Responsible sourcing

All product suppliers must sign the Flying Tiger Copenhagen Supplier Code of Conduct. The Code is based on international standards as defined by the United Nations (UN) and the International Labour Organisation (ILO). It defines our requirements in the areas of workplace health and safety, terms of employment, working hours, wages, environmental protection and business ethics. Among other things, it prohibits child labour, forced labour, dangerous or severely unhealthy working conditions, and abusive disciplinary practices. No purchases can take place without a valid Code in place. Commitment to the Code must be renewed every other year in writing

Factories are selected for audit by assessing the risk based on (a) country of production, (b) purchase volume and (c) product category combined with individual assessment of: (a) brand exposure of product; and (b) audit history and performance of factory, including sub-contracting practices.

Factories, rated high-risk, are selected for audit. On-site factory audits are carried out either by our China-based audit team or by Elevate, an organisation specialising in social compliance factory audits. All audits follow the Flying Tiger Copenhagen Audit protocol that consists of 115 questions and assesses practices in the areas of ethics, sub-supplier management, human rights, labour practices, and the environment. Audits include a combination of site assessment, documentation review, management interviews and anonymous workers' interviews. Audits can be announced, semi-announced and unannounced, depending on progression of audits and types of findings in previous audits. All factories are evaluated from A (compliant) to E (zero-tolerance) and most of the factories we used are rated C. We have a strategic target to raise the rating of the factories we use.

All factories, apart from A-rated factories, must implement a corrective action plan (CAP) within a defined timeline. The CAP is reviewed regularly until closure by Flying Tiger Copenhagen, and the factory must go through a re-audit to verify improvements. Re-audits are semi-announced or unannounced. Factories that present severe zero-tolerance issues are rejected (e.g., use of child labour, forced labour, severe safety and human rights issues, attempted bribery of auditor). In some cases, where good faith and procedural errors can be verified, the factory is put through a requalification process, which includes training, a strictly monitored improvement plan and a re-audit. In case a supplier and/or factory is unwilling to improve, we stop the collaboration permanently.

We do, on occasion come across factories using child labour. We have a zero tolerance for child labour and strict rules for young workers (between 16 and 18). If we find child labour, the factory must immediately remediate the case and will be put on hold until further notice.

We have entered a collaboration with The Center for Child Rights and Corporate Social Responsibility (CCR-CSR) in China that helps us with child labour remediation and prevention. CCR-CSR makes sure that every case is handled with respect to the individual child´s circumstances. They engage in dialogue with the family and ensure appropriate measures like enrolling in vocational schools and monthly living stipends throughout the remediation period.

In 2020, we had zero child labour cases. In 2020, we conducted 121 audits in our factories in China. In normal years, we conduct around 300, but due to COVID-19, travel restrictions and social distancing, the number of audits in Quarter 1 – Quarter 3 was heavily reduced. In Quarter 4, we were almost back to normal. The most common issues to improve were ensuring a safe and healthy working environment and reducing overtime. Our target for 2021, is to return to our usual number of audits of around 300, and to pursue greater transparency through intensified pre-screening and further capacity building of our suppliers.