Our Risk Based Compliance Framework

Our ‘Ethical Sourcing’ framework is grounded in industry standards, ongoing learnings and a philosophy of continuous improvement.

The Company’s Ethical Sourcing program is led by the Group CSR Manager whilst managed at a local level by our Regional Sourcing Compliance Manager who is based in China. The Regional Sourcing Compliance Manager is responsible for regional partnerships, manages the audit process and collaborates with the Company’s suppliers and its sourcing teams to facilitate the remediation of often complex compliance issues. The Social Compliance team are independent of the Company’s operating businesses. The Group CSR Manager keeps senior management regularly abreast of the Company’s program and provides updates in relation to various measures of Social Compliance.

The Regional Sourcing Compliance Manager is supported by Social Compliance Officers who are responsible for conducting pre-audit research, supplier set-ups, factory specific audits, detailed corrective action plans and ongoing supplier remediation. The team is currently being integrated into Hanes Brands Inc's extensive CSR team. The Company’s social compliance team engages third party specialised auditors Elevate Limited, International Compliance Group, Social Compliance Service Asia Limited and One Step (for Vietnam only) to conduct annual audits against its compliance program.

Our Ethical Sourcing program starts with the engagement of a new supplier and continues throughout our sourcing and on-going supplier relationship management processes. Some of our supplier relationships have been in place for in excess of 10 years. 

Where a direct supplier is new to Hanes Australasia, the Social Compliance team will conduct pre-audit screening based on information provided by the supplier and current third party audit reports. This screening determines if a factory progresses to a formal audit conducted by an independent third party auditor in order to determine whether the supplier meets the Company’s compliance standards to be an approved supplier.

Post approval, the Company's independent auditors also regularly conducts audits (announced and unannounced) of its direct suppliers to determine ongoing compliance with its supplier code of conduct. Where non-compliance is found, the Social Compliance team works with the supplier to develop a corrective action plan which is monitored. Where a supplier is unable to achieve compliance, the Company will work with that supplier, however ultimately a range of sanctions including termination may apply if compliance cannot be achieved in critical areas. 

Our Risk and Compliance Framework enables us to review and manage suppliers based on our risk profiling matrix.

All factories are audited within a 12 month period. Regular factory follow-ups are scheduled based on the risk assessment level defined in the Company’s formal audit process. This risk level is dependent on a number of factors such as, brand, nature of product, business volume, the factories’ prior audit results and historically how they have responded to any corrective action plans identified. 

We also apply a vendor scorecard that incorporates key social compliance criteria when evaluating key suppliers. This provides us with a holistic view of supplier performance.