Example in Action: Identifying Good Practices and Room for Improvement with KnowTheChain*

Lululemon store with colorful art designs on outside of building
Photo Credit: Hobi Industri_Unsplash

  • KnowTheChain is a resource for companies and investors to help them understand and address forced labor risks within their global supply chains. KnowTheChain benchmarks current corporate practices, develops insights, and provides practical resources that inform investor decisions and enable companies to comply with growing legal obligations while operating more transparently and responsibly.

  • The summary of the 2020–2021 report for benchmark leader Lululemon Athletica Inc. (Lululemon)* provides insight into how other companies can identify good practices and places for improvement: 

    • “…This is because the company began disclosing additional information, including assessments of raw material suppliers, detail on the implementation of its responsible recruitment program in Taiwan (and expansion of the program to several other countries), and efforts to improve freedom of association. Notably, the company has the highest score on the themes of Purchasing Practices, Recruitment, and Remedy. The company discloses having taken limited steps to address the risks of alleged Uyghur forced labor across its supply chain tiers, namely, that it trained suppliers and carried out “additional due diligence research” on its cotton supply chain. However, it does not disclose engagement with groups representing rightsholders or timebound targets. KnowTheChain identified one additional allegation of forced labor in the company’s supply chains. The company discloses it conducted more than 650 confidential worker interviews and notes that supervisors responsible for the alleged abuses were removed, but it does not disclose further remedy outcomes for workers. The company has an opportunity to improve its performance and disclosure on the themes of Purchasing Practices, Worker Voice, and Remedy…” 

  • Public reporting can offer other benefits, including employee education and buy-in, corporate self-assessment, getting external input on reporting, and corporate accountability.  

 

DOL welcomes examples of good practices 
to address child labor and forced labor. 

Email us at GlobalKids@dol.gov.