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Social and Ethical Audit Report

Labour practices in our global supply chains

Gorman's parent company factory x have a long-held commitment to upholding safe and fair conditions for workers in its global supply chain.

The current ethical sourcing policy was developed in 2008 by an external consultant. it provides a framework for communicating our ethical standards to our manufacturers. using the ethical trading initiative base code as a guide, it references both local laws, the international labour organisation (ilo) conventions and principles of the united nations universal declaration of human rights.

The Policy

The policy addresses key criteria for the following areas:

  • Labour rights/ Freedom of employment
  • Freedom of association and the right to collective bargaining
  • Safe & hygienic working conditions
  • Regular employment
  • Child labour
  • Fair wages
  • Reasonable working hours
  • Harsh or inhumane treatment
  • Bribery & corruption
  • Non-discrimination
  • Fair and equitable treatment
  • Environmental compliance

The Procedures

Factory X and Gorman expect our manufacturers to implement and maintain systems for meeting the requirements stated in our Ethical Sourcing Policy. To monitor compliance, we have designed the following 3-step auditing process.:

Step 1: Factory Self-Assessment

All factories are required to complete a self-assessment annually; this includes the development of a Corrective Action Plan with timeframes for addressing issues.

Step 2: Factory X Audits

Factory X has an in-house bi-lingual team who conduct audits on a regular basis. Any corrective actions are addressed with the local manufacturer and a plan of action is agreed. A randomly scheduled audit follows to ensure that the corrective action takes place.

Step 3: Third-Party Audits

Random audits to ensure the accuracy of internal audits are also conducted by qualified and experienced third-party certification body.

All our auditors use the following scoring system to communicate results:

1Meets or exceeds Factory X Ethical Policy Requirements
2Meets the majority of factory x ethical policy requirements, with a corrective action plan developed that includes one or more minor issues.
3Meets the majority of factory x ethical policy requirements with a corrective action plan developed that includes one or more major issues
4Failed to meet factory x ethical policy requirements, with major corrective plan required and immediate action agreed
5Failed to meet factory x ethical policy requirements with a critical action plan developed and immediate action required
6Failed to meet factory x ethical policy requirements with a zero-tolerance issue included in the critical action plan and immediate action required
7Failed to respond to respond to corrective plan in a reasonable timeframe resulting in cessation of trading.
8Failure to respond to a critical action plan that includes a zero-tolerance issue; immediate cessation of trading due to major contract breach

The auditors speak to both management and employees. Click here to find out more about the information gathered through our audit processes.

Gorman's Results 2016/2017

85% of gorman's products are produced in 5 factories in china and india.

31% of factories have undergone a 3rd party audit by qualspec

31% of factories producing gorman products underwent an audit by a factory x auditor.

Most factories that underwent a Qualspec audit scored 3. All issues relating to health & safety & collective bargaining have been resolved. We are still working with some factories to resolve wage and overtime issues.

2 factories received a rating of 5. issues identified related to safety including fire alarms and safety exit signs not being present. These issues were resolved in a timely manner at one factory.

1 factory that scored a rating of 5 did not respond to the corrective action plan in a timely manner. After numerous attempts to engage with the factory and failed attempts to organise a follow-up audit, over a 12-month period, Gorman upgraded their score to 7 and discontinued working with the factory.

The charts below provide an overview of the qualspec audit results:

Maintaining consistent relationships

Gorman is committed to maintaining, long-term relationships with our manufacturers.

Currently, the top 20% of suppliers are doing 80% or our business and we have been working with 66% of our factories for more than 5 years and 4 factories for over 10 years.

in 2017 we used 15 factories to produce gorman products. with the exception of socks (Taiwan), all our products are made in china (5 regions) & india(1 region). A list of our factories is available here.

If you have any further questions or concerns, then please contact us at evangeline@gormanshop.com.au.