1. Primark’s Ethical Trade Programme Katharine Kirk, Ethical Trade Director January 2010

2. Taking care of our people Being good neighbours
Our Core Values
Taking care of our people
Being good neighbours
Fostering ethical business relationships
As an international brand with a global supply chain we have a responsibility to act “ethically”. We embrace this responsibility as an opportunity to be a force for good.

3. The Facts
We support the livelihood of 2 million people across the developing world
Investment of £700 million per year in the developing world
Products purchased from more than 20 countries
We share 95% of our factories with other brands
196 stores across 7 markets: ROI, UK, and internationally in Spain, the Netherlands, Portugal, Germany and Belgium

4. The Business Case for Responsible Sourcing
‘Buying Smarter’ gives us the competitive edge
Ethically compliant factories produce better quality products, on time
Choosing ethically compliant suppliers delivers other benefits to the business
Detailed supply chain mapping helps us get to know our supply base and make better overall sourcing decisions
Knowing your suppliers, supplier selection and looking at the production schedule are all good buying practices commercially and ethically 4

5. The Business Case for Responsible Sourcing
Reputational Risk
Greater focus in the customer’s mind
Sales are good now, but how many customers are not walking through the door?
Younger generation now educated formally on the issues
Strong media interest
Investors are assessing new types of risk
Our staff care - it impacts recruitment 5

6. Issues in the supply chain
Problems are common and shared
More transparency and activity uncovers more issues!

7. Our priorities Integrating ethical priorities into core business
Increasing visibility in the supply chain
Partnering with suppliers and factories to support sustainable improvement in working conditions
Supporting workers to understand their rights and responsibilities
Further development of our environmental policy

8. Integrate ethical priorities into core business practices
2009
Train all Primark buyers on ethical trade
Increase transparency and communications between the buying and ethical teams
Examine the impact of our purchasing practices on suppliers
Implement new supplier/factory approval process
Lesson: Buyers are very receptive and are hungry for more information about their suppliers
2010
Ongoing ethical training for Primark staff
Initiate project work on purchasing practices
Active participation in the Ethical Trading Initiative (ETI) Purchasing Practices Group (breakout group)

9. Increase visibility in the supply chain
2009
Implement online supplier management database
Work with local partners to do bottom-up supply chain mapping
Conduct 1000 audits
Active participation in the ETI Home Working Group
Lesson: Appropriate technical support is critical
2010
Continue to monitor and remediate factories
Continue to map supply chains and start to focus on ‘second tier’
Partner with other brands on auditing and remediation where possible and ‘beyond auditing’ projects

10. Lesson: It is worth taking time to find the right people for your team
Partner with suppliers and factories to support sustainable improvement in working conditions
2009
Expand regional ethical trade team to focus on supplier support rather than auditing
Conduct supplier training in China, India, and the UK
Develop supplier handbook on code implementation
Develop supplier online feedback survey
Lesson: It is worth taking time to find the right people for your team
2010
MAJOR focus on support, training and remediation for suppliers from in-country teams
Launch online compliance training modules for suppliers
Launch Suppliers’ Extranet

11. Supporting workers to understand their rights and responsibilities
2009
Initiate productivity/wage projects in Bangladesh and China
Investigate delivery of support services to workers
 Lesson: There is not always the in-country capacity to provide support services, you may need to help develop it
2010
Establish additional NGO partnerships to support workers in main sourcing countries
Conduct external verification of audit results
Develop secure worker communication channels – e.g. worker hotline
Work with other ETI member on cross brand FOA initiatives

12. Further development of our environmental policy
2009
Initiate project in China with three factories
 Lesson: We need to think about sustainable suppliers, not just socially compliant suppliers
2010
Initiate projects in India and the UK
Aim to improve efficiency and mitigate future risks associated with environmental and social pressures through creating a model for sustainable growth

13. Lessons learned in 2009
Ethical priorities need to be embedded in and wholly supported by the business at every level in order to achieve progress and desired goals
Auditing activities achieve less sustainable change, than focused support, training and capacity building with suppliers and factories
Company expectations and processes need to be communicated clearly both externally and internally
Cross brand initiatives help speed up learning
Any supplier training is best carried out locally and with speakers using the local language

14. Improvement requires a collaborative approach
The challenges are shared challenges
We owe a responsibility to workers to find sustainable ways to protect their rights.
That means working together with others and seeking to find solutions expert, local knowledge that are appropriate for workers and business partners