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VF Corporation's Compliance Program in FLA Applicable Facilities
VF Corporation's Compliance Program is based on the Corporation's Terms of Engagement which focuses on five tenets; Ethical Standards, Legal Requirements, Intellectual Property Rights, Product Labeling and the Corporation's Global Compliance Principles. The Global Compliance Principles meet or exceed all standards set by the FLA Workplace Code of Conduct.
VF's Compliance team consists of two groups of auditors who work with licensed products and contractors. In addition, a group of production individuals are responsible for conducting audits at their direct sourced factories. The Corporation's Compliance Program uses CSCC, Intertek Testing Services, and WRAP as third party monitors. This year the program focused on training new staff and improving corporate awareness.
VF Corporation's Approach to Compliance in 2003
Information provided in this section is based on reports submitted to the FLA by each Category B Licensee in January 2004. The points below briefly summarize VF's efforts to uphold its FLA Obligations in accordance with the FLA Charter. Click here to access FLA Company Obligations.
- VF's intent is to audit 100% of active factories on an annual basis. If a domestic factory has an 'accepted' status (see below), then an audit is scheduled once every 18 months.
- After audits facilities receive one of three grades:
1. Accepted - The factory has no major noncompliance issues, thus the factory can continue to manufacture VF products.
2. Accepted to be upgraded - The factory has some minor issues, thus the factory can continue to produce. However if the issues are not addressed in 8-12 weeks the factory will be downgraded to rejected.
3. Rejected - The factory has some major noncompliance issue, thus is no longer authorized to manufacture VF products.
- No products, samples or bulk orders, can be produced in a factory until it has been inspected.
- Approximately 2% of audits are unannounced.
- Full time compliance staff periodically participates in audits conducted by company staff and third party monitors, CSCC, Intertek Testing Services, and WRAP.
- The compliance and audit staff have bi-yearly meetings to promote consistent audit practices.
- Additionally, VF employees who are not in the compliance department are aware of the company's compliance program and that production cannot be sourced in a facility that has not had a compliance audit.
- VF continued to meet with its field auditors to establish consistency in auditing procedures in Asia, Europe and for its jeanswear, in Mexico.
- The Company has an Open Door Policy for workers to report non-compliance.
- In addition to participating with the FLA, WRC, and WRAP, VF also attends Business for Social Responsibility events.
Click here to see a summary of monitoring conducted in facilities producing university-licensed goods for VF.
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