Goals and progress
Supply chain | Data
We changed our factory ratings methodology to make our ratings more comprehensive which will provide an even clearer picture of factory working conditions moving forward. This change will also make the ratings easier to use in sourcing decisions. Some of the key changes include:
In addition to changing our methodology, we have integrated our ratings into a database system. This means that technology is being used to provide more flexibility in our assessments while making our ratings easier to use. For example, our Social Responsibility Specialists working on the ground will be able to quickly pull up a ratings report. Likewise, we have the ability to provide factory rating data to employees making sourcing decisions.
We also made our ratings easier to use in how we categorize performance. Instead of a number scale of 1-5, we’re now using a color scale with four major groupings:
Green = Excellent
Light green = Good
Yellow = Fair
Red = Action required
Above all, we aim for our ratings to be used as tools to inform decisions. These universally understood colors will eliminate the confusion that a number scale can cause.
There are a few challenges, too. Because both our calculations and rating categories have changed, it’s not possible to provide a comparison between 2009 numbers and those from previous years. For this reason, this page provides only 2009 numbers (you can view 2005 – 2008 historical ratings by clicking the orange link beneath the above graph). Due to this limitation, we’re looking even more closely behind our new ratings figures to understand trends and issues. We include some of this analysis in this year’s update, and will go into more detail when we issue our next full social responsibility report in 2011.
We have continually worked to improve factory performance and put special focus on “action required” factories that have the most serious issues. We are also looking to every part of our business to come up with solutions. One example: we’re partnering with our brands to ensure that their influence with vendors reinforces our actions to address performance issues, particularly with regard to factories that fall within the “action required” category.
Ultimately, the changes to our factory ratings and our new management system support our broader goal: to shift away from simply “policing” factories to understanding, and addressing, the root causes of problems.
We believe we have the responsibility to monitor factories and hold them accountable – while helping them improve through better systems and practices.