Strict controls in high-risk countries

In 2014 we worked with 46 producers in high risk countries – the primarily non-European low wage paying countries of the textile industry. They make the majority of our products: 93 percent of our total expenditure for products goes to these facilities. The remaining seven percent of the total expenditure goes to eight producers in low risk countries.

The Fair Wear Foundation (FWF) distinguishes between low risk countries and high risk countries. Low risk countries are all EU Member States except Bulgaria, Romania and Switzerland. In accordance with FWF rules, only high risk countries must be audited, as there is a high risk of complaints with regard to labor practices and human rights there. In the long term, 90 percent of facilities in high risk countries must be audited, according to Fair Wear Foundation.

From the third year of membership, the Fair Wear Foundation expects that its members have audited and are monitoring 90 percent of companies in high risk countries. In 2014 we audited 89 percent of our producers in high risk countries and seven percent in low risk countries. Thus we arrive at a total score of 96 percent. The annual Brand Performance Check reviews also count in the overall assessment. We have met both requirements and in 2014 achieved Leader Status for the first time – the best category in the Fair Wear Foundation.

Of the VAUDE suppliers, 15 producers in high risk countries had their initial audit. Since the inspection criteria are very strict and extensive, there were complaints of varying degrees in all of our audits in high risk countries in 2014.

Most complaints were about workplace health and safety, as well as communication. Complaints related to working practices were present at every facility audited. On the subject of human rights, „freedom of association and the right to collective bargaining" were particularly objected to. This issue affected all audited facilities.

After each audit, a Corrective Action Plan is created detailing the points and deficiencies to be addressed, and which ones need to be worked on in collaboration with the producers. The implementations of the individual points from the CAP are reviewed regularly with the help of our local VAUDE staff on site. In cases where difficulties in implementation are encountered, solutions are sought with the producers during meetings that take place annually.

This is sometimes a difficult process. But before we part from a producer, we try very hard to improve our collaboration. We work on issues of reliability, price policy and communication, as well as quality, environmental protection and social standards.

Only when we realize that our efforts to find a solution are failing, do we end the business relationship. In 2014, we ended our relationship with four producers due to poor working conditions and the negative attitude of the management.

In addition, during the report year we have worked with eight producers in low risk countries which accounted for seven percent of the total spending for our products. Five percent is made solely by the production at VAUDE location Tettnang-Obereisenbach.

Producers in low risk countries have not been audited because there is little risk of adverse impacts in these countries. In an industry-wide comparison, these producers are relatively close to our main business site in Tettnang-Obereisenbach and are therefore referred to as local suppliers.