Odlo - Fair Wear Foundation

corporate social responsibility ( csr)
odlo international
annual csr report 2009
1
content
3
IntroductionbyOddR.Lofterød,
15 Goals&Achievements2009
ChairmanoftheBoard
15 CSRManagementSystem
15 SocialAudits
4
ManagementSummary
5
TheOdLOBrand
5
BrandPhilosophy
5
Quality,material,prices,etc.
6
TheOdLOCompany
15 Training&Education
16 InternalCSRinitiativesand
internationalactivities
16 Transparencyandexternalcommunication
17 Sourcingstrategy
17 ODLOProduction
6
PassionforSports
18 Sourcingstrategy&pricing
6
History
18 Organisationofthesourcing
8
Facts&Figures2009
8
OrganisationChart
9
CSRVision
&productiondepartment
18 Productioncycle
19 Selectionofnewfactories
20 CoherentSystemforMonitoring
10 CSRStrategyfor2010–2012
andRemediation
20 ODLOMonitoringSystem
11 TheOdLOCodeofConduct
21 Monitoringbycountry(CAPs)
13 CSRManagementSystem
23 TrainingandCapacityBuilding
13 CSRoverallresponsibility
23 Activitiestoinformstaffmembers
13 ODLOCSRTeam
23 Activitiestoinformproducers,
13 Managementinstruments
agentsandworkers
14 FairWearFoundation
24 Conclusions2009andoutlookfor2010
25 Imprint
2
«At odlo we act with social and
ecological responsibility».
introduction by odd r. lofterød,
chairman of the board
dear odlo friend
As a Swiss company with a long family tradition
and high quality demands we are committed
to sustainable corporate leadership. Anchored
in our vision is that we want to act with full
awareness of our social and ecological responsibility.
My father, who established odlo in 1946,
was already very conscious of this important
responsibility.
We are pleased to present our CSR annual
report to you. If you have any questions or ideas,
please don't hesitate to contact us.
Kind regards
odd R. lofterød
Chairman of the Board
3
management summary
Picture
ODLOisaSwisssportswearcompanywith
Inthenineties,ODLOhadalreadysignedacode
ODLO offers an all-year-
Norwegianroots,foundedin1946.The
ofconductwithitsproducers,underwhich
round range of functional
sportswear.
companyisEuropeanmarketleaderinthe
theyarecommittedtosociallyresponsible
segmentoffunctionalsportsunderwearand
production.In2009ODLOrevisedthatcodeof
offersanall-year-roundrangeofsportswear.
conducttoadapttotherequirementsoftheFair
SustainabilityisanchoredinODLO'scorporate
vision.ForODLO,thismeansthat,among
otherthings,astrictsourcingandproduction
strategyispursued.Accordingly,ODLO
producedin2009morethanhalfofitspro-
WearFoundationandhaditre-signedbyeach
oftheproducers.Thismostrestrictivecodeon
themarketisbasedontheconventionsofthe
InternationalLabourOrganisation(ILO)andthe
UniversalDeclarationofHumanRights.
ductsinitsownfactoriesandmanufacturesin
Duringthepast2years,ODLObegantodevelop
totalabout70%inEuropeandtheMiddleEast.
itsownCSRManagementSystemandthus
CorporateSocialResponsibility(CSR)isan
ongoingprocessatODLO.InOctober2008,the
companythereforejoinedtheFair
CSR is an ongoing
process at odlo.
WearFoundationand,sincethen,
hashadthreeindependentaudits
tostandardisetheprocesses.Thecompany
appointedanODLOInternationalCSRTeam,
developedamonitoringandareporting
systemandheldinternalworkshopsonsocial
responsibility.
carriedoutatthepremisesofits
TheODLOmanagementsetitselfanambitious
producersinRomania,Thailand
CSRstrategyfor2010–2012.According
andChinaaswellasaManagementAuditatits
tothisstrategythecompanywillhaveall
headquarters.Morethan60%oftheoverallvalue
producersauditedintheforthcomingyears.
ofgoodshasthereforealreadybeenaudited
Inaddition,ODLOintendstoanalyse,identify
orisbeingproducedin«lowriskcountries».
andimplementvariousinternalandexternal
Theresultswerepositiveonthewhole,i.e.
ecologicalmeasures.
thefactoriesthatwereauditedhavealready
reachedagoodworkingstandard,although
theystillhavepotentialforimprovement.
4
1
2
the odlo brand
Quality,material,prices,etc.
Picture 1
BrandPhilosophy
ODLO is European market
ODLOistheinventoroffunctionalsportsunder-
ForODLO,qualityandfunctionalityalways
wear.Asthemarketandtechnologicalleader,
havetoppriority.Oursportswearisconvincing
leader in the segment
of functional sports
ODLOhascommitteditselftoproducingthe
thankstooptimalclimateregulation,comfort
produced in ODLO's own
bestfunctionalsportswearforpeoplewholove
andhigh-qualitymaterialsandtechnologies.
factories in Portugal and
exercise–ineveryweatherandateverylevel
ODLOinvestsagreatdealoftimeandmoneyin
ofintensity.ODLOensureswell-beingfromthe
researchanddevelopmentinordertosatisfy
skinoutwardsandstandsforuncompromisingly
thehighdemandsofmaleandfemalesports
highdemandsoffunction,wearer-comfortand
enthusiastsandathletes.
underwear. It is mainly
Romania.
Picture 2
ODLO products are of
high quality and have a
long life.
quality.
Bythesametoken,wewanttoofferthefunc-
IntheEuropeanmarket,ODLOistheleaderin
tionalproductstoabroadpublic–everyone
thesegmentoffunctionalSportsUnderwear.
shouldhavetheopportunitytoderiveevenmore
Inaddition,ODLOofferssuccessfulcollections
enjoymentfromsportandleisurewiththeright
inthecategoriesofOutdoor,Running,
clothing.
X-Country,TecShirtsandBike.ODLOhas
itsownsubsidariesinSwitzerland,Germany,
France,Belgium/HollandandAustria.
TheODLObrandisdistributedworldwidein
morethan20countries.Youcanfindfurther
informationunderwww.odlo.com.
ODLOthereforeoffersabroadcollectionof
functionalsportswearinthemediumtohigh
price-range.Thankstothelongusefullifeof
theproductsandthehighwearer-comfort,the
investmentisinanycaseworthwhileforthe
customer.Thefactthatthemajorityofthe
ODLOoffersjustonesinglebrand–namely
productsaremanufacturedinEuropealso
ODLO.Theresultisthatalltheactivitiescanbe
contributesinmanycasestothebuyingdecision
bundledandappliedtodevelopthebrand.
ofourconsumers.
Theassuranceofasustainablesupplychainis
alsoeasierwiththisOneBrandStrategy.
ODLOdoesnotuseanycottonoranimalwool.
Mostoftheproductsaremadeofpurepolyester,
asthismaterialshowsbestperformanceunder
sportingconditions.
5
«An intact nature and social justice
are very important to me as an
orienteering competitor and mother.
As a member of the Fair Wear
Foundation, odlo commits itself
for sustainable products».
the odlo company
Picture
PassionforSports
In1963,OddRoarintroducedthefurther
Simone Niggli-Luder,
TheODLObrandistodayasynonymforfunctional
developmentofthisprototypetothemarket:
mother and multiple
World Champion
in orienteering
sportsunderwear.Whatbeganin1946with
thefirstfunctionaloutfitforcross-countryskiers
twoknittingmachinesandavisionofhigh-
andspeed-skatersmadeoftherevolutionary,
qualitysportswearistodaybeingcontinuedas
syntheticHelancafibre.TheentireNorwegian
atruesuccess-story.AsaSwisscompanywith
nationalteamalreadyworetheinnovativeoutfits
Norwegianroots,ODLOfocusesentirelyonthe
in1964attheWinterOlympics.Andby1972,
layeringprincipleandimplementationofthe
22nationalteamswerewearingODLOcompeti-
latestfibresandprocessingtechnologies.
BehindODLOisanorganisationwhich,formore
than60years,hascombinedatraditional
passionforsportswithinnovativestrengthand
tionsportswearattheOlympicsinSapporo.And
therewasnosponsorshiplikethereistoday–
everyonehadtopayfortheoutfitsthemselves!
1973:ODLOTERMIC,thefirstfullysynthetic
know-how.Thecollectionsarecontinually
sportsunderwearwaslaunched.Hereagain,
optimisedincloseco-operationwithathletes.
speed-skatersprovidedtheinspiration–
Theresultisthatnumerous,well-knowntop
becausetheexistingcottonunderwearproved
athletessuchasthebiathlonOlympicchampion
tobetotallyunsuitable,theonlygarmentthey
OleEinarBjørndalenortheorienteeringWorld
woreundertheirracingoutfitswasjustapair
ChampionSimoneNiggli-LuderswearbyODLO
ofbriefs,evenattemperaturesofminus
functionalclothingandcontributetothebrand's
20degrees.
outstandingimage.
History
In1946,OddRoarLofterødsenior,anenthusiasticsportsman,foundedtheODLOcompanyin
In1979,OddRoarjun.,sonofthefounder,and
someonewhohadgrownupinanatmosphere
ofcreative,entrepreneurialspirit,tookoverthe
ODLOcompany.
Norway.Oneyearlater,ODLObeganproducing
In1987,LofterødestablishedODLOInternatio-
ladies’underwear.Additionally,thecompany
nalAGinZug,Switzerland,asthenew
founderdevelopedforhisson,OddRoarjunior,
headquartersoftheODLObrand.Inthesame
amemberoftheyouthspeed-skatingteam,
year,ODLOlaunchedtherevolutionaryATHLETIC
specialtrainingtightsmadeofHelancafibres
CLOTHINGSYSTEM,basedonthethree-layer
toprotecthimfromthecold.WhenOddRoar
principle.Thefirstlayer,theunderwear,
jun.trainedinthetights,manyathletesshowed
ensuresoptimalmoistureregulation,the
greatinterestinthisnewdevelopment.
6
the odlo company
Thecompanyconstantlyinvestsinthesustaina-
Picture
secondlayerassistswithtemperaturecontrol,
ODLO invests in new
andthethirdlayerprotectsfromthewind
bilityofitssupplychain.ODLOPortugalasthe
andweather.Furthercollectionsfollowedin
company’sownfactoryisconstantlyimproved
subsequentyears,suchasRunningandOutdoor,
initstechnology.In2003,anefficientcentral
technologies and fabrics,
such as «evolution»
bodywear.
Bike,NordicWalkingandKids.
ODLOwasaheadofthetimesinthe1990s
whenitlaunchedarecyclingprogrammefor
consumers.Customerscouldgivetheirold
ODLOproductsbacktohavethemrecycled.
However,thelackofinterestatthattimeled
totheofferbeingwithdrawn5yearslater.
Justintimefortheturnofthecentury,ODLO
warehousewasbuiltinBrüggen,Germany.
Thiswasfollowedin2004byinauguration
ofODLORomania,amodernfactorywith
350employeesand11productionlineson
5250squaremetres.Followingtheexpansion
ofcapacityinRomaniain2006,ODLOPortugal
wasnewlystructuredasacompetenceand
innovationcentrewithhighlyqualified
employees.
achievedafabricbreakthrough:thedevelopment
ofthe«effectbyODLO»fibre,thusbringingthe
In2008,ODLOjoinedtheFairWearFoundation,
firstunderwearcontainingodour-reducingsilver
aninternationalnon-profitorganisation,founded
ionsontothemarket.Furtherinnovations
followed:JustOne,the
toimprovelabourconditionsinthegarment
industry.Inthesameyear,ODLOlaunched
In 2008 odlo joined
universal,highlyfunctio-
thefunctional,figure-hugging«evolution»light
the Fair Wear Foundation.
nalT-shirt,agarment
sportsunderwearandthenewsportsbra
whichprovidesthe
customerswithanoptimalbody-climatein
range.Bothinnovationsarein-housedevelopmentsfromtheSwisssportswearmanufacturer.
summer,aswellasthenewall-year-round
underwearquality«cubic»,anultra-lightweight
ODLOwantstogrowfurtherandbeanattractive
knittedconstructionwhich,withitsthree-
employer.TheSwisscompanythereforemoved
dimensional,cubicstructure,ensuresan
intoanewbuildinginHünenberginAugust
optimalbody-climate.
2009with4500squaremetresofspacewhere
theemployeeshavenotonlyspacious,modern
officesbutalsoaloungeandafitnessstudioof
theirown.
7
CEO
AndreasKessler
MARKETING
AndreasKessler
SALES
INTERNATIONAL
ClaesBroqvist
SUPPLY CHAIN
MANAGEMENT
ThomasSpiess
FINANCE &
CONTROLLING
ThomasRast
CSR
BrigitteAmherd
SOURCING /
PRODUCTION / LOGISTICS
KlausHohenegger
CENTRAL
WAREHOUSE
BerndWolf
PRODUCTION
COMPANIES
facts and fi gures 2009
Diagram
Organisation chart
OdLOSportsGroupAG2009
OdLOSportsGroupAG2009
Headquarters
Sales2009
ODLOSportsGroupAG,Switzerland,
159.6millionCHF
Bösch47,CH-6331Hünenberg
Production2009
Brandestablishedin
2collectionswithatotalof6million
1946
garmentunits
Boardofdirectors
PointsofSales2009
TheBoardofDirectorsiscomprisedof:
ODLOproductsareofferedworldwideinmore
OddR.Lofterød,Chairman
than4'500salespoints,mainlyinthespecialist
AndreasKessler,CEO
sportstrade.TheSwisscompanyalsorunsits
4representativesofaprivateequitycompany
ownODLOstores.
2privateadvisors
Furtherinformation
Management
www.odlo.com
AndreasKessler(CEO,Marketing)
ThomasSpiess(SupplyChain)
ClaesBroqvist(Sales)
ThomasRast(CFO)
Employees2009
Total650,ofwhich100atthe
SwissoperationsinHünenberg
8
cy
Transparency – we share!
ons
cti
A
Actions – we act!
Res
po
Responsibility – we care!
y
bilit
i
s
n
nspa
r
Tra
en
csr vision
Diagram
SustainableactionhasbeenanchoredinODLO`s
Wecare:
The three core expres-
corporatevisionfromthebeginning:«Weactwith
AsaSwissqualitycompanywithafamilytradi-
sions of the ODLO CSR
vision are Responsibility,
Actions and
Transparency.
socialandecologicalresponsibility».
Thethreecoreexpressions«Responsibility»,
«Actions»and«Transparency»reflectwhatisat
theforefrontforODLO.
tion,sustainabilityisveryimportantforus.We
wanttoperceiveourresponsibilitysothatwe
canallcontinuetoenjoysportingactivitiesinthe
openairwellintothefuture.
Weact:
Wewanttoactintheformofsmall,specific
steps,fullyawarethatweonlyhavelimitedresourcesandhavetobeeconomicallysuccessful.
Wethereforehavetocomeupwithaselection
ofsensiblemeasureswhichwecanalsoimplement.
Weshare:
Westandtowhatwedo.Wewanttoinform
aboutourmeasuresandprogressandalso
communicateanysetbacksifandwhenthey
arise.
9
csr strategy for 2010 – 2012
Picture
TheODLOCSRStrategyforthenext3years
Our future
definesambitiousgoals,responsibilitiesand
generations should be
able to enjoy sports
well into the long-term
future.
milestones.TheCSRStrategyisaninternaland
Ecologicalresponsibility
Ensureecologicalsustainability.
confidentialpaper,approvedbytheExecutive
Board.Thefollowingextractprovidesan
Ensurestakeholders'safetyandhealth.
overviewofitscontent:
Analysisofcurrentecologicalsituation.
Identificationandimplementationofinternal
Socialresponsibility
andexternalmeasures(e.g.relaunchofa
meaningfulpolyesterrecyclingproject).
Beafairandattractivepartnerforour
producersandensurethattheCodeof
Membershipininternationalandnationalinitiati-
Conductisappliedcorrectly.
ves(EuropeanOutdoorGroupEOG,WorldFederationoftheSportingGoodsIndustryWFSGI).
Beafairandattractiveemployerforourown
employees(Headquarters,nationalcompanies,
ownproductionsites).
Transparency,Communication,Organisation
RealisemeasuresdemandedbytheFairWear
ImproveandstandardiseCSR
FoundationasanoutcomeoftheManagement
processesandtools.
SystemAudit(e.g.ImplementComplaint
Procedure).
Improvetransparencyinternallyandexternally
(e.g.withanimatedSupplyChainDocumentation).
FollowuponCorrectiveActionPlans(CAPs)
astheoutcomeofsocialaudits.
Developmanagementandemployees
continuously(e.g.withworkshops).
FollowuponEmployeeSurvey,conducted
bi-annualysince2007.
ImplementCSRintheManagementby
Objectives(MBO)process.
10
the odlo code of conduct
Picture
Inthenineties,ODLOhadalreadysignedacode
Noexploitationofchildlabour
All the producers of ODLO
ofconductwithitsproducers,underwhichthey
Thereshallbenouseofchildlabour.Theagefor
arecommittedtosociallyresponsibleproduc-
admissiontoemploymentshallnotbelessthan
tion.Atthebeginningof2009,werevisedthat
theageofcompletionofcompulsoryschooling
codeofconducttoadapttotherequirementsof
and,inanycase,notlessthan15years.
have signed a strict Code
of Conduct.
theFairWearFoundationandhaditre-signed
(ILOConvention138)Thereshallbenoforms
byeachoftheproducers.
ofslaveryorpracticessimilartoslavery,such
Thismostrestrictivecodeonthemarketis
basedontheconventionsoftheInternational
LabourOrganisation(ILO)andtheUniversalDeclarationofHumanRights.Itsmajorpointsare:
Employmentisfreelychosen
Thereshallbenouseofforced,including
bondedorprison,labour.(ILOConventions
29and105)
Thereisnodiscriminationinemployment
Recruitment,wagepolicy,admittanceto
trainingprograms,employeepromotionpolicy,
policiesofemploymenttermination,retirement,
andanyotheraspectoftheemploymentrelationshipshallbebasedontheprincipleofequal
opportunities,regardlessofrace,colour,sex,
religion,politicalaffiliation,unionmembership,
nationality,socialorigin,deficiencies,or
handicaps.(ILOConventions100and111)
asthesaleandtraffickingofchildren,debt
bondageandserfdomandforcedorcompulsory
labour.[...]Children[intheageof15–18]shall
notperformworkwhich,byitsnatureorthe
circumstancesinwhichitiscarriedout,is
likelytoharmtheirhealth,safetyormorals.
(ILOConvention182)
Freedomofassociationandtherightto
collectivebargaining
Therightofallworkerstoformandjointrade
unionsandbargaincollectivelyshallberecognised.
(ILOConventions87and98)Thecompanyshall,
inthosesituationsinwhichtherighttofreedom
ofassociationandcollectivebargainingare
restrictedunderlaw,facilitateparallelmeansof
independentandfreeassociationandbargainingforallworkers.Workers'representatives
shallnotbethesubjectofdiscriminationand
shallhaveaccesstoallworkplacesnecessary
tocarryouttheirrepresentationfunctions.
(ILOConvention135andRecommendation143)
11
the odlo code of conduct
Paymentofalivingwage
skillsorprovideregularemployment.Younger
Wagesandbenefitspaidforastandardworking
workersshallbegiventheopportunitytopartici-
weekshallmeetatleastlegalorindustrymini-
pateineducationandtrainingprogrammes.
mumstandardsandalwaysbesufficienttomeet
basicneedsofworkersandtheirfamiliesand
OdLOhascommitteditselftocorrect
toprovidesomediscretionaryincome.(ILOCon-
implementationofthatcodeofconduct:
ventions26and131).Deductionsfromwages
fordisciplinarymeasuresshallnotbepermitted
norshallanydeductionsfromwagesnotprovidedforbynationallawbepermitted.Deductions
shallneverconstituteanamountthatwilllead
theemployeetoreceivelessthantheminimum
1.ODLOundertakestotradeonlyingarments
thathavebeenproducedunderdignified
workingconditions.
2.TothatendODLOagreestoimplementthe
FairWearlabourstandardsinitsfactories
wage.Employeesshallbeadequatelyandclearly
andagreestoputsufficientandeffective
informedaboutthespecificationsoftheirwages
effortsintoensuringthatthiscodeisfollowed
includingwageratesandpayperiod.
byitscontractors,subcontractors,
producers,andlicensees.
Noexcessiveworkinghours
Hoursofworkshallcomplywithapplicablelaws
andindustrystandards.Inanyevent,workers
shallnotonaregularbasisberequiredto
workinexcessof48hoursperweekandshall
beprovidedwithatleastonedayoffforevery
seven-dayperiod.Overtimeshallbevoluntary,
shallnotexceed12hoursperweek,shallnotbe
3.ODLOundertakestoassurethatitscontractors,subcontractors,producers,and
licenseesabidebythestandardsestablished
intheFairWearFoundationCodeofLabour
Practicesandshallworktowardtheverificationofthesestandards.
4.ODLOshallstipulatethatcontractors,sub-
demandedonaregularbasisandshallalways
contractors,producers,orlicenseeswho
becompensatedatapremiumrate.
demonstrablyfailtocomplywithoneormore
(ILOConvention1)
ofthestandardslaiddownintheFairWear
FoundationCodeofLabourPracticestake
Safeandhealthyworkingconditions
appropriatemeasurestoensurethatthe
Asafeandhygienicworkingenvironmentshall
situationisimproved.Ifnecessary,the
beprovided,andbestoccupationalhealthand
offendingpartyshallbesanctionedbycancel-
safetypracticeshallbepromoted,bearingin
lationofitscontract,thusprohibitingitfrom
mindtheprevailingknowledgeoftheindustryand
producingororganisingtheproductionof
ofanyspecifichazards.Appropriateattention
garmentsforODLO.
shallbepaidtooccupationalhazardsspecific
tothisbranchoftheindustryandassurethata
safeandhygienicworkenvironmentisprovided
for.Effectiveregulationsshallbeimplemented
topreventaccidentsandminimisehealthrisks
asmuchaspossible(followingILOConvention
155).Physicalabuse,threatsofphysicalabuse,
5.ODLOdeclaresthatitagreestoindependent
verificationofitscompliancewiththeFair
WearFoundationCodeofLabourPractices
andinthatregardundertakestofollowthe
instructionsoftheFairWearFoundation.
6.Disputesregardingtheinterpretationofthis
unusualpunishmentsordiscipline,sexualand
CodeofLabourPracticeswillbehandled
otherharassment,andintimidationbythe
accordingtoproceduresestablishedbythe
employerarestrictlyprohibited.
FairWearFoundation.
Legally-bindingemploymentrelationship
Obligationstoemployeesunderlabourorsocial
securitylawsandregulationsarisingfromthe
regularemploymentrelationshipshallnotbe
avoidedthroughtheuseoflabour-onlycontractingarrangements,orthroughapprenticeship
schemeswherethereisnorealintenttoimpart
12
csr management system
Picture
CSRoverallresponsibility
ODLO typical sports like
ODLOInternational'sExecutiveBoardbears
implementationoftheCSRstrategyintheirown
overallresponsibilityforCSR.ItdefinestheCSR
fieldsofactivity,givingthethemethenecessary
strategy.Significantstrategicdecisionsare
weightingandprovidingincentivesforthe
resolvedbytheExecutiveBoardwithinclusionof
continualfurtherdevelopmentofCSRatODLO.
running or cross country
require endurance and
passion for nature.
AllthemanagersatODLOareresponsiblefor
theChairmanoftheBoardofDirectors.
WithintheExecutiveBoard,theheadofSupply
ChainManagementistheCSRdelegateandis
entrustedwithimplementationoftheCSR
strategy.HeissupportedbytheCSRManager.
OdLOCSRTeam
ODLOassignsaCSRteaminordertoensure
implementationofthevisionandthestrategy.
In2009,theteamwascomprisedasfollows:
CSRdelegate:
ThomasSpiess
CSRManager:
Managementinstruments
Thefollowingmanagementinstrumentswere
appliedin2009forCSRatODLO:
OdLOInternalMGMTInstruments
• CSRVisionandStrategy
• CSRBudget
• WeeklymeetingCSRTeam
• CSRWorkplan
• CSRContributionstoODLOInside
Newsletter
• CSRPresentationsattheODLOInternational
Marketing&SalesMeeting
BrigitteAmherd
HeadofSourcing&Production:
KlausHohenegger
Administrator,Sourcing&Production:
SamuelFrei
OdLOExternalMGMTInstruments
• CodeofConduct
• Questionnaireforproducers
• SocialAudits,performedbythe
FairWearFoundation
• CSRReport
Inaddition,everymemberoftheODLOstaffis
• CorrectiveActionPlansCAPs
obligedtoactwithsocialandecological
responsibilityinhisorherfieldofwork.
13
csr management system
FairWearFoundation
TheFWFverifieswhethercompaniescomply
ODLOisamemberoftheFairWearFoundation,
withtheCodeofLabourPracticesthrough
whichworkstopromotegoodlabourconditions
factoryauditsandacomplaintsprocedure,
insewntextileproductionworldwide.Euro-
throughmanagementsystemauditsatthe
peanclothingandtextilecompaniescantake
affiliatesandthroughextensivestakeholder
responsibilityfortheirsupplychainsbysetting
consultationinproductioncountries.TheFWF
upamonitoringsystemandimplementingthe
sharesitsknowledgeand(local)contactswith
FWFCodeofLabourPractices.FWFverifies
themembercompanies,providingthemwith
thattheyworkefficientlyandachieveadequate
accesstoinformationonlocallegislation,labour
results.Governedbytradeunions,NGOsand
standardsandculture.
businessassociations,FWF’sindependenceis
guaranteed.Transparencyandaccountability
arekeyprinciples,becausepeoplehavearight
toknowunderwhatcircumstancestheirclothes
aremade.
odlo performs its social
audits through an external,
independent company.
Membersarerequiredtosetupacoherentmonitoringsystem,includingfactoryaudits,factory
trainingandfactoryvisits.TheFWFhasacomplaintsprocedurethatenablesfactoryworkersto
anonymouslybringtolightanyabusesrelatedto
Europeanfashion,
labourconditions.
industrialclothingand
promotionalgarment
companiescanjoin
theFWFandbecome
anFWFaffiliate.MembersoftheFWFwork
towardsimprovingthelabourconditionsin
factoriesthatproducesewntextilesalloverthe
world.Thebasisofthecollaborationbetween
theFWFandamemberistheCodeofLabour
Practices(seealsothewebpageCodeof
LabourPractices).Eightlabourstandardsform
thecoreoftheCodeofLabourPractices.
MembersoftheFWFmustcomplywiththis
CodeofLabourPractices.
14
goals & achievements 2009
Picture
CSRManagementSystem
Morethan60%oftheoverallvalueofgoods
As much as every drop
Socialandecologicalresponsibilityhasbeen
hasthereforebeenauditedorisbeingproduced
anchoredinthefundamentalvaluesandthinking
in«lowriskcountries»,suchasPortugaland
ofODLOsincetheveryearliestdays.
Germany.
of water is important
for a plant, every action
counts to increase CSR.
In2008,ODLObegantodevelopitsownCSR
ManagementSystemandthustostandardise
theprocesses.
Themainstepsin2008and2009
wereasfollows:
• JoiningtheFairWearFoundationand
preparingaworkplaninOctober2008
• DefinitionofanODLOCSRStrategyfor
2010–2012
• AppointmentofanODLOInternationalCSRTeam
• Developmentofamonitoringsystem
SocialAudits
ODLOcultivateslong-termpartnershipswithits
Theresultswerepositiveonthewhole,i.e.
thefactoriesthatwereauditedhavealready
reachedagoodworkingstandard,although
theystillhavepotentialforimprovement.Allthe
auditsgaverisetoso-calledCorrectiveAction
Plans(CAPs).Thefindingsdetailedinthemare
nowbeingaddressedbytheauditedproducers
underthesupervisionofODLO.Itisexpected
thattheproducerswillhaveachievedfurther
improvementsbythetimetheyareindependentlyauditedagainbytheFWF(inapproximately
3years).
Training&Education
producers.InJune2009,apartfromourown
Thefollowingmeasureshavebeenundertaken:
2factoriesinPortugalandRomania,afurther
• CSRWorkshopattheinternationalMarketing
16producerswereactiveforODLO.TheFair
WearFoundationcarriedoutindependentsocial
auditsatthreeofthem.
• ManagementAuditbytheFairWearFoundationatODLOheadquarters,June2009
• KeyProducerinThailand(7.03%ofvolume,
7.87%ofvalueofproducts),April2009
• ODLORomania(41.74%ofvolume,31.49%
andSalesMeetinginNovember2008
• CSRinformationeventforallODLO
InternationalpersonnelinFebruary2009
• InformationonCSRtoallODLOpersonnelin
allcountriesbymeansoftheinternal
newsletter«Inside»onseveraloccasions
• SeveralCSRInfoe-mailsfromtheCEOand/
ortheCSRTeam
ofvalueofproducts),September2009
• KeyProducerinChina(2.95%ofvolume,
5.72%ofvalueofproducts),November2009
15
goals & achievements 2009
Picture
InternalCSRinitiativesand
ODLOinvolveditselfinternationallyinthe
ODLO offers various sport
internationalactivities
followingCSRinitiativesofthesportsindustry:
events to its employees.
InternalCSRinitiativesareinitiatedbyindividual
membersofstaff,managers,teamsorthe
• MembershipoftheWorldFederationofthe
SportingGoodsIndustryWFSGI,sustainability
HRdepartment.Thesehaveincluded,among
others:
• Biketoworkinitiative,June2009
workinggroup(www.wfsgi.org)
• MembershipoftheEuropeanOutdoorGroup
EOG,sustainabilityworkinggroup
Forthe3 rdtime,ODLOInternationaltook
partinthe«biketowork»initiativeofthe
umbrellaassociation«VeloSchweiz».
Forafullmonth,thestafftravelledtoand
fromworkbybicycleandthereforemade
bothanecologicalaswellasporting
contribution.(www.biketowork.com)
• NewOdLOhome,August2009
Transparencyandexternalcommunication
In2009,ODLOlaunchedanew,informative
website.Afundamentalelementofitisinformationaboutthecompany.Nowthereisalsoan
ODLOCSRsitewhichistobefurtherexpanded
in2010.Forecologicalreasons,ODLOdoesnot
ThestaffofODLOInternationalmovedinto
sendoutanyCSRflyersbutenablesreadersto
modernnewofficesinAugust2009.Among
gatherpaperlessinformationonthewebsite.
otherthings,thenewbuildingprovidesanindoorfitnesscentreandshowers,aspacious
(www.europeanoutdoorgroup.com)
cafeteriaandaloungefortheemployees.
• donationsofclothing
In2009ODLOdonatedclothingforchildren
inBurundi(BurundiHilfe)andtheUkraine
(BlueKnightsGermany–supportofahome
forpartiallyandcompletelydeafchildren
JoiningtheFairWearFoundationwaspublished
bymeansofapressreleasetothespecialist
mediaofthetextileandsportsindustriesaswell
asthedailynewspapers.
Interestedpeoplecanalsosubscribetothe
ODLOInternetNewsletter.Thatalsoincludeda
reportonODLOjoiningtheFWF.
aswellastheregionalhospitalofthecityof
ThisfirstSocialReportisafurther,important
NovajaUszica).
milestoneinthecreationofmoretransparency.
• Furtheractivities
Blooddonationcampaign,ODLOPortugal;
varioussportseventsforODLOemployees.
EveryconsumerwillbeabletoreadtheODLO
SocialReportonthewebsiteasfromMarch15
2010.
16
sourcing strategy
Picture
OdLOProduction
ofODLOsportsunderweararemanufactured,
Seamstresses in the
Foralongtime,ODLOproducedallitsproducts
whilstODLOPortugalismanagedasatechno-
ODLO factory in Romania,
built in 2004. ODLO
produces the majority
atitsownfactoryinPortugal.Withthegrowth
logyandcompetencecentre.Thismeansthat
ofthecompanyandtheexpansionofthedivisi-
in2009,asinthepast,morethanhalfofall
of all its products in
ons,ODLOrequiredmoreproductioncapacity
productsaremanufacturedatourownfactories–
Europe.
andadditionalknow-how.Aftercarefulresearch,
auniquesituationinthetextileindustry!
Table
ODLO produces
2 collections per year.
In 2009, a total of
themanagementdecidedinfavourofasmall
numberofproducerswithwhomODLOentered
In2009,ODLOwasworkingwithatotalof
intolong-termpartnerships.
18producers.Allofthemhavesignedthestrict
6 million garment
In2004,ODLOalsobuiltamodernfactoryin
units was produced
Romania.Thatiswherethelargestvolumes
codeofconductoftheFairWearFoundation.
and a turnover of
CHF 159.6 million
achieved.
Productiontablebycountry2009
Countryofproduction
Numberofproducers
Value%
Volume%
ODLORomania
1
31.49
41.74
ODLOPortugal
1
10.86
14.65
TotalownproductionEurope
2
42.34
56.39
Germany
1
6.07
2.78
Portugal
1
0.37
0.39
Italy
2
1.10
3.23
Israel
2
10.28
9.19
TotalEurope&MiddleEast
8
60.16
71.99
China
5
17.38
12.21
Vietnam
1
11.69
6.41
Thailand
1
7.87
7.03
SouthKorea
1
1.12
1.02
India
1
0.21
0.17
Taiwan
1
1.56
1.17
TotalFarEast
10
39.84
28.01
Total
18
100.00
100.00
17
April
2008
August
2009
Design &
Development
First planning
with producer
(Forecast)
September –
December
2009
Order
Placement
Final
order
January –
March
2010
Production
Production
time
3 – 5 months
Delivery
to the
shops
Transport
by sea, land
or air
sourcing strategy
Diagram
Sourcingstrategy&pricing
Pricingpolicy
Production Cycle:
TheODLOsourcingstrategyisbasedonthe
ODLOcalculatesitspricesusingthe«open
followingprinciples:
costing»principle.Thismeansthatforevery
ODLO produces 2
collections per year.
product,thesalespriceiscalculatedindividually,
The production cycle
involves a large number
Priority1:Ownproduction
of steps. Illustrated in
simplified form (as an
takingintoconsiderationthematerialandwork
costs,overheads(headquarters,marketing,
example for summer
Totheextentpossibleintermsofcapacityand
etc.)andtheprofitmargin.Thispriceisnegotia-
2010 collection).
know-how,newgarmentsand/oradditional
teddirectlywiththeproducer.
The producers are involved in the order planning
productionunitsaremanufacturedbyourown
ODLOdoesnotworkonthebasisoftenders,i.e.
factoriesinPortugalorRomania.
thereisnogenerationofadditionalcompetition
betweentheproducers.
process within the development period (about 11
months prior to the final
order placement).
Priority2:Long-termpartnerships
Both sides agree on the
Whilstotherproducersmakeuseofhundreds
lead times. The lead
ofproducersandhavethemcompeteagainst
times (time between
order placement and
eachotherorswitchthemeveryseason,ODLO
delivery) are based on
aimsforlong-termpartnershipswithasmall
the material as well as
numberofproducersunderthemottoof«less
the product complexity
Lengthofrelationshipswithproducers
durationofcooperation
Numberof
producers
Morethan10years:
5producers
7–10years:
3producers
(between 3 – 5 months).
ismore».
4–7years:
6producers
Throughout the entire
ThegrowthinsalestargetedbyODLOshould,
Lessthan4years:
4producers
production cycle, the
producers are in close
contact with the ODLO
management.
totheextentpossible,beachievedwiththose
partners.Foreachseason,atmostoneadditi-
Organisationofthesourcing&
onalproduceristakenintoconsiderationafter
productiondepartment
carefulselectionbasedonasetofmandatory
ODLOhasasmall,well-orchestratedsourcing
criteria.
&productionteamwith5memberswhowork
Thispolicyenablestheproducerstoplanfor
thelongterm,leadingtomorestabilityandjob
security.
closelytogetherwiththeProductManagement
team.Theyallworkinthesamebuildingatthe
ODLOheadquartersinSwitzerland,resultingin
short,flexibleinformationanddecision-making
routes.
18
Air
2.4 %
only 2.4 percent of goods
have been transported by air
Land
52.7 %
Sea
44.9 %
sourcing strategy
Diagram
Transportation
Thenewproducermustfulfilatleastthe
Transportation of goods
ODLOdoeseverythingitcantoarrangetrans-
followingODLOMUSTcriteria:
Summer 2009 & Winter
Winter 2009/2010
portbyseawhereverpossible.Thatisthebest
alternativefrombothanecologicalandeconomicalpointofview.
• Aprofessionallymanagedcompany;
«stateoftheart»production
• WillingnesstosignandcomplywiththeODLO
codeofconduct
ODLOisproudthatfortheSummer2009and
theWinter2009/2010seasons,atotalofonly
• ODLOqualitystandardscanbecompliedwith
2.4percenthavebeentransportedbyair(reasons:
• Management&operationsareregardedas
short-termsupplementaryordersfromthe
goodduringaninspectionbytheHeadof
specialistdealers,earlydeliverywindowsfor
Sourcing&Production
retailersorlatedeliveriesfromproducers).
Selectionofnewfactories
OdLOappliesa4-stepplaninthe
selectionofnewproducers:
Step1: 1stProducerMeetingfornew
collection(HeadofSourcing&
ProductManager)
Step2:Researchofnewproducerifnoexisting
partnercandeliver
AsODLOworkswithlessthan20producers
andselectsamaximumof1newproducerper
season,theprocessoutlinedabovehasproved
tobeadequateuntilnowtomakeagoodchoice.
However,asamemberoftheFWF,ODLOhas
committeditselftostandardisingitsprocesses
inordertoreducetherelianceonindividuals
personsandfurtherexcludeanywrong
decisions.InthisrespectODLOintendsto
furtherdeveloptheselectionprocessin2010
(introductionofaproducerassessment).
Step3:VisitbyHeadofSourcing&Productionatnewpotentialproducer,check
againstODLOMUSTCriteria
Step4:FinaldecisionthroughExecutiveBoard
aboutnewproducer
19
Code of Conduct
ODLO
Corrective Action Plans
Producer
Inspections
ci
al
A
om
ud
its
pl
ai
nt
s
So
following instruments:
C
system is comprised of the
A
The current monitoring
it
ud
A
t
n
la
en
p
em ork
ag
W
rt
an
al
po
M
u
Re
nn
SR
C
odlo Monitoring System
FWF
coherent system for
monitoring and remediation
Diagram
Animportantcomponentoftheimplementation
InspectionsbyOdLOstaff:
ODLO Monitoring System
oftheCodeofLabourPracticesismonitoring.
Producershavebeenvisitedandinspected
Thecurrentmonitoringsystemiscomprisedof
regularlybyvariousODLOstaff,suchas:
thefollowinginstruments:
CodeofConduct&FWFquestionnaire:
Allproducershavebeengiveninitialinformation
• QualityAssuranceTeamAsiaandEurope
• HeadofSourcingandProduction
(1–2timesperyeareachproducer)
ontheFWFmembershipbyletter.Theywere
• ProductManagementTeam
askedtofilloutandsignaquestionnaireinorder
• ExecutiveBoardMembers
toconfirmthattheyacceptthecodeofconduct
• others
withitslabourstandardsandthattheyare
preparedtoworktowardsfullimplementation.
AllofthemreturnedthesignedCodeofConduct
andthequestionnairein2009.
Complaints:
Employeesofeachoftheproducerscan
registercomplaintsabouttheirworking
conditionswithanindependentbody.Thatbody
SocialAuditsbyFWF:
isdesignatedbytheFWF.Thebodyrelaysthe
AsODLOwantstoperformsocialauditsthrough
complaintinanonymousformtotheFWFwhich,
anexternal,independentcompany,itengages
inturn,informsODLO.The«complaintsystem»
auditteamstrainedbytheFWFtocarryout
willbefurtherintroducedin2010,assoonas
factoryaudits.3Producershavebeenaudited
theformsareavailablefromtheFWFinthe
independentlybytheFWF.Intotal,morethan
variousnationallanguages.
60%oftheoverallvalueofgoodshastherefore
beenauditedorisbeingproducedin«lowrisk
countries».Theresultsarelistedunderthe
ManagementAudit:
Atregularintervals,theFWFalsoauditsODLO
inthesenseofprocesssupport.Theresultsare
followingchapter.
publishedontheFWFwebsiteandflowintothe
CorrectiveActionPlans(CAPs):
CSRworkplanandtheCSRreport.
Asafollowupontheseaudits,wemakeagreementswiththeproducerregardinganimprovementplanonthebasisoftheresultsofthe
inspection.ThisfollowupiscalledCorrective
ActionPlan(CAP).Atregularintervals,theproducersrecordprogressintheCAP.
20
coherent system for
monitoring and remediation
Monitoringbycountry
Picture
CSRWorkplan:
High-tech knitting
ODLOdrawsupaworkplaneveryyearwhichis
ODLObeganwithstandardisedauditsin2009.
thensubmittedtotheFWF.Thatconfidential
Untilnow,3auditshavebeencarriedout.
documentrecordswhichactivitiesareplanned
Forallofthem,CAPsareavailable,theresults
machine.
forthefollowingyear.Theworkplanfor2010
beingshowninsummarisedforminthe
wassubmittedtotheFWFontimeattheendof
followingtable.
2009.
TheFairWearFoundationisinformedaboutall
CSRReport:
theissuesand,togetherwithus,ismonitoring
Thisreportfunctionsasacontrollinginstrument
theongoingimprovementmeasures.
andispublished.
Importantnote:Thenumberoffindingsmakes
ODLOisplanningtofurtherdevelopits
nostatementabouttheirquality.Innoneofthe
monitoringsystemduring2010.
3auditswasaseriousproblemidentifiedwhich
wouldfundamentallyplacefurthercooperation
inquestion.
IndependentauditscarriedoutbytheFWFbycountries:
Country
Producer
dateofAudit
Nextaudit
Identification
planned
Number
Thailand
4
April2009
2012
Romania
2
September2009
2013
China
3
November2009
2013
21
coherent system for
monitoring and remediation
CAPreportbycategoryandcountry2009:
Areaofreporting
Country
No.ofFindings
Management
Romania
2
Thailand
3
China
7
Noforcedlabour
Romania
0
Thailand
1
China
0
Nodiscrimination
Romania
1
Thailand
1
China
0
Freedomofassociation
Romania
2
Thailand
3
China
1
Paymentoflivingwages
Romania
1
Thailand
4
China
3
Overtime
Romania
1
Thailand
2
China
4
Healthandsafety
Romania
4
Thailand
20
China
4
TOTAL
64
Areaofreporting
Openfindings
Closedfindings
Management
11
2
Noforcedlabour
1
0
Nodiscrimination
1
1
Freedomofassociation
4
2
Paymentoflivingwages
4
4
Overtime
5
1
Healthandsafety
17
11
TOTAL
43
21
CAPprogressreport2009:
22
1
2
training and capacity building
Picture 1
ThecommunicationmeasurescarriedoutinthispastyearareshowninChapter8(CSRActivities2009).
ODLO CSR Team
Picture 2
Activitiestoinformstaffmembers
ODLO KIDS collection
Thefollowingcommunicationandinformationplatformshavebeenimplementedandcanbeused
bytheCSRteamforcommunication:
Members
CommunicationTool
Timing
CSRTeam
CSRTeamMeeting
weekly
ExecutiveBoard
CSRStrategyMeeting
Yearly
ExecutiveBoardMeeting
Projectbased
ODLOheadquarterstaff
InformationMeeting
Upto6times/yearly
ODLOinternationalstaff
InternationalMarketing&SalesMeeting
2times/yearly
ODLOinternationalstaff
Newsletter
monthly
Activitiestoinformproducers,agentsandworkers
Theproducersareinformedasfollows:
Producers
CommunicationTool
Timing
Mgmtofownproduction
Directcontact(phone,e-mail)
Ongoingcommunication
(ODLOPortugal&
Managementmeetings
Upto4times/yearly
ODLORomania)
InternationalMarketing&SalesMeeting
2times/yearly
Workersofownproduction
Newsletter
monthly
(ODLOPortugal&
ODLORomania)
Mgmtofproducers
Directcontact(phone,e-mail)
Ongoingcommunication
CorrectiveActionPlan
Bi-monthlyupdate
Workersofproducers
Informationboard
Sofarnotimplemented
23
conclusions 2009
and outlook for 2010
Themanagementand
Thestrategyfor2010–2012isavailableand
The strategy for 2010 – 2012
theCSRteamare
providesfurtherchallengestothecompanyin
demands a continued
satisfiedwiththe
thecontinuedprocessofimprovement.With
process of improvement.
resultsin2009.The
thesupportoftheFWF,ODLOwillhavefurther
definedobjectives
producersauditedintheforthcomingyearsand
wereallachieved:
worktostandardisetheinternalprocesses.
• AlltheproducershavesignedthenewCode
ofConduct.
• 3factorieswereauditedbytheFWFasan
independentorganisation.
ODLObelievesthatitscustomersappreciate
thevalueofsustainabilityandthemeasures
thathavebeenimplemented.TheCSRteamis
availableforanyquestionsandfurtherideas.
• Morethan60%oftheoverallvalueofgoods
hasbeenauditedorisbeingproducedin«low
riskcountries»–therequirementsoftheFWF
havethereforebeensubstantiallyexceeded.
• TheCSRteamiscompleteandhighly
motivated.
24
imprint
Publisher:
ODLOSportsGroupAG,Bösch47,
6331Hünenberg,Switzerland,www.odlo.com
Editor:
CSR-Team,ODLOInternational:
BrigitteAmherd,CSRManager
ThomasSpiess,KlausHohenegger,
SamuelFrei,StéphanieNäf
Layout:
synfürgestaltung,CyrillKuster,Stans
FurtherinformationonOdLO'sCorporate
SocialResponsibility:
[email protected]
25