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II. Codes of Conduct in the U.S. Apparel Industry
Footnotes
1 Sri Ram Khanna, "Trends in US and EU Textile and
Clothing Imports," Textile Outlook International, January 1996, 80
[hereinafter Trends in US and EU Textile and Clothing Imports].
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2 According to Levi Strauss & Co., its "Global
Sourcing & Operating Guidelines," adopted in 1991, were the first ever
developed.
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3 This study focuses on the child labor issue, although
other labor standard aspects of code of conduct are also controversial and
require further review.
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4 This study examines the foreign implementation of codes
of conduct, not domestic application -- although many companies have similar
policies for garment production and sourcing within the United States.
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5 Lance Compa and Tashia Hinchliffe-Darricarrere, "Enforcing
International Labor Rights Through Corporate Codes of Conduct," Columbia
Journal of Transnational Law 33 (1995), 663-668 [hereinafter Compa and
Hinchliffe-Darricarrere].
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6 The OECD Declaration and Decisions on International
Investment and Multinational Enterprises, 1991 Review (Paris: Organization for
Economic Cooperation and Development, 1992), 39.
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7 See James Michael Zimmerman, Extraterritorial Employment
Standards of the United States: The Regulation of the Overseas Workplace (New
York: Quorum Books, 1992).
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8 Development and International Economic Cooperation:
Transnational Corporations, U.N. Economic and Social Council, 2nd Session,
Agenda Item 7(d), U.N. Doc. E/1990/94 (1990), 1.
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9 The OECD Declaration and Decisions on International
Investment and Multinational Enterprises, 1991 Review (Paris: Organization for
Economic Cooperation and Development, 1992), 39.
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10 Tripartite Declaration of Principles Concerning
Multinational Enterprises and Social Policy, 2d ed., (Geneva: International
Labor Office, 1991)[hereinafter ILO Declaration of Principles].
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11 See Compa and Hinchliffe-Darricarrere at 670-71.
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12 The Sullivan Principles, developed by the Reverend
Leon H. Sullivan in 1977, were aimed at U.S. corporations doing business in
South Africa within the apartheid legal system. They were intended to apply
pressure on the South African government to end apartheid by promoting
employment practices in U.S. corporations that ensured racial equality. See
Leon H. Sullivan, "The Sullivan Principles and Change in South Africa,"
in Business in the Contemporary World, Herbert L. Sawyer, ed., (1988), 175.
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13 Named after Nobel Prize-winning human rights activist
Sean MacBride, the MacBride Principles were developed in 1984 by the Irish
National Caucus to address allegations of anti-Catholic discrimination in
employment in Northern Ireland. See The MacBride Principles (Washington, D.C.:
Irish National Caucus, 1984), 2.
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14 The Slepak Principles were issued in 1987 by the
Slepak Foundation. They were designed to apply to U.S. corporations doing
business in the former Soviet Union. See Jorge F. Perez-Lopez, "Promoting
Respect for Worker Rights Through Business Codes of Conduct," Fordham
International Law Journal 17 (1993), 13.
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15 Maquiladoras are plants that assemble parts and
components into a finished product for export. Maquiladoras are located in
Mexico, Central America and the Caribbean, and assemble U.S.-made parts and
components into finished goods that are exported to the United States. The
Maquiladora Standards of Conduct were issued in 1991 by the Coalition for
Justice in the Maquiladoras. See "Maquiladora Standards of Conduct,"
in The CJM Newsletter (San Antonio, Texas: Coalition for Justice in the
Maquiladoras, 1992), 1.
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16 In 1995, the Clinton Administration encouraged U.S.
corporations and organizations to develop their own voluntary codes of conduct
for their foreign operations based on a set of Model Business Principles. See
Model Business Principles (U.S. Department of Commerce International Trade
Information Center, 1995). See also "Administration Releases Details on
Voluntary Business Principles," Daily Labor Report, no. 104 (May 31, 1995)
A-4.
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17 "The Business of Child Labour," Anti-Slavery
Reporter (London: Anti-Slavery International, July 1996) 6.
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18 James Cox, "U.S. Retailers Put Pressure on
Foreign Factories," USA Today, September 4, 1996.
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19 Robert D. Haas, "Ethics -- A Global Business
Challenge: Character and Courage," speech to the Conference Board, New
York City (May 4, 1994) Vital Speeches of the Day, 506, 507 (on file with the
International Child Labor Study).
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20 Mary Scott, "Can Consumers Change Corporations?"
Executive Female, May/June 1996, 43.
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21 According to the International Mass Retailers
Association, companies should be good corporate citizens but the responsibility
for eliminating child labor lies not with corporations but with local and U.S.
governments -- "it's called law enforcement." See International Child
Labor Hearing, U.S. Department of Labor (June 28, 1996) (Statement of the
International Mass Retailers Association)[hereinafter Statement of IMRA].
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22 Dominic Bencivenga, "Human Rights Agenda,"
New York Law Journal (July 13, 1995) 5 (quoting Diane F.Orenlicher, professor of
international law at American University).
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23 Recent Developments in the Clothing Industry (Geneva:
International Labor Organization, 1995) 7 [hereinafter Recent Developments].
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24 ILO Textile Report at 6.
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25 Recent Developments at 7.
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26 "Dynamic Change in the Garment Industry: How
Firms and Workers Can Survive and Thrive," (U.S. Department of Labor,
Office of the Chief Economist, 1996) 1 [hereinafter Dynamic Change in the
Garment Industry].
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27 Jackie Jones, "Forces Behind Restructuring in
U.S. Apparel Retailing and its Effect on the U.S. Apparel Industry,"
Industry, Trade, and Technology Review (U.S. International Trade Commission,
1995) 23 [hereinafter Forces Behind Restructuring].
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28 Ibid.
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29 Ibid.
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30 Ibid.
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31 Carol Warfield, Mary Barry and Dorothy Cavender, "Apparel
Retailing in the USA-Part I," Textile Outlook International (March 1995) 38
[hereinafter Apparel Retailing in the USA - Part I]. See also Forces Behind
Restructuring at 23.
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32 Trevor A. Finnie, "Outlook for the US Apparel
Industry," Textile Outlook International (November 1995) 92 [hereinafter
Outlook for the US Apparel Industry].
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33 Dynamic Change in the Garment Industry at 2.
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34 Ibid.
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35 Kurt Salmon Associates, "No Quick Fix for '96,"
Bobbin, vol.37, no.4 (December 1995) 68 [hereinafter No Quick Fix]. See also
Outlook for the US Apparel Industry at 71.
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36 Ibid.
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37 Outlook for the US Apparel Industry at 71, 73; Forces
Behind Restructuring at 25.
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38 Outlook for the US Apparel Industry at 82.
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39 Ibid. at 77.
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40 Jules Abend, "Private Labels, Brands Square Off,"
Bobbin, vol. 36, no. 10 (June 1995) 68.
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41 Outlook for the US Apparel Industry at 84.
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42 Forces Behind Restructuring at 26.
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43 Apparel Retailing in the USA - Part I at 52.
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44 Ibid.
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45 American Apparel Manufacturers Association, News
Release, June 1996.
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46 Focus: An Economic Profile of the Apparel Industry
(American Apparel Manufacturers Association, 1995) 3.
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47 Dynamic Change in the Garment Industry at 2.
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48 American Apparel Manufacturers Association, News
Release, June 1996.
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49 Trends in US and EU Textile and Clothing Imports at
80.
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50 Apparel Retailing in the USA - Part I at 38-9.
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51 Forces Behind Restructuring at 25.
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52 Ibid.
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53 Brenda A. Jacobs, "One From Column B: Choosing
the Right Trade Program," Bobbin, Supplemental Guide on How to do Business
in Latin America (1995) 2.
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54 ILO Textile Report at 16.
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55 Ibid. at 7, 21.
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56 Ibid. at 7.
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57 For example, a U.S. Embassy official who recently
toured a Cambodian garment factory found "problematic" working
conditions, including workers who appeared to be under age (but who claimed to
be above the minimum working age of 16) and forced, unremunerated overtime.
American Embassy-Phnom Penh, unclassified telegram no. 2594, September 16, 1996.
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58 Retailers' sales figures are total sales, not limited
to apparel sales.
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59 Kurt Salmon Associates, Financial Profile for Fiscal
Year 1995 (July 1996). The Profile includes only those companies that file
public documents with the Securities and Exchange Commission (SEC).
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60 The three companies that did not respond are County
Seat, May Department Stores and Neiman Marcus Group.
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61 These three companies are Kohl's Corporation, the
Marmaxx Group and Shopko Stores.
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62 Stage Stores, Inc. ('Stage Stores') is the new name of
Specialty Retailers, to whom the original questionnaire was sent.
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63 Appendix C does not contain those policies that
respondents designated confidential.
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64 International Child Labor Hearing, U.S. Department of
Labor (June 28, 1996)(Statement of Levi Strauss). Spiegel, Inc. ('Spiegel')
and Liz Claiborne, while they do not have formal guidelines for country
selection, said in telephone interviews that they decided to sever contracts
with producers in Burma because of human rights violations.
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65 Neiman Marcus and May Department Stores did not
respond to the survey.
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66 Kohl's Corporation responded to the survey but regards
all information provided as confidential.
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67 Shopko Stores responded to the survey but regards all
information provided as confidential.
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68 Dolgencorp, a Dollar General subsidiary that imports
apparel, responded on behalf of Dollar General.
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69 There is no Federal Child Labor Act. Child labor
provisions of federal law are contained in the FLSA.
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70 County Seat did not respond to the survey.
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71 The Marmaxx Group (formerly known as TJ Maxx)
responded, but regards all information provided as confidential.
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72 As noted earlier, child labor provisions of federal
law are contained in the FLSA.
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73 Includes companies that subscribe to another
organization's code (that of an association or buyer).
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74 Appendix F contains ILO Convention 138 on Minimum Age
for Employment -- the most commonly cited international standard on child labor.
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75 In a clause Sara Lee Corporation ('Sara Lee') provided
from an agreement with a former buyer agent, however, Sara Lee required
compliance with national laws on child labor. Furthermore, a Sara Lee supplier
in the Dominican Republic (BRATEX Dominicana) provided a Department of Labor
official with Sara Lee's "Supplier Selection Guidelines," which state
that Sara Lee will not procure goods or services from firms employing workers
under age 15.
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76 This is the standard contained in Warnaco's Business
Partner Terms of Engagement, which is used only for contractors' facilities.
For its wholly owned plants, Warnaco indicated that it uses U.S. labor standards
with respect to all aspects of labor law excluding wages.
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77 Report on Labour Standards in the Asia-Pacific Region
(Canberra: Government of Australia Tripartite Working Party on Labour Standards,
February 1996) 75-76.
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78 The code is called "Labor and Environmental
Principles to be Observed by the Members of the Apparel and Textile Industry
Commission of the Association of Exporters of Non-Traditional Products,"
and was developed by the Apparel and Textile Industry Commission (VESTEX).
VESTEX recently retained the services of an outside auditing firm to monitor
compliance of member companies with the code. Any manufacturer may choose to
adopt the code, but is responsible for paying to be audited.
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79 Levi Strauss Form 10-K report to the Securities and
Exchange Commission (February 21, 1996) at 11.
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80 International Child Labor Hearing, U.S. Department of
Labor (June 28, 1996)(Statement of Jeff Ballinger, Press for Change).
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81 International Child Labor Hearing, U.S. Department of
Labor (June 28, 1996)(Statement of the Interfaith Center on Corporate
Responsibility)[hereinafter Statement of ICCR].
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82 Statement of IMRA.
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83 The following companies indicated that they use
internal staff to monitor for compliance: Federated, Fruit of the Loom, The
Gap, Hartmarx, JCPenney, Jones, Kellwood, Kmart, Land's End, Levi Strauss, The
Limited, Liz Claiborne, Mercantile Stores, Nike, Nordstrom, Oxford, Phillips-Van
Heusen, Russell, Salant, Sara Lee, Sears, Spiegel, Talbots, Tultex Corporation,
VF Corporation, Wal-Mart, Warnaco, Woolworth Corporation.
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84 These companies are: Dillard Department Stores,
Dollar General, Dress Barn, The Gap, JCPenney, Jones, Kellwood, Land's End,
The Limited, Mercantile Stores Company, Nordstrom, Phillips-Van Heusen, Sara
Lee, Spiegel, Stage Stores, The Talbots, Venture Stores, VF Corporation and
Woolworth Corporation.
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85 According to AMC, its retail shareholders includes
such other stores as Bloomingdale's, Saks Fifth Avenue, Dayton Hudson,
Bradlee's, Marshall's, Target and Filene's Basement.
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86 Kellwood indicated that it may expand its monitoring
to use another Big Six accounting firm in the future.
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87 Statement of ICCR.
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88 See Bob Herbert, "In Deep Denial," The New
York Times, October 13, 1995. See also National Labor Committee press releases
of October 18, 1995, November 21, 1995 and December 16, 1995.
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89 Interfaith Center on Corporate Responsibility, "Independent
Monitoring Working Group Progress Report," (April 19, 1996) [hereinafter
ICCR report].
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90 Statement of ICCR. According to Mark Anner, of the
Center for Labor Studies (CENTRA), who coordinates the NGO monitoring team, the
experience has been very positive, with most problems already resolved at the
Mandarin plant. He expressed concern, however, regarding the long-term
sustainability of NGO monitoring since the monitors are all volunteers (with
full-time jobs elsewhere) and raise their own budget.
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91 Fruit of the Loom also requires access to
subcontractor facilities used.
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92 These companies are Federated, Fruit of the Loom, The
Gap, Land's End, Levi Strauss, Liz Claiborne, Montgomery Ward, Nike, Oxford,
Phillips-Van Heusen, Price/Costco, Salant, Sara Lee, Spiegel, VF Corporation,
Wal-Mart and Warnaco. Several other companies, including Dillard and JCPenney,
indicated that they seek out suppliers with established reputations for quality
that comply with all applicable laws, but did not state that they conduct
on-site evaluations.
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93 These auditors are based in the region where they
work. While they are specially trained in enforcing Levi Strauss' "Guidelines,"
they also do work pertaining to quality control and sourcing activities.
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94 Richard Rothstein, "The Starbucks Solution: Can
Voluntary Codes Raise Global Living Standards?," The American Prospect 27
(July/Aug. 1996) 36 - 37.
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95 Most also indicated that, should they receive
notification by a governmental authority of a violation, they would cooperate
and act immediately.
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96 Kellwood reported that it suspected child labor in a
facility that it subsequently decided not to use as a source.
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97 Phillips-Van Heusen reported that its quality control
staff has in most cases discovered the child workers.
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98 According to Kmart, this last provision was added by
its new Chief Executive Officer.
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