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1 Start date membership March, 2010 Reporting period (financial year) Start: 01/06/2013. End: 31/05/2014 Organisational chart 1 / 9

2 Contents Contents Summary: goals & achievements Sourcing strategy Sourcing strategy & pricing Organisation of the sourcing department Production cycle Supplier relations Integration monitoring activities and sourcing decisions Coherent system for monitoring and remediation India China Turkey Portugal Egypt Pakistan Bangladesh Complaints handling Training and capacity building... 7 a. Activities to inform staff members... 7 b. Activities to inform agents... 8 c. Activities to inform manufacturers and workers Transparency & communication Stakeholder Engagement Corporate Social Responsibility / 9

3 1. Summary: goals & achievements We feel strongly about corporate social responsibility. Our company and our production sites are affiliated with the Fair Wear Foundation, an organization that is dedicated to good working conditions. We find it naturally: respect for people and the environment and concern for the future. (Shirley Schijvens, director) was the year of change for Schijvens regarding the implementation of the FWF s standards. We noticed that we needed a turn around to develop more improvement in the factories. We arranged a meeting with all the people involved to make some serious steps for 2013 and When Schijvens became a member of FWF, a lot of effort was made in implementing the FWF code, planning audits and following up on the CAP s. Unfortunately Schijvens is no longer working with many of those factories, which had its downside on the achievements in the end. Last year our main goal has been to establish a steady and reliable variety of suppliers, who all share our values regarding the code of Labour Practices. In this way the implementation of FWF can be optimally carried out. In general we believe we have accomplished that and meanwhile all of our suppliers are aware of the importance of FWF and are willing to corporate with us on improve labour conditions. For the 150 th anniversary of Schijvens, suppliers from different countries were invited over. Schijvens spent a lot time in discussing the meaning of the Fear Wear Foundation and the importance of good labour conditions within the factories. There were many discussions between the different suppliers and they talked openly with each other about CSR. Also a training was provided from FWF to explain the CoLP and interact with the Schijvens team and suppliers. Overall it has been a great success, as it strengthen the relationship with the suppliers and it makes them more willing to work on improvements. It is still a long process, but this has been a great start. 3 / 9

4 2. Sourcing strategy 2.1 Sourcing strategy & pricing Schijvens is a supplier of corporate fashion since Trough intensive partnership with customers, suppliers and social organisations Schijvens is able to create and deliver quality and contemporary products. This is being achieved with an enthusiastic staff, a concept-based approach, own design and social involvement. Schijvens Corporate Identity Schijvens designs, manufactures and distributes corporate clothing mainly aimed at retailers, facility services and logistics businesses. Within this department, collections will be especially developed according to the wishes of the customer. Schijvens is able to create an entire outfit and takes care of the whole process regarding the development of the collection; from the design to the distribution. T riffic T riffic is Schijvens own brand consisting of trendy workwear aimed at companies in the construction, logistics and industry. This brand is sold through over 80 partners to the end consumer. This brand makes it possible for Schijvens to reach out to small businesses due to its flexibility, while it is not attached to large production numbers. The buying manager is responsible for sourcing. A manual is being used when sourcing for new suppliers. It describes what the partnership should consist of, what the terms are regarding delivery and also the expectations about the FWF s CoLP. The most important criteria are; quality workmanship, order quantity per size, social corporate responsibility and price and delivery. Regarding pricing, we are mainly depending on the customer. For instance, we always search for Oeko-Tex certificated fabrics as an alternative for standard materials. However, these alternatives are usually more expensive. The customer is mainly led by price and does not always want to pay more. 2.2 Organisation of the sourcing department Sourcing is part of our buying department, which consist of the buying manager, buyer and assistant buyer. Our aim is making sure that quality is being delivered and guarded. Contact with suppliers, negotiating about lead times and prices is part of this process. 2.3 Production cycle Our Schijvens (SCH) brand is Corporate Identity. Retailers request us to design tailored clothing, which will be their corporate wear for several years. Therefore we are not tight to seasonal collections, but we deliver long-running collections in which summer and winter garments are combined. Also for our workwear 4 / 9

5 brand T RIFFIC, each collection has both winter and summer garments, which makes them sustainable always-on-stock collections. 2.4 Supplier relations We are working both with agents or intermediaries as well as directly with the factory. It is important to Schijvens that valuable relationships with its partners are being created and ensured. Schijvens believes in cooperation as equal partners, as it strengthens the relationship between both parties and mutual support can be provided. However due to issues with some factories regarding delivery terms, quality and other issues we have had to end some of our partnerships. 2.5 Integration monitoring activities and sourcing decisions Schijvens selects its manufacturers on price-quality ratio, but ethical mentality of the management is an important element as well. Each manufacturer will be given the opportunity to make improvements where needed in terms of working conditions. Overall, the willingness to cooperate with us, as FWF affiliate, is important in our sourcing decisions. Although we realize that the implementation of the Code may be a long process, change must be evident. 3. Coherent system for monitoring and remediation 3.1 India The factory in India was audited in 2013 and we working together with the factory to following up on the corrective action plan. The factory has already implemented training for the workers on informing them about the CoLP and grievance policy. Also we are planning the Workplace Education Programme within this year, which hopefully will be a great success. The factory has overall a good grievance mechanism. There are complaints and suggestions boxes in different locations. These are reviewed, handled and documented on a monthly basis. There has also been developments in overtime hours and the documentation of it. The factory has taken initiative to realise extra temporarily help to avoid overtime. If overtime is inevitable, these hours will be included in the bookkeeping. Regarding health and safety issues the factory also ensured some improvements. It included that workers in the fire mock drill will always sign when entering and leaving the factory, this was not the case before. Pathways and evacuation will be regularly monitored, so it is kept obstruction free. Also loose wires will be looped, so no threat is posed to workers. 3.2 China We have several factories in China, which have recently been audited. All of our factories are informed about the CoLP and the importance of good labour conditions. We have established a plan for all of the audited factories and are now working together with the factories on how we can improve all the 5 / 9

6 outcomes from the reports. We have also introduced the workplace education programme and have already received some positive reactions. 3.3 Turkey The factory in Turkey has not been audited by the FWF team so far. It was however audited in 2014 by BSCI and the outcomes were overall really good. The factory is very positive regarding social corporate responsibility and stands behind the believes of organizations like FWF. We are planning to have the factory also inspected by the FWF team, so we can get a more detailed insight of what exactly is going on in the factory and work on improving the conditions in the factory. So far the factory stands behind the Code of Labour practices and workers are informed about FWF and their rights. 3.4 Portugal No audit has yet been applied in our factory in Portugal, while it is a low risk country and just a small part of our production is outsourced to this location. Last year we have invited the factory owner over for a meeting and discussed our partnership with FWF. The company has indicated that they also stand behind the work of such organisations and have informed their workers accordingly. 3.5 Egypt Recently the factory in Egypt has been audited by a similar organization such as FWF and we have just established an corrective action plan. The overall score was good. Mainly there were some issues regarding health and safety. The factory ensured us that they will work on this within a short period of time, so hopefully all issues can be resolved within the upcoming year. 3.6 Pakistan We have had several meetings with our supplier in Pakistan to discuss the matter of FWF. They are open to implementing the CoLP, so we are enthusiastic to start the process with this supplier. The full audit is still planned for our current financial year, therefore there has not been made any major improvements yet. However we have already had investigate two important aspects; health and safety and child labour. The factory scored overall very well. Especially on the fact that the facility has its own health and safety committee, The workplace in general is rated as properly, as well as the standards; emergency evacuation and fire equipment, and the fact that employees are trained for emergencies. Lastly no child labour was find throughout the factory. 3.7 Bangladesh Mostly in Bangladesh we have switched with factories in the last year. Factories are all audited by other companies, one of them is audited by FWF in the end of For this factory we have made an corrective action plan, which had already great outcomes. The factory has its own anti harassment committee, which is part of the workplace participatory committee. According to the factory many issues from the audit report has already been improved. It contains that maternity benefit will be entitled to female workers and the factory has established a performance appraisal system. Minimum wage is maintained as per BGMEA rules, the next step for us is to try and realise living wage for all the 6 / 9

7 workers. They are trying to avoid overtime hours by taking measures. Regarding health and safety the factory explains they have installed new fire-fighting equipment. The factory also formed a safety team, that is trained by fire service and civil defence. Emergency exits are improved, al loose wiring has been removed and extra first aid boxes have been supplied. 4. Complaints handling Since the beginning of our corporation with the Fair Wear Foundation we haven t received complaints by the employees in the factories yet. We are currently trying to figure out why that is the case. We are encouraging our suppliers to not only inform the workers about their rights and the FWF s complaints mechanism, but also to stimulate the workers to provide suggestions and complaints. We are also informing them about the effectiveness of a grievance system and providing complaints and suggestion boxes within their factories. Hopefully within the upcoming years we will receive more input from the workers, so we can help improving the conditions from the workers perspective. As soon as we will receive complaints, we will make an official document about the complaint and develop an action plan to improve the issue, together with the factory. 5. Training and capacity building a. Activities to inform staff members In 2013 an informing day was organized to all the staff members to inform them about FWF and the importance of Corporate Social Responsibility. This gave them insight in what FWF stands for, what the problems are and how we can all contribute to improve the labour conditions within the factories. It can be concluded that it has been a success for Schijvens and it made the staff members willing to work for FWF. Since the presentation the staff puts more effort in convincing the client to look at the opportunities of eco-friendly products. The sales team of Schijvens since then always offers the client the S.Café quality and hands over an flyer about the production cycle created by FWF. In this way Schijvens involves the client in this and it sets them to think about CSR and the opportunities. Schijvens also communicates news, improvements or problems with all the staff members, so that they are aware of major results, concerns or improvements over the years. The persons who are involved directly in the execution of monitoring activities also attend different training courses during the year. FWF provides information on the hand of their experiences, best practices and how issues can be handled and solved. Besides that, it is also interesting and helpful to discuss issues with other FWF members. 7 / 9

8 b. Activities to inform agents In October of 2013 Schijvens celebrated their 150 th anniversary and also invited suppliers. Both Schijvens and a representative of FWF gave an interactive presentation and training to all the invited suppliers from different countries. They talked about the basic information, the importance and the CoLP. The suppliers spoke very openly about their own opinions and experiences and discussed this with Schijvens and other suppliers. It was a great initiative to inform and involve these partners and can be described a success. On a regular basis we also communicate with agent about their labour conditions, workshops or developments and issues regarding CSR trough , phone and meetings. c. Activities to inform manufacturers and workers We have factories that are interested in the WEP offered by FWF, so workers are informed about FWF and their obligations and rights. We want to encourage the owners of the factory to let us arrange these programmes for them. We also stimulate the agents and factories to discuss CSR with their employees and provide trainings themselves. 6. Transparency & communication Schijvens is open and transparent towards the general public. We mainly communicate through our own website and social media. Schijvens communicates about all CSR related activities, such as our partnership with FWF, donations and ISO certifications. Schijvens is open towards their customers on what production locations are being used. We also discuss our involvement in CSR directly to our customers, by showing them what we are involved in and providing them alternative sustainable fabrics for example. 7. Stakeholder Engagement We use different resources from FWF to extend our knowledge, trough country studies for example, so we are aware of what the main issues per country are. We also attend events provided by FWF, such as webinars, the annual conference and seminars to discuss issues with other affiliates and stakeholders and get advise on the implementation. During our 150 th anniversary there was an interactive presentation to agents and factory owners from different countries by a representative from FWF. They all talked about CoLP and in particular about two important standards; living wage and overtime. 8 / 9

9 8. Corporate Social Responsibility Besides the partnership with the Fair Wear Foundation, Schijvens is also active in other ways when it comes to Corporate Social Responsibility including the following as described below. Masterpeace Schijvens is sponsor of Masterpeace, a worldwide peace initiative. The goal of this initiative is to have 20 million people from all over the world together at a pop concert in Cairo, next to the pyramids on World Peace Day 2014 (21 September). These people will embrace the fourteen worst conflicts in the world and will give solutions for these conflicts. Schijvens sponsors clothing with the Masterpeace logo. Through this sponsorship Schijvens will convey the importance of peace in this world. S-Café S.Café is a technical composite fiber, that is used to make yarn which is eventually manufactured into a knitted or woven fabric. The raw material where this fabric consist of are coffee grounds and therefore it is eco friendly, while waste is being recycled. Schijvens always gives customers the opportunity to choose a S-Café quality. Room to Read Room to Read had developed a comprehensive approach to give children who live also in our production countries an opportunity to get an education. This approach consist of providing school rooms, reading material and scholarships for girls. Schijvens has realized donations for this foundation and therefore has contributed to the opening of a library for the children in Rajshahi, in the north-west of Bangladesh. This is a really poor area, where half of the people is analphabet. ISO certifications Schijvens is certificated with ISO 9001, a quality management system, and ISO standard 14001, which is an internationally accepted standard for an environmentally management system. 9 / 9

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