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Working Conditions and Human Rights in our supply chain
Our supply chain is a very important piece of the sustainability puzzle, where both people and planet are key stakeholders of our actions. On this page we will focus on working conditions and human rights in our supply chain.
To learn more about what we're doing for the environment in our supply chain, please read more here.
It is important that all people across our value chain are treated with respect and dignity, and that equality is demonstrated in everything we do. It is NA‑KD's responsibility to respect human rights throughout our entire value chain, and to promote human rights values whenever we can.
Our Supplier Code of Conduct
At NA‑KD we are strong believers of industry collaboration to drive change towards a more sustainable fashion industry. We are active members of amfori, a business association aimed at improving social conditions in global supply chains. We work according to the amfori BSCI framework together with our suppliers, to facilitate that all factories in our supply chain are agreeing to the same principles, ethics and values when it comes to working conditions.
We require that all new suppliers sign our Supplier Code of Conduct and conduct social audits within 6 months from signing contract.
amfori BSCI
The amfori BSCI Code of Conduct has been adopted by NA‑KD and is at the centre of our work with social and ethical compliance. The amfori BSCI Code of Conduct for business partners and producers is aligned with international recommendations, norms and conventions such as:
  • The Universal Declaration of Human Rights
  • The Children’s Rights and Business Principles
  • UN Guiding Principles for Business and Human Rights
  • OECD Guidelines for Responsible Business Conduct
  • UN Global Compact
  • International Labour Organization (ILO) Conventions
Passing it on
NA‑KD clearly communicates with the Code of Conduct and its Terms of Implementation that suppliers are expected to cascade the values it holds further up their own supply chains. The Code of Conduct is added to our purchase agreements and all suppliers working with NA‑KD need to sign it. The Code of Conduct covers relevant labour rights, as well as environmental protection and anti‑corruption.
UN Guiding Principles for Business and Human Rights
Our human rights work is based on the UN Guiding Principles for Business and Human Rights (UNGP) and we are currently accelerating our efforts to implement these principles. The UNGP’s clarifies what it means for businesses to respect human rights; to have a policy commitment in place, to work with human rights due diligence across the value chain and have mechanism in place for people to be able to ""blow the whistle"" in case this is needed, and to provide for remediation depending on if the business has caused, contributed to or is merely linked to the harm done through its products or services.
The amfori BSCI Code of Conduct
The Rights of Freedom of Association and Collective Bargaining
Our enterprise respects the right of workers to form unions or other kinds of workers' associations and to engage in collective bargaining.
No discrimination
Our enterprise provides equal opportunities and does not discriminate against workers.
Fair remuneration
Our enterprise provides equal opportunities and does not discriminate against workers.
Decent working hours
Our enterprise observes the law regarding hours of work.
Occupational health and safety
Our enterprise ensures a healthy and safe working environment, assessing risk and taking all necessary measures to eliminate or reduce it.
No child labour
Our enterprise does not hire any worker below the legal minimum age, and never less than 15 years.
Special protection for young workers
Our enterprise provides special protection to any workers that are not yet adults.
No precarious employment
Our enterprise hires workers on the basis of documented contracts according to the law.
No bonded labour
Our enterprise does not engage in any form of forced servitude, trafficked or non-voluntary labour.
Protection of the environment
Our enterprise takes the necessary measures to avoid environmental degradation.
Ethical business behaviour
Our enterprise does not tolerate any acts of corruption, extortion, embezzlement or bribery.
Decent living wages
As stated in the amfori BSCI Code of Conduct, we expect our suppliers to respect the right of the workers to receive fair remuneration that is sufficient to provide them with a decent living for themselves and their families. As equality is a value that we live and breath at NA‑KD, this is also something which we strive to work towards for all thousands of workers in our supply chain.
A joint effort
As defined by the International Labour Organization (ILO), a fair living wage is one which fulfils the basic needs of workers and their families, as well as providing some flexible income, within normal working hours. This is a struggle as the legal minimum wage in some countries may be lower than the wage needed to get a decent living. The entire fashion industry needs to work together to drive the change needed, and to raise the wages of millions of garment workers across the globe.
Workers unions
The ILO and global trade unions stress the importance of allowing and respecting workers unions and the right of collective bargaining as a means to drive improved working conditions and wage levels. This is something that we expect of our suppliers as the first principle in our Supplier Code of Conduct that all suppliers have to sign.
Due diligence
At NA‑KD we strive to work throughout our supply chain and business relationships to identify, assess, monitor, and mitigate any potential human rights violations, and to remedy if NA‑KD has caused or contributed to potential harm done. We strive to use our leverage in our business relationships, and to use a positive impact in situations where we have no control.
Capacity building program
Having our suppliers registered on the amfori BSCI platform is part of our suppliers onboarding process. Within 6 months from signing the purchase agreement, the supplier should register on the platform. We expect suppliers to conduct a self-assessment and take part of the capacity building program offered on the platform. The capacity building program includes both online and face to face training in our two biggest supplier countries; China and Turkey.
Social Audit
We also require that all suppliers perform an amfori BSCI social audit within six months from signing their contract with NA‑KD. The audits are performed by a third party certified auditor, which gathers information via documentation and worker dialogues, for each part of the performance area.
In some cases we approve other forms of social audits, such as SMETA audits and SA8000 certification – though our overall goal is to have all suppliers perform an amfori BSCI social audit. The supplier will get a rating in each performance area covered by the Code of Conduct, A-E, where E is unacceptable. Our aim is that all suppliers should have a C rating or higher.
Approved audits
Bar chart
At the end of 2020, 68% of our producers held valid social audits, corresponding to 81% of our spend.
Effects of the pandemic
In 2020, Covid19 has put a halt to external audits being performed in the majority of the countries in which our producers operate. In order to protect both our factory workers and the auditors, we have allowed the factories additional time to conduct follow-up audits. In caring for our suppliers, NA‑KD has also extended the deadlines for many of our new producers to conduct their amfori BSCI audits, meaning that approximately 30% of our producers are currently waiting to renew their audits or conduct their very first amfori BSCI audit in 2021.
Ethical due diligence
To rate ethical business behaviour the auditor evaluates (amongst other topics) whether the auditee can identify situations and activities where acts of corruption, extortion or bribery are most likely to occur in its business. The auditee must show in what way they are preventing corruption (e.g. through training of workers about the benefits of a work environment free from corruption), actively rewarding workers and management’s honest behaviour and how they take measures to prevent and fight any act of corruption.
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