Heigo has shown progress and met most of FWFs’ performance requirements. It met the required monitoring threshold with a monitoring percentage of 96%, as the majority of its production takes place in Heigo’s own production facility in Bulgaria and an audit was conducted at this location in 2016. Combined with a benchmarking score of 65, this year Heigo has been placed in the Good category.
In 2017, Heigo implemented a systematic approach in its monitoring procedures, including a process to assess risks at new suppliers and integrating labour standards into the yearly evaluation of its entire supplier base. Most notably, last year Heigo established a team at its own factory in Bulgaria, to assist in the follow-up of audit findings. This combined with regular factory visits by Heigo staff, meant that many of the points in the Corrective Action Plan had been resolved. Going forward, Heigo should maintain these systematic procedures, to help integrate social compliance into normal business processes and support good decision-making.
In the past year, Heigo has also taken first steps towards living wages, analysing wage levels in its factories and discussing the possibilities of starting a living wage pilot project with factory management in Bulgaria and Portugal. It is advised to start with suppliers where the Heigo has high leverage and longterm business relationship, for example Heigo’s own factory in Bulgaria. If necessary, Heigo could hire external experts to provide guidance on how to move towards the implementation of living wages. As a first step, Heigo should stimulate its supplier to participate in a WEP training.Download