Supply chain monitoring
A day in the life of an auditor
Payal Jain and Tobias Fischer are two of around 50 auditors working for H&M. Their job is to inspect working conditions at H&M's suppliers and to check that the ILO core conventions and H&M's code of conduct are being respected. Payal and Tobias work together, visiting suppliers in and around New Delhi.
It is early in the morning when Tobias Fischer and Payal Jain arrive at the factory gates in their car. No one knows they are coming today. Tobias and Payal wear H&M ID badges so that the guards and the factory staff know who they are. Six months ago, auditors carried out a comprehensive inspection of the working conditions at the factory and Payal and Tobias are here today to find out whether the supplier has achieved the short-term goals set during that visit.
Code of conduct is the starting point
Like all of H&M's suppliers, the factory has signed up to a cooperation agreement - H&M's code of conduct - promising to comply with local legislation and H&M's requirements regarding the working environment. The agreement also contains a provision stipulating that H&M's auditors can make unannounced visits.
“We carry out an extensive audit whenever we start working with a new supplier. This takes between two and seven days. We work with the factory managers to identify key areas for improvement, and decide on a plan of action. The plan contains both long-term and short-term goals and sets out how the goals should be achieved, who will be responsible and when the work should be completed,” explains Tobias.
Unannounced visits
Payal and Tobias enter the factory and ask for the manager. He greets them and accompanies them on a tour of the factory. Since H&M first introduced the code of conduct in India in 1998, the auditors have made repeated visits to the factories.
“To begin with the factory owners were a little unused to the idea of being inspected like this. Now they understand that unannounced visits are part and parcel of the way we work, and few are surprised when we turn up out of the blue,” says Payal.
Improvements implemented
The auditors check the fire escapes and discuss safety routines with a factory representative. These include the provision of fire alarms, emergency exits and fire extinguishers, but also cover aspects such as making sure the factory is always clean and tidy and that there are a sufficient number of good, clean toilets. The working environment is important, both for the workers' wellbeing and for the quality of the clothing produced. Payal notes that the working environment has improved considerably since the last visit. In the past there had been problems with material remnants from the cutting machines and thread from the production area being left lying around. Now the factory has employed more cleaners, supplied suitable tools and equipment and introduced better routines. The factory is clean and is now a safer and more pleasant place for the employees to work.
Overtime a problem
When Payal and Tobias have finished the factory inspection they go to the supplier's office to examine the paperwork relating to the employees. They check payroll information and employee records, and see how much overtime has been worked. Recently, some departments at the factory were understaffed. This hampered production and led to excessive amounts of overtime being worked. Having inspected the time cards, payroll information and production records, Tobias and Payal can confirm that the overtime has been reduced, but it is still above the legal limit. The supplier will have to continue following the action plan.
Then it's time to drive back to H&M's offices in New Delhi to document the visit and to report back to the CSR department at head office in Sweden.
Influencing attitudes
The auditor's job is far from simple because it involves influencing other people's attitudes and behaviour. Payal explains:
“It can be quite a tough challenge to persuade suppliers that they have a lot to gain from H&M's code of conduct and the cooperation with us. I try and get them to see that it can make their employees more motivated and may well even increase productivity. We want the suppliers to strive for lasting improvements because they can see the benefits for themselves, not just because the buyer says they have to. Their task, as I see it, is to put us out of a job."