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Compliance & Sourcing

Responsible Sourcing

Building relationships for improvement

We’re committed to building strong relationships with our suppliers and their factories, helping develop the capacity necessary to improve working conditions in the supply chain. Through our Supply Chain Capacity Building program, we’re helping provide our partners with training they need to make continuous and sustainable improvements.

Factory Audit Orientation

Our Factory Audit Orientation is designed to provide new factories and suppliers in Walmart’s supply chain with training in the following areas:

  • Walmart Standards for Suppliers
  • Social and environmental compliance
  • Enhanced fire safety requirements
  • Chemical and machine safety
  • Dormitory and canteen standards
  • Audit scope and factory disclosure
  • Factory audit process, results and consequences
  • Country- and region-specific trends, laws and best practices
  • Effective corrective action plan development

In 2013, 4,598 factories participated in Factory Audit Orientation.

Violation Correction Training

Factories with higher risks observed during audits are requested to attend Violation Correction Training so we can provide them with a better understanding of our Responsible Sourcing program and requirements under Walmart’s Standards for Suppliers. Violation Correction Training addresses common trends related to social and environmental compliance, with special focus on locally relevant topics. Through training in root cause analysis, factories are able to develop corrective action plans to remedy potential violations. As part of our audit program, factories are assigned colors based on the severity of issues found.

Orange School Program

The Orange School Program provides one-on-one, hands-on training to select factories and suppliers. By focusing on the fundamentals of root cause analysis methodology and procedures, we teach factory management to proactively identify noncompliance issues and develop a systematic approach to continuous improvement. In 2013, 89 factories completed the Orange School Program, and 30 additional factories are currently undergoing training.

Supplier Development Program

Through Responsible Sourcing’s Supplier Development Program, we proactively work with our suppliers to help improve standards and effectively manage their factories. To participate, a supplier must be nominated by a business associate within Walmart. A consulting team then works with the supplier to conduct a thorough analysis of every area of the business that impacts performance in responsible sourcing and develops a customized plan that unlocks meaningful improvement. In 2013, 68 suppliers took part in the Supplier Development Program.

Supplier Round Table

The Supplier Round Table is a forum for our suppliers, factories and stakeholders from similar sourcing regions to come together and discuss concerns and share best practices. The sessions are focused on responsible sourcing goals, as well as objectives and current challenges across their region. In 2013, there were 41 global Supplier Round Table sessions, with 633 participating factories and 436 participating suppliers.

Empowering workers in Bangladesh

We know the most effective way to increase workplace safety is by empowering the workers. That’s why, in addition to our Women in Factories and Supply Chain Capacity programs, we’re investing in additional safety training in Bangladesh.

Through our work with Bureau Veritas, our goal is that each and every worker in factories producing merchandise directly for our suppliers in Bangladesh be trained on fire safety procedures.

We’ve also contributed $1.6 million to the Institute of Sustainable Communities (ISC) to support the newly created Environmental, Health and Safety (EHS) Academy in Bangladesh. Through the EHS Academy, apparel manufacturers in Bangladesh will have access to high-quality, affordable and comprehensive training on fire safety and environment, health and workplace safety. In addition to funding, Walmart will also provide technical support and advice to ISC. The goal of the academy is to provide a local, long-term platform for addressing challenges in the supply chain related to fire safety through technical training and engagement.

Finally, through our participation in the Bangladesh Buyers Forum (BBF), Walmart has collaborated with 18 other brands to create a training program to increase fire safety awareness among our suppliers and their employees in garment factories. With an expected reach of more than 3,000 exporting garment factories in Bangladesh, the Bangladesh Garment Manufacturers & Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA) are providing training for factory management on the use of the films as educational tools.