Primark’s Ethical
Trade Programme
Katharine Kirk,
Ethical Trade Director
January 2010
Our Core Values
• Taking care of our people
• Being good neighbours
• Fostering ethical business relationships
As an international brand with a global
supply chain we have a responsibility to
act “ethically”. We embrace this
responsibility as an opportunity to be a
force for good.
The Facts
• We support the livelihood of 2 million people
•
•
•
•
across the developing world
Investment of £700 million per year in the
developing world
Products purchased from more than 20
countries
We share 95% of our factories with other
brands
196 stores across 7 markets: ROI, UK, and
internationally in Spain, the Netherlands,
Portugal, Germany and Belgium
The Business Case for Responsible
Sourcing
‘Buying Smarter’ gives us the competitive edge
• Ethically compliant factories produce better
•
•
•
quality products, on time
Choosing ethically compliant suppliers delivers
other benefits to the business
Detailed supply chain mapping helps us get to
know our supply base and make better overall
sourcing decisions
Knowing your suppliers, supplier selection and
looking at the production schedule are all good
buying practices commercially and ethically
The Business Case for Responsible
Sourcing
Reputational Risk
• Greater focus in the customer’s mind
• Sales are good now, but how many customers
are not walking through the door?
• Younger generation now educated formally on
the issues
• Strong media interest
• Investors are assessing new types of risk
• Our staff care - it impacts recruitment
Issues in the supply chain
• Problems are common and shared
• More transparency and activity uncovers more issues!
Our priorities
1. Integrating ethical priorities into core business
2. Increasing visibility in the supply chain
3. Partnering with suppliers and factories to support
sustainable improvement in working conditions
4. Supporting workers to understand their rights and
responsibilities
5. Further development of our environmental policy
Integrate ethical priorities into core
business practices
2009
• Train all Primark buyers on ethical trade
• Increase transparency and communications between the buying and
ethical teams
• Examine the impact of our purchasing practices on suppliers
• Implement new supplier/factory approval process
Lesson: Buyers are very receptive and are hungry for
more information about their suppliers
2010
• Ongoing ethical training for Primark staff
• Initiate project work on purchasing practices
• Active participation in the Ethical Trading Initiative (ETI) Purchasing
Practices Group (breakout group)
Increase visibility in the supply chain
2009
• Implement online supplier management database
• Work with local partners to do bottom-up supply chain mapping
• Conduct 1000 audits
• Active participation in the ETI Home Working Group
Lesson: Appropriate technical support is critical
2010
• Continue to monitor and remediate factories
• Continue to map supply chains and start to focus on ‘second tier’
• Partner with other brands on auditing and remediation where
possible and ‘beyond auditing’ projects
• Active participation in the ETI Home Working Group
Partner with suppliers and factories to support
sustainable improvement in working conditions
2009
• Expand regional ethical trade team to focus on supplier
support rather than auditing
• Conduct supplier training in China, India, and the UK
• Develop supplier handbook on code implementation
• Develop supplier online feedback survey
Lesson: It is worth taking time to find the right people
for your team
2010
• MAJOR focus on support, training and remediation for suppliers
from in-country teams
• Launch online compliance training modules for suppliers
• Launch Suppliers’ Extranet
Supporting workers to understand their rights and
responsibilities
2009
• Initiate productivity/wage projects in Bangladesh and China
• Investigate delivery of support services to workers
Lesson: There is not always the in-country capacity to provide
support services, you may need to help develop it
2010
• Establish additional NGO partnerships to support workers in main
sourcing countries
• Conduct external verification of audit results
• Develop secure worker communication channels – e.g. worker
hotline
• Work with other ETI member on cross brand FOA initiatives
Further development of our environmental policy
2009
• Initiate project in China with three factories
Lesson: We need to think about sustainable suppliers,
not just socially compliant suppliers
2010
• Initiate projects in India and the UK
• Aim to improve efficiency and mitigate future risks associated with
environmental and social pressures through creating a model for
sustainable growth
Lessons learned in 2009
• Ethical priorities need to be embedded in and wholly
•
•
•
•
supported by the business at every level in order to
achieve progress and desired goals
Auditing activities achieve less sustainable change, than
focused support, training and capacity building with
suppliers and factories
Company expectations and processes need to be
communicated clearly both externally and internally
Cross brand initiatives help speed up learning
Any supplier training is best carried out locally and with
speakers using the local language
 Improvement requires a
collaborative approach
 The challenges are shared
challenges
 We owe a responsibility to
workers to find sustainable
ways to protect their rights.
 That means working together
with others and seeking to find
solutions expert, local
knowledge that are
appropriate for workers and
business partners