Supply chain and contractor standards

Our relationships with our finished product contractors are governed by our Global Responsible Production and Sourcing Policy, which establishes guidelines for responsible production planning practices to help ensure that the sourcing, purchase of materials, and manufacturing of products across all Gildan brands are aligned with our Code of Conduct. Our Senior Vice President, Global Supply Chain, Sales, Marketing and Distribution, oversees the implementation of our responsible production and sourcing strategy and compliance with our policy.

Gildan requires all finished product contractors and key raw material suppliers to uphold and respect Gildan’s ethical, social, and environmental standards as a condition of doing business with us. Our finished product contractors are required to formally acknowledge our standards and agree to comply with them throughout the term of their relationship with us through a legally binding vendor agreement, which outlines our expectations, including: 

• Compliance with Gildan’s Code of Conduct, as well as applicable laws

• Compliance with Gildan’s Code of Ethics including but not limited to bribery, anti-corruption, and anti-fraud

• Assessments and remediation

• Other assessments suppliers may be subject to, such as Fair Labor Association (FLA) assessments

• Additional policies on unauthorized subcontracting, counterfeiting, and others

• Establishment of grievance mechanisms within their facilities

Gildan’s Social Compliance program is designed to ensure that our Gildan-operated facilities, as well as those of our finished-product contractors, comply with our Code of Conduct, local and international laws, and best practice industry codes to which we adhere. This includes those of SEDEX Members Ethical Trade Audit (SMETA), FLA, Better Work, and the Worldwide Responsible Accredited Production (WRAP).

When selecting finished product contractors, we conduct a due diligence process to help ensure that the established business relationships will comply with Gildan policies, standards, and applicable laws and regulations.

When sourcing from new finished product contractors, Gildan conducts various assessments to review the potential contractor’s history, including reputation and any past instances of non-compliance with laws and regulations, workplace policies and standards, quality control, and cost efficiency. This information guides Gildan’s sourcing decision process.  

In addition, Gildan requires each new facility to complete a self-assessment, followed by a full social audit. After the audit, the facility is assigned a color rating.  If the facility receives a green, yellow, orange, or red rating, the facility is approved for production. Gildan does not approve facilities that receive a black rating.

Once the finished product contractor is approved, our Social Compliance team will work with the contractor to develop a management action plan if applicable. Progress on each action plan is tracked through our Corporate Social Responsibility data platform. If a contractor cannot demonstrate improvements within a prescribed timeframe, we may reserve the right to terminate our relationship with them.