Supply Chain Innovation

Accreditation of Pou Chen's Social Compliance Program

Publication date: 
Wednesday, June 27, 2018

pouchen275.jpgThe FLA Board of Directors voted on June 20, 2018 to approve the accreditation of Pou Chen Group's social compliance program. Details on FLA's accreditation methodology can be found at www.fairlabor.org/accreditation.

Pou Chen's accreditation comes after the FLA has conducted 6 SCI assessments in Bangladesh, China, and Vietnam; two field visits to shadow internal audits and trainings in Indonesia and Vietnam; and a headquarter visit in Taichung, Taiwan.  The FLA accreditation report specifically recognizes as strengths Pou Chen's transparency in remediating labor violations in its production sites, investment in social compliance training, and multiple grievance channels.

All brands and suppliers that affiliate with the FLA commit to upholding international labor standards throughout their supply chains and commit to an evaluation by the FLA of the preparedness of their social compliance prorgrams to sufficiently uphold these standards.  Brands and suppliers that successfuly complete the initial multi-year evaluation, subject to approval by the FLA Board of Directors, achieve accreditation of their programs, with re-accreditation assessments required regularly thereafter.  The FLA evaluates companies at the headquarter level – in addition to standard factory-level due diligence activities that are conducted annually – to determine whether they have social compliance systems in place to proactively identify and address risks or instances of noncompliance.  The FLA does not certify brands or factories, given the complex and ever-evolving nature of global supply chains that makes it impossible to guarantee that a product is made in conditions free from labor rights violations. 

Please find the full report linked below, including all areas of strength and areas for improvement in Pou Chen's social compliance program.

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