The supply-chain auditing arm of C&A is extending inspections to cover homeworkers in the 31 countries where the European retailer sources its goods.
The Belgium-based SOCAM (Service organization for Compliance Audit Management), which was set up in 1996 as the ‘eyes and ears’ of C&A’s supply chain, has made the commitment as part of a number of improvements announced in its third annual report.
The decision by SOCAM to introduce homeworker inspections will extend its auditing standards to areas which have received little attention to date.
SOCAM is also stepping up efforts to improve disclosure by suppliers of all locations where they produce goods for C&A. This follows the suspension of one Indian supplier’s C&A contract after it was found to be using a false address and producing scarves in a sweatshop.
Other new commitments include a pledge to increase the number of audits carried out this financial year, and to extend SOCAM’s efforts to increase awareness of C&A’s code of conduct among the workforces of suppliers.
Last year SOCAM made 1459 unannounced visits to production units belonging to 900 of C&A’s 1300 suppliers, of which 70 per cent were in the Far East and India. The rest were in Europe and North Africa.
Although the number of visits to production units fell last year, the number of major infringements detected by auditors almost doubled. There were 226 such infringements in 1999, compared with 117 in 1998. A total of 174 of these led to warnings and 49 to ‘correction plans’ being issued which, if not acted upon, could lead to the termination of contracts.
Problems with the use of under-age workers were identified at one Indian unit, but they were resolved after the supplier agreed to pay full-time schooling costs of the children found working at the plant.
SOCAM, a limited liability company that receives ¤3.3million (US$3m) a year from C&A to carry out its inspections, expects to increase its activities this year despite a decision by C&A to quit the UK by 2001. C&A operates around 550 stores in 11 European countries, with Germany its main market.
Most of the retailer’s 1300 suppliers are based in Germany, Italy, the UK and the Netherlands, but 600 production units run by suppliers are located in China – the second largest area for such units after Italy. Hundreds of other production units are based in Turkey, India, Romania, Tunisia, Vietnam, Taiwan, Indonesia, Morocco and Bangladesh.