Covid-19 Tracker: Which Brands Are Acting Responsibly toward Suppliers and Workers?
Has Committed to Pay in Full for Orders Completed and in Production:
- Inditex (Zara)
- Levi Strauss & Co. for more info
- Lululemon Athletica
- Marks & Spencer
- PVH (Calvin Klein, Tommy Hilfiger)
- Ralph Lauren Corporation (Polo)
- Under Armour
- VF Corp. (JanSport, The North Face, Vans, Timberland)
An asterisk indicates suppliers have raised concerns that the corporation is not honoring its commitment; WRC is investigating to determine whether to change its designation.
Has Made No Commitment to Pay in Full for Orders Completed and in Production:
- Arcadia (Topshop)
- Bestseller for more info
- C&A for more info
- Edinburgh Woolen Mill (Bonmarché, Peacocks)
- Gap (Old Navy, Athleta, Banana Republic)
- Kohl’s for more info
- Li & Fung/Global Brands Group
- Primark for more info
- Ross Stores for more info
- The Children’s Place
- Urban Outfitters (Anthropologie)
- Walmart (Asda) for more info
Note: Brand names in parentheses are owned by the listed company.
Last updated: July 6, 2020
Updates and Analysis
June 17, 2020
The company chose to prioritize a $109 million gift to shareholders over its obligation to pay for the goods it asked suppliers and workers to make.
This tracker and the underlying analysis are provided by the Worker Rights Consortium (WRC) in association with the Center for Global Workers’ Rights (CGWR) at Pennsylvania State University.
Covid-19 has meant a huge drop in demand for apparel. We recognize the financial challenges this creates for brands and retailers; at the same time, corporations have a responsibility to manage the crisis responsibly and honor obligations to suppliers and workers. Many brands and retailers responded to the crisis by canceling (or “holding”) orders or demanding retroactive price reductions, for goods already in production or completed and ready to ship. In some cases, brands have demanded large rebates, even on orders already in transit from the supplier. Research shows this is leading to large-scale dismissals of workers, often without legally mandated severance or furlough pay. To their credit, some brands and retailers have committed to pay in full for all apparel orders already in production or completed, greatly reducing harm to suppliers and workers. Others have not made this commitment and are either canceling all orders or imposing cancellations or rebates on a supplier-by-supplier basis. The WRC, in association with CGWR, is monitoring and reporting on the positions of leading corporations.
How Determinations Are Made:
Brands listed as having made a commitment to pay in full have met the following criteria, with respect to all orders placed (and on which fabric was cut) prior to the inception of the crisis:
- The brand is paying the originally agreed price for all in production, finished, and shipped orders, without any request for discounts or rebates;
- The brand is not canceling orders, except with full compensation to suppliers;
- The brand is not delaying shipping dates, or, if there are any delays imposed, they are small in scale and length and the brand is providing reasonable accommodation to affected suppliers; and
- If the brand is delaying any payments relative to agreed terms, the brand is providing affected suppliers with access to low-cost financing, so that suppliers’ cash flow is unaffected.
Determination of each corporation’s status is based on one or more of the following sources: public statements by the corporation (including statements reported by credible news sources), direct correspondence with the WRC and/or CGWR, information provided by country-level associations of suppliers, information provided by individual suppliers. The WRC and CGWR are seeking, on an ongoing basis, to assess whether corporations that have committed to act responsibly, as reflected in this tracker, are honoring this commitment in their direct dealings with suppliers. If we determine that a corporation is not honoring its commitment the supplier's designation will be changed. We will also be adding the names of additional corporations to the tracker as data become available.
If you have observations or information to share related to this tracker please write to email@example.com with the subject line “Covid-19 Tracker”.
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