Social Responsibility

ODLO commits to being socially responsible by:

• Being a fair and attractive employer to employees (headquarters, subsidiary companies, own production plants)
• Being a fair and attractive partner to producers and ensure that they correctly apply the Supplier Code of Conduct
• Ensuring ODLO’s social accountability along the value chain through an integrated social management system

The ODLO supplier code of conduct

As early as the 1990s, ODLO signed a code of conduct with its manufacturers. In 2009, it was revised to align with the requirements of the Fair Wear Foundation and had the code of conduct re-signed by each of the manufacturers. This code, the most restrictive on the market, is based on the conventions of the International Labour Organization (ILO) and the Universal Declaration of Human Rights.

Employment is freely chosen 

There shall be no use of forced, including bonded or prison, labour. (ILO Conventions 29 and 105).

Freedom of association and the right to collective bargaining

The right of all workers to form and join trade unions and bargain collectively shall be recognised. (ILO Conventions 87 and 98) The company shall, in those situations in which the right to freedom of association and collective bargaining are restricted under law, facilitate parallel means of independent and free association and bargaining for all workers. Workers’ representatives shall not be the subject of discrimination and shall have access to all workplaces necessary to carry out their representation functions. (ILO Convention 135 and Recommendation 143).

No discrimination in employment 

Recruitment, wage policy, admittance to training programs, employee promotion policy, policies of employment termination, retirement, and any other aspect of the employment relationship shall be based on the principle of equal opportunities, regardless of race, colour, sex, religion, political affiliation, union membership, nationality, social origin, deficiencies or handicaps. (ILO Conventions 100 and 111).

No exploitation of child labour

There shall be no use of child labour. The age for admission to employment shall not be less than the age of completion of compulsory schooling and, in any case, not less than 15 years. (ILO Convention138) There shall be no forms of slavery or practices similar to slavery, such as the sale and trafficking of children, debt bondage and serfdom and forced or compulsory labour. […] Children [in the age of 15-18] shall not perform work in which it is carried out, is likely to harm their health, safety or morals. (ILO Convention 182).

Payment of a living wage 

Wages and benefits paid for a standard working week shall meet at least legal or industry minimum standards and always be sufficient to meet basic needs of workers and their families and to provide some discretionary income. (ILO Conventions 26 and 131) Deductions from wages for disciplinary measures shall not be permitted nor shall any deductions from wages not provided for by national law be permitted. Deductions shall never constitute an amount that will lead the employee to receive less than the minimum wage. Employees shall be adequately and clearly informed about the specifications of their wages including wage rates and pay period.

Reasonable hours of work

Hours of work shall comply with applicable laws and industry standards. In any event, workers shall not on a regular basis be required to work in excess of 48 hours per week and shall be provided with at least one day off for every seven-day period. Overtime shall be voluntary, shall not exceed 12 hours per week, shall not be demanded on a regular basis and shall always be compensated at a premium rate. (ILO Convention 1).

Safe and healthy working conditions

A safe and hygienic working environment shall be provided, and best occupational health and safety practice shall be promoted, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Appropriate attention shall be paid to occupational hazards specific to this branch of the industry and assure that a safe and hygienic work environment is provided for. Effective regulations shall be implemented to prevent accidents and minimise health risks as much as possible (following ILO Convention 155) Physical abuse, threats of physical abuse, unusual punishments or discipline, sexual and other harassment, and intimidation by the employer are strictly prohibited.

A legally binding employment relationship 

Obligations to employees under labour or social security laws and regulations arising from the regular employment relationship shall not be avoided through the use of labour-only contracting arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment. Younger workers shall be given the opportunity to participate in education and training programmes.

World of manufacturing

Our products are sewn in 15 different countries all over the world (Asia + Europe)

Germany

Italy

Portugal

Slovenia

Romania

Turkey

India

Sri Lanka

Thailand

China

Vietnam

Cambodia

Indonesia

Sourcing strategy

ODLO sourcing is based on 2 principles:

Principle 1: own production

When possible, in terms of capacity and competitiveness, new garments or additional production volumes are manufactured in our own production facilities.

Principle 2: long-term partnerships

ODLO aims to build and maintain long-term partnerships with a small number of manufacturers and prefers to keep this portfolio limited. Together with early involvement of the manufacturer in the product development process, our sourcing strategy enables these partnering manufacturers to plan for the long term, thereby increasing their own stability and job security.

We are proud that year after year we are extending the length of our relationships with our manufacturing partners. In 2022/23 the duration of our partnerships was as follows (by a total of 25 suppliers (excluding subsidiaries)):

Production transparency

ODLO strives for full production transparency and therefore manufacturers are required to disclose all production sites. Subcontracting is only permitted by pre-notification and is analysed by the sourcing team on a case-by-case basis. ODLO lists those subcontractor exceptions within its supplier register so they are included in the CSR management system each step of the way.

Pricing policy

ODLO calculates its prices using the “open costing” principle. This means that the production price is calculated individually for each product, listing costs for all materials, labour, overhead, financial costs and the profit margin for the supplier. Prices are then negotiated directly with manufacturers and are based on a Minimum Order Quantity (MOQ). An upcharge is sometimes requested by the supplier (and granted by ODLO), when the MOQ can’t be met. We are aiming for a win-win pricing policy.

Selection of new manufacturer

ODLO applies a 7-step plan in the selection of new manufacturing facilities.

(1) Analyse procurement spending, supplier performance and company strategy

(2) Assess supplier marketplace, country specific risks, sector, product and enterprise risks.

(3) Conduct supplier survey to verify commitment to CoLP and achieve transparency on subcontracting relationships.

(4) Create strategy to help us achieve our goals

(5) Assess suppliers according to the following criteria: Cost / Social and Environmental Performance / Lead-time / Quality / Reliability / Fit

(6) Select supplier Proposal and final decision is made by Supply Chain Director

(7) Communicate to new supplier and begin planning first season

Organisation – sourcing & sustainability

ODLO has two dedicated people working in Sustainability: The Head of Sustainability, who reports directly to the CEO, and the Sustainability Manager. This is to ensure that sustainability is fully integrated into our corporate strategy and monitored by the Senior Management Team.

The sourcing team is our direct link to suppliers. Sustainability and Sourcing are working closely to manage social compliance and make progress on fair labour practices in the supply chain.

CEO - Daniel Eppler

Head Of Sustainability - Johanna Heimlicher

Sustainability Manager - Sara Campidelli

Supply Chain Management Director - Daniel Mulvie

Head Of Sourcing - Matthieu Leclerq

Human Rights Due Diligence (HRDD)

ODLO recognises the importance of conducting risk assessments to identify and address potential risks to human rights, labour, gender equality and freedom of association as well as environmental or health and safety risks in its operations and supply chain. ODLO is implementing an HRDD system that aligns with the OECD’s due diligence guidance and supports brand decision-making in its sourcing strategy with the help of the Fair Wear Foundation Member Hub tools. The steps we take include:

1) Conducting regular risk assessments on all levels, utilising the OECD framework to identify, assess, mitigate, prevent and address actual and potential adverse impacts.

2) Prioritising high-risk areas, identified through scoping exercises that highlight country-specific, sector, product and enterprise risks (OECD).

3) Implementing appropriate measures to mitigate identified risks;

4) Collaborating with relevant stakeholders, including workers, suppliers, NGOs and industry initiatives, to enhance risk assessment processes and share best practices.

Manufacturer list

ODLO is proud to disclose its contracted manufacturers. The list contains the location of the main contractors and, in case applicable, main production sites of subsidiaries.