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Organization Name

Fung Group

Case Story Title

Ensuring Responsibility within the Global Supply Chain

Case Story Date

2003/02/28

Issues Addressed

  • Principle 3 - Businesses should uphold freedom of association & effective recognition of the right to collective bargaining
  • Supply Chain Sustainability

Case Story Category

Partnership Project

Countries of Impact

China, Turkey

Case Description

Li & Fung (Trading) Ltd. is today one of the premier global consumer products export trading companies managing the supply chain for high-volume, time-sensitive consumer goods ? garments/apparel and hardgoods. These goods are sourced through a network of offices in over 40 countries for customers worldwide.

As a buying agent, we understand that our clients today face an increasingly discerning group of consumers who are not only looking for quality and value, but are also concerned about how their goods are made. Social compliance is a key element along all the steps of our supply chain. Through systematic inspection, audit and supplier education we help our clients enforce their high standards throughout their factory base. And, to keep up-to-date on the latest in matters of corporate social responsibility, Li & Fung is an active member of Business for Social Responsibility (BSR)

Principle 3 ? Freedom of Association & Right to Collectively Bargain

As part of our supplier evaluation program, Li & Fung verifies whether manufacturers permit unions or associations within their facilities. It is common for light goods manufacturers in many countries to not have unions union or recognized associations within their organizations. The laws of most developing countries do permit freedom of association and the right to collectively bargain. However, in countries such as China, workers associations can rarely be seen. Therefore, in our supplier monitoring and consultation activities of China and Turkey manufacturers we encourage parallel means of freedom of association in the form of worker representatives and worker associations or committees. Last year in China we played an integral role in facilitating the establishment of several factory representatives & committees. These representatives and committees in their functioning have promoted the protection of interests and rights of fellow labor. Furthermore, they have acted as enabling mechanisms for labor to communicate and to negotiate more effectively with supplier management.In 2002 we have witnessed in several factories the successful functioning of worker representatives and associations, which has led to concrete results in improved labor and management relations. It has also translated into gains in the form of improvements in workplace conditions ? healthier and safer working environments, enhancements in employee terms & conditions of employment ? productivity bonuses and production incentives, and an overall commitment to foster better employee / employer relations.

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Contact Person

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