Supplier
Number of warning letters issued to suppliers in 20061
We issue warning letters when we see an ongoing serious lack of management commitment to improving compliance with our standards. In 2006, we issued a total of 11 warning letters.
Number of warning letters issued to suppliers in 20061
We issue warning letters when we see an ongoing serious lack of management commitment to improving compliance with our standards. In 2006, we issued a total of 11 w...
Number of warning letters issued to suppliers in 20061
We issue warning letters when we see an ongoing serious lack of management commitment to improving compliance with our standards. In 2006, we issued a total of 11 warning letters.
| Country |
1st warning |
2nd warning |
3rd and final
warning ->
recommended
termination |
Total warning
letters |
| Cambodia |
1 |
0 |
0 |
1 |
| China |
2 |
0 |
1 |
3 |
| India |
2 |
0 |
0 |
2 |
| Indonesia |
1 |
0 |
0 |
1 |
| Philippines |
0 |
1 |
0 |
1 |
| Turkey |
2 |
0 |
0 |
2 |
| Vietnam |
1 |
0 |
0 |
1 |
| Total |
9 |
1 |
1 |
11 |
Number of business relationship terminations due to compliance problems and rejections after Initial Assessment in 20061
We work closely with our suppliers to help them improve their performance. In situations of severe or repeat non-compliance we will terminate our business relationship with suppliers. In 2006 we terminated agreements with two suppliers. We also work closely with Global Operations to pre-screen potential new suppliers. In total the SEA team conducted 144 Initial Assessments, with 117 accepted and 27 factories rejected, six less than in 2005.
Number of business relationship terminations due to compliance problems and rejections after Initial Assessment in 20061
We work closely with our suppliers to help them improve their performance. In situations of severe...
Number of business relationship terminations due to compliance problems and rejections after Initial Assessment in 20061
We work closely with our suppliers to help them improve their performance. In situations of severe or repeat non-compliance we will terminate our business relationship with suppliers. In 2006 we terminated agreements with two suppliers. We also work closely with Global Operations to pre-screen potential new suppliers. In total the SEA team conducted 144 Initial Assessments, with 117 accepted and 27 factories rejected, six less than in 2005.
| Region / Country |
No. of terminations per country |
No. of rejections after PPA per country |
Reasons for termination/rejection |
|
Asia
|
|
|
|
| China |
|
16 |
Poor management systems, falsified working hours and payroll records, coached workers, incorrect payment of wages and benefits, child labour, excessive working hours, no Sunday off, use of banned chemicals, poor house keeping, lack of fire and machinery safety, poor hygiene in kitchen and canteen, poor dormitory conditions |
| Indonesia |
|
1 |
Incorrect payment of wages and benefits, insufficient social insurance, excessive working hours, use of banned chemicals, poor HSE conditions |
| Malaysia |
1 |
|
Poor Labour and HSE conditions |
| Philippines |
|
1 |
No management systems in place, no proper labour documentation available, poor labour and HSE conditions |
| Thailand |
1 |
|
Lack of management commitment, poor Labour and HSE conditions |
|
Americas
|
|
|
|
| El Salvador |
|
1 |
Poor management systems, incorrect payment of wages and benefits, insufficient time recording system, use of banned chemicals |
| Honduras |
|
1 |
Poor management systems, excessive working hours, no Sunday off, insufficient time recording system, insufficient social insurance |
| Mexico |
|
1 |
Incorrect payment of wages and benefits, use of banned chemicals |
|
Europe
|
|
|
|
| Turkey |
|
4 |
Insufficient social insurance, incorrect payment of wages and benefits |
| Bulgaria |
|
2 |
Incorrect payment of wages and benefits |
| Total |
2 |
27 |
|