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. 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. The CoC is available on multiple languages in favor of our Business Partners located all over the world.







 
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 with 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 by the Group.  Audits are carried out by globally recognized independent auditing firms and based on a checklist internally developed according to the principles contained in the Code of Conduct for Manufacturers. This checklist, inspired by the content of SA8000, is intended to examine working conditions, environmental protection, transparency and compliance with local and international labour standards. 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 regularly carries out audits on all producers of finished products, with controls that are repeated every six months as a minimum and every two years as a maximum, according to the results achieved and the need to correct procedures identified as critical in previous audits.
     
    In 2018, Benetton consolidated its commitment towards these topics, by carrying out almost exclusively non-announced audits, and updating the main tools used for the management of the audit process. Moreover, it introduced a regular monitoring procedure, that includes the periodical submission of updated corrective plans and of solved non-conformities’ evidence, in order to supervise the supplier’s remediation process with a view to continuous improvement.
     
    During last year, more than 300 suppliers were audited on their social impact. Of these, more than 80% fulfilled the requirements.
     
    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.