Company profile: KiK
Headquarters: Bönen
Country: Germany
Founded in: 1994
Total points of sale in Europe: more than 2.500 shops in Germany and Austria
Owned by: Tengelmann group (Plus, Kaiser´s, A&P, Obi, privately owned by family Haub)
Name of CEO: Dr. Stefan Heinig
Product description: all types of clothing for children, women and men with a variety of brand names
Producer countries: Bangladesh and China (other countries are not known)
General remarks: n.a.
KiK Textilien und Non-Food GmbH
Siemensstr. 21
59199 Bönen
Comments from CCC and proposals for action
The CCC-Germany has been campaigning against KiK since the start of Germany’s “discounter campaign” in January 2008. The campaign is based on research into violations of labour rights in the factories of three of the company’s Bangladeshi suppliers as well as in its shops in Germany. The brochure “Who pays for clothing from Lidl and KiK?” was published in January 2008, the English version in July 2008.
The following evaluation of the company’s performance in terms of transparency, code implementation and monitoring of labour standards is based on a research by the CCC – Germany in 2008.
Transparency
KiK is not transparent at all. As a privately owned company it is not obliged to report publicly on its profits. Its website contains no information about suppliers or the countries where the company is purchasing from.
Two months after the publication of the CCC brochure in January 2008, a meeting was held between KiK, the CCC-Germany and the CCC-Austria. No further communication has taken place since.
Formal commitment to labours standards
Following criticism from the CCC Germany, the company revised its code of conduct in May 2008 but did not communicate this to the CCC. The code of conduct comprises the ILO’s core and other ILO conventions but makes no reference to a living wage.
Code implementation and purchasing practices
KiK has engaged the consulting firm Systain to advise the company in all matters of code implementation. This seems to be partly in reaction to criticism by the German CCC. Systain carries out social audits at KiK supplier factories. Audit reports are not publicly available.
Monitoring and Verification
Over 300 audits were carried out in China and Bangladesh by a commercial audit firm.
Violations of labour rights and public conflicts
A study conducted at three KiK suppliers in Bangladesh shows massive violations of workers’ and human rights. KiK has acknowledged these violations in the meeting held with the CCC and argues that it is trying to improve the situation.
Recent developments
n.a.