C as to monitoring and evaluation it provides an

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(c) As to monitoring and evaluation , it provides an analysis of the value chain development based on three levels of risk basic, high, and advanced, sug- gesting some guidelines for each of them, namely: Basic Level Include CSR clauses or the UNGC Code of Conduct in supplier contracts and begin working toward integration. Conduct informal (code-based) audits when visiting suppliers for other reasons. High Level Make a detailed mapping of all suppliers so as to assess them in accordance with their speci fi c risk level. Operating in the fashion industry typically means maneuvering in high-risk countries. 2 When your supply chain management program has been established, you can use the following generic risk matrix to determine whether it will be enough for the supplier to sign the NICE Code of Conduct, or whether you will also need to audit suppliers regularly. When designing the audit program, you will need to determine how much commitment and willingness to work with different sup- pliers your company has. Advanced Level Send out a self-evaluation questionnaire, partly to get an initial knowledge of the suppliers performance level within CSR and partly to point out the require- ments in the Code of Conduct. Create good dialog with suppliers so that they perceive the self-evaluation process as part of their long-term relationship. 2 Here, the UNGC Code of Conduct suggests considering the 'Danish Institute for Human Rights ´ to use Human Rights and Business country risk analysis. Sustainability in the Textile and Fashion Industries 53
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Conduct formal audits solely concentrating on environmental, social, and ethical issues. Both announced or unannounced audits are possible, each of which has various advantages. It states that risks may be in fl uenced by various factors, including spending, country, category, and the transaction nature, in addition to how critical the supplier is to your business. Broadly speaking, the more critical the supplier is, the higher the overall risk will be. Therefore, suppliers need to be divided into three categories, depending on their criticality: highly critical (it means that replacing the supplier would be extremely costly and disruptive), semi-critical (it means that replacing the supplier is possible, but it is time-consuming and partly costly), less critical (suppliers can be replaced on a need basis,) It suggests that an audit should begin with a meeting with the supplier s management (including the person responsible for implementing the code, an HR representative, and even the local union representative) where the audit outline is reviewed and discussed. This meeting should deal with the how s explained in each principle within the framework of the Code.
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  • Fall '19
  • Sustainable fashion, Sandra Roos

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