Dive Summary:
- In a 10-page letter, Walmart informed suppliers that they would be adhering to a "zero tolerance" policy for subcontracting to factories without their knowledge or permission.
- The company has also started to publish the names of factories that suppliers subcontract to to create more accountability for the suppliers themselves.
- The "zero tolerance" policy will go hand in hand with a stricter pre-approval audit for suppliers to subcontract with outside factories.
From the article:
"...Wal-Mart Stores Inc. is warning suppliers that it is adopting a "zero tolerance policy" for violations of its global sourcing standards, and soon plans to immediately sever ties with anyone who subcontracts work to factories without the retailer's knowledge.
The changes, which begin taking effect March 1, come after Wal-Mart clothing was found at a Bangladesh factory where a fire killed 112 people in November—a factory the company said was no longer supposed to be making its clothes..."
