Achieving wage transparency in global supply chains
Public reporting requirements on human rights and environmental due diligence are on the horizon for companies in the apparel, fashion, and manufacturing sectors. Governments, civil society organizations, and shareholders are enthusiastic for companies to report on quantitative data indicators such as living wage and fair compensation.
Currently, all Fair Labor Accredited Companies and Suppliers are required to collect and analyze wage data, have a blueprint with operational actions to improve workers’ wages, and public commitments to uphold a worker’s right to fair compensation and living wage. Through these requirements, FLA provides additional recommendations to support the dialogue between social compliance staff, purchasing colleagues, senior management, the legal and public relations departments, and other relevant stakeholders to prepare for public reporting on living wage in a company’s supply chains.
This guidance sets FLA members on the path towards living wage reporting and transparency — and will continue to be updated as legislative requirements and stakeholder expectations evolve.