Kmart Australia has turned global heads as it claims another Australian retail first.
The company has become the first Australian retailer to disclose the addresses and locations of supplier factories in the developing world it sources goods from.
From today, the addresses of Kmart suppliers in Bangladesh are posted online, with supplier locations in India and China to be progressively disclosed in 2014.
The move has also garnered global attention, with Kmart Australia leading the way as one of the few retailers internationally to reinforce its commitment to supplier factory worker protection in this way.
Kmart managing director Guy Russo revealed Kmart Australia will also implement a number of additional measures.
These are expected to enhance and further improve working conditions and building safety and security at factories owned and operated by Kmart suppliers in the developing world.
The additional measures include:
• Participation in the Impactt (consultancy specialising in human rights) Benefits for Business Workers program to help improve workers’ livelihoods and;
• A strengthened Ethical Sourcing Code that binds Kmart suppliers and their factories to even higher workplace safety and security standards.
“The measures we have announced are a further step in an ongoing journey the Kmart team in Australia, China, Bangladesh and other countries are on, with the focus on improving the safety, security and conditions for people who work in factories we source goods from, through meaningful and measureable action,” Russo said.
“The garment manufacturing industry is critical for Bangladesh and other developing countries. Kmart and other responsible retailers provide a pathway out of poverty and unemployment, but we must always focus on doing everything possible to ensure people are working in a safe environment and treated properly.
“Since Kmart announced it would further strengthen ethical sourcing practices from Bangladesh and other developing economies we do business in, we have been methodically developing our plan to integrate the changes throughout our operations.
“Our work has included hundreds of audits of supplier factories for compliance with our strengthened workplace safety and establishing new contractual arrangements with suppliers that have binding obligations around standards, site access and location disclosure.
“The willingness and enthusiasm of our suppliers in making structural and procedural improvements to meet our higher standards has been heartening to see, and demonstrates the best way to improve conditions is by constructively working with our partners to bring about change.
“The factory owners we do business with are as passionate as we are about creating safe workplaces and are also on the road of continuous improvement.”
The company added that Kmart’s participation in and support of the Impactt Benefits for Business and Workers program is a critical part of helping supplier factories in Bangladesh, with the aim to ultimately deliver better jobs for workers through improvements in induction systems, skills training and development, and communication.
The program is led by a consortium of global retailers including Kmart Australia, Tesco and Walmart, and managed by Impactt, a global consultancy specialising in human rights, labour standards, gender and international development.
Kmart’s strengthened Ethical Sourcing Code contractually binds Kmart supplier factories to continuously meeting higher standards for workplace safety and security.
Under the code, supplier factories will be subjected to regular, random and independent safety and security audits, and face stiff penalties where lapses or critical breaches are found, including the cancellation or suspension of contracts.
According to Russo, Kmart’s strengthened code is fully aligned with the core labour standards established by the International Labour Organization (ILO).
Russo added that the journey to improve conditions at supplier factory locations for the benefit of workers and their families is ongoing, and that the company would continue to explore additional ways of improving the safety, security and wellbeing of workers in its supply chain.
“Through our sustained effort and dedication we are confident the changes and improvements we are making will, over time, create safer and more secure factories for people to work in,” Russo said.
For further details on Kmart Australia and its suppliers in the developing world check out the Q&A with the company here.
Target is also expected to disclose its 45 supplier sites by mid 2014.