When global brands and retailers accept standardised audits from garment factories, it is the workers who stand to benefit the most, according to research carried out by Better Buying Institute (BBI).
- The findings are from the Better Buying Purchasing Practices Index 2022, wherein suppliers answered questions in the ‘Win-Win Sustainable Partnership’ category (which measures brands’ and retailers’ contributions to reducing industry-wide audit duplication).
- They were asked if their buyer accepted standardised audits rather than buyer-specific audits or assessments.
The Key Findings:
- Savings were invested about equally in the workplace (36.7%) and in new programmes or services for workers (35.3%).
- Investments in the workplace would encompass health and safety improvements, such as enhanced lighting, better egress, social distancing, and ergonomics. New programmes or services for workers would include medical testing and vaccinations to reduce the spread of Covid-19, and others that support the total workforce.
- While only 7.7% of suppliers reported being able to pay higher wages to workers as a result of the savings, this was said to have been influenced by competing financial pressures suppliers are facing due to continued requests for lower prices and poor forecasting that leads to inefficient and more costly operations.
- Paying higher wages to workers requires suppliers with sound financials, supported by a broad range of better purchasing practices.
The Status of Compliances:
- 86.3% of suppliers reported that buyers are now accepting results from recently completed audits and assessments
- 22.5% reported that their buyers are accepting the Social & Labor Convergence Program’s Common Assessment Framework (CAF)
- Nearly 64% of suppliers reporting that their buyer accepts the SLCP’s CAF indicate that the primary benefit is increased clarity on corrective action plans.
- Of those suppliers whose buyers’ accept the SLCP’s CAF, two thirds are saving up to $5,000 a year per customer, with 4.3% saving more than $20,000 a year.
- The top 3 areas where suppliers are investing these savings are: investments in the workplace; offering new programs or services to workers; and investments in new technology.
What They Said:
When brands and retailers accept the SLCP Converged Assessment Framework instead of insisting on buyer-specific audits, the potential for worker benefits are significant. But audit harmonisation is only part of the picture. Buyers’ purchasing practices need to be strong across all seven Better Buying categories to support ongoing supplier sustainability, and deliver consistent benefits to workers.
— Marsha Dickson
President and Co-Founder
Better Buying Institute
The BBPPI is a fantastic tool for understanding the realities of buyer-supplier relationships. The 2022 results demonstrate that facilities experience tangible benefits when their buyers use converged tools such as the CAF. Improving purchasing practices should be a priority for all brands and retailers, and ditching their proprietary audit tools is a relatively simple step they can take to become more responsible buyers. We urge more companies to adopt SLCP so time and resource can be directed away from auditing to more useful activity.
— Janet Mensink
Executive Director
Social & Labor Convergence Program
