| Maggie's Organics |  |
Scope & Status of Rating | |||
Scope | |||
| Rating applies to these products/ lines: | All | ||
| Rating based on assessment of: | Clean Clothes, Inc.: Maggie's Organics | ||
| Industries: | Apparel | ||
Status | |||
| Date Rating Published: | 10/21/2011 | ||
| Company Response: | Reviewed by Company | ||
| Score improved in last 12 months? | N/A | ||
Scorecard
Policies | |||
Code of Conduct | |||
| Does the brand have a Code of Conduct for suppliers ("Code") that addresses labor standards? | Yes | ||
| Link to Code | |||
| Code includes elimination of child labor? | Yes | ||
| Code includes abolition of forced and compulsory labor? | Yes | ||
| Code includes freedom of association? | Yes | ||
| Code includes rights to collective bargaining? | Yes | ||
| Code prohibits discrimation on the basis of personal attributes, tenants or affiliations? | Yes | ||
| Code prohibits the use of regular and excessive overtime? | Yes | ||
| Links/ Info: | |||
| Are suppliers required to ensure freedom of movement for employees and their right to enter and leave employment willingly and voluntarily (For example, are suppliers prohibited from withholding employee identity documents, including passports)? | Yes | ||
| Links/Info | |||
| Are suppliers prohibited from using recruitment fees? | No | ||
| Links/Info: | However, Maggie's reports that the company has had no issues with this in the supply chain. | ||
| Does the Code apply to multiple levels of the supply chain including the raw materials level? | Yes | ||
| Is the Code included in supplier contracts? | Yes | ||
| Links/ Info: | |||
Policies | |||
| Does the brand have a policy of non-interference toward trade unions and worker organizing? | Yes | ||
| Links/Info: | Union Neutrality is included in the Public Disclosure | ||
| Does brand participate in any multi-stakeholder initiative (MSI)? | Yes | ||
| Name of MSI(s)/Info: | FTUSA apparel multi-stakeholder group, FTRN, Peer Learning Group Domestic Labor (Sustainable Food Lab), GreenAmerica, Ecology Center of Ann Arbor | ||
| Has the brand taken steps to use responsible purchasing practices? (This does not include auditing improvements; it refers to managing sampling, order timelines or prices to enable factories to provide decent working conditions.) | Yes | ||
| Describe program and goals: | "This year we will began prefinancing for the amount of acreage we require, and locking in our price at the time of planting based upon covering the cost of seed and planting for that acreage. In the case of a crop failure (these fields are not irrigated), our investment will be kept as a deposit for the following year. This could leave us having to scramble to purchase organic cotton to meet our annual needs. In this way we share the same risks as the farmers, and in addition must carry enough extra inventory to buffer us through any shortages.... In the case of CIA.. Most cost fluctuations have been based upon raw materials costs, and since we purchase these raw materials and send them to CIA, we are again the ones assuming most of the risk... The company bills us as full package for all goods received, and then deducts the portion of the cost that we have already paid for (the raw materials). In this way we are in effect loaning them money at no interest to pay for their raw materials, which helps their cash flow tremendously."-- supplement; http://www.maggiesorganics.com/2010_social.php | ||
| Does brand have a policy that addresses subcontracting in the supply chain (including homework where applicable)? (Policy must include either a plan to prevent subcontracting or else a plan to ensure Code standards are met in subcontracting arrangments). | Partial | ||
| Describe policy briefly: | Subcontracting must at least be approved by a desk audit | ||
| Additional info on Code & Policies: | |||
Transparency & Traceability | |||
| Final Stage Production | Production of Inputs | Raw Materials | |
|---|---|---|---|
| In the following levels of the supply chain, select one key production process that the brand has traced or has begun to trace: (Traced= brand has a direct knowledge of some suppliers or countries of production.) | |||
| Specify: | |||
| Approximately how many suppliers produce for the brand in total, including subcontractors and untraced producers (if known)? | 1 | 2-9 | 1 |
| Approximately how many suppliers has the brand traced? Traced = brand has a direct knowledge of a supplier including name and location. | 1 | 2-9 | 1 |
| Links/info on the above: | |||
| Is the brand involved in a tracing project to identifiy the location of unknown producers? | N/A | N/A | N/A |
| Links / Info on the above: | Note that brand also has relationship with these input producers: Thread (A & E Thread); Screenprinting (VG Kids) | ||
| Is there a public list of countries in which suppiers are located? | Yes | Yes | Yes |
| Location / Link: | http://www.maggiesorganics.com/2010_howitsmade.php | http://www.maggiesorganics.com/2010_howitsmade.php | http://www.maggiesorganics.com/2010_howitsmade.php |
| List top five countries in which production takes place. Or, if top five is confidential information: List the five countries with the highest risk of child or forced labor according to the DOL List and the GTIP Trafficking in Persons Report. | Costa Rica, United States | Nicaragua | Nicaragua |
| Is there a public list of suppliers (must include names and addresses)? | Yes | Yes | Yes |
| Location / Link: | CMT, Knitting & Dying: CIA Textile (Costa Rica): http://www.maggieswholesale.com/pdfs/ciatextile... Screen Printing: VGKids (USA): http://www.maggieswholesale.com/pdfs/vgkids.pdf | Ginning: Organic Cotton Gin Cooperative: http://www.maggieswholesale.com/pdfs/gin.pdf Spinning: Genesis Cooperative: http://www.maggieswholesale.com/pdfs/genesis.pdf Both cooperatives facilitated through Jubilee House: http://www.maggieswholesale.com/pdfs/jhc.pdf | Cotton fiber and yarn producers: Part of one aggregate co-op, CoProExNic: see supplement section A29A. See also http://www.maggiesorganics.com/2010_howitsmade.php |
| Does the brand require and keep record of information from direct suppliers on every subcontractor and subcontract? | Yes | Yes | Yes |
| Links / Info: | Subcontracting must at least be approved by a desk audit | Subcontracting must at least be approved by a desk audit | Subcontracting must at least be approved by a desk audit |
| Does brand track suppliers' use of temporary or contract work? | Yes | Yes | Yes |
| Links / Info: | Tracks prices paid to contract workers and knows how many hired. | In only instance of subcontracting, SCS performed desk audit on workers | Tracks prices paid to contract workers and knows how many hired. |
| Additional info on Transparency & Traceability: | |||
Monitoring & Training | |||
| Final Stage Production | Production of Inputs | Raw Materials | |
|---|---|---|---|
Monitoring | |||
| % of suppliers internally monitored per year: | 100% | 100% | 100% |
| % of suppliers monitored by a third party with labor-standards accredidation: | 100% | 100% | 100% |
| Name of third party & info: | Fair Labor Practices & Community Benefits (through SCS) http://www.maggieswholesale.com/pdfs/CIATextile... FLO-CERT monitors for Fair Trade USA Obligations of Buyers and Obligations of Factories | Fair Labor Practices & Community Benefits (through SCS) http://www.maggieswholesale.com/pdfs/Coproexnic... http://www.maggieswholesale.com/pdfs/Genesis_Ce... http://www.maggieswholesale.com/pdfs/CIATextile... Jubilee House Community: http://www.maggieswholesale.com/pdfs/jhc.pdf FLO-CERT monitors for Fair Trade USA Obligations of Buyers and Obligations of Factories | FLO-CERT monitors for compliance with Generic Fairtrade Standard for Small Producer Orgnaizations. Jubilee House Community: http://www.maggieswholesale.com/pdfs/jhc.pdf |
| % of suppiers monitored with unannouced visits or off-site worker interviews per year: | 0% | 0% | 0% |
| % of suppliers having publicly shared audit reports and corrective action plans: | 0% | 0% | 0% |
| Links to public audit reports & corrective action plans: | |||
| TOTAL % of traced suppliers monitored per year: | 100% | 100% | 100% |
| Links/Info on Monitoring Stats | |||
| Are monitoring benchmarks vetted by an outside organization? | Yes | Yes | Yes |
| Name of organization, links/info: | Fair Labor Practices & Community Benefits Standard: http://www.scscertified.com/fff/fair_labor_prac... Fairtrade USA | Fair Labor Practices & Community Benefits Standard: http://www.scscertified.com/fff/fair_labor_prac... Fairtrade USA | Fair Labor Practices & Community Benefits Standard: http://www.scscertified.com/fff/fair_labor_prac... FLO |
| Are suppliers monitored for their use of labor brokers? | No | No | No |
| Are broad monitoring results shared publicly? | Yes | Yes | Yes |
| Links / info: | Specific standards must be met under the following: Fair Labor Practices & Community Benefits Standard: http://www.scscertified.com/fff/fair_labor_prac... Fair Trade USA Obligations of Buyers and Obligations of Factories | Specific standards must be met under the following: Fair Labor Practices & Community Benefits Standard: http://www.scscertified.com/fff/fair_labor_prac... Fair Trade USA Obligations of Buyers and Obligations of Factories | Specific standards must be met under the following: Generic Fairtrade Standard for Small Producer Organizations under Core standards; Fair Labor Practices & Community Benefits Standard: http://www.scscertified.com/fff/fair_labor_prac... |
| Has the brand identified higher risk countries where it conducts more in-depth monitoring? | No | No | No |
| List of countries under higher-risk monitoring programs: | |||
| Are all of these suppliers independently monitored with unannounced visits or off-site worker interviews at least once a year? | No | No | No |
| Links/Info on monitoring | |||
Training | |||
| Are both auditors and factory managers trained to identify human trafficking, child labor, and forced labor? | Yes | Yes | Yes |
| Links/Info | |||
| Does the brand invest in suppliers' compliance implementation through training or other financial support? | Yes | Yes | Yes |
| Links/info: | Brand fully bears raw materials costs which frees up money for supplier compliance | Grant provided by Maggie's to assist with certification fees | Pre-Pay for cotton seed to be planted for the next crop. Grant provided by Maggie's to farmers to assist with certification fees |
Worker Rights | |||
| Final Stage Production | Production of Inputs | Raw Materials | |
|---|---|---|---|
Wages & Sourcing | |||
| Do workers make a living wage? | Partial | Partial | Partial |
| Links/info including wage formulas | See A27 on supplement. CIA meets "non-poverty wage formula calculator." It pays 10% more than the average wage for the apparel sector in Costa Rica, and also given a fund for community benefit-- http://www.maggieswholesale.com/pdfs/ciatextile... | See A27 on supplement. Paid over twice the min wage for sector. Min for industrial sector: 2800 cordobas/ month, or 117 cordobas/ 8 hour day($5.26 US/day). Workers in Maggie's chain make 5800 cordobas/ month, or 241 cordobas/ 8 hour day ($10.84 US/day) | See A27 on supplement. National rate for seasonal harvesters in Nicaragua is 80 cordobas per 8 hours (appr. $3.60 US/8 hour day). Maggie's workers paid 5800 cordobas/ month, for 4 hour work-days (appr. $4.00 US / 4 hour day. Paid same, but for half as many hours so can find other work. |
| Is a stable price guaranteed to suppliers regardless of world price fluctuation? | N/A | Yes | Yes |
| Links / info including price formulas: | Does not guarantee a stable price, but assumes costs associated with production, which has a similar effect. | Fixed Annually | At least FLO price: 2010, higher than FLO price: over $29.25 / 100 lbs of picked cotton |
| Does the brand have a system for basing sourcing descisions on supplier labor conditions? (Examples: a) Brand has peferred supplier program, b) Brand can demonstrate that suppliers' labor conditions have as a group improved over time) | Yes | Yes | Yes |
| Links/info: | Suppliers must meet Fairtrade Standard and Fair Labor Practices and Community Benefits Standard | Suppliers must meet Fairtrade Standard and Fair Labor Practices and Community Benefits Standard | Suppliers must meet Fairtrade Standard and Fair Labor Practices and Community Benefits Standard |
| For companies more than 10 years old: From how many suppliers has the brand sourced for at least 5 years? | 1 | 2-9 | 1 |
| Links/info: | |||
| If brand ends its relationship with a supplier, does it have a program to ensure that workers are fully paid for hours worked? | Yes | Yes | Yes |
| Links/info: | Has long term relationship with single supplier | Has long term relationship with single supplier | Has long term relationship with single supplier |
Co-Operatives | |||
| Are there any democratically run co-ops or employee-owned firms at this level of the supply chain? (IF "NO" SKIP SECTION) | No | Yes | Yes |
| Do workers or their appointees either serve on the Board of Directors of the co-op or company, or else have access to financial information about the performance of the business including management salaries? | No | Yes | Yes |
| Do workers own either 50% or more of the co-operative(s) or 25% or more of the brand? | No | Yes | Yes |
| Link(s) to information on co-ops: | Organic Cotton Gin Cooperative: http://www.maggieswholesale.com/pdfs/gin.pdf Genesis: http://www.maggieswholesale.com/pdfs/genesis.pdf | Aprenic, Coproexnic: http://www.maggieswholesale.com/pdfs/aprenic.pdf; Also see supplement sections A27 A, A29 A | |
Unions | |||
| Do any suppliers employ hired workers (including contract and permanent workers) at this level of the supply chain? | Yes | No | Yes |
| How many suppliers are known to have independent democratically elected trade unions? | 0 | 1 | 0 |
| List the suppliers: | Genesis | ||
| How many suppliers are known to have collective bargaining agreements in place? | 0 | 0 | 0 |
| List the suppliers / unions: | |||
| Links/Info on Unions | |||
Grievance Mechanisms | |||
| Does brand have a functioning grievance mechanism? (Brand must do more than hear complaints; must include investigation and efforts to address grievance) | Yes | Yes | Yes |
| Does brand have a functioning dispute resolution mechanism? | Yes | Yes | Yes |
| Links/Info on Dispute Resolution Mechanism | |||
| Can workers submit complaints annonymously? | Yes | Yes | Yes |
| Can organizations submit complaints on behalf of workers? | Yes | Yes | Yes |
| Are the resolutions publicly disclosed? | Yes | Yes | Yes |
| Links / Info: | |||
Child & Forced Labor Remediation | |||
| Does the brand have local partnerships in place in high-risk areas to rehabilitate child or forced laborers when found? | N/A | Yes | Yes |
| List of partner organizations: | Not high risk | Jubilee House Community-- Local NGO | Jubilee House Community-- Local NGO |
| When child or forced labor is removed from the workplace, is it later verified by unannounced monitoring or off-site worker interviews? | Yes | Yes | Yes |
| If child labor is discovered, does the brand find a way to provide for the child's education and replace the lost income to the family? | No | No | No |
| If forced labor is discovered, does the brand facilitate the individual's reintegration into the labour market and transition to decent work? | No | No | No |
| Where appropriate will the brand cooperate with local authorities, government, law enforcement, victim service providers and others to ensure full protection of trafficking, forced and/or child laborer(s)? | Yes | Yes | Yes |
| Links / info on Remediation Plan: | Child labor has never been discovered, thus certain policies are lacking. | ||
Supplementary Risk Data | |||
| Final Stage Production | Production of Inputs | Raw Materials | |
|---|---|---|---|
| Does any independent third party (aside from the DOL List of Goods Produced by Child Labor or Forced Labor) report a risk of child or forced labor in any of the above sectors? | No | No | No |
| Name/link of report, countries/sectors reported & type of risk: | |||
Reported Issues | |||
| Final Stage Production | Production of Inputs | Raw Materials | |
|---|---|---|---|
| Are there any reports of unadressed child labor in the brand's supply chain? | No | No | No |
| List third party report, site and location: | |||
| Are there any reports of unadressed forced labor in the brand's supply chain? | No | No | No |
| List third party report, site and location: | |||
| Are there any reports of retaliation against employees who attempted to organize in the brand's supply chain? | No | No | No |
| List third party report, site and location: | |||
A company's risk levels indicate the prevalence of child and forced labor in the particular production process and countries in which it is operating. A company can still receive an A if it is operating in HIGH RISK situations. A company operating in HIGH RISK areas must take more precautions to ensure against abuses than one operating in LOW RISK areas; thus, Free2Work grades such a company on a more rigorous scale.
Free2Work draws country and industry risk data from the U.S. Department of Labor's List of Goods Produced With Child Labor or Forced Labor and from the Trafficking in Persons Report "Tier Placements" put out by the U.S. Department of State Office to Monitor and Combat Trafficking in Persons. We also draw data where applicable from other expert reports and relevant news articles. In some cases there are specific allegations of abuse in a company's supply chain; in these circumstances we incorporate this information in the risk analysis as well.
Free2Work draws country and industry risk data primarily from the U.S. Department of Labor's List of Goods Produced With Child Labor or Forced Labor and from the Trafficking in Persons Report "Tier Placements" put out by the U.S. Department of State Office to Monitor and Combat Trafficking in Persons. The questions in this category serve to supplement this data.