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