Heigo Performance Check 2017

In 2016, Heigo met the required monitoring threshold with a monitoring percentage of 94%, as the majority of Heigo’s production takes place in its own production facility in Bulgaria and an audit was conducted at this location. However, Heigo did not meet monitoring requirements for tail-end production locations, as it did not audit all locations where it buys more than 2% FOB and has more than 10% leverage. Furthermore, Heigo has shown insufficient progress in the performance indicators. With a benchmarking score of 38, it has not met the minimum membership requirements and has been placed in the Needs Improvement category.

The audit in 2016 identified several significant issues, and although Heigo’s director conducted follow-up verification during factory visits, no evidence of active remediation could be shown during the Brand Performance Check. Heigo was also unavailable during efforts to resolve a complaint made at one of its suppliers in Turkey at the end of 2016. Heigo began production at two new locations in 2016; however, it was not aware of the actual production locations and did not conduct human rights due diligence before placing orders. Although the strategy to source as much as possible from its own production facility in Bulgaria, from other FWF members and low-risk production countries does limit Heigo’s risk, it must still be aware of its responsibility to complete human rights due diligence, monitor the conditions in its factories and work to resolve problems when they are found.

FWF requires Heigo to develop a more systematic approach to integrate social compliance into normal business processes and support good decision making. This system should include a formal process to evaluate the risks of labour violations in the production areas in which Heigo operates and a system to evaluate its entire supplier base.

Score: 38, Percentage under monitoring: 94%, Category: Needs Improvement


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