FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2019
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2. GOVERNANCE APPROACH
Who in the company is responsible for social and environmental impacts?
Employee, Executive and Supplier incentives for improving performance
In this section, we wanted to understand who in the company is accountable for social and environmental performance and impacts.
We looked to see if brands are disclosing how their employees beyond the sustainability/CSR team (designers, buyers, sourcing managers, etc.) are incentivised (via performance reviews or financial bonuses) to achieve improvements in social and environmental impacts.
First, we looked to see if brands publish direct contact details for a sustainability or ethical trade department in the company. Then we looked to see if they shared direct contact details for the person or people with lead responsibility. This demonstrates an open line of communication between the brand and its customers and stakeholders. We also looked for the name of a board member or board committee who is responsible for social and environmental issues and how this oversight is implemented. This is often the remit of an Ethics or Sustainability Committee at board level.
We looked for the same information to be shared linking CEO and executive level pay and incentives to human right impacts and environmental management. Finally, we also looked to see how suppliers’ incentives are linked to improvements in human rights impacts and environmental management. The types of incentives we were looking for included brands committing to longterm contracts, increased orders, price premiums and fewer audits.
" A lack of transparency results in distrust and a deep sense of insecurity." DALAI LAMA