimplementworkerprogramsthatgobeyondlegalandTermsofEngagement(TOE)requirementsandthatrespondtoworkers’needsthatoftenmanifestthemselvesbeyondfactorywalls.WWBasksthatvendorscommunicatewithworkers,identifylocalchallenges,developandimplementappropriateworkerprogramsandforgepartnershipstogenerateandsustainlastingimpacts.

Eileen Fisher Code of ConductToensurefairconditionsfortheworkersinoursupplychain,wearecommittedtotwohumanrightsstandards:SocialAccountabilityInternational’sSA8000,acriticaltoolforassessingfactories,andEthicalTradingInitiative’sBaseCode,whichallowsustoevaluate“cottage”industries(suchasartisansandhomeworkers),aswellascollaboratewithotherbrandstoimproveconditionsinfactories.

Burberry Ethical Trading Code of Conducthttps://www.burberryplc.com/content/dam/burberry/corporate/Responsibility/Responsibility_docs/Policies_statements/Policies/Updated_Policies/Ethical-Trading-Code-of-Conduct-120517.pdfBurberrybelievesthatitisimportanttobeasociallyresponsiblebusiness,promotingfairandsustainableemploymentpracticesinternallyandbysupportingdiversityandequalopportunitiesintheworkplacebothwithinitsownoperationsandacrossitssupplychain.Burberryrecognisesthat,withinitssupplychain,therearemanydifferentcountrieseachwiththeirownlaws,cultures,normsandtraditions,whichBurberryacknowledgesandrespects.

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J. Crew Responsible Sourcing Program Supplier Guidelines (Code of Vendor Conduct)TheJ.CrewSocialResponsibilityProgramaimstocreatelong-termrelationshipswithoursuppliersandworkwithsupplierstoimproveworkingconditions.Itisourpracticetosupportsuppliersintheireffortstomakenecessaryimprovementwithinareasonableandrealistictimeframe.However,incaseswhereweidentifyzerotoleranceissueswemaychoosetoterminateourrelationshipwithasupplierFurthermore,J.Crewreservestherighttoreducebusinessvolumewithagents,vendorsandfactoriesforuseofunauthorizedmanufacturingfacilities.ZeroToleranceIssuesareissuesthatarenottoleratedbyJ.Crew.IssuesmayincludebutarenotlimitedtoChildLabor,ForcedLabor,Discrimination,HarassmentandAbuse,UnauthorizedSubcontracting,StructurallyUnsafeBuilding,ImminentHealthandSafetyThreattotheworkers,andDeniedAudit

Marks & Spencer Global Sourcing PrinciplesWeunderstandthatwhenpeoplearetreatedwithrespect,workindecentconditionsandearnfairratesofpay,boththeyandtheircompaniesbenefitfromincreasedcommitmentandproductivity.Ultimately,ourcustomersbenefittoo,frombetterquality,bettervalueproductsandpeaceofmind….Becauseoursuppliersoftenhavetheirowncomplexsupplychains,itwouldbeimpossibleforustomonitororcontroltheworkingconditionsofeachindividualwhocontributestowhatultimatelybecomesaMarks&Spencerproduct.Wewillnotunderanycircumstancesacceptproductionfromnon-approvedfactoriesorgoodssuppliedfromsitesthatdifferfromourcontractssystemforeachspecificcontract.However,wearedeterminedtodoeverythingwecantobringfairsourcingprinciplestoallstagesofoursupplychain

Gap Inc (including Banana Republic and Old Navy) Code of Vendor Conduct“GapInc.iscommittedtosupportingandimprovinglabourrightsandworkingconditionsgloballyacrosstheretailandapparelindustries.Asabusinessweoweamoralresponsibilitytoprotectandcareforallthosewhoseworkgoesintocreatingourproductsandbringingthemtoourcustomers.Likewise,ourcustomershavearighttowearGapInc.clothesanduseourproductswiththeknowledgethatwearelivinguptotheirownhighethicalstandards.ThisCodeofVendorConductappliestoallfactoriesthatproducegoodsforGapIncoranyofitssubsidiaries,divisions,affiliatesoragents.WhileGaprecognizesthattherearedifferentlegalandculturalenvironmentsinwhichfactoriesoperatethroughouttheworld,thisCodesetsforththebasicrequirementsthatallfactoriesmustmeetinordertodobusinesswithGapInc.ThisCodeisbasedoninternationallyacceptedlabourstandards,includingtheILO’scoreconventionsandtheUniversalDeclarationonHumanRights.TheCodeprovidesthefoundationforGapInc’songoingevaluationofafactory’semploymentpracticesandenvironmentalcompliance.

Target Ethical Sourcing CodeTargetiscommittedtoconductingandmanagingourbusinessinamannerthatreflectsourhighethicalandmoralvalues.Weexpectourvendorstorespectandadheretothesamephilosophyintheoperationandmanagementoftheirbusinessesandreservetherightnottodobusinesswithvendorsthatdonotshareanddemonstrateourcommitment.OurEthicalSourcingCode(“Code”)setsoutourminimumrequirementsandexpectationsthatallvendors,factoriesandauthorisedsubcontractorsmustcomplywithinordertodobusinesswithTargetanditssubsidiaries.Inadditiontocomplyingwithlocallawsandregulations,vendorsandtheirfactories&authorisedsubcontractorsmustdemonstratecontinuousimprovementtowardsthefollowingstandards.

Fast Retailing Group Code of Conduct for Production PartnersAtFASTRETAILING,wearecommittedtocreatingtrulygreatclothingandbringingjoyofwearingclothestocustomersallovertheworld.Theconceptofprovidingtrulygreatclothingincludesmaintainingintegrity,respectinghumanrightsandcaringfortheenvironmentineveryaspectofourbusinessactivities.Webelieveintheimportanceofensuringdecentworkingenvironmentsandsustainabilitythroughoutthemanufacturingprocessofourproducts

Inditex Group Code of Conduct for Manufacturers and SuppliersTheInditexCodeofConductforManufacturersandSuppliers(hereinafter,theCode)definesminimumstandardsofethicalandresponsiblebehaviourwhichmustbemetbythemanufacturersandsuppliersoftheproductscommercializedbyInditexinthecourseofitsbusiness,inlinewiththecorporatecultureofInditexGroup(hereinafterInditex),firmlybasedontherespectforHumanandLabourRights.Inditexundertakestoallocatethe

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appropriate resources so that manufacturers and suppliers are acquainted with and understand this Code and are able to ensure its compliance.

Country Road Group Code of Labour PracticeTheprovisionsoftheCodeofLabourPracticeasadoptedbytheCountryRoadGroupareoverandabovetheInternationalLabourOrganisation(“ILO”)conventionslisted,andconstitutetheminimumstandardsofoperation.Companiesareatalltimesexpectedtocomplywithnationalandotherapplicablelocallaws.WheretheprovisionsofthelawandthisCodeofLabourPracticeaddressthesamesubject,theprovisionofferingthegreaterprotectionshouldbeapplied.ThisCodeofLabourPracticeisbasedonprincipalssetoutinILOconventionslistedbelow.C001HoursofWork;C29,C105-ForcedLabour;C100-EqualRemuneration;C111–Discrimination;C182-ChildLabour;C138-MinimumAge;C87,C98-FreedomofAssociationandCollectiveBargaining;C177-HomeWork

Walmart Stores Inc. Standards for SuppliersWal-Martstrivestoconductitsbusinessinamannerthatreflectsthesethreebasicbeliefs(respectfortheindividual,servicetoourcustomers,striveforexcellence)andexpectsitssupplierstoadheretothesebeliefsintheircontracting,subcontracting,andotherbusinessrelationships.Additionally,becausetheconductofWal-Mart’ssupplierscanbeattributedtoWal-Martanditsreputation,Wal-Martrequiresitssuppliers,andtheircontractors,tomeetthefollowingstandards,andreservestherighttomakeperiodic,unannouncedinspectionsofsuppliers’facilitiesandthefacilitiesofsuppliers’contractorstoensuresuppliers’compliancewiththesestandards

Nike Code of ConductNikerecognizesthatachievingourvisionofaleaner,greener,andequitablesupplychainrequiresincreasedcollaborationandjointactionnotonlywithoursuppliersbutwithallstakeholdersinthesupplychain.Webelievethatpartnershipsbasedontransparency,collaborationandmutualrespectareintegraltomakingthishappen.Wewillpartnerwithoursuppliersaswecontinuetoexpandengagementwithcivilsociety,unions,governments,andwithothersinourindustryandbeyondtoaffectsystemicchangetolabor,healthandsafety,andenvironmentalconditionsincountrieswhereweoperate.

IKEA Way on Purchasing Products, Materials and Services (IWAY)AtIKEAwerecognisethatourbusinesshasanimpactonsocialandenvironmentalissues,inparticularpeople’sworkingconditions,aswellastheenvironment,bothlocallyandglobally.Wealsostronglybelievethatwecandogoodbusinesswhilebeingagoodbusiness.Thisisapre-conditiontoourfuturegrowth,agrowththatwillbeachievedalongwithsuppliersthatsharethesamevisionandambition.TheIKEAWayonPurchasingProducts,MaterialsandServices(IWAY)istheIKEAsupplierCodeofConduct.ItcomprisestheIKEAminimumrequirementsrelatingtotheEnvironmentandSocial&WorkingConditions(includingChild Labour).

Patagonia Supplier Workplace Code of Conducthttps://www.patagonia.com/on/demandware.static/Sites-patagonia-us-Site/Library-Sites-PatagoniaShared/en_US/PDF-US/Patagonia_COC_English_02_13.pdfPatagonia’smissionisto“buildthebestproduct,causenounnecessaryharm,andusebusinesstoinspireandimplementsolutionstotheenvironmentalcrisis.”Patagoniaseeksatalltimestoexercisethebestpossiblepracticesfortherespectfulandethicaltreatmentofworkersandpromotesustainableconditionsinwhichworkersearnfairwagesinsafeandhealthyworkplaces

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A1.2.Coverage of Homeworkers

H&M Hennes & Mauritz AB Code of ConductItistheresponsibilityofH&M’ssuppliersandotherbusinesspartnerstoinformtheirsubcontractorsaboutH&M’sCodeofConductandPolicyforHomework,andtoensurethattheseareimplementedineveryfactoryandworkplacethatproduces,finishespacksorotherwisehandlesgoodsorperformsservicesforH&M.WorkersemployedthroughanagentorcontractoraretheresponsibilityofH&M’ssupplierandotherbusinesspartners,andarethuscoveredbythisCode.AllsuppliersandotherbusinesspartnersareobligedtokeepH&Minformedatalltimesofwhereeachproductisbeingproduced,includingsubcontractingandhomework.Relevantdocumentationmustbemaintainedforauditingpurposes.WereservetherighttomakeunannouncedvisitstoallunitsproducinggoodsorservicesforH&M,atanytime.

Levi Strauss & Co. Labour Standards – Terms of EngagementThe TOE refers mainly to factory workers.LeviStrauss&Co.’sWorkerWell-being(WWB)programaimstoimprovethelivesofthosewhomakeourproductsaroundtheworld.Todate,ithasreachednearly200,000workersgloballywithfactory-basedprogramsthatseektoaddressissuesrelatedtohealth,financialsecurityandgenderequality.Theprogramoperatesonthepremisethatwhenworkersarecontent,healthyandengaged,factoryproductivitywillincrease.

Eileen Fisher Code of ConductIn2017,itsignedtheNestCodeofConductforHandworkerswhich“addressesthedistinctcharacteristicsofhomeorsmallworkshopproductionvaluechains.Itpromotesproductionundersafeandfairconditionswithinthecontextoftheuniqueoperationsofdecentralizedandinformalsupplychains–ensuringthatproductsareethicallyhandcrafted.”

Burberry Ethical Trading Code of ConductBusinessAssociatesarenotauthorisedtosub-contractanypartoftheirbusinessrelatedtotheproductionofgoodsorservicestheyprovideeitherdirectlyorindirectlytoBurberrywithoutthepriorwrittenconsentandapprovalofBurberry.Similarly,sub-contractorsarenotauthorisedtosub-contractanypartoftheirbusinessrelatedtotheproductionofgoodsorservicestheyprovideeitherdirectlyorindirectlytoBurberrywithoutthepriorwrittenconsentandapprovalofBurberry.HomeworkingisnotauthorisedwithoutthepriorwrittenconsentandapprovalofBurberry Aspecificsectionofitscodeisdevotedtoits‘HomeworkerPolicy’.

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J. Crew Responsible Sourcing Program Supplier Guidelines (Code of Vendor Conduct)Inlimitedcircumstanceswemayacceptoftheuseofhomeworkersatourdiscretion.Werequirethedisclosureofanyhomeworkinadvanceofproduction,alongwithbasicinformationaboutthestructureofthehomeworkarrangement.Weadditionallyrequirethatthefactorycontractingforsuchworkmaintainatleastminimumrecordsontheproductionasisoutlinedintheattached“HomeworkSchedule”inAppendixG.However,wealsoacknowledgethatitisdifficulttoverifyifthelaborconditionsforhomeworkersmeetthestandardssetoutinourCode.Wearethereforecommittedtopartneringwithoursupplierstotakeactionstoimprovetransparencyaroundtheuseofhomeworkandtounderstandandimproveconditionswherehomeworkisused.Suppliersarerequiredtonotifyus,inadvance,oftheplantouseanysubcontractorforaprocessrelatedtoJ.Crewproduction.Ourdefinitionofsubcontractorsisbroadandincludesanyfacilitythatisperforminganyprocessinthepreparation,production,finishing,packing,handling,orstoringofJ.Crewmerchandisenotdonebythemainmanufacturingfactoryorwashfacility.Theagentandvendorshouldhaveaninternalsystemtocontrolandeliminatesubcontracting.

Marks & Spencer Global Sourcing PrinciplesWithinthisCode,referenceto“workers”meansanyindividualworkingunder(1)acontractofemployment,or(2)anyothercontractwithanotherpartywherebytheindividualundertakestopersonallydoanyworkfor,orprovideservicesto,theotherparty(butexcludingcontractswheretheotherpartyisaclientorcustomerofanyprofessionorbusinessundertakingcarriedonbytheindividual).Suppliersmustagreewithusinadvancetheproductionsiteorsitestobeusedforeachorder:nosubcontractingofourordersfromtheseagreedlocationsisallowed.Itisoursupplier’sresponsibilitytoenforcethesestandardswiththeirownsupplychain.Aspartoftheirsupplychainriskassessmenttheymustbeawareofmorevulnerablegroupslikewomen,migrantworkers,indigenouspeoples,smallholdersandhomeworkers,andsubcontractingandhaveadequatemeasuresinplacetoensuretherightsofthesegroupsareupheld.

Gap Inc (including Banana Republic and Old Navy)Makesnospecificreferencetohomeworkers.TheentireCodeofVendorConductrefersonlytofactories

Target Ethical Sourcing CodeMakesnospecificreferencetohomeworkers.Butthecodecovers“vendorsandtheirfactories&authorisedsubcontractors”.

Fast Retailing Group Code of Conduct for Production PartnersWhenproductionpartnerssubcontractproductionorderssubmittedbyanyFASTRETAILING4/4groupcompanytosubcontractorsorhomeworkers,suchproductionpartnersshallensurethatallthebusinessactivitiesbythesubcontractors or homeworkers are in accordance with this code of conduct and shall cause all of them to comply withthiscodeofconductonproductionpartners’responsibility.AnyuseofsubcontractorsorhomeworkersbyproductionpartnersshallbereportedtoFASTRETAILINGpriortotheirengagement.

Inditex Group Code of Conduct for Manufacturers and SuppliersManufacturersandsuppliersshallnotassignanyworktothirdpartieswithoutthepriorwrittenauthorizationofInditex.ThosewhooutsourceanyworkshallberesponsiblefortheenforcementoftheCodebythesethirdpartiesandtheiremployees.Likewise,manufacturersandsuppliersshallapplytheprinciplesofthisCodetoanyhomeworkerinvolvedintheirsupplychain,andshallgivetransparencytothelocationsandworkingconditionsofsaid homeworkers.

Country Road Group Code of Labour PracticeSuppliersshallnotsub-contractthemanufactureand/orsupplyofGoodsorServiceswithoutthepriorwrittenauthorisationfromtheCountryRoadGroup.WhereHomeWorkexistswithinthesupplychain,itmustbecarriedoutvoluntarily.ThestandardsandprovisionsinthisCodeofPracticeapplyequallytoHomeWorkersaswellasotherwageearners,including;discrimination;childlabour;freedomofassociationandtherighttocollectivebargaining;fairlivingwages,hoursofwork,healthandsafetyandworkingconditions;employmentrelationshipsanddisciplinarypractice.

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Walmart Stores Inc. Standards for SuppliersMakesnospecificreferencetohomeworkersbutatthesametimedoesnotspecifyonlyfactories.Thecodeissupposedtocover“suppliers’facilitiesandthefacilitiesofsuppliers’contractorstoensuresuppliers’compliancewiththese standards”

Nike Code of ConductWorkisperformedonthebasisofarecognizedemploymentrelationshipestablishedthroughcountrylawandpractice.ThesupplierdoesnotuseanyformofhomeworkingarrangementfortheproductionofNike-brandedoraffiliateproduct.

IKEA Way on Purchasing Products, Materials and Services (IWAY)Theterm“Worker”inthisdocumentincludesownhiredworkersaswellason-sitetemporaryworkers,piecerateworkers,contractedworkers,traineesandworkersontrialorprobation.TheIKEAWorkingManualdefineshomeworkersas“workersthatarecontractedtoworkoutsideaproductionunitorweavingcentreset-ups,primarilyintheirhomesorequivalent.Home-basedworkisnotacceptablewithoutIKEAspecificapproval”–theapprovalistobebasedoncompliancewithrequirementsregardingchildlabour,forcedandbondedlabour,wagesandsafeworkingenvironment.

Patagonia Supplier Workplace Code of ConductRequirementsinthisCodeapplytothewholesupplychain,includingsub-suppliers,sub-contractorsandfarms.Standardsequallyapplytopermanent,temporary,andagencyworkers,aswellaspiece-rate,salaried,hourlypaid,legalyoungworkers(minors),parttime,night,andmigrantworkers.Patagoniadoesnotpermitsubcontractingwithoutourpriorwrittenapproval.Allsalesman-sampleandbulkproductionordersmustbeplacedwithinfacilitiesthathavebeenpre-approvedbyPatagonia,withoutexception.Directsuppliersarerequiredtocontinuouslymonitorapprovedsubcontractorsandsub-suppliersforsocialandenvironmentalresponsibilityusingstandardsthatmeetorexceedourCodeandBenchmarks.

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A1.3. Forced or Prison Labour

H&M Hennes & Mauritz ABWedonotacceptanyformsofforcedorbondedlabourandwedonotaccepttheuseofprisonlabourorillegallabourintheproductionofgoodsorservicesforH&M.(RefertoILOConventions29and105)

Levi Strauss & Co. Labour Standards – Terms of EngagementWewillnotutilizebusinesspartnerswhouseprison,forcedortraffickedlabor,norwillweutilizeorpurchasematerialsfromabusinesspartnerutilizingprison,forcedortraffickedlabor.Thegeneraldefinitionofforcedlaborisanyworkorserviceperformedunderthemenaceofpenalty,andforwhichthesaidpersonshavenotofferedupthemselvesvoluntarily.1Therearefourcommonformsofforcedlabor:PrisonLabor;IndenturedLabor;BondedLaborandTraffickedLabor.

Eileen Fisher Code of ConductThereshouldnotbeanyforced,bondedorinvoluntaryprisonlabor.

Burberry Ethical Trading Code of ConductUndernocircumstancesshallBurberrynoranyBusinessAssociateuseorinanywaybenefitfromanyformofModernSlaveryincludingbutnotlimitedto,forced,bondedorinvoluntaryprisonlabour.Workersarenotrequiredtolodge“deposits”ortheiridentitypaperswiththeiremployerandarefreetoleavetheiremployerafterreasonablenotice.

J. Crew Responsible Sourcing Program Supplier Guidelines (Code of Vendor Conduct)J.CrewSuppliersmustnotuseanytypeofforced,bonded,compulsoryorprisonlabor.Suppliersshallensurethatallemploymentisvoluntary,freefromviolence,threats,financialpenaltiesorcoercion.Thereshallbenorestrictionsonmovement,withholdingofpersonaldocuments,ordeposits.Suppliersmusttakeadequatestepstoensurethatworkersarenottraffickedorotherwiseexploited.

Marks & Spencer Global Sourcing PrinciplesAllworkmustbeconductedonavoluntarybasis,andnotunderthreatofanypenaltyorsanctions.Suppliersmustensurethatworkersarenotrequiredtomakedeposits/financialguarantees/paymentstoemployers,labourprovidersoragenciestoobtainwork,andmustnotretainoriginalcopiesofidentitydocuments(suchaspassports,identitycards,etc.)Bonded/indenturedlabourisprohibited.

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Gap Inc (including Banana Republic and Old Navy)Factoriesshallnotuseanyprison,indenturedorforcedlabour.

Target Ethical Sourcing CodeFactoriesshallnotuseanytypeofforcedlabour,whichmeansanyworkorserviceperformedinvoluntarilyunderthreatofphysicalorotherpenalty,suchasprison,indenturedorbondedlabour.Further,theyshallrespectthefreedomofmovementofitsworkersandnotrestricttheirmovementbycontrollingidentitypapers,holdingmoneydeposits,ortakinganyotheractiontopreventworkersfromterminatingtheiremployment.

Fast Retailing Group Code of Conduct for Production PartnersProductionpartnersshallnotuseanybonded,indentured,forced,orslavelabor,laborconductedbyprisoners,laborsimilartoslavery,orlaborengagedthroughhumantrafficking.Workersshallnotberequiredtosubmitoriginalpersonallegaldocumentsormakedepositsofanykindatanytimeduringtherecruitmentandemploymentprocess.Workers’freedomofmovementshallnotberestrictedineithertheirworkplaceorlivingquarters.

Inditex Group Code of Conduct for Manufacturers and SuppliersInditexshallnotallowanyformofforcedorinvoluntarylabourintheirmanufacturersandsuppliers.Theymaynotrequiretheiremployeestomakeanykindof“deposits”,noraretheyentitledtoretainemployees’identitydocuments.Manufacturersshallacknowledgetherightoftheiremployeestoleavetheiremployerafterreasonablenotice

Country Road Group Code of Labour PracticeThereshallbenouseofforced,bondedorprisonlabour.Workersshouldnotberequiredtolodge“deposits”ortheiroriginalidentitypaperswithemployersandshouldbefreetoleavetheiremployerafterreasonablenotice.

Walmart Stores Inc. Standards for SuppliersForcedorprisonlabourwillnotbetoleratedbyWal-Mart

Nike Code of ConductThesupplierdoesnotuseforcedlabor,includingprisonlabor,indenturedlabor,bondedlabororotherformsofforcedlabor.Thesupplierisresponsibleforemploymenteligibilityfeesofallworkers,includingrecruitmentfees.

IKEA Way on Purchasing Products, Materials and Services (IWAY)TheIKEAsuppliershall:•Notuseanyprisonworkers.•Notuseanymilitarypersonnelemployedaspartoftheiractiveservice.•Notrequireanydeposits.•Notwithholdwages,IDcards,passports,orotherpersonalbelongings.•Notdelaypaymentsofworkers’salarymorethanonemonthonaregularbasis.

Patagonia Supplier Workplace Code of ConductThereshallbenouseofforcedlabor,includingprison,indentured,bonded,slaveorotherformsofforcedlabor.Actsofhumantraffickingarealsoprohibited.Suppliersarerequiredtomonitoranythirdpartyentitywhichassiststheminrecruitingorhiringemployees,toensurethatpeopleseekingemploymentattheirfacilityarenotcompelledtoworkthroughforce,deception,intimidation,coercionorasapunishmentforholdingorexpressingpoliticalviews.(ILOConventions29,105,182)

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A1.4. Child Labour

H&M Hennes & Mauritz AB(RefertoILOConventions138and182andtotheUNConventionontheRightsoftheChild).H&Mdoesnotacceptchildlabour.Nopersonshallbeemployedatanageyoungerthan15(or14wherethenationallawsoallows)oryoungerthanthelegalageforemploymentifthisageishigherthan15.Thecompanymusttakethenecessarypreventivemeasurestoensurethatitdoesnotemployanyonebelowthelegalageofemployment.Alllegallimitationsontheemploymentofpersonsbelowtheageof18yearsmustbefollowed.WeacknowledgethataccordingtotheUNConventionontheRightsoftheChild,apersonisachilduntiltheageof18.Werecognisetherightsofeverychildtobeprotectedfromeconomicexploitationandfromperforminganyworkthatislikelytobehazardousortointerferewiththechild’seducation,ortobeharmfultothechild’shealthorphysical,mental,spiritual,moralorsocialdevelopment.

Levi Strauss & Co. Labour Standards – Terms of EngagementUseofchildlaborisnotpermissible.Workerscanbenolessthan15yearsofageandnotyoungerthanthecompulsoryagetobeinschool.Wewillnotutilizepartnerswhousechildlaborinanyoftheirfacilities.Wesupportthedevelopmentoflegitimateworkplaceapprenticeshipprogramsfortheeducationalbenefitofyoungerpeople.

Eileen Fisher Code of ConductThere shall be no new recruitment of child labor.Companiesshalldeveloporparticipateinpoliciesandprogramsthatprovideforthetransitionofanychildfoundtobeperformingchildlabor.Theprogrammustenableherorhimtoattendandremaininqualityeducationuntilnolongerachild;“child”and“childlabor”beingdefinedintheBaseCodeappendices

Burberry Ethical Trading Code of ConductThereshallbenochildlabour.Youngpersonsbetween16and18shallnotbeemployedatnightorinhazardousconditions.BurberryanditsBusinessAssociateswillalwaysconformtotherelevantILOstandards.

J. Crew Responsible Sourcing Program Supplier Guidelines (Code of Vendor Conduct)J.CrewSuppliersmustnotemployworkersyoungerthan15yearsofage.However,iftheageforcompletingcompulsoryeducationortheminimumworkingageinthecountryofmanufactureisgreaterthan15.Suppliersmustcomplywithallotherapplicablechildlaborlaws,andmustensureworkersundertheageof18donotperformworkthatmayjeopardizetheirhealthorsafety.

Marks & Spencer Global Sourcing PrinciplesSuppliersmustnotemployworkerswhoareyoungerthan:i)thelegalminimumageforemploymentapplicabletothesupplier;orii)theageofcompletionofcompulsoryeducation;Inanyevent,asuppliermustnotemployapersonundertheageof15inanycircumstancesandmustimplementrobustageverificationchecksatalltimestoensurethis policy is upheld.

Gap Inc (including Banana Republic and Old Navy)Factoriesshallemployonlyworkerswhomeettheapplicableminimumlegalagerequirementorareatleast15yearsofage,whicheverisgreater.Factoriesmustalsocomplywithallotherapplicablechildlabourlaws.Factoriesareencouragedtodeveloplawfulworkplaceapprenticeshipprogrammesfortheeducationalbenefitoftheirworkers,providedthatallparticipantsmeetGapInc’sminimumagestandardof15andtheminimumlegalagerequirement.

Target Ethical Sourcing CodeVendorwillcomplywiththeminimumemploymentagelimitdefinedbynationallaworbyInternationalLaborOrganization(ILO)Convention138,whicheverishigher.TheILOConvention138minimumemploymentageis

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thelocalmandatoryschoolingage,butnotlessthan15yearsofage,subjecttoexceptionsallowedbytheILOandnationallaw.

Fast Retailing Group Code of Conduct for Production PartnersProductionpartnersshallnotusechildlabor.Theterm“child”isdefinedasapersoneitheryoungerthantheageof15(or14inaccordancewithexceptionsunderILOConvention138),oryoungerthanthelegalminimumworkingage(ifsuchalegalstandardhasbeenset),whicheverageishigher.Productionpartnersshallmaintaindocumentationtoverifytheageofallworkers.Inthosecountrieswhereofficialdocumentsarenotavailableorreliable,productionpartnersshallestablishappropriateandconsistentmethodstoconfirmtheworker’sage.Whenemployingworkers,productionpartnersshallcomplywithallLawsrelatedtoworkersundertheageof18,andalsoLawsrelatedtoapprenticesandlearners.Workersundertheageof18shallnotworkunderhazardousconditionsorduringnightshifts.

Inditex Group Code of Conduct for Manufacturers and SuppliersManufacturersandsuppliersshallnotemployminors.Inditexdefinesminorsasthosepersonswhohavenotyetreachedtheir16thbirthday.Incaseswherelocallegislationstipulatesahigherminimumage,thehigherlimitshallapply.Personswiththeagesbetweenof16and18yearswillbeconsideredyoungworkers.Youngworkersshallnotworkduringnighthoursorinhazardousconditions.

Country Road Group Code of Labour PracticeThereshallbenoexploitationofchildlabouratanypointwithinthesupplychainincludingthecultivationofcottonandcottonshallnotknowinglybesourcedfromUzbekistan.Manufacturersshallnotemploychildrenundertheageof15yearsorpersonswhofallbelowthelocallegalminimumworkingage,whicheveristhegreater.Workersshallonlybeemployedinaccordancewithallapplicablelocallaws,regulationsandindustrystandards.Workersundertheageof18mustnotperformpotentiallyhazardousworkandtheremustbeadequatestepstoensurethattherearenoadverseeffectsontheeducationandsafetyoftheemployee.Workersundertheageof18shallnotbepermittedtoworkatnight.

Walmart Stores Inc. Standards for SuppliersWal-Mart will not tolerate the use of child labour. Wal-Mart will not accept products from suppliers or subcontractorswhousechildlabor.Nopersonshallbeemployedatanageyoungerthanthelegalminimumageforworkinginanyspecificjurisdictions.Innoeventshallsuppliersortheirsubcontractorsemployworkerslessthan14yearsofage.

Nike Code of ConductSupplier’semployeesareatleastage16orovertheageforcompletionofcompulsoryeducationorcountrylegalworkingage,whicheverishigher.Employeesunder18arenotemployedinhazardousconditions.

IKEA Way on Purchasing Products, Materials and Services (IWAY)IKEAdoesnotacceptchildlabour.Allmeasurestopreventchildlabourshallbeimplementedtakingintoaccountthebestinterestsofthechild.TheIKEAsuppliershallnotmakeuseofchildlabourandtaketheappropriatemeasurestoensurethatnochildlabouroccursattheirownplaceofproductionoroperationsorattheirsubcontractors’place(s)ofproductionoroperations.IKEAsupportsthelegalemploymentofyoungworkers.TheIKEAsuppliershallprotectyoungpersonsoflegalworkingage,untiltheageof18,fromanytypeofemploymentorworkwhichbyitsnatureorcircumstancesinwhichitiscarriedout,islikelytojeopardisetheirhealth,safetyormorals.

Patagonia Supplier Workplace Code of ConductNopersonshallbeemployedundertheageof15orundertheageforcompletionofcompulsoryeducation,whicheverishigher.Juvenileworkers(ages15-17)shallnotperformworkwhich,byitsnatureorthecircumstancesinwhichitiscarriedout,islikelytocompromisetheirhealth,safetyormorals.(ILOConvention138and182)

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A1.5. Health and Safety Measures

H&M Hennes & Mauritz ABWerequireoursuppliersandotherbusinesspartnerstomakeemployees’safetyapriorityatalltimes.Nohazardousequipmentorunsafebuildingsareaccepted.

Levi Strauss & Co. Labour Standards – Terms of EngagementWewillonlyutilizebusinesspartnerswhoprovideworkerswithasafeandhealthyworkenvironment.Businesspartnerswhoprovideresidentialfacilitiesfortheirworkersmustprovidesafeandhealthyfacilities.

Eileen Fisher Code of ConductSafeandhygienicworkingenvironmentsshallbeprovided,bearinginmindtheprevailingknowledgeoftheindustryandofanyspecifichazards.Adequatestepsshallbetakentopreventaccidentsandinjurytohealtharisingoutof,associatedwithoroccurringinthecourseofworkbyminimizing,sofarasisreasonablypracticable,thecausesofhazardsinherentintheworkingenvironment.

Burberry Ethical Trading Code of ConductAsafeandhygienicworkingenvironmentshallbeprovided,bearinginmindtheprevailingknowledgeoftheindustryandofanyspecifichazards.Adequatestepsshallbetakentopreventaccidentsandinjurytohealtharisingoutof,associatedwith,oroccurringinthecourseofwork,byminimising,sofarasisreasonablypractical,thecausesofhazardsinherentintheworkingenvironment

J. Crew Responsible Sourcing Program Supplier Guidelines (Code of Vendor Conduct)J.CrewSuppliersmustcomplywithallapplicablelawsandregulationsgoverningworkplacehealthandsafety.Suppliersshallprovidetheirworkerswithaclean,safeandhealthyworkenvironment.Thesameappliesfordormitoryfacilities,whereprovided

Marks & Spencer Global Sourcing PrinciplesSuppliersmustprovidesafeandcleanconditionsforallworkersonsiteinallworkandresidentialfacilitiesandmustestablishandmustfollowaclearsetofproceduresregulatingoccupationalhealthandsafety.

Gap Inc (including Banana Republic and Old Navy)Factoriesshallcomplywithallapplicablelawsandregulationsregardingworkingconditionsandshallprovideworkerswithasafeandhealthyenvironment

Target Ethical Sourcing CodeConditionsinallproductionandresidentialfacilitiesmustbesafe,cleanandconsistentwithallapplicablelawsandregulationsorindustrybestpractices,whicheverishigherinordertoavoidpreventableworkrelatedaccidentsandinjuries.

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Fast Retailing Group Code of Conduct for Production PartnersProductionpartnersshallprovideallworkerswithasafeandhealthyenvironment,ensuringproperhealthandsafetymanagement;buildingandfiresafety;safetyofmachineryandequipment;accesstopotablewaterandsuitablesanitaryfacilities;andsafehandlingofchemicals.Thesamestandardsshallalsoapplytohousingforworkers.

Inditex Group Code of Conduct for Manufacturers and SuppliersManufacturersandsuppliersshallprovideasafeandhealthyworkplacetotheiremployees,ensuringminimumconditionsoflight,ventilation,hygiene,fireprevention,safetymeasuresandaccesstoadrinkingwatersupply.

Country Road Group Code of Labour PracticeAsafeandhygienicworkingenvironmentshallbeprovided,andbestoccupationalhealthandsafetypracticeshallbepromoted,bearinginmindtheknowledgeoftheindustryandofanyspecifichazards.AHealthandSafetyManagershallbeappointedandworkersshallreceiveregularandrecordedhealthandsafetytraining,whichshallberepeatedforneworreassignedworkers.Accesstocleandrinkingwater,adequatesanitarywashingandtoiletfacilitiesshallbeavailable.Adequatelighting,ventilation,fireextinguishersandfireexitsshallbeprovided.Thesestandardsshouldbemaintainedforfactories,canteensanddormitories.

Walmart Stores Inc. Standards for SuppliersFactoriesproducingmerchandisetobesoldbyWal-Martshallprovideadequatemedicalfacilitiesandensurethatallproductionandmanufacturingprocessesarecarriedoutinconditionsthathaveproperandadequateconsiderationsforthehealthandsafetyofthoseinvolved.Wal-Martwillnotdobusinesswithanysupplierthatprovidesanunhealthyorhazardousworkenvironmentorwhichutilizesmentalorphysicaldisciplinarypractices.

Nike Code of ConductThesupplierprovidesasafeworkplacesettingandtakesnecessarystepstopreventaccidentsandinjuryarisingoutof,linkedwithoroccurringinthecourseofworkorasaresultoftheoperationofsupplier’sfacilities.Thesupplierhassystemstodetect,avoidandrespondtopotentialriskstothesafetyofallemployees.Suppliersanticipate,recognize,evaluateandcontroloccupationalhealthandhygienehazardsintheworkplace.Suppliersuseroutinemonitoringandanalyticalmethodstodeterminethepotentialhealtheffectsofhazardsthatarepresentintheworkplace.Workersarenotexposedtophysical,chemicalorbiologicalhazardsaboveoccupationalexposurelimits.

IKEA Way on Purchasing Products, Materials and Services (IWAY)TheIKEAsuppliershallensurecompliancewithapplicablelaws&regulationsrelatingtohealthandsafetyissuesincludingclassification,workplaceriskanalysis,reportingandinspectionsbyauthorities.Therequiredcorrectiveactionsfromsuchinspectionsshallbedocumentedandcompletedwithinthesettimeframe.

Patagonia Supplier Workplace Code of ConductSuppliersshallprovideasafeandhealthyworkplacetopreventaccidentsandinjurytohealtharisingoutof,linkedwith,oroccurringinthecourseofworkorasaresultoftheoperationofemployers’facilities.Theemployershalltakeaproactiveapproachtohealthandsafetybyimplementingpolicies,systemsandtrainingdesignedtopreventaccidents,injuriesandprotectworkerhealth.(ILOConvention155)

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A1.6. Working Time

H&M Hennes & Mauritz ABOrdinaryworkinghoursmustnotexceedthelegallimitandshallneverexceed48hourperweek.Overtimehoursmustnotexceedthenumbersallowedbythelawofthecountry.Ifsuchlimitsdonotexist,overtimeworkshouldnotexceed12hoursperweek.Overtimeworkmustalwaysbevoluntaryandcompensatedinaccordancewiththelaw.Piece-rateworkshouldnotbeexemptedfromtherighttoovertimecompensation.Employeesareentitledtoatleastonedayoffineveryseven-dayperiod.Theemployeesshallbegrantedandcorrectlycompensatedforanytypesofpaidleavetowhichtheyarelegallyentitled.Examplesofsuchleaveincludeannualleave,maternity/parentalleaveandsickleave.

Levi Strauss & Co. Labour Standards – Terms of EngagementWhilepermittingflexibilityinscheduling,wewillidentifyprevailinglocalworkhoursandseekbusinesspartnerswhodonotexceedthemexceptforappropriatelycompensatedovertime.Whilewefavourpartnerswhoutilizelessthansixty-hourworkweeks,wewillnotusecontractorswho,onaregularbasis,requireinexcessofasixty-hourweek.Employeesshouldbeallowedatleastonedayoffinseven.

Eileen Fisher Code of ConductWorkinghourscomplywithnationallawsandbenchmarkindustrystandards,whicheveraffordsgreaterprotection.Inanyevent,workersshallnotonaregularbasisberequiredtoworkinexcessofforty-eighthoursperweekandshallbeprovidedwithatleastonedayoffforeveryseven-dayperiodonaverage.Overtimeshallbevoluntary,shallnotexceedtwelvehoursperweek,shallnotbedemandedonaregularbasisandshallalwaysbecompensatedatapremium rate.

Burberry Ethical Trading Code of ConductWorkinghoursmustcomplywithnationallaws,collectiveagreements.Workinghours,excludingovertime,shallbedefinedbycontract,andshallnotexceed48hoursperweek.Allovertimeshallbevoluntary.Overtimeshallbeusedresponsibly,takingintoaccountallthefollowing:theextent,frequencyandhoursworkedbyindividualworkersandtheworkforceasawhole.Itshallnotbeusedtoreplaceregularemployment.Overtimeshallalwaysbecompensatedatapremiumrate,whichisrecommendedtobenotlessthan125%oftheregularrateofpay.Workersshallbeprovidedwithatleastonedayoffinevery7-dayperiodor,whereallowed/requiredbynationallaw,2daysoffinevery14-dayperiod

J. Crew Responsible Sourcing Program Supplier Guidelines (Code of Vendor Conduct)J.CrewSuppliersmustcomplywithallapplicablelawsandregulationsrelatingtohoursofwork.Exceptinextraordinarybusinesscircumstances,workersshallnotberequiredtoworkmorethan60hoursperweek(includingovertime).Suppliersshallprovideworkerswithatleastonedayoffforeveryseven-dayperiod.

Marks & Spencer Global Sourcing PrinciplesSuppliersmustensurethatworkinghourscomplywithnationallawsorbenchmarkindustrystandardsorrelevantinternationalstandards,whicheveraffordsgreaterprotectiontoensurethehealth,safetyandwelfareofworkers.Workinghours,excludingovertime,mustnotexceed48hoursperweek.Thetotalhoursworked(includingovertime)inanyweekmustnotregularlyexceed60hoursinasingleweek.Allovertimemustbevoluntaryandmustnotberequestedonaregularbasis.Suppliersmustensurethatallworkersreceiveonaveragetwodaysoffinfourteen,aswell as annual holidays.

Gap Inc (including Banana Republic and Old Navy)Factoriesshallsetworkinghoursincompliancewillallapplicablelaws.Whileitisunderstoodthatovertimeisoftenrequiredingarmentproduction,factoriesshallcarryoutoperationsinwaysthatlimitovertimetoalevelthatensureshumaneandproductiveworkingconditions.Workersmayrefuseovertimewithoutanythreatofpenalty,punishmentordismissal.Workersshallhaveatleastonedayoffinseven.

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Target Ethical Sourcing CodeUnderordinarybusinesscircumstances,employeesmustnotberequiredtoworkexcessiveworkinghoursperweek,includingovertime,andhavetheoptionofatleastonedayoffinseven.Weexpectthatallrecordkeepingwillbestrictlyaccurate,completeandtransparentatalltimes.

Fast Retailing Group Code of Conduct for Production PartnersProductionpartnersshallcomplywithworkinghourlimitsestablishedbyapplicableLaws,butundernocircumstancesshalltotalweeklyworkinghoursexceed60hoursperweek.Productionpartnersshallprovideworkerswithatleastonedayoffinseven.Productionpartnersshallalsomaintainaccuratetime-in/outrecordsofeachworker.Overtimemustbevoluntaryandcompensatedatapremiumrate.

Inditex Group Code of Conduct for Manufacturers and SuppliersManufacturersandsuppliersshallnotrequiretheiremployeestowork,asaruleofthumb,inexcessof48hoursaweekandworkersshallbegrantedatleastonedayoffforevery7calendardayperiodonaverage.Overtimeshallbevoluntary,shallnotexceed12hoursperweek,shallnotbedemandedonaregularbasisandshallalwaysbecompensatedatapremiumrate,pursuanttotheprovisionsoftheprevailingregulationsinforce

Country Road Group Code of Labour PracticeHoursofworkshallcomplywithapplicablelaws,regulationsandindustrystandards.Workersshallnotberequiredtowork,inclusiveofovertime,inexcessof60hoursperweek.AtleastonedayoffpersevendaysonaverageshallbeprovidedOvertimeshallbevoluntaryandshallnotbedemandedonaregularbasis.

Walmart Stores Inc. Standards for SuppliersSuppliers shall maintain reasonable employee work hours in compliance with local standards and applicable laws of thejurisdictionsinwhichthesuppliersaredoingbusiness.Suppliers’employeesshallnotworkmorethan72hoursper6daysorworkmorethanamaximumtotalworkinghoursof14hourspercalendarday(measuredmidnighttomidnight).Supplier’sfactoriesshouldbeworkingtowardachievinga60-hourworkweek.Wal-Martwillnotusesupplierswho,onaregularlyscheduledbasis,requireemployeestoworkinexcessofthestatutoryrequirementswithoutpropercompensationasrequiredbyapplicablelaw.Employeesshouldbepermittedreasonabledaysoff(atleastonedayoffforeveryseven-dayperiod)andleaveprivileges

Nike Code of ConductSuppliersshallnotrequireworkerstoworkmorethantheregularandovertimehoursallowedbythelawofthecountrywheretheworkersareemployed.Theregularworkweekshallnotexceed48hours.Suppliersshallallowworkersatleast24consecutivehoursofrestineveryseven-dayperiod.Allovertimeworkshallbeconsensual.Suppliersshallnotrequestovertimeonaregularbasisandshallcompensateallovertimeworkatapremiumrate.Otherthaninextraordinarycircumstances,thesumofregularandovertimehoursinaweekshallnotexceed60hours.

IKEA Way on Purchasing Products, Materials and Services (IWAY)TheIKEAsuppliershallnotrequiretheirworkerstoworkmorethansixty(60)hoursperweekonaregularlyscheduledbasis,includingovertime.Workingtimeshallnotexceedthelegallimit.Overtimehoursshallbeonavoluntarybasis.Workersshallhaveatleastonedayoffinseven.

Patagonia Supplier Workplace Code of ConductSuppliersshallnotrequireworkerstoworkmorethantheregularandovertimehoursallowedbythelawofthecountrywheretheworkersareemployed.Theregularworkweekshallnotexceed48hoursorthemaximumallowedbythelawofthecountryofmanufacture,whicheverisless.Employersshallallowworkersatleast24consecutivehoursofrestineveryseven-dayperiod.Allovertimeworkshallbeconsensual.Employersshallnotrequestovertimehoursonaregularbasis.Thesumofregularandovertimehoursinaweekshallnotexceed60hoursorthemaximumallowedbythelawofthecountyofmanufacture,whicheverisless.(ILOConvention1)

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A1.7. Wages and Benefits

H&M Hennes & Mauritz ABWagesmustbepaidregularly,ontime,andmustreflecttheexperience,qualificationsandperformanceoftheemployee.H&M’sminimumrequirementisthatemployersshallpayatleastthestatutoryminimumwage,theprevailingindustrywageorthewagenegotiatedinacollectiveagreement,whicheverishigher.Allothertypesoflegallymandatedbenefitsandcompensationsshallbepaid.Nounfairdeductionsareallowed,andtheemployeehastherighttoawrittenspecificationofhowthewagehasbeencalculated.Roadmaptoafairlivingwage:Ithasalwaysbeenourvisionthatalltextileworkersshouldbeabletoliveontheirwage.Wearefocusingonourstrategicsupplierstostartwith.Ourgoalisthatallofthemshouldhaveimprovedpaystructuresforfairlivingwagesinplaceby2018.

Levi Strauss & Co. Labour Standards – Terms of EngagementWewillonlydobusinesswithpartnerswhoprovidewagesandbenefitsthatcomplywithanyapplicablelawandmatchtheprevailinglocalmanufacturingorfinishingindustrypractices.

Eileen Fisher Code of ConductLivingwagesarepaid.Wagesandbenefitspaidforastandardworkweekmeet,ataminimum,nationallegalstandardsorindustrybenchmarkstandards,whicheverishigher.Inanyeventwagesshouldalwaysbeenoughtomeetbasicneedsandtoprovidesomediscretionaryincome.

Burberry Ethical Trading Code of ConductLivingwagesshallbepaid.Wagesandbenefitspaidforastandardworkingweekmustmeet,ataminimum,nationallegalstandardsorindustrybenchmarkstandards,whicheverishigher.Inanyeventwagesshouldalwaysbeenoughtomeetbasicneedsandtoprovidesomediscretionaryincome.Allworkersshallbeprovidedwithclear,writteninformationabouttheiremploymentconditionsinrespecttowagesbeforetheycommencetheiremploymentandabouttheparticularsoftheirwagesforthepayperiodconcernedeachtimethattheyarepaid.Deductionsfromwagesasadisciplinarymeasureshallnotbepermittednorshallanydeductionsfromwagesnotprovidedforbynationallawbepermittedwithouttheexpresspermissionoftheworkerconcerned.

J. Crew Responsible Sourcing Program Supplier Guidelines (Code of Vendor Conduct)J.CrewSuppliersmustcomplywithallapplicablelawsandregulationsrelatingtowagesandbenefits.Workersshallbepaidatleasttheminimumwageorawagethatisconsistentwithprevailinglocalindustrystandards;whicheverishigher.Overtimeworkshallbecompensatedatthepremiumrateasislegallyrequired.Compensationmustbeprovidedatleastmonthlyandshouldbeprovidedwithoutillegalorinappropriatedeductionsorpenalties.

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Marks & Spencer Global Sourcing PrinciplesSuppliersmustpayworkersafairwageandbenefitsandhaveatransparentprocesstoensurethatworkersfullyunderstandthewagesthattheyreceive.Suppliersmustcompensatealltheirworkersbyprovidingwages,overtimepay,alllegallyrequiredbenefitsandpaidleavewhichrespectivelymeetorexceedthenationallegalminimumwage,andallapplicablelawsandregulations.(Ifindustrybenchmarkstandardsand/orcollectiveagreementsareinplace,providedtheyarehigherthantheminimumwage,thesemustbefollowed).Wagesshouldbepaidregularlyandon-time.Suppliersshouldworktowardspayingworkersafairlivingwage.

Gap Inc (including Banana Republic and Old Navy)Factoriesshallpaywagesandovertimepremiumsincompliancewithallapplicablelaws.Workersshallbepaidatleasttheminimumlegalwageorawagethatmeetslocalindustrystandards,whicheverisgreater.Factoriesareencouragedtoprovidewagesandbenefitsthataresufficienttocoverworkers’basicneedsandsomediscretionaryincome.

Target Ethical Sourcing CodeVendorsmustcomplywithalllawsregulatinglocalwages,overtimecompensation,andlegallymandatedbenefits.Wageandbenefitpoliciesmustsatisfyallapplicablelawsandregulations.

Fast Retailing Group Code of Conduct for Production PartnersProductionpartnersshallfurnishwagesandbenefits,makemonetarydeductions,andprovideworkerswithemploymentcontractsincompliancewithallapplicableLaws.Productionpartnersshallalsomaintainwage-relateddocumentation.Nomonetarydeductionsshallbepermittedfordisciplinaryaction.

Inditex Group Code of Conduct for Manufacturers and SuppliersManufacturersandsuppliersshallensurethatwagespaidmeetatleasttheminimumlegalorcollectivebargainagreement,shouldthislatterbehigher.Inanyevent,wagesshouldalwaysbeenoughtomeetatleastthebasicneedsofworkersandtheirfamiliesandanyotherwhichmightbeconsideredasreasonableadditionalneeds.Manufacturersandsuppliersshallnotmakeanywithholdingsand/ordeductionsfromwagesfordisciplinarypurposes,norforanyreasonsotherthanthoseprovidedintheapplicableregulations,withouttheexpressauthorizationofworkers.Likewise,theyshallprovideallworkerswith:writtenandunderstandableinformationabouttheirwagesconditionsupontheirrecruitment,anddetailedinformationabouttheparticularsoftheirwageseverytimethatthesearepaid.Manufacturersandsuppliersshallalsoensurethatwagesandanyotherallowancesorbenefitsarepaidontimeandarerenderedinfullcompliancewithallapplicablelawsandspecifically,thatpaymentsare made in the manner that best suits the workers

Country Road Group Code of Labour PracticeFairlivingwages:Wagesandbenefitspaidshallmeetatleastlegalorindustryminimumstandardsinthecountryofmanufactureandshouldbesufficienttomeetbasicneedsandprovidesomediscretionaryincome.Allworkersshallbeprovidedwithwrittenandunderstandableinformationaboutemploymentconditionsandwagesbeforetheycommenceemployment,aswellasremunerationdetailsateachpaymentperiodOvertimepayshallbecalculatedatthelegallyrequiredrateorataminimum,rateof125%ofthestandardrate,regardlessofwhetherworkersarecompensated hourly or by piece rate.

Walmart Stores Inc. Standards for SuppliersSuppliersshallfairlycompensatetheiremployeesbyprovidingwagesandbenefitswhichareincompliancewiththelocalandnationallawsandregulationsofthejurisdictionsinwhichthesuppliersaredoingbusiness,orwhichareconsistentwiththeprevailinglocalstandardsinthecountries,iftheprevailinglocalstandardsarehigher

Nike Code of ConductSupplieracknowledgesthateveryemployee,maleorfemale,hasarighttocompensationforaregularworkweekthatissufficienttomeetemployees’basicneedsandprovidesomediscretionaryincome.Supplier’semployeesaretimelypaidatleasttheminimumwagerequiredbycountrylaw,orprevailingwage,whicheverishigher,andprovidedlegallymandatedbenefits,includingholidaysandleaves,andstatutoryseverancewhenemploymentends.Thereare

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nodisciplinarydeductionsfrompay.Whencompensationdoesnotmeettheemployees’basicneedsandprovidesomediscretionaryincome,suppliershalldevelop,communicateandimplementstrategiestoprogressivelyrealizecompensationthatdoes.

IKEA Way on Purchasing Products, Materials and Services (IWAY)TheIKEAsuppliershallpaywagestoitsworkers,includingcompensationforovertime,andworkinghoursinaccordancetolegalrequirements.TheIKEAsuppliershallprovideitsworkerswithalllegallymandatedbenefitstowhichtheyareentitled.Theselegallymandatedbenefitscouldbemedicalinsurance,socialinsurance,pensionsetc.

Patagonia Supplier Workplace Code of ConductWeseekandfavoursupplierswhoprogressivelyraiseemployeelivingstandardsthroughimprovedwagesystems,benefits,welfareprogramsandotherservices,whichexceedlegalrequirementsandenhancequalityoflife.Everyworkerhasarighttocompensationforaregularworkweekthatissufficienttomeettheworker’sandtheirfamily’sbasicneedsandprovidesomediscretionaryincome.Employersshallpaywageswhichequalorexceedminimumwageortheappropriateprevailingwage,whicheverishigher,complywithalllegalrequirementsonwages,andprovideanyfringebenefitsrequiredbylawand/orcontract.Wherecompensationdoesnotmeetworkers’basicneedsandprovidesomediscretionaryincome,eachemployershallworkwithPatagoniaandtheFairLaborAssociation(FLA)totakeappropriateactionsthatseektoprogressivelyrealizealevelofcompensationthatdoes.(ILOConventions26and131)Inadditiontocompensationforregularworkinghours,employeesmustbecompensatedforovertimehoursattheratelegallyrequiredinthecountryofmanufactureor,inthosecountrieswheresuchlawsdonotexist,atarateexceedingtheregularhourlycompensationratebyatleast125%.(ILOConvention1and30)

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A1.8. Freedom of Association and the Right to Collective Bargaining

H&M Hennes & Mauritz ABAllemployeeshavetherighttoformorjoinassociationsoftheirownchoosing,andtobargaincollectively.H&Mdoesnotacceptdisciplinaryordiscriminatoryactionsfromtheemployeragainstemployeeswhochoosetopeacefullyandlawfullyorganiseorjoinanassociation.(RefertoILOConventions87,98and135)

Levi Strauss & Co. Labour Standards – Terms of EngagementWerespectworkers’rightstoformandjoinorganizationsoftheirchoiceandtobargaincollectively.Weexpectoursupplierstorespecttherighttofreeassociationandtherighttoorganizeandbargaincollectivelywithoutunlawfulinterference.Businesspartnersshouldensurethatworkerswhomakesuchdecisionsorparticipateinsuchorganizationsarenottheobjectofdiscriminationorpunitivedisciplinaryactions,andthattherepresentativesofsuchorganizationshaveaccesstotheirmembersunderconditionsestablishedeitherbylocallawsormutualagreementbetweentheemployerandtheworkerorganizations.

Eileen Fisher Code of ConductWorkers,withoutdifferentiation,havetherighttojoinorformtradeunionsoftheirownchoosingandtobargaincollectively.Theemployeradoptsanopenattitudetowardstheactivitiesoftradeunionsandtheirorganizationalactivities.Workers’representativesarenotdiscriminatedagainstandhaveaccesstocarryouttheirrepresentativefunctionsinthe workplace.Wheretherighttofreedomofassociationandcollectivebargainingisrestrictedunderlaw,theemployerfacilitates,anddoesnothinder,thedevelopmentofparallelmeansforindependentandfreeassociationandbargaining.

Burberry Ethical Trading Code of ConductWorkers,withoutdistinction,havetherighttojoinorformtradeunionsoftheirownchoiceandtobargaincollectively.Theemployeradoptsanopenattitudetowardstheactivitiesoftradeunionsandtheirorganisationalactivities.Workerrepresentativesarenotdiscriminatedagainstandhaveaccesstocarryouttheirrepresentativefunctionsintheworkplace.Wheretherighttofreedomofassociationandcollectivebargainingisrestrictedunderlaw,theemployerfacilitates,anddoesnothinder,thedevelopmentofparallelmeansforindependentandfreeassociationandbargaining.

J. Crew Responsible Sourcing Program Supplier Guidelines (Code of Vendor Conduct)J.CrewSuppliersmustrecognizeandrespecttherightsofworkerstofreedomofassociationandcollectivebargaining.Wheresuchrightsarenotprovidedbylaw,Suppliersshouldtakestepstoprovideanopenmeansofcommunicationwithworkers.

Marks & Spencer Global Sourcing PrinciplesSuppliersmustdevelopprocessesforcommunicatingandconsultingwithworkersandtheirdemocraticallyelectedrepresentativestoshareinformationonthebusinessandtogatherfeedback.Whererelevantagendercommitteeshouldbeconsideredtoensurewomen’shealthandrightsareconsideredandtheirvoiceheardbymanagement.Workers,withoutdistinction,havetherighttojoinorformtradeunionsoftheirownchoosingandtobargaincollectively,withoutpriorauthorisationfromsuppliers’management,accordingtonationallaw.Suppliersmustnotinterferewith,obstructorpreventsuchlegitimateactivities.

Gap Inc (including Banana Republic and Old Navy)Workersarefreetojoinassociationsoftheirownchoosing.Factoriesshallnotinterferewithworkerswhowishto

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lawfullyandpeacefullyassociate,organizeorbargaincollectively.Thedecisionwhetherornottodososhouldbemade solely by the workers.

Target Ethical Sourcing CodeVendorsshouldrespecttherightsofemployeestolawfullyassociateornottoassociatewithgroupsoftheirchoosing,aslongassuchgroupsarelegalinthecountrywherethemerchandiseismanufactured.Vendorsshouldnotinterferewith,obstructorpreventlegitimaterelatedactivities.

Fast Retailing Group Code of Conduct for Production PartnersProductionpartnersshallrespecttherightofworkerstoassociate,organize,andbargaincollectivelyinalegalandpeacefulmannerwithoutpenalty,interference,orcoercion,andinaccordancetotheLaws.Inaddition,productionpartnersshallimplementgrievancemechanismstoallowallworkerstoconfidentiallycommunicateconcernstotheproductionpartner’smanagementandtheworkerrepresentativewithouttheriskofretaliation.

Inditex Group Code of Conduct for Manufacturers and SuppliersManufacturersandsuppliersshallensurethattheiremployees,withoutdistinction,havetherightofassociation,unionmembershipandcollectivebargaining.Noretaliationmayarisefromtheexerciseofsuchrightandnoremunerationorpaymentwhatsoevermaybeofferedtotheemployeesinordertohindertheexerciseofsucharight.Likewise,theyshalladoptanopenandcollaborativeattitudetowardstheactivitiesofTradeUnions.Workers’representativesshallbeprotectedfromanytypeofdiscriminationandshallbefreetocarryouttheirrepresentativefunctionsintheirworkplace.WheretherightstoFreedomofAssociationandCollectiveBargainingarerestrictedunderlaw,theappropriatechannelstoensureareasonableandindependentexerciseofsuchrightsmustbedesigned

Country Road Group Code of Labour PracticeWorkersshallbeallowedtherighttoassociate,formandjointradeunionsandtobargaincollectivelyinapeacefulmanner.Wheretherighttofreedomofassociationandcollectivebargainingisrestrictedunderlaw,theemployerallowsthedevelopmentofameansforindependentandfreeassociationandbargaining

Walmart Stores Inc. Standards for SuppliersSupplierswillrespecttherightsofemployeesregardingtheirdecisionofwhethertoassociateornottoassociatewithanygroup,aslongassuchgroupsarelegalintheirowncountry.Suppliersmustnotinterferewith,obstructorpreventsuchlegitimateactivities.

Nike Code of ConductSuppliershallrecognizeandrespecttherightofemployeestofreedomofassociationandcollectivebargaining.Wheretherighttofreedomofassociationandcollectivebargainingisrestrictedunderlaw,thesupplierallowsthedevelopmentofparallelmeansforindependentandfreeassociationandbargaining

IKEA Way on Purchasing Products, Materials and Services (IWAY)TheIKEAsuppliershallensurethatworkersarenotpreventedfromassociatingfreely.TheIKEAsuppliershallnotpreventworkersfromexercisingcollectivebargainingactivities.

Patagonia Supplier Workplace Code of ConductWorkersmustbefreetojoinorganizationsoftheirownchoice.Suppliersshallrecognizeandrespecttherightofemployeestofreedomofassociationandcollectivebargaining.Allsuppliersmustdevelopandfullyimplementeffectivegrievancemechanismswhichresolveinternalindustrialdisputes,employeecomplaints,andensureeffective,respectfulandtransparentcommunicationbetweenemployees,theirrepresentativesandmanagement.(ILOConventions87,98and135)

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A1.9. Non-Discrimination

H&M Hennes & Mauritz ABNoemployeeshallbediscriminatedagainstinemploymentoroccupationonthegroundsofsex,race,colour,age,pregnancy,sexualorientation,religion,politicalopinion,nationality,ethnicorigin,diseaseordisability.(RefertoILOConventions100and111).Migrantworkersshallhaveexactlythesameentitlementsaslocalemployees.Anycommissionsandotherfeesinconnectionwithemploymentofmigrantworkersmustbecoveredbytheemployer.Theemployermustnotrequiretheemployeetosubmithis/heridentificationdocuments.Depositsarenotallowed.

Levi Strauss & Co. Labour Standards – Terms of EngagementWhilewerecognizeandrespectculturaldifferences,webelievethatworkersshouldbeemployedonthebasisoftheirabilitytodothejob,ratherthanonthebasisofpersonalcharacteristicsorbeliefs.Wewillfavourbusinesspartnerswhosharethisvalue

Eileen Fisher Code of ConductThereshouldbenodiscriminationinhiring,compensation,accesstotraining,promotion,terminationorretirementbasedonrace,caste,nationalorigin,religion,age,disability,gender,maritalstatus,sexualorientation,unionmembershiporpoliticalaffiliation.

Burberry Ethical Trading Code of ConductThereshallbenodiscriminationinhiring,compensation,accesstotraining,promotion,terminationorretirementbasedonrace,caste,nationalorigin,religion,age,disability,gender,maritalstatus,sexualorientation,unionmembershiporpoliticalaffiliation

J. Crew Responsible Sourcing Program Supplier Guidelines (Code of Vendor Conduct)J.CrewSuppliersmustnotdiscriminateinemploymentpracticesincludingrecruitment,hiring,compensation,training,benefits,advancement,terminationorretirementonthebasisofrace,color,ancestry,nationalorsocialorigin,religion,gender,maritalstatus,age,sexualorientation,genderidentityorexpression,disability,politicalopinionoranyotherpersonalcharacteristicsorbeliefs.

Marks & Spencer Global Sourcing PrinciplesSuppliersmustbasetheemploymentrelationshipontheprincipleofequalopportunityandfairtreatment.Theymustnotengagein,supportortoleratediscriminationinanyareaofemployment.Suppliersmustnotdiscriminateagainstanyworkerbasedonrace,colour,age,gender,sexualorientation,ethnicity,disability,religion,politicalaffiliation,unionmembership,nationalorigin,ormaritalstatusinhiringandemploymentpracticessuchasapplicationsforemployment,promotions,rewards,accesstotraining,jobassignments,wages,benefits,discipline,andtermination.Suppliersmustnotrequireapregnancytestordiscriminateagainstpregnantworkersexceptwhererequiredbyapplicablelawsorregulationsorprudentforworkplacesafety.Inaddition,suppliersmustnotrequireworkersorpotentialworkerstoundergomedicalteststhatcouldbeusedinadiscriminatorywayexceptwhererequiredbyapplicablelawsorregulationsorprudentforworkplaceorfoodsafety.Suppliersshouldhaveanequalopportunityemploymentpolicythatpromotesgenderequityinemploymentpractices,andstatesmaternityleaveprovisionandsupport for child care where appropriate

Gap Inc (including Banana Republic and Old Navy)Factoriesshallemployworkersonthebasisoftheirabilitytodothejob,notonthebasisoftheirpersonalcharacteristicsorbeliefs.

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Target Ethical Sourcing CodeAllconditionsofemploymentmustbebasedonanindividual’sabilitytodothejob,notonthebasisofpersonalcharacteristics,suchasgender,ethnicorigin,religion,orpersonalbeliefs.

Fast Retailing Group Code of Conduct for Production PartnersProductionpartnersshallemployworkersonthebasisoftheirabilitytodothejob.Productionpartnersshallnotdiscriminateagainstworkersonthebasisofrace,gender,color,nationality,religion,age,maternity,maritalstatus,socialorethnicorigin,sexualorientation,politicalopinion,disability,affiliation,non-affiliation,oranyotherstatus.

Inditex Group Code of Conduct for Manufacturers and SuppliersManufacturersandsuppliersshallnotapplyanytypeofdiscriminatorypracticewithregardstherecruitment,compensation,accesstotraining,promotion,terminationoftheemploymentagreementorretirement,basedonrace,caste,creed,nationality,religion,age,physicalormentaldisability,gender,maritalstatus,sexualorientationand/orunionmembershiporpoliticalaffiliation

Country Road Group Code of Labour PracticeThereshallbeequalityofopportunityinhiring,compensationandtreatmentregardlessofrace,caste,colour,gender,religion,politicalopinion,unionmembership,nationality,socialorigin,sexualorientation,age,disability,maritalstatus,orotherdistinguishingcharacteristics.

Walmart Stores Inc. Standards for SuppliersAllconditionsofemploymentmustbebasedonanindividual’sabilitytodothejob,notonthebasisofpersonalcharacteristicsorbeliefs.Wal-Martfavourssupplierswhodonotdiscriminateonthebasisofrace,color,nationalorigin,gender,sexualorientation,religion,disability,andothersimilarfactors

Nike Code of ConductThemenandwomenemployedbythesupplierarenotsubjecttodiscriminationinemployment,includinghiring,compensation,promotionordiscipline,onthebasisofgender,race,religion,age,disability,sexualorientation,pregnancy,maritalstatus,nationality,politicalopinion,tradeunionaffiliation,socialorethnicoriginoranyotherstatusprotectedbycountrylaw.Womenandmenshallreceiveequalpayforworkofequalvalue

IKEA Way on Purchasing Products, Materials and Services (IWAY)TheIKEAsuppliershallnotdiscriminatewithregardstoworkersbasedonrace,religion,beliefs,gender,maritalormaternalstatus,age,politicalaffiliation,nationalorigin,disability,sexualorientationoranyotherbasis.TheIKEAsuppliershall,asageneralprinciple,basedecisionsrelatingtohiring,salary,fringebenefits,promotion,terminationonworkersindividualskillsandabilitytodothejob.

Patagonia Supplier Workplace Code of ConductNopersonshallbesubjecttoanydiscriminationinanyaspectoftheemployment,relationshipincludingrecruitment,hiring,compensation,benefits,workassignments,accesstotraining,advancement,discipline,terminationorretirement,onthebasisofrace,religiousbelief,color,gender,pregnancy,childbirthorrelatedmedicalconditions,age,nationalorigin,ancestry,sexualorientation,genderidentification,physicalormentaldisability,medicalcondition,illness,geneticcharacteristics,familycare,maritalstatus,statusasaveteranorqualifieddisabledveteran(intheUSAonly),caste,socio-economicsituation,politicalopinion,unionaffiliation,ethnicgroup,illnessanyotherclassificationprotectedunderapplicablelaw.Allemploymentdecisionsmustbemadebasedontheprincipleofequalemploymentopportunity,andshallincludeeffectivemechanismstoprotectmigrant,temporaryorseasonalworkersagainstanyformofdiscrimination.(ILOConventions100and111)

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A1.10. No Harsh or Inhumane Treatment, No Harassment

H&M Hennes & Mauritz ABEveryemployeeshallbetreatedwithrespectanddignity.Undernocircumstancesdoweaccepttheusebyoursuppliers,theirsubcontractorsorotherbusinesspartnersofhumiliatingorcorporalpunishment,andnoemployeeshallbesubjecttophysical,sexual,psychologicalorverbalharassmentorabuse.

Levi Strauss & Co. Labour Standards – Terms of EngagementLeviStrausswillnotusebusinesspartnerswhousecorporalpunishmentorotherformsofphysicalormentalcoercion.

Eileen Fisher Code of ConductPhysicalabuseordiscipline,thethreatofphysicalabuse,sexualorotherharassmentandverbalabuseorotherformsofintimidationshallbeprohibited.

Burberry Ethical Trading Code of ConductPhysicalabuse,thethreatofphysicalabuse,sexualorotherharassmentandverbalabuseorotherformsofintimidationshallbeprohibited.BusinessAssociateswillhaveaformaldisciplinaryandgrievanceappealprocedurewithdocumentedrecordsofindividualdisciplinaryhearings.Suchaprocedurewillsupportfairtreatmentofworkers.

J. Crew Responsible Sourcing Program Supplier Guidelines (Code of Vendor Conduct)J.CrewSuppliersmusttreatallworkerswithrespectanddignity.Noworkershallbesubjecttocorporalpunishmentorphysical,sexual,psychologicalorverbalharassmentorabuse.Suppliersshallnotusemonetaryfinesasadisciplinarypractice.

Marks & Spencer Global Sourcing PrinciplesSuppliers must commit to a workplace free of harassment. Suppliers must prohibit and must not tolerate all formsofphysicalabuseordiscipline,thethreatofphysicalabuse,sexualorotherharassmentandverbalabuse,corporalpunishment,mentalcoercion,physicalcoercionorotherformsofintimidation.Suppliersmustnotplaceunreasonablerestrictionsonenteringorexitingthecompanyfacilities.

Gap Inc (including Banana Republic and Old Navy)Factoriesshalltreatallworkerswithrespectanddignity.Factoriesshallnotusecorporalpunishmentoranyotherformofphysicalorpsychologicalcoercion.

Target Ethical Sourcing CodeWorkersshallbetreatedwithdignityandrespect.Inparticular,factorieswillprovideaworkplacefreefromharassment,whichcantakemanyforms,includingphysical,sexual,verbalorvisualbehaviourthatcreatesanoffensive,hostile,orintimidatingenvironment.

Fast Retailing Group Code of Conduct for Production PartnersProductionpartnersmusttreatallworkerswithrespectanddignity.Productionpartnersshallnotusecorporalpunishmentoranyformsofcoercion.Productionpartnersshallnotengageinorpermitanyformsofabuse,includingphysical,verbal,orpsychologicalabuse,oranyformsofharassment,includingsexualharassment.

Inditex Group Code of Conduct for Manufacturers and SuppliersManufacturersandsuppliersshalltreattheiremployeeswithdignityandrespect.Undernocircumstancesshallphysicalpunishment,sexualorracialharassment,verbalorpowerabuseoranyotherformofharassmentorintimidationbepermitted.

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Country Road Group Code of Labour PracticeCorporalpunishmentoranyotherformofphysicalorpsychologicalcoercionorintimidation,includingsexualabuseorharassment,physicaldiscipline,orharshdisciplineofallkinds,orverbalabuse,shallnotbeusedagainstworkers.

Walmart Stores Inc. Standards for SuppliersRefrainfromcorporalpunishment,harassment,threateningbehaviourandabuse,includingwhenimposingdiscipline.

Nike Code of ConductSupplier’semployeesaretreatedwithrespectanddignity.Employeesarenotsubjecttophysical,sexual,psychologicalorverbalharassmentorabuse.

IKEA Way on Purchasing Products, Materials and Services (IWAY)TheIKEAsuppliershallnotengageinorsupporttheuseofcorporalpunishment,threatsofviolenceorotherformsofmentalorphysicalcoercion.TheIKEAsuppliershallnotmakeuseofpublicwarningandpunishmentsystems.TheIKEAsuppliershallnotengage,supportorallowanyformofharassmentorabuseintheworkplace

Patagonia Supplier Workplace Code of ConductEveryemployeeshallbetreatedwithrespectanddignity.Noemployeeshallbesubjecttoanyphysical,sexual,psychologicalorverbalharassmentorabuseortomonetaryfinesorembarrassingactsasadisciplinarymeasure

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APPENDIX 2: BURBERRY ETHICAL TRADING CODE OF CONDUCT HOMEWORKER POLICY

1. BASIC PROVISIONS I. HomeworkerscannotbeusedwithoutthepriorwrittenconsentofBurberry.II. AllHomeworkersaresubjecttotheEthicalTradingCodeofConductandthereforetheBusinessAssociate

shallprocurethatallworkingconditionsofeachoftheirHomeworkerscomplywiththeEthicalTradingCodeof Conduct and Laws.

III.EachBusinessAssociateusingHomeworkersshallhaveaninternalHomeworkingPolicy,approvedbytheBusinessAssociate’smostseniorperson.Thisshouldincludeverificationthatthelocationofworkissafe,hygienicandappropriateforthetypeofworkprocesstobeundertaken.

IV.ItistheresponsibilityoftheBusinessAssociatetohavefullinformationoneachoftheHomeworkersusedforproductionincludingbutnotlimitedto,thename,thelocationofworkandthewageratepaidtoeachHomeworker(andanyotherinformationasrequiredbyBurberryfromtimetotime).TheBusinessAssociateshallprovidethisinformationtoBurberryimmediatelyonrequest.

EachHomeworkershallbeprovidedwithallthematerialsandmachineryrequiredfortheHomeworkertocarryouttheworkprocessatnocosttotheHomeworker.FortheavoidanceofdoubtthisincludesnodeductionsfromtheHomeworkerswagesbeingmadeinrespectofsuchmaterialsandmachinery.

2. REMUNERATION I. VerifiablesystemsshouldbeinplacetoensurethatallHomeworkersareabletomeetatleastminimum

wage.II. TheBusinessAssociateshouldhaveuptodaterecordsofallwagespaidforatleasttheprevious12months

whichshouldbeavailabletoBurberryforreviewimmediatelyonrequest.III. Ifpaidincash,Homeworkersshouldsigntoconfirmthattheyhavereceivedtheagreedandowedquantity

ofwagesearned.TheserecordsshouldbeavailablefromtheBusinessAssociateforatleasttheprevious12months(orasrequiredbylocallaw,iflonger).Homeworkersshouldbeprovidedwithapayslipfortheirownrecords for the work completed and payment made.

3. REGULAR WORK I. AllHomeworkersshouldbeprovidedwithanemploymentcontractunlesstheHomeworkerisworkingon

aself-employedbasis,inwhichcasetheHomeworkerandtheBusinessAssociateshouldhaveaformalcontractinplacesettingoutthetermsoftheirbusinessengagement.Therelevantcontractshouldincludethesitelocationthattheworkshouldbeconductedin,thenameoftheHomeworker,thecalculationofwagesaswellasspecifyingwhichpartyisresponsibleforpayinganyrequiredtaxandinsuranceorotherdeductions(andanyotherinformationasrequiredbyBurberryfromtimetotime).

II. InthecasethattheBusinessAssociateemploystheHomeworkerdirectly,theBusinessAssociateshouldensurethatalllocalandnationaltaxandinsuranceispaid.InthecasethattheHomeworkersareengagedonaself-employedbasisitistheHomeworker’sresponsibilitytopayallrequiredlocalandnationaltaxandinsurance required.

III.OnlytheHomeworkernamedintherelevantcontractshouldcarryouttheworkandtheworkshouldnotbefurthersubcontractedwithoutpriorwrittenapprovalofBurberry.

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4. EXCESSIVE OVERTIME I. HomeworkersworkingatthefacilityoftheBusinessAssociateshouldnotbegivenworktotakehomeunless

suchovertimeisonavoluntarybasis.II. VerifiablesystemsshouldbeinplacetoensurethatHomeworkersarenotprovidedwithmoreworkthan

wouldexceed48hoursweekly.Anyworkprovidedbeyondthatshouldnotexceedanadditional12hours(total60hoursperweek).Anyhoursover48hoursshouldbecompensatedatanovertimepremiuminlinewithlocalornationallaw.

5. DISCRIMINATION I. Homeworkers should be compensated at the same rate as all other workers employed by the Business

Associate for the same work.

6. STANDARDS I. Burberry’sEthicalTradingCodeofConductisbasedonthefollowinginternationalstandards:• TheEthicalTradingInitiative(ETI)BaseCode• TheUnitedNationsUniversalDeclarationofHumanRights• TheFundamentalConventionsoftheInternationalLabourOrganisation(ILO).• DhakaPrinciplesforMigrationwithDignityhttp://www.dhaka-principles.org/II. WithrespecttotheInternationalLabourOrganisation(ILO)fundamentalconventionsonLabourStandards,

thefollowingprovisionshavebeenreferencedinthedevelopmentofthisCode:• FreedomofassociationFreedomofAssociationandProtectionoftheRighttoOrganizeConvention,1948

(No.87)• RighttoOrganizeandCollectiveBargainingConvention,1949(No.98)• TheabolitionofforcedlabourForcedLabourConvention,1930(No.29)• AbolitionofForcedLabourConvention,1957(No.105)• EqualityDiscrimination(EmploymentandOccupation)Convention,1958(No.111)• EqualRemunerationConvention,1951(No.100)• TheeliminationofchildlabourMinimumAgeConvention,1973(No.138)• PrivateEmploymentAgenciesConvention,1997(No.181)• WorstFormsofChildLabourConvention,1999(No.182)

Source: Burberry, N.d. 

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APPENDIX 3: WORKER-DRIVEN INITIATIVE: STRENGTHENING THE UN GUIDING PRINCIPLES ON BUSINESS AND HUMAN RIGHTS TO PROTECT HOMEWORKERS

TogetherwithHomeNetSouth-EastAsiaandHomeNetSouthAsia,WIEGOhasdevelopedasetofrecommendationstomaketheGuidingPrinciplesanevenstrongerinstrumentforprotectinghomeworkersSpecifically,theseprinciplesshouldestablishthefollowingdutiesofthestate:• Torecognizeunionsthatrepresentinformalworkers.• Torequirebusinessestomakeavailablefacilitiesfortheuseofallworkersfororganizingpurposes.• Tomakereportingbycorporationsmandatoryandformal(asopposedtoan“informalengagementwithaffected

stakeholders”).Reportingshouldbemadebothtoastateinstitutionandtounions,inadditiontobeingmadeavailableonpubliclyaccessibleplatforms,suchascompanywebsites.

• Todesignuser-friendlycomplaintmechanismsinconsultationwithinformalworkerorganizationsforindividualworkersandrepresentativeorganizationsactingonbehalfofhomeworkerstoseekredress.Remediesmustbedesignedsothatworkerswillnothavetofearlosingtheirworkiftheycomplain.

• Torequirebusinessestoreportonworkers’—includinghomeworkers’—socialprotectioninthestatesfromwhichtheysourcegoods,andontheirinitiativestocontributetosocialprotectionwherestateprotectionisinsufficient.ThisprovisionmirrorstheIndustriALL/H&MGlobalFrameworkAgreement.

• Torequirethatbusinessespromotetransparencyintheirglobalvaluechainsbydemandingthattheirbrandismentionedinallsupplierandsub-contractingagreements.Thismeansthatgovernanceworkstop-down,butalsoenablesworkerstoidentifythebrand,researchitscommitmentstodecentwork(evenifCSRormulti-stakeholderinitiatives),andtoregistercomplaintsthroughcomplaintmechanisms.

Source: Von Broembsen, 2017.

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APPENDIX 4: WORKER SOCIAL RESPONSIBILITY (WSR) VERSUS CORPORATE SOCIAL RESPONSIBILITY (CSR) AND MULTI-STAKEHOLDER INITIATIVES (MSIS)

Monitoring

Enforcement of Brand/Retailer Obligations

Enforcement of Suppliers’ Obligations

Auditsarerushedandsuperficial.Theyareconductedbyindividualswithlimitedtrainingandwithoutdeepknowledgeofrelevantworkplaceissues.Auditorsarepaidby,andarebeholdento,thebrandwhosesupplychainisbeingmonitored,oranMSIthatisdependentonthebrand,orthefactoryitself.Ifauditorsinterviewworkers,theyusuallydosoonsite,attheworkplace,whereworkersare unable to speak candidly about conditions.Mostauditreportsarekeptsecret,evenfromtheworkersthemselves.

Virtually all CSR and MSI schemes lack aneffectiveenforcementmechanism.Because the commitments of brands and retailers under such schemes are purelyvoluntary,therearenomeaningfulconsequences for failure to comply. In thecaseofsomeMSIs,non-compliancemayresultinthecompany’smembershipintheMSIbeingrevoked,butthisisaslaponthewrist.MSI’ssimplydonothavetheabilitytolegallycompelamember brand to meet the commitments it has made or to undo the harm its past non-compliancehascaused.Makingmattersworse,abrandorretailercanquitanMSIwheneveritchooses,withnosignificantconsequence.

Therearenosureandswiftconsequences for suppliers that

Inspectionsarein-depthandcomprehensive.Theyareconducted,onafrequentbasis,bywell-trainedinvestigatorswithindustry-specificexperienceandsufficientknowledgeof the issues they are tasked to assess. Investigatorsoperateindependentlyof the industry and are neither paid nor employed by the company whose supplierisbeinginvestigated–orbythesupplier.Monitorsprioritizeworkerinterviews,whicharedoneoffsitewheneverpossible,andalwaysoutsidethepresenceofmanagers.Workersare fully informed as to the result of all inspections.

EffectiveenforcementofbrandandretailerobligationsisadefiningelementofWSR.AbindingandlegallyenforceableagreementbetweenworkerrepresentativesandcorporationsatthetopofthesupplychainisthefoundationofaWSRprogram.Ifabrandorretailerfailstofulfillacommitment(topayarequiredpricepremium,toterminateabusivesuppliers,etc.),workerrepresentscanuselegalmechanisms(viajudicialsystemsorprivatearbitration)toforcethe brand or retailer to remedy past violationsandtocomplygoingforward.AndbecauseWSRagreementsarealegalcontract,brandsandretailerscannotjustquittheprogramwhentheyplease.

UnderWSR,violationsarefarmorelikelytobeidentified,remedial

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failtomeetabuyer’soranMSI’slaborstandards.Often,thesupplierscansuccessfullyhideviolationsfromauditors.Whenviolationsareidentified,amerepromisetocomplyinthefutureisoftenconsideredsufficientunderbuyers’andMSIs’procedures,whichthenoftenfailtoholdsuppliersaccountabletothosepromises.Evenwhenasupplieriscaughtpersistentlyandflagrantlyviolatingstandards,itis,inmostcases,uptothebuyertodecidewhethertostopdoingbusinesswith the supplier. If the buyer sees financialvalueintherelationship,thebuyercankeepbuyingfromthesupplier,asitseesfit.Bycontrast,ifsuppliersdon’tmeetbuyers’priceanddeliverydemands,theyknowthatlossofbusinessisvirtuallycertain.Thisiswhyitisnotonlycommon,buteconomicallyrational,forsupplierstoignorelaborstandardsinfavorofminimizingproductioncosts.InsomeCSRandMSIschemes,abuyerorsuppliermaylosecertificationfromtheprogramwhenviolationsareidentified,butfacenootherconsequences aside from the decertification,theconsequencesofwhich are nebulous at best. Loss of certificationdoesnotnecessarilyresultinactuallossofsalesorotherfinancialconsequences,whichistheonlypotentialvalueofdecertificationasameansofencouragingcompliance,butwhichhasnointrinsicnegativevalueinand of itself.

Asarule,complaintmechanismsinCSR and MSI schemes are rare and wheretheydoexist,resultinlittleorno real reform. If such a mechanism doesexist,complaintsoftengodirectlytotheemployerorthebrand,ortoacontractorganizationactingatthebrand’sdirection,ratherthan to an independent party that representsworkers’interests.Workersunderstandablyhaveverylittletrustinsuchmechanismsand,iftheydofilea

requirementsaremuchtougher,andbrandsandretailersarelegallyobligatedtoceasedoingbusinesswithanysupplierthatcommitsviolationsandfailstoeffectremedies.Thebuyer’sdesiretokeepusingthesupplierbecause it needs to the product is immaterial.Suppliersknowthatabusivelaborpracticeswilllead,swiftlyandsurely,toalossofcustomers.

Workerscanfileacomplaintdirectlywith an independent body responsible forinvestigatingsuchcomplaintsanddedicatedtoprotectingworkers’interests. Workers who access the complaint mechanism are protected fromretaliation.Workersgaintrustinthe process because they see complaints resultingintimelyandeffectiveaction.InWSR,workers’complaintsareoftentheprimarymechanismforidentifyingbadactorsandbadpracticesand

Complaint Mechanism

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complaint,aretypicallynotprotectedfromretaliationbyemployers.

Corporationssqueezetheirsuppliersinanefforttosecurethelowestpossibleprice,forcingsupplierstocutlaborcosts,oftenattheexpenseofworkers’economicwell-beingandlaborstandards,inordertoremaincompetitive.TraditionalCSRandMSIschemesdonothingtoaddressthisproblem,whichisthesinglebiggestfactorleadingtoabusesinglobalsupplychains.

UnderCSRandMSIs,workerstypicallyreceiveverylittleinformationabouttheirrights.Acopyoftherelevantcode of conduct may be posted in the workplacebutworkersdonotreceiveeffectivetrainingontheirrightsandhavenomeaningfulrecoursewhenviolationsoccur.Iftrainingisconducted,itissuperficialandis carried out by the factory or the brand,withoutparticipationbyworkerrepresentatives,offeringlittleofvalueto workers.

Standardsoftenfailtoaccountfortherisksanddangersspecifictoaparticularindustryortypeofworkplace,lacksufficientdetailandspecificity,andreflectlittleornounderstandingabouttherealitiesthatworkers face on a daily basis.

InformationaboutwhichsuppliersarecoveredbyaparticularCSRorMSIschemeiskeptconfidential,unlessvoluntarilydisclosedbythebuyer.

reformingtheworkplace.

Corporatebuyersarerequiredtoprovidefinancialsupportsothatsupplierscanaffordtheincreasedcostsassociatedwithoperatingincompliancewithlaborrightsstandards.Suchsupportcancomeintheformofhigherprices,directpaymentforthecostsofmonitoringandimprovements,lowcostloans,substantialwagepremiumspaiddirectlytoworkers,orup-frontpaymentforgoods.

UnderWSR,workersreceiveregular,detailedtrainingabouttheirworkplacerights,includinghowtoaccessanindependent complaint mechanism. Such trainingistypicallycarriedoutatthetimeofhire,byworkerrepresentativesorotherexpertswhoareindependentofthebuyerandtheemployerandhavethetrustofworkers,duringworkinghoursandinthecourseofremedyingcodeviolationsdiscoveredbytheprogram,asaformforunderscoringthestandardsviolatedandtheimportanceofcomplianceforworkersandsupervisorypersonnelalike.Effectivetrainingempowersworkerstoserveasfrontlinemonitorsoftheirrights.

Workersandtheirorganizationsdesignindustry-specificcodesofconductfocusedoneliminatingthespecificformsof abuse that are unique to that industry or workplace.

WSR includes public disclosure of thenamesandlocationsofcoveredsuppliers.

Source: Worker-Driven Social Responsibility Network, N.d. (c)

Economic Responsibility for Remediation

Worker Education

Standards

Transparency

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BACKGROUNDCompanyXisamemberoftheEthicalTradingInitiative(ETI)andiscommittedtoimprovingworkingstandardsinitssupplychainsthroughtheapplicationofinternationallabourstandards.Thisincludesacommitmenttoimprovingstandardsinthosepartsofthesupplychainwhicharethemostdifficulttoreach.Historically,thelackofvisibilityofhomeworkersinsupplychains,combinedwiththeircomplicatedemploymentstatusinmanycountries,hasmadethemavulnerablegroupofworkers.Manyhomeworkershavebeenunderpaidandunsafe.Webelievethatoneofthefirststepstowardsreducingthevulnerabilityoftheseworkersistotakeanopenandpositivepositiontowardshomeworking.Byreactingnegativelytoinstancesofhomeworkersinoursupplychain,thereisadangerof:sendinghomeworkersundergroundandthuspreventinganyprogressonimprovingtheirlabourconditions;and/ortriggeringunintendedconsequenceswherebyworkerscouldhavetheirsolemeansofincomeremoved.

2. OUR POSITION

2.1 Acceptance of homeworking CompanyXbelievesthathomeworkingcanbecriticaltoitssupplychainandopenlyacceptsthepresenceof

homeworkwithinthese.Homeworkerscanoftenprovideuswiththeflexibilitytocopewithrapidlychangingvolumesofproduction.Homeworkersmayalsoproducespecialistcomponentswhichcannotbemadebymachineryorsmallquantitiesofintricateorhigh-qualityitems.Fromtheperspectiveofhomeworkers,theoptiontoworkfromhomecanofferadegreeofflexibilitynotmetbytraditionalsite-basedwork.Homeworkersfrequentlycitetheadvantagesoff-siteworkingoffersinenablingpaidworktobebalancedwithdomesticandfamilyresponsibilities.

2.2Commitmenttoimprovinghomeworkers’conditions Concurrently,however,wealsoacknowledgethatlabourconditionsenjoyedbyhomeworkersmaynotmeet

thosesetoutininternationallabourstandards/theETIBaseCode*.Wearethereforecommittedtotakingaction,togetherwithoursuppliers,toimprovingtheseconditions.Thefirststepinsuchaction,webelieve,istomakeourpositiononhomeworkingclear.

3. Defining homework OurdefinitionofhomeworkisbasedupontheInternationalLabourOrganisation(ILO)definition(1996,C177,

Article1)whichstates:(a) thetermhomeworkmeansworkcarriedoutbyaperson,tobereferredtoasahomeworker,(1)inhisorher

homeorinotherpremisesofhisorherchoice,otherthantheworkplaceoftheemployer; (2)forremuneration; (3)whichresultsinaproductorserviceasspecifiedbytheemployer,irrespectiveofwhoprovidesthe

equipment,materialsorotherinputsused,unlessthispersonhasthedegreeofautonomyandofeconomicindependencenecessarytobeconsideredanindependentworkerundernationallaws,regulationsorcourtdecisions;

(b)personswithemployeestatusdonotbecomehomeworkerswithinthemeaningofthisConventionsimplybyoccasionallyperformingtheirworkasemployeesathome,ratherthanattheirusualworkplaces;

(c) thetermemployermeansaperson,naturalorlegal,who,eitherdirectlyorthroughanintermediary,whetherornotintermediariesareprovidedforinnationallegislation,givesouthomeworkinpursuanceofhisorherbusinessactivity

APPENDIX 5: MODEL POLICY ON HOMEWORKING FOR USE BY RETAILERS AND SUPPLIERS

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4. OUR COMMITMENT UNDER THIS POLICY Weacknowledgethatimprovinglabourconditionsforhomeworkersisacomplexissue.Underthishomeworker

policy we commit: • tocommunicateourpositiononhomeworkingthroughoutourcompany,tothosewhosupplytous,and

thosewesupplyto; • toensurethatthepresenceofhomeworkersinthesupplychainwillnotleadtotherelocationofworkor

cancellationoforders;and • toworkwithoursuppliersforthesustainableimprovementoflabourconditionswithhomeworkersinour

supplychains.WewillaimtodothisbyfollowingtheguidancesetoutintheETIhomeworkerguidelines.

5. OUR SUPPLIERS’ COMMITMENTS UNDER THIS POLICY Weexpectthosewearesourcingfromto: • adoptasharedpolicyofacceptanceofhomeworkingandcommitmenttoimprovinghomeworkers’labour

conditionswherethesedonotmeetthosesetoutininternationallabourstandards/theETIBaseCode; • communicatethispolicytoallthoseinthesupplychainbelowthem,includinghomeworkersthemselves; • workwithustoidentifywherehomeworkingoccursinthesupplychainsbeneaththem;and • workwithustodevelopanactionplanforimprovinglabourconditionswithhomeworkerswheretheseare

foundtobebelowthosesetoutininternationallabourstandards/theETIBaseCode.

6. LABOUR STANDARDS Theprovisions,insummary,oftheETIBaseCode,are: 1. Employment is freely chosen 2. Freedomofassociationandtherighttocollectivebargainingarerespected 3. Workingconditionsaresafeandhygienic 4. Child labour shall not be used 5. Livingwagesarepaid 6. Workinghoursarenotexcessive 7. Nodiscriminationispractised 8. Regularemploymentisprovided 9. No harsh or inhumane treatment is allowed. TheseprovisionsarefoundedonkeyILOconventions,includingILOConvention177onHomeWorkwhich

promotestheequalityoftreatmentbetweenhomeworkersandotherwageearners.

Source: Ethical Trading Initiative, 2010d.

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APPENDIX 6: CLEAN CLOTHES CAMPAIGN FULL PACKAGE TO LABOUR CODES OF CONDUCT: CREDIBLE STAKEHOLDER PARTICIPATION

STEP 3: CREDIBLE STAKEHOLDER PARTICIPATIONTheimplementationofethicalstandardsshouldnotbebasedonpolicingsuppliersunilaterallybutshouldinsteadrequirestakeholderparticipationthroughoutthevariousaspectsofthecode-implementationprocess.

a Joining a multi-stakeholder initiative Membershipinacredible‘multi-stakeholderinitiative’(MSIs)canalsoserveasavaluablestepforcompanies

intheireffortstoimprovetheircodecomplianceundertakings.Theseinitiativesrequirethatcompanies,unions,andNGOsworktogethertopromoteimprovedlabourpracticesthroughcodesandmonitoring.Multi-stakeholdercodeinitiativesinthegarmentandrelatedconsumerproductssectorsincludetheEthicalTradingInitiative(ETI)intheUKandtheFairWearFoundationintheNetherlands,theFairLaborAssociationandSocialAccountabilityInternationalintheUS.MSIsarehelpfulingettingacompanywithlittleexperienceorlittleexistingcapacityregardingcodecomplianceontherighttrack,sincemembershipinanMSIusuallystipulatesthatacompanytakecertaininitialsteps.Companiesthathavedecidedtoparticipateinoneormoreoftheaboveinitiativesdosoinorderto: Gainconsistencyincodeprovisionsandmonitoringandverificationpractices; Avoidduplicationinmonitoringoffactoriesproducingformorethanonecompany; Drawuponapoolofaccreditedcomplianceverificationorganisations; Sharethecostsassociatedwithcomplianceverification; Createmechanismsforreceivingandresolvingcomplaints.

b Co-operating with worker rights training initiatives Sincetheultimatepurposeofcodesandmonitoringistoimproveconditionsandprotecttherightsofthe

workerswhomakethecompany’sproducts,thoseworkersmusthaveanactiveroleintheday-to-daymonitoringprocess.Inordertodoso,theymustbeawareoftheirrightsunderthecode,ILOConventionsandlocallaws.Becauseworkersareoftenreluctanttoexpresstheirviewsinthepresenceofmanagementpersonnel,thetrainingofworkersshouldbedonesomewhereawayfromtheworkplace.Withoutprejudicingexistingtradeunionrepresentation,sourcingcompaniesshouldstronglyencouragesupplierstoco-operatewithworkerrightstrainingprograms.Workerrightstrainingprogramsforworkersandmanagementpersonnelarethemosteffectivewhentheyareadministeredbytrustedlocalhumanrights,women’s,and/orlabourorganisations.Furthermore,thistrainingshouldalsotakeintoaccountthegenderednatureoftheworkforceinthisindustryandculturalandreligiouspreconditions(suchasseparatetrainingsessionsforwomenandmeninMuslimcountries).

c Informing your stakeholders Tobecredible,acompany’scodemonitoringandverificationprogramshouldincludereportingtocustomers,

shareholders,stakeholders,thepublic,andtheaffectedsuppliersandworkers.Informationonthecompany’smonitoringandverificationsystemworks,andwhatisexpectedofthevariouspartiesinvolvedshouldbemade

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availabletoallinterestedparties.Moreover,acompanyshouldalsoprovideperiodicpublicreportsontheresultsofcodecomplianceverification,includingtheidentitiesoftheauditingorganisation(s),theareasofcomplianceandnon-complianceinspecificcountriesandregions,andthestepsthathavebeentakentoachievecompliance.Furthermore,companiesshouldbefullytransparentwithrespecttoalloftheirbusinessoperationsandarrangementsthathaveaneffectonlabourpracticesandworkingconditionsbydisclosingtheidentity,location,and country details of all of their supplier factories.

d Including workers, local trade unions, and labour rights groups in code implementation Toooften,workershavebeenignored,eventhoughtheyaretheintendedbeneficiariesofcodeimplementation

programs.Companiesneedtodevelopprogramsthatensuretheinvolvementofworkersaswellaslocaltradeunionsandlabourrightsgroups.Theirinvolvementimprovesthequalityofsocialaudits,thehandlingofcomplaints,andstrategiestowardsremediation.Resourcesandcapacitybuildingisessentialforthesegroupstoplayameaningfulroleinmonitoringandverificationsystems,asthevariedcontextsfoundthroughouttheglobalgarmentindustrymeanthatwhatworksorisappropriateinsomesituationsmightnotbefeasibleinothers.

e Including a confidential complaints procedure in the company’s monitoring and verification program Workersandotherstakeholdersshouldhaveaccesstosecure,anonymous,confidential,andanindependent

mechanismfortheregisteringofcomplaintswhentheybelievetheirrightsarebeingviolated.Itiscrucialthatworkersareabletoreportviolationsofacodeofconductornationallabourlawswithouthavingtofeardisciplinaryaction.Goodcomplaintsmechanismswouldprovideworkers,tradeunions,andNGOswiththetoolstoaddressbreachesoflabourstandardsamongthesupplierswithbuyers,insteadofhavingtowaitforthenextsocialaudit.Forinterestedthirdparties,itmeansprovidingclearlydefinedproceduresforthereceivingandinvestigatingofcomplaintsbyindependentparties,andforreportingbackontheresults.Companiesshouldrespondtoalllegitimatecomplaintsinatimelymannerwithfurtherinformationconcerningthefindingsandensuringthataneffectiveremediationplanisdevelopedtoaddresstheremainingrights’violationsincollaborationwithlocalstakeholders.

Source: Clean Clothes Campaign, 2008

Contact: JanhaviDaveInternationalCoordinator

E-mail:janhavi.hnsa@gmail.comPhNo:+919902499700Website:hnsa.org.in

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