Responsible Purchasing Practices
Victoria’s Secret & Co. realizes that responsible business practices start with partnering with suppliers and factories that have an excellent compliance track record and share our core values. To that end, all of our associates involved in the production and purchasing process must understand the critical role they play in that process. The company is committed to providing these associates with ongoing training and educational opportunities to keep teams vigilant and fully engaged.
The company also has an Associate Code of Conduct that outlines our standards and expectations and also addresses the consequences of noncompliance.
Associates who influence decisions in Victoria’s Secret & Co.’s supply chain received a course called “Preventing Modern Slavery in Our Global Supply Chain” to ensure they are aware of the risks of modern slavery in our supply chain, can recognize the warning signs and know what tools are available to report any concerns of forced labor or human trafficking in the supply chain. The training was developed in alignment with the ILO Indicators of Forced Labor.
In the sourcing periods following participation in the awareness training, fewer factories utilizing foreign migrant workers were requested for pre-production authorization. During the last calendar year, there were no sites with foreign migrant workers added for production. Foreign migrant workers continue to account for less than 1% of the overall worker population because of sourcing partners taking an active role in helping screen suppliers for potential indicators of forced labor.
In 2019, we made internal structural changes to target two specific improvements. Centralized demand planning was established to facilitate improved order flow and minimize the risk of scheduling suppliers beyond their available capacities. Raw material management was centralized with teams in region to help build a more vertical supply chain where our products are manufactured.
We also have a supplier scorecard that incentivizes strong labor rights and environmental standards as well as other criteria. Suppliers who have 20 to 30 years of history with us and have solid compliance performance receive a higher percentage of our order volume. The scorecard is reviewed with suppliers regularly to track their performance.