Ethics are simply the ethical principles, morals and ethical problems found in the business space and the way they are approached. Ethics is very important in the business world, showing the business principles and standards of business behavior. In present day costumers are always observing business organization and ethical code. This is due to the fact that many manufacturing companies practice unfair terms of wages, and risky work environments that can easily market a bad reputation. Below are some of the compliance statuses found on PVH's website regarding Tommy Hilfiger's work policies.
Health and Safety: 65% of non-compliance issues in this category were found to be resolved or are in the process of being resolved. We placed particular emphasis on fire safety, resolving or partially resolving 74% of the instances of non-compliance.
Wages and Benefits: 72% of instances of non-compliance in this category were resolved completely or are in process of being completed (43% and 28% respectively). We attribute the underpayment of wages to be an issue primarily with our factories in China where the minimum wages are rapidly increasing. Of the factories with outstanding wage non-compliance issues, 67% are in China. The factories are given a timeframe within which to pay the minimum wages if the business relationship is to continue.
Hours of Work: 66% of working hours findings have been addressed or are in progress. This is one of the most challenging issues given the apparel business model in which multiple companies may source product from the same factory with different delivery deadlines. We have continued to work with factories to track hours and identify and address the causes of non-compliance issues.
Harassment or Abuse: 53% of the instances of non-compliance related to harassment and abuse have been corrected or are in progress. Many of the open issues are related to an absence of management systems at the factory level, for example, insufficient training for workers and supervisors on disciplinary procedures or a failure to ensure that a non-harassment and abuse policy is effectively implemented to prevent verbal harassment. In some instances, the factories have imposed monetary fines if uniforms have been damaged; PVH has asked that monetary penalties be eliminated. If instances of non-compliance persist, the factory risks having the business relationship terminated.
Freedom of Association: 59% of the instances of non-compliance related to freedom of association have been corrected or are in progress. These are often complex issues requiring long term solutions. In many instances, the starting point is the building of more effective communication channels such as adequate grievance mechanisms for workers.
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