Supply Chain

Benetton Group has always taken care to convey a single, universal message: respect for diversity: every woman and every man in the world deserves equal access to the fundamental human rights.
 
Supply chain management
Our first commitment in the field of human rights is to the people who work in the Group all around the world. Over the years, we have implemented a series of procedures and initiatives designed to ensure that all those involved in our supply chain are treated fairly and correctly.
 
Supplier selection
We select our suppliers not only based on product quality, competitive prices and transparency, but also on their compliance with social, ethical and environmental principles. A list of our active suppliers located all over the world is available on our web site.
 
Code of conduct
Any individual or company that establishes a business relationship with us undertakes to comply with the Benetton Group’s Code of Conduct, founded on compliance with human rights and protection of the environment. The Group’s Code of Conduct implements the most relevant international regulations with particular reference to the UN Business and Human Rights of June 2011 and the Communication from the European Commission on the Renewed Strategy on Corporate Social Responsibility of October 2011.
 
For the benefit of active business partners worldwide, the Code of Conduct is available on our website in several languages.









 
CSR Audit
Benetton has implemented an audit program to monitor adherence with the Code of Conduct for Manufacturers, which applies to all finished garment producers, with particular attention to those located in regions where respect for human rights and workers is considered more at risk.
 
Suppliers to be audited are identified jointly by the CSR Management and the Operations & Sourcing functions, while the operating organization for the performance of the audits is entrusted to the CSR Management function. Before placing an order, the Operations & Sourcing function operates a qualitative examination of the factory, while the CSR function verifies its compliance with the social and environmental standards defined in the Code of Conduct. Audits are carried out by globally recognized independent auditing firms. The checklist, inspired by the content of SA8000 Standards, is designed to verify working conditions, environmental protection, transparency and compliance with the applicable local and international regulations. It includes the following sections:
 

Child Labour Forced Labour
Non-discrimination Coercion and Harassment
Association Workers’ Contracts
Working Hours Remuneration
Migrant Workers’ Rights Health and Safety
Risk Assessment Reference to National Law
Conventions and Agreements Environmental Protection
Chemical and Hazardous Materials Waste and Water Management
Transparency and Cooperation Monitoring and Compliance

 
In the checklist, some of the non-compliances have been recognized as “major non-conformities” because of their reference to aspects towards which the Group is particularly sensitive; they result in severer penalization in the final score.
Finally, Benetton Group has a zero tolerance policy towards some critical topics: the non-compliances listed below cause the immediate failure of the audit.

  • Presence of child labour
  • Evidence of forced/prison/bonded labour
  • Evidence of discrimination in employment, training, promotion, compensation, welfare, dismissal and retirement, etc.
  • Evidence of physical or verbal abuse
  • Prohibition of association
  • Absence of workers’ contracts
  • Irregularities and abuse towards migrant workers
  • Structurally unsafe buildings
  • Evidence of not communicated use of sub-contractors
  • Lack of cooperation during the audit
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    The audit is based on SA8000 operational criteria regarding documents’ review, facility tour, and sampling of employees’ interviews.
     
    The CSR audit is considered passed reaching a final score of 80/100. If the audit fails, in order to maintain the business relationship the supplier must commit to solve the observed non-compliances and undergo a follow-up audit within six months. If also the follow up results failed, the supplier is excluded from Benetton Group’s supply chain for at least one year. Similarly, the Group terminates the business relationship with those suppliers that refuse to commit to solve the detected non-compliances.
     
    The CSR audit function carries out audits on all producers of finished products regularly, with controls that are repeated every six months as a maximum and every two years as a minimum, according to the results achieved and the need to correct procedures identified as critical in previous audits.
     
    In 2018, Benetton expanded controls on these issues and mostly carries out unannounced audits, while also updating the main tools used for the management of the audit process. In addition, it introduced a periodic monitoring procedure, which provides for the forwarding of updated corrective plans and evidence of the resolution of non-conformities on a periodic basis, in order to supervise the remediation process with a view to continuous improvement.
     
    More than 300 suppliers were assessed for their social impact during. Of these, more than 80% fulfilled the requirements, about 60% undertook a process of correcting non-conformities, while 24 business relationships were interrupted.
     
    GUIDELINES FOR BENETTON GROUP CODE OF CONDUCT FOR MANUFACTURERS
    In order to support suppliers in the operational implementation of Code of Conduct’s requirements, Benetton has produced the document Guidelines for Benetton Group Code of Conduct for Manufacturers, which details the organization’s expectations for fair, healthy, safe workplace conditions and environmentally sound factory operations. The aim of the document is make the CoC standards understandable and practical, provide additional guidance for our suppliers, and help us work together to find effective solutions to workplace problems. This is why we believe that the collaboration with our supply chain plays a key role in doing business.