Stanley and Stella Performance Check 2015
Stanley&Stella meets most of FWF’s management system requirements and goes beyond some of them. Stanley&Stella has a relatively small number of suppliers. It sources 97% of its 2014 FOB volume from four suppliers in Bangladesh. Generally, Stanley&Stella requests a FWF audit before placing the first order with new suppliers. Together with a third-party audit at a supplier in Pakistan, accounting for 2% of its purchasing volume, and a supplier in Portugal (accounting for 1%), Stanley&Stella has monitored 100% of its 2014 purchasing volume and therefore meets FWF’s monitoring threshold required of brands in
3+ years of membership. This, in addition to high leverage at suppliers and the stable relationships with suppliers, gives the company a strong basis for effectively improving working conditions.
In 2014 Stanley&Stella successfully enrolled four of its suppliers in Bangladesh suppliers in Fair Wear’s Workplace Education Programme. Stanley&Stella systematically works towards resolution of corrective actions with all of its suppliers. After audits, remediation steps were taken and follow up is being closely monitored. Because of its the open costing system, Stanley&Stella is able to indentify the cost of the cutmake (CM) process, which (among others) includes the labour costs. When Stanley&Stella is able to investigate further and determine more precisely the labour costs for its products, it should have a better understanding whether Stanley&Stella FOB prices support payment of living wages. This could then form the basis for discussion with management at suppliers where Stanley&Stella has high leverage, to move towards payment of living wages. It should noted, in this regard, that one of Stanley&Stella’s suppliers in Bangladesh, accounting for 70% of Stanley&Stella’s 2014 FOB volume, made important steps towards payment of living wages in 2014.
Stanley&Stella can take further steps towards analysing the root causes of excessive overtime, as well as living wages, and how this relates to its own buying practices. Furthermore, it can be more transparent in communicating about FWF and labour conditions at its suppliers publicly.Download