PVH’s 10th An­nual CR Re­port: Re­mark­able progress against 10 Cor­po­rate Re­spon­si­bil­ity Com­mit­ments

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PVH, the com­pany be­hind Calvin Klein, Tommy Hil­figer, Van Heusen, Izod, Ar­row, Speedo 1, Warner’s, Olga and Ge­of­frey Beene and True & Co. brands re­cently came up with its 10th An­nual Cor­po­rate Re­spon­si­bil­ity (CR) re­port. The re­port pro­vides in­for­ma­tion and per­for­mance data on the com­pany’s op­er­a­tions dur­ing 2017 cal­en­dar year. The re­port is pre­pared ac­cord­ingly un­der the Global Re­port­ing Ini­tia­tive’s (GRI) Stan­dards un­der the ‘Core’ op­tion and in line with the 10 prin­ci­ples of the UN Global Com­pact (UNGC). In 2016, the com­pany com­mit­ted 10 CR com­mit­ments. With 10 fo­cus ar­eas (see box on next page), the com­pany claims good progress and re­it­er­ates its ef­forts for the same.

Hu­man Rights seem to be on pri­or­ity for PVH Corp as it has done ex­ten­sive work in this re­gard. PVH has made its ‘Tell PVH’ global re­port­ing hot­line avail­able to ev­ery worker in its sup­ply chain to em­power and give a voice to its en­tire work­force. In 2017, PVH ex­panded the scope of its assess­ment pro­gram to in­clude a broader sup­ply base. Tra­di­tion­ally, its fo­cus was on fin­ished prod­uct (cut and sew) sup­pli­ers. In 2017, the fo­cus was ex­panded to in­clude over 80 strate­gic trim sup­pli­ers. In 2018, it will ex­pand en­gage­ment fur­ther with a goal of in­clud­ing 100 mills. The com­pany fur­ther worked cross-func­tion­ally to con­duct a com­pre­hen­sive map­ping of its trim fa­cil­i­ties, and it plans to broaden this to in­clude mills, laun­dries, and other wet pro­ces­sors in 2018. It has set up a process to en­sure an ac­cu­rate an­nual map­ping that iden­ti­fies the crit­i­cal fa­cil­i­ties in its sup­ply chain to al­low it to fo­cus on driv­ing re­spon­si­ble im­prove­ments in the long term.

In 2017, PVH im­ple­mented the SAC Higg FEM across its sup­ply chain. In 2018, PVH an­tic­i­pates ap­prox­i­mately 570 to­tal fa­cil­i­ties in the PVH sup­ply chain, in­clud­ing ap­prox­i­mately 80 that in­volve wet pro­ces­sors. In 2017, the com­pany rolled out the Bet­ter Work Academy (BWA), a pro­gram through ILO/In­ter­na­tional Fi­nance Cor­po­ra­tion Bet­ter Work. It is train­ing its for­mer au­di­tors in coach­ing skills and demon­strat­ing to sup­pli­ers how giv­ing work­ers an ac­tive role can help im­prove work­ing con­di­tions. “In 2018, we will be­gin

work­ing with our sup­pli­ers to cre­ate or en­hance our own work­er­man­age­ment com­mit­tees by of­fer­ing train­ing, sup­port­ing demo­cratic work­place elec­tions and shar­ing prob­lem-solv­ing tech­niques,” the com­pany says.

The com­pany’s Gold Pro­gram cur­rently cov­ers only five ven­dors and it will ex­pand the same to a new class of strate­gic sup­pli­ers. In or­der to par­tic­i­pate in the Gold Pro­gram, a ven­dor must have had no Or­ange or Red 3 rated fac­to­ries, nor any non-Code vi­o­la­tions in the past three years (e.g., no unau­tho­rised sub­con­tract­ing), and they must be a Tier-1 ven­dor. It aims to in­tro­duce an even more com­pre­hen­sive mi­grant labour strat­egy in 2018 lever­ag­ing what it has learned from the work com­pleted in 2017.

Im­proved safety across its fac­to­ries in Bangladesh by ad­dress­ing nearly 95 per cent of all is­sues found, makes it a top re­me­di­a­tion of over

200 Ac­cord mem­bers. PVH was in­volved in The Life and Build­ing Safety (LaBS) pilot pro­grams of 100 fac­to­ries in Viet­nam and In­dia. The Con­fronting Un­con­scious Bias course is a foun­da­tional com­po­nent of PVH Univer­sity’s (‘PVH U’) In­clu­sion & Di­ver­sity Academy cur­ric­ula. All new and re­cently pro­moted lead­ers in the US are re­quired to take the course. Two ad­di­tional cour­ses were of­fered through its I&D Academy in 2017: Mi­cro-In­equal­i­ties and Gen­er­a­tional Dif­fer­ences in the Work­place. In

2017, its LGBT (Les­bian, Gay, Bi­sex­ual, and Trans­gen­der) BRG (Busi­ness Re­source Group) launched WERK (Well con­nected, Equal­ity, Re­source­ful­ness, and Knowl­edge) which took the lead in spear­head­ing PVH’s Plat­inum Spon­sor­ship in the 2017 NYC Pride March in which

800 as­so­ciates marched. In fu­ture, it has plans to ex­pand sup­port for LGBTQ pride around the world in key lo­ca­tions where the groups have a large as­so­ciate pres­ence. It will also be­gin rolling out a new course in I&D Academy specif­i­cally around in­clu­sion in the work­place.

The group has 36,000 as­so­ciates around the world, and in 2017, it ex­panded its Parental Leave Pol­icy in the US to cover foster par­ents, as well as se­condary care­givers.

The com­pany also ex­panded

Health Mat­ters to as­so­ciates in Canada, and in 2018, this pro­gram will fur­ther ex­pand to in­clude their de­pen­dents. It also launched three new lead­er­ship de­vel­op­ment pro­grams: one for front-line lead­ers, one for mid-level lead­ers and one fo­cus­ing on de­vel­op­ing coach­ing skills in lead­ers. The con­tin­ued en­hance­ment of its ben­e­fits in 2018 in­clude the launch in the US of a crit­i­cal ill­ness cov­er­age pol­icy, which will pro­vide as­so­ciates with a lump-sum pay­ment in the event of a crit­i­cal ill­ness di­ag­no­sis.

As the com­pany shifts from an au­dit-led pro­gram (find­ing prob­lems) to a more value-added one, it fo­cuses on prob­lem-solv­ing and em­pow­er­ing work­ers and fac­to­ries to adopt and put into ac­tion their own CR pro­grams, pro­cesses and sys­tems. “This is a long-term goal upon which it has made sig­nif­i­cant strides to­ward achiev­ing and will con­tinue striv­ing for each com­ing year,” the re­port says. It fur­ther feels proud to re­port that 2017 was a year of con­sid­er­able ad­vance­ments to­ward fully im­ple­ment­ing its ‘source to store’ value chain ap­proach.

“Much of the ap­parel in­dus­try’s en­vi­ron­men­tal im­pact oc­curs early in the sup­ply chain. There­fore, we have ex­panded our assess­ment pro­gram to in­clude trim fa­cil­i­ties for the first time to help us gain a broader view of our sup­pli­ers’ prac­tices,” the re­port reads.

In In­dia

In In­dia, the com­pany is work­ing on mul­ti­ple fronts which cover wa­ter and en­vi­ron­ment, worker safety, train­ing, etc. As part of li­censee ca­pa­bil­ity ef­forts, the PVH CR team con­ducted man­age­ment sys­tem train­ings based on the SAI So­cial Finger­print frame­work for Arvind Fash­ions Ltd., Ban­ga­lore. Based on the iden­ti­fied gaps, AFL and the PVH CR team co-de­vel­oped an improve­ment plan to help strengthen hu­man rights per­for­mance within AFL’s sup­ply chain. Fur­ther, PVH CR con­ducted man­age­ment sys­tem train­ings for the AFL com­pli­ance team, in line with the SAI

So­cial Finger­print frame­work. Since the train­ings, AFL has re­vised key poli­cies, in­clud­ing au­dit and on-board­ing pro­ce­dures for the fac­to­ries pro­duc­ing for PVH, in align­ment with PVH CR stan­dards, and con­ducted train­ing ses­sions on PVH com­pli­ance re­quire­ments for their sup­ply chain part­ners. This has re­sulted in a re­duc­tion in the per­cent­age of high-risk (Or­ange rated) fac­to­ries within AFL’s sup­ply chain and has strength­ened its part­ner­ship. In the Cau­very River basin in South In­dia, Calvin Klein will work with key stake­hold­ers to re­duce wa­ter-stress on the en­vi­ron­ment, peo­ple and econ­omy. Save the Chil­dren ini­ti­ated a project in Ban­ga­lore, which aims to in­crease at­ten­dance at state pre-schools and of­fer par­ent­ing ad­vice to moth­ers and care­givers. The pro­gram pro­vides pro­fes­sional train­ing to teach­ers and new class­room equip­ment. Chris­tel House and Shishu Mandir are lo­cal part­ner­ships of the PVH Corp in In­dia.

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