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Social Compliance

Audits

  • FISCAL 2016

    Gildan’s goal is to audit 100% of its owned and third party manufacturing contractor facilities at least once in an 18-month base period. In addition, all new sourcing facilities must be audited prior to the start of any production for Gildan.  This includes manufacturing facilities for third-party contractors at least once in an 18-month period.

    Audits are prioritized according to a risk-based assessment, which accounts for country, financial and reputational risk.

    In 2016, 214 audits were conducted at our owned facilities, third party contractor facilities and select raw material supplier facilities throughout Asia, Central America, the Caribbean Basin and North America. This number includes a total of 207 complete and 7 follow-up audits. Of these, 130 audits were conducted by our internal auditors or by third party auditors on Gildan’s behalf, and 84 audits were conducted by external auditors mandated by the FLA, the ILO Better Work Programme, WRAP or by customers.

    The 2016 audit cycle included 19 potential third party contractor facilities, 15 of which were unable to demonstrate compliance with our standards and consequently were not awarded Gildan business. Furthermore, 7 existing third party contractor facilities were exited in an effort to consolidate and strengthen compliance within our supplier base.

    As part of the continuous improvement of our social compliance program, and as a leading practice, we conducted two audits at key raw material supplier facilities last year.  We are currently developing a procedure for rating raw material suppliers by risk in order to select those to be audited on a go forward basis.

    Overall, 62% of our active manufacturing contractor facilities were audited at least once by our internal auditors and/or by third party auditors in connection with Gildan production in 2016. We are pleased to report that 95% of our owned production facilities in Central America were audited by our regional auditors to verify compliance with our Code of Conduct. In this same region, 60% of our facilities were subject to external customer and/or stakeholder audits conducted by third party auditors.

    A full scale annual audit was conducted at our vertically-integrated facility in Bangladesh to assure continued conformity with Gildan’s rigorous standards.

    Owned facilities throughout North America as well as third party contractors that were not audited in 2016 will be visited in 2017.

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