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Social Compliance

Remediation

Following an internal audit at a Gildan owned or third-party contractor facility, our regional social compliance teams partner with facility managers to effect change and sustainable remediation.  Following an assessment, a management action plan is elaborated and shared with the facility. Facilities are expected to implement corrective actions and to demonstrate improvements within a prescribed timeframe.

Gildan verifies corrective actions through onsite and desktop follow-up audits.  Progress towards the management action plan is developed, recorded and tracked in our interactive Corporate Social Responsibility data capture platform. Facilities can provide details of their corrective actions, as well as provide evidence to support their remediation efforts.
We employ a root cause analysis procedure that was revamped in 2014. Management teams in our facilities are now required to systematically identify the root causes of each non-compliance raised during the audit process. The main objective is to help prevent similar issues from reoccurring. This is done by having a methodical system in place that helps with the implementation and review of adequate preventive and corrective actions.

Recurrent findings are given special attention to ensure that proper remediation is implemented. We also assess whether or not a trend is developing throughout several facilities or in a particular region so that any issues of particular concern can be identified at an early stage and potentially prevented.

All of our management processes, procedures and policies are reviewed periodically to ensure efficiency and relevance of our systems.  Thorough reviews of our monitoring and rating systems were undertaken during the first quarter of 2017.

The status of all non-compliances and their corrective actions are reviewed and reported to Gildan’s Board of Directors on a quarterly basis.

Ongoing Remediation Efforts Within Our Contractor Base

Our regional compliance teams dedicated the necessary time and resources to elevate levels of compliance within our contractor base throughout Asia. The objective was to focus on remediating important social issues occurring industry-wide, such as social insurance coverage and excessive overtime for workers in China.

Following these initiatives, we were able to raise overall compliance amongst third-party contractors. In fact, 100% of high and medium volume third party contractors have come into an acceptable level of compliance. Moreover, low volume or specialized third party contractors demonstrated significant improvement and increased their performance according to our rating system. We will continue to monitor this progress over the course of 2017

Post Acquisition CSR Integration and Remediation Efforts

Alstyle facilities integration is ongoing. All of Gildan labour, environmental and health and safety procedures are in the process of being implemented and all facilities will receive their first audit during the course of 2017.

Following the acquisition of Peds Legwear in 2016, our regional teams embarked on an intensive CSR integration campaign which included conducting due diligence, initial risk-assessments, training for third party contractors, auditing to verify levels of compliance with Gildan’s Code of Conduct, followed by remediation or consolidation to strengthen compliance within the contractor base.

Peds worked with 31 third-party manufacturing locations at the time of the acquisition.  Our training session was attended by 47 participants in Asia. Audits were conducted in two phases, which led to the exit of 6 manufacturing locations that were not or would not be able to demonstrate compliance with our rigorous Code of Conduct.

Remediation efforts are ongoing and include the development of detailed corrective action plans, regular follow-up and will involve a reassessment.

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