What have we learned?

Our audit scoring system (where suppliers overall grade is linked to their single lowest score on any one Principle) is therefore masking some genuine improvements in performance, and is de-motivating for supplier companies that are sincerely attempting to improve. In last year’s CR report we showed an analysis based on the use of the Grade combined with the overall audit score, which allows us to track progress much more accurately. We have recently completed a pilot with 13 suppliers to trial this new audit scoring system and we plan to use this approach in future.

We also intend to shift the emphasis in our use of audit to focus on its strengths, which we see as identifying and rectifying abuses, and being particularly useful early in our relationship with new suppliers. We plan to simplify and streamline our audits accordingly. The labour standard audits will be combined with our quality and technical visit, meaning that suppliers will only have to deal once with our audit company. The audit scope will be changed to focus on the issues where we know we can make a difference: health and safety, forced or bonded labour, and worker abuse.

On other issues, such as working hours, wage rates and access to independent worker representation, we are increasingly concluding that our scope to influence the background culture through the process of audit and re-audit is limited. We are therefore seeking new approaches based on closer relationships with our suppliers and engagement with non-governmental organisations and other interested parties.

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