Sphere of action: Procurement, production, processing
Social audits relating to own imports by MGB Hong Kong (Suppliers who have passed an audit)
BSCI-relevant suppliers (active)
Thereof which passed the audit
Status of BSCI audits of active suppliers for own imports by MGB METRO Group Buying Hong Kong from countries defined as risk areas by the Business Social Compliance Initiative (BSCI). Active suppliers are defined as those who provided METRO GROUP with clothing, shoes, toys and durable goods as of 30 September of the year under review and generated actual sales as of this date. Suppliers who have passed the audit can demonstrate their successful compliance with the BSCI standard by presenting a certificate awarded by an independent third party. Alternatively, suppliers may produce a certificate issued by an independent third party attesting to successful compliance with an equivalent social standard system.
As of 30 September 2014, we had 835 active suppliers, of whom 58 per cent had passed the audit with the score “good”. Suppliers who do not pass the audit are given 18 months – as of the audit date – to provide proof of improvement. If they fail to do so, they will receive no further orders until they can provide evidence of sustainable improvements in their organisational processes. 12 per cent of suppliers who failed the original audit succeeded in bringing about the required level of improvement in the financial year 2013/14. However, the proportion of suppliers performing well in the audit has fallen, which can be attributed above all to the even stricter requirements placed by the BSCI on the audit process.