Social Compliance
Audits
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Fiscal 2012
Gildan’s goal is to visit 100% of its manufacturing facilities, including the ones of its third party contractors, at least once in a 18-month base period. Audits are prioritized based on risk evaluation. Due to the increase of contractor facilities in 2011-2012, including the ones from the acquisition of GoldToeMoretz, Gildan made strong efforts to ensure that complete social compliance was integrated. This resulted in 66% of our overall manufacturing facilities audited at least once by Gildan internal auditors or third party auditors mandated by Gildan in 2012. Although Gildan has not visited the remaining 34%, those were audited at least once by Gildan’s customers or other certification bodies such as WRAP, and the results were reviewed by the Gildan internal compliance team. The facilities that have not yet been audited by Gildan will be visited before the end of the second quarter of fiscal 2013, which will ensure that all facilities have been visited at least once in an 18-month period. In addition, all new sourcing facilities have been audited prior to production. For more information, please refer to our Methodology section.
In 2012, 142 monitoring audits were performed. This number also includes audit performed at third party contractor facilities that were not retained for production.
104 complete social compliance audits were conducted at Gildan and third party contractor facilities in the United States, Asia, Central America, and the Caribbean Basin. Of these, 54 audits were conducted by Gildan’s internal auditors or by third party auditors on Gildan’s behalf, and 50 were conducted by external auditors or assessors for WRAP, the FLA, Better Work or by customers.
38 follow-up audits were conducted at Gildan and contractor facilities. Of these, 36 were conducted by Gildan’s internal auditors or by third party auditors on Gildan’s behalf, and two were conducted by external auditors for Better Work.
