dw-shop PERFORMANCE CHECK 2015
DW-Shop has shown insufficient progress in implementing FWFs management system requirements. It has monitored 56% of its purchasing volume, which is below the requirement of 90% at the third brand performance check. Though a large percentage of its production comes from homeworker suppliers (around 22%), for which FWF adopted a monitoring policy after this financial year, DW-Shop should have been able to reach a higher monitoring threshold. After this financial year DW Shop has started to implement the FWF homeworker policy, adopted at the end of 2015. DW-Shop just scored enough on Performance Benchmarking Categories.
Historically, DWS has had long-term relationships with many suppliers, or has purchased a large percentage of a supplier’s production, leading to significant influence with the factory. However, DWS is changing its supplier base to meet changing market demands. DW-Shop also has many small suppliers of which it buys small quantities, and operates in countries and areas with specific risks on social compliance issues. Therefore DW-Shop should evaluate the risks of labour right violations in the production areas it is operating and do human rights due diligence at all new suppliers before placing orders, considering the new sourcing strategy.
FWF recommends DW-Shop to pro-actively discuss with suppliers its improved production planning system, the purpose of improved planning on DW-Shop’s side, as well as the supplier side, to limit excessive overtime, and discuss root causes of excessive overtime with suppliers where this takes place, especially where DW-Shop has high leverage. The new production planning system also needs to include consideration of the production capacity of the factory for regular working hours.
FWF advises DW-Shop furthermore to intensify visits to suppliers and pro-actively discuss with them social standard issues, amongst which the need to pay at least the Legal Minimum Wage and inform DW-Shop of all production locations. More emphasis should be placed on making both suppliers’ management and workers aware of the FWF CoLP basic requirements, seek commitment of suppliers to step by step improvements and check this during visits of actual production locations. Promoting suppliers to participate in the Workplace Education Programme can contribute positively. For this, amongst others increased capacity is needed for traveling staff, local staff and agents, to actively liaise with suppliers.
To know more about DW-Shop visit its page on FWF.
READ MORE ABOUT FWF’S BRAND PERFORMANCE CHECKS
Read more about the Brand Performance Checks in our Brand Performance Guide 2015