Social and Ethical Audit Report

Labour practices in our global supply chains

Alannah Hill's parent company Factory X have a long-held commitment to upholding safe and fair conditions for workers in its global supply chain.

The current Ethical Sourcing Policy was developed in 2008 by an external consultant. It provides a framework for communicating our ethical standards to our manufacturers. Using the Ethical Trading Initiative Base Code as a guide, it references both local laws, the International Labour Organisation (ILO) Conventions and principles of the United Nations Universal Declaration of Human Rights.

The Policy

The policy addresses key criteria for the following areas:

  • Labour rights/ Freedom of employment
  • Freedom of association and the right to collective bargaining
  • Safe & hygienic working conditions
  • Regular employment
  • Child labour
  • Fair wages
  • Reasonable working hours
  • Harsh or inhumane treatment
  • Bribery & corruption
  • Non-discrimination
  • Fair and equitable treatment
  • Environmental compliance

The Procedures

Factory X and Alannah Hill expect our manufacturers to implement and maintain systems for meeting the requirements stated in our Ethical Sourcing Policy.

To monitor compliance, we have designed the following 3-step auditing process.:

Step 1: Factory Self-Assessment

All factories are required to complete a self-assessment annually; this includes the development of a Corrective Action Plan with timeframes for addressing issues.

Step 2: Factory X Audits

Factory X has an in-house bi-lingual team who conduct audits on a regular basis. Any corrective actions are addressed with the local manufacturer and a plan of action is agreed. A randomly scheduled audit follows to ensure that the corrective action takes place.

Step 3: Third-Party Audits

Random audits to ensure the accuracy of internal audits are also conducted by qualified and experienced third-party certification body.

Our auditors use the following scoring system to communicate results:

1Meets or exceeds Factory X Ethical Policy Requirements
2Meets Factory X Ethical Policy Requirements, with minor corrective plan required and agreed on
3Meets Factory X Ethical Policy Requirements, with minor corrective action plan to be developed
4Failed to meet Factory X Ethical Policy Requirements, with major corrective plan required and immediate action agreed
5Fails to meet two Factory X Ethical Policy Requirements, with major corrective plan required and immediate action agreed
6Fails to meet two Factory X Ethical Policy Requirements, with major corrective plan required and immediate visit required
7Failure to act on the above action plan; immediate cessation of trading due to major contract breach

The auditors speak to both management and employees. Click here to find out more about the information gathered through our audit processes.

Alannah Hill's Results

In 2015/16, 18 factories producing products for Factory X underwent an internal audit by a Factory X auditor and 4 were selected at random to undergo a 3rd party audit by Qualspec.

The results from the Qualspec and internal audits are found below.

2016 results*

AreaInternal audit action
Freedom of employment1
Freedom of association1
Safe working conditions3
Prohibition of child labour1
Sustainable living wages2
Reasonable working hours2
No discrimination1
Fair and equitable treatment1
Environmental consciousness2

AreaExternal audit action
Freedom of employment1
Freedom of association1
Safe working conditions2
Prohibition of child labour1
Sustainable living wages2
Reasonable working hours3
No discrimination1
Fair and equitable treatment1
Environmental consciousness2

*Note: Factory X uses the global audit standard scoring system as per registered quality and ethical auditing bodies.

Maintaining consistent relationships

Factory X is committed to maintaining, long-term relationships with our manufacturers.

Currently 20% of suppliers are doing about 70-75% of our business and we have been working with 63% of the factories for between 5 -15 years.

In 2016, we used 35 factories to produce products for all 6 Factory X brands.

Where does Factory X manufacture
LocationNumber of factories
Beijing1
Guandong16
Jiangsu7
Zhejiang5
Kolkata1
New Delhi3
Pakistan1
Taiwan1


What % of product is made in each location

What % of product is made in each location

How long has Factory X been working with their 35 factories

How long has Factory X been working with their 35 factories


If you have any further questions or concerns, then please contact us at contactus@alannahhill.com.au.

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