Reebok 2010 Annual Report Download - page 125

Group Management Report – Our Group Sustainability 121
Number of factory visits
1) Including Reebok business segment from February 1, 2006 onwards.
01
2006 1 )
2007
2008
2009
2010
Encouraging self-governance
We help our core business partners in
establishing management systems with
internationally recognised standards
such as ISO 14001 for environmental
management as we believe good
management systems help factories
improve their day-to-day operations and
support the process of self- governance.
By running a certified management
system, our suppliers demonstrate
commitment to continuously enhancing
their performance. We help them build
or improve human resources systems
to maintain proper working conditions,
including factory grievance systems to
routinely find and fix non-compliance
issues. Further, by enforcing employ-
ment standards at the sites of our
manufacturing suppliers, we empower
workers to protect their own rights and
take an active role in decision-making.
Training to achieve sustainable
compliance
Our SEA team offers specific training
courses and workshops for factory
supervisors and managers to help them
apply our Standards and implement best
practices. These workshops include, for
example, introductory training on our
Workplace Standards and SEA operating
guidelines and detailed training on
effective health, safety and environmental
practices. Further, we promote the
establishment of structures that actively
involve workers and management of
our suppliers, as well as local employee
associations and non-governmental
organisations (NGOs). Our team also
organises workshops for licensees,
agents and adidas Group business
entities in order to strengthen personnel
capacities throughout our company. In
this way, the consideration of acceptable
working conditions becomes a routine
part of business activities. In 2010,
the SEA team conducted 193 training
sessions and workshops (2009: 216).
Monitoring through factory inspections
The SEA team assesses compliance with
our Workplace Standards by means of
factory inspections. Our auditors check
performance against a customised risk
list for each factory that is monitored.
The methodology is linked to a factory
rating which measures the effective-
ness of compliance systems and the work
of their administrators. This enables us
to precisely determine training needs
at our suppliers’ factories. During 2010,
we conducted 1,451 factory visits (2009:
1,592 visits) involving management and
worker interviews, document review,
facility inspections and training sessions
at different levels in our supply chain
see 01.
In addition to our own monitoring
activities, we value independent
assessment by third parties to
demonstrate the credibility of and
provide verified information about
our programme to stakeholders. As a
member of the Fair Labor Association
(FLA), the adidas Group is subject to
external assessment by independent
monitors, participation in the FLA third-
party complaint system and public
reporting. In 2008, the monitoring
programme of the adidas Group was
re-accredited by the FLA. This decision
was based on independent factory
monitoring and verification reports
of supplier facilities, and a thorough
audit of monitoring protocols, training
programmes and auditing systems.
Since joining the FLA, more than 250
Independent External Monitoring (IEM)
audits and verification visits have been
conducted at adidas Group suppliers.
Warning-letter system to
enforce compliance
Where a manufacturing supplier is
performing poorly in terms of Workplace
Standards compliance, we will work
closely with them to find solutions.
However, when we find ongoing and
serious instances of non-compliance
and a lack of commitment from factory
management to address the issues,
we send out a formal warning letter
including a notification to factory
management that their business
relationship with the adidas Group is in
jeopardy. Three warning letters result
in termination. In 2010, we did not have
to terminate our business relationship
with any supplier for compliance reasons
(2009: 9 terminations).
1,101
1,007
1,323
1,592
1,451