Company profile: Coop
Headquarters: Basel
Country: Switzerland
Founded in: 1893
Total points of sale in Europe: 1546 Stores
Owned by: About 2,5 million households as members of the cooperative
Name of CEO: Hansueli Loosli
Product description: Garments are sold in Coop Supermarket and Coop City Department stores. They sell garments (collection for ladies, gents, kids, babies and underwear) and shoes (but shoes only in 5 shops). Coop has its own garment label Naturaline for organic cotton garments and their own brand "nulu" - new lock, for the latest fashion trends.
Countries of production: Bangladesh, China (People's Republic of China), India, Europe, Austria, Denmark, France, Germany, Italy, Netherlands, Switzerland, Finnland
General remark: n.a.
Coop
Thierstreineralle 14
Postfach 2550
brigitte.zogg(at)coop.ch
Comment from CCC and proposals for action
In its overall collection of textiles, Coop places too much emphasis on risk-oriented business initiative BSCI (Business Social Compliance Initiative) where maintaining the company’s reputation is at the forefront. The BSCI alone is not a sufficient instrument to solve the central problems of the workers in the textile chain. The BSCI admits that their approach to auditing companies often does not uncover more "subtle" offences such as the freedom of assembly. Nevertheless, Coop does not allow its factories to be verified by an independent, and therefore credible, multi-stakeholder initiative (MSI). Among Coop’s approximate 200 direct textile suppliers, 66 have been audited by BSCI. Three of which were assessed by the BSCI auditors as "good" which, when considering the lack of independent verification and relatively low standards of BSCI, does not mean much. 13 factories are SA 8000 certified.
Take action: When buying clothes, consider Naturaline products and mention to the sales personnel how much you appreciate having the product line as a purchasing option. Express your misgivings to the sales personnel about BSCI’s approach and encourage Coop to join the Fair Wear Foundation (FWF).
The following evaluation of the company’s performance in terms of transparency, code implementation and monitoring of labour standards is based on the company’s response to the questionnaire from the CCC and on an additional desk study conducted by the CCC in 2007. In the section “Recent developments” you can find additional information gathered after 2007.
Transparency
Coop has responded to the CCC-questionnaire and has provided some additional documents. The company is in dialogue with some NGOs and/or trade unions. The company is transparent with regard to many figures such as turnover, profits, sales and corporate structure. The amount of salaries of the top management is known. The information given about producer countries and the structure of the supply chain is not comprehensive. A sustainability report is publicly available that meets international reporting standards (GRI) and includes a stakeholder report. Coop provides neither the results of factory audits nor information about verification activities. The company does not disclose general targets for future monitoring activities.
Formal commitment to labour standards
Coop has adopted a code of conduct that includes a reference to the Universal Declaration of Human Rights and requires compliances with all relevant local labour laws. The code also indicates that where local and international standards are at variance the higher standard should prevail. The company is formally committed to respecting minimum labour standards in accordance with ILO Core Conventions. These include the right to organise and bargain collectively and prohibit child labour, discrimination, and forced labour. The company does not make the code mandatory for all workplaces where its products are made. Coop’s code of conduct applies to all workers affected by labour practices for which the company has some measure of responsibility. The code of conduct includes measures to implement the code and monitor labour conditions in the facilities used. Beyond the ILO Core Conventions, the company is committed to workers’ right to earn a living wage (i.e. a wage for standard working hours that meets the basic needs of workers and their families and provides some discretionary income). Overtime is stipulated to be occasional only and is paid at a premium rate The company’s code calls for a safe and hygienic environment for the workers who produce its garments and/or sportswear. The company explicitly requires that all workers receive a regular employment contract. Beyond the labour standards mentioned above, the company code is not precise enough on some specific issues. It does not state its commitment in relation to*:
Code implementation and purchasing practices
The code of conduct is translated into all the languages of the countries the company is sourcing from; every buying contract states the obligation for the supplier to comply with the code. Coop provides some ideas about what constitutes a living wage in the different producing countries, but has no credible methodology for achieving it. Coop has not shown that it is aware of the fact that part of its production sites are located in countries or zones where freedom of association is not guaranteed by law. There are no provisions to give buyers positive incentives to reward better working conditions.
Monitoring and Verification
As a member of BSCI, the company has audited 67 suppliers within one year. The company is not involved in independent verification by a multi-stakeholder approach.
Violations of labour rights and public conflicts
There are no public urgent appeals from CCC calling on Coop to take responsibility for workers’ rights violations in its supply chain.
Recent developments
What stands out as positive for Coop is its organic cotton line "Naturaline," which makes up 26% of Coop’s total offering of cotton textiles. The Naturaline assortment is produced to a large extent by the company Remei AG. The supply chain here is substantially more transparent. By 2012 the entire Naturaline assortment should be CO2 neutral.