16 Towards a sustainable profitability
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THIRD-PARTY AUDITS In addition to internal audits , the monitoring of the Code of Conduct is made through third-party audits . An amfori BSCI audit is performed by professional auditors , accredited by SAAS ( Social Accountability Accreditation Services ). Our goal is to include all our suppliers located in risk countries in amfori BSCI or an equal monitoring system and that the audit should result in a good grade .
An amfori BSCI-audit results in an overall grade between A-F to summarize the supplier ’ s performance . The audit takes into account the actual working conditions as well as management systems and policies established to ensure a systematic work . In total , 13 different areas are assessed , corresponding to the requirements in the Code of Conduct . The most common grade is C , which can be translated into “ Acceptable ”. There are usually some noncompliances that must be handled , but the labor conditions do not violate the Code of Conduct or pose an immediate threat to workers ' health and safety . Common non-compliances could
1 be excessive overtime work or lack of documentation . To address such issues requires dedication and the ability of production planning . It is important to have a long-term perspective and work for continuous improvements .
OWN PRODUCTION UNITS New Wave Group owns a few production units . The glasswork in Kosta supplies Orrefors and Kosta Boda with premium utility and art glass . Seger has its knitting factory in Röshult where the production has been based since the company was founded in 1947 . In Poland , Toppoint has a printing unit for pens and mugs and in Denmark our subsidiary Dahetra owns a facility for embroidery and transfer printing . In North America , AHEAD and Cutter & Buck have some production in terms of embroidery . In-house production has the benefit of direct influence , which gives us even better opportunities to work with sustainability .
ACCORD ON FIRE AND BUILDING SAFETY IN BANGLADESH In 2014 , New Wave Group signed the Accord on Fire and Building Safety in Bangladesh , a legal agreement between buyers of Bangladeshi garments and factory owners to work together for safe factories in the country with a focus on structural , electrical and fire safety . The Accord has brought important changes that would not otherwise have been possible in such a short period of time , but still a lot of work remains . Therefore , a new agreement has been developed that entered into force in May 2018 when the first accord expired . New Wave Group signed the new agreement in November 2017 which expires in May 2021 . The Accord directly affects two million workers , making it one of our most important social responsibility projects .
Read more on www . bangladeshaccord . org
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96 %
96 % of the purchasing volume through the purchasing offices are from third-party audited factories .
GRADES FROM THIRD-PARTY AUDITS
1 . 77 % ( 76 %) Improvements needed ( BSCI C )
2 . 9 % ( 9 %) Outstanding and good result ( BSCI + B , SA8000 )
3 . 7 % ( 5 %) Other ( WRAP , QCA , UL , WCA , ESEP ) 4 . 5 % ( 5 %) SMETA 5 . 2 % ( 1 %) Insufficient ( BSCI D )
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C
C is the most common grade in an amforiaudit , graded on a scale from A-F .
In an amfori-audit , 13 different areas are assessed , corresponding to the requirements in the Code of Conduct .