Social Re-Audit Report

Transcription

1 Social Re-Audit January 2009 BSCI 8-01/09 All rights reserved. No part of this publication may be reproduced, translated, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, be lent, re-sold, hired out or otherwise circulated without the FTA s authority. Copyright 2004 by FTA Foreign Trade Association, Brussels gsm Global Sustainable Management GmbH, Cologne Migros-Genossenschafts-Bund, Zürich Systain Consulting GmbH, Hamburg

2 Pandora Sweaters Ltd. November 21, Page 2 of 21 Social Re-Audit Factory Name: Pandora Sweaters Ltd. Factory Address: Gilar Chala, Master Bari, Shreepur, Gazipur-1740, Bangladesh. Management Representative: Mr. Md. Abdur Rahim Audit Results for BSCI Social Requirements Part B: Good 1 Improvement Needed Non-compliant Audit Results for Best Practice for Industry Part C: Good Improvement Needed Audit initiated by: BSCI Member : Supplier: Auditing Company Name: Audit report number: TÜV SÜD Bangladesh (Pvt.) Ltd. DHK-CPD-11-C-149 DBID number: Lead Auditor s name and SAAS certificate Md. Anisur Rahman, Certificate # A8358 number: Auditing Company Address: Audit Date: November 21, 2011 Date of the new BSCI to be started: (3 years from the initial audit) Update Tower (Level 7 & 8), 1 Shajalal avenue, Sector-6, Uttara Model Town, Dhaka- 1230, Bangladesh. October 03, 2014 Number of Initial audits performed at this facility (Cycle number 1, 2, 3..): Agreed date for closing the CAP (if applicable): Date, Signature & Stamp: 01 Applicable Md. Anisur Rahman & Mohammad Mosabberul Hasan November 21, Due to the sampling nature of the auditing exercise, absence of findings during an assessment does not assure the full compliance of the facility nor does it guarantee that violations may not appear in the future. BSCI and the auditing company do not accept responsibility for conditions at other locations that may be used in the supply chain of the relevant product or service since this report covers the production site listed under audited company only.

3 Pandora Sweaters Ltd. November 21, Page 3 of 21 Lead-Auditor Md. Anisur Rahman Additional Auditor Mohammad Mosabberul Hasan Audit Date November 21, 2011 Number of man days applied 2 man days First Re-audit Second Re-Audit A. Master Data For full details on the business structure of the company, see complete Master Data in the Audit Questionnaire. Location of audited Company Basic Data Name of Company Pandora Sweaters Ltd. Year of foundation Legal status Private Limited Company Street Gilar Chala, Master Bari, Shreepur Language(s) spoken in company Bengali & English City Gazipur Total production capacity per month Zip Code 1740 Contact Person 3,00,000 pieces Country Bangladesh Name Mr. Md. Abdur Rahim Phone , Position / Language Senior Manager-Human Resource, Administration & Compliance/ Bengali & English Fax Phone DBID Number abdur.rahim@renaissance.com Business Activities Clothing: Construction Material: Electronic Groups: Eyewear (Glasses): Furniture: Leather Goods (except shoes): Machinery: Other hard goods: Shoes: Textiles: Toys: Textiles raw material or accessories

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5 Pandora Sweaters Ltd. November 21, Page 5 of 21 B. BSCI Mandatory Social Requirements Date of Initial Audit: October 02 & 03, 2011 Date of First Re- Audit: November 21, 2011 Date of Second Re- Audit: Initial Results First Re-audit Result Second Re-audit Results NA NA NR NA NR B.1 Management Practice B.2 Documentation B.3 Working Time B.4 Compensation B.5 Child Labour / Young Employees B.6 Forced Labour / Prisoner Labour / Disciplinary Measures B.7 Freedom of Association / Collective Bargaining B.8 Discrimination B.9 Working Conditions B.10 Health and Social Facilities B.11 Occupational Health and Safety B.12 Dormitories B.13 Environment Total Result for the current audit: Good Improvements Needed Non-compliant Remarks Pandora Sweaters Ltd. is located at Gilar Chala, Master Bari, Shreepur, in Gazipur district of Bangladesh. The factory has started its operation since The total land area is about square feet and the factory occupied 81,000 square feet for production processes. The main products manufactured by the factory are sweater items. In view of the facilities, the factory is established in two different buildings and three different sheds. Both the buildings are interlinked. 1st building is four stories. Ground floor of this building is used as office, finishing section and packing section. 1st floor is used as washing section, prequality checking section (PQC), trimming section, mending section and medical room. 2nd floor is used as knitting section. 3rd floor is used as office, winding section, warehouse, accessories store and prayer room. Please fill in under results 2 = Good 1 = Improvements Needed 0 = Non-compliant NA = Applicable No deviation from requirements or only minor deviations and full protection of employees is given Deviations in the minority of requirements and no crucial points Deviations in 50% or in the majority of requirements or/and in crucial points (double framed) Requirements do not match to the company structure

6 Pandora Sweaters Ltd. November 21, Page 6 of 21 2nd building is 6 stories. Ground floor of this building is used as jacquard section. 1st floor is used as sewing section and child care centre. 2nd floor is used as linking section. 3rd floor is used as finished goods store. 4th floor is used as sample room. 5th floor is used as rest room. Shed-1 is used as generator and boiler room. Shed-2 is used as canteen and dining hall. Shed-3 is used as knitting section. Currently 2200 employees are working in the factory. Among them 2100 are production employees and 100 are non-production employees. Out of 2200 employees, 700 are female and 1500 are male. All of the employees of the factory are local. In general the employees work for 6 days in a week (Saturday to Thursday).The normal working hour is from 08:00 hrs to 17:00 hrs including one-hour lunch break in two shifts from 13:00 hrs to 14:00 hrs and from 13:30 hrs to 14:30 hrs respectively. Overtime hours are from 17:00 hrs to 19:00 hrs. In jacquard section there are two shifts running in the factory which are from 7:00 hrs to 16:00 hrs and 18:00 hrs to 3:00 hrs respectively. Two hours overtime are being done after general working hour. One hour break is given by rotationally to the workers. During the audit, factory management had provided time cards and salary sheets of September 2010 to August 2011 to the auditor for review. Factory is paying monthly salary by cash to all the workers. The factory s wage period is from 1st to 30/ 31th of every month for the workers and factory management pay wages to the workers within seven working days of the following month. Two auditors in two days (October 02 & 03, 2011) assessed the entire factory as per BSCI requirements (both the part, part B & part C) and the local law requirements. 1st Re-audit comments (Conducted on November 21, 2011): This re-audit was conducted to verify whether the factory management had taken corrective action against the non compliance issues mentioned in the initial audit report or not. In this re-audit no change found in factory s production floor layout, occupied area and total number of employees. During this re-audit, factory management had provided time cards and salary sheets from September 2011 to October 2011 to the auditors for review. e: In previous audit there were no non compliance issue in Forced Labour/ Prisoner Labour and Discrimination sections. Hence these sections were not re-audited in this audit. As the status of Child Labour, Working Conditions, Health and Social Facilities, Occupational Health Safety and Environment sections could be changed at any time hence auditors checked those sections once again. Although in initial audit there was no non compliance issue in documentation section but auditor checked this section again in this re-audit for verifying fire license, trade license, boiler license and group insurance. Please fill in under results 2 = Good 1 = Improvements Needed 0 = Non-compliant NA = Applicable No deviation from requirements or only minor deviations and full protection of employees is given Deviations in the minority of requirements and no crucial points Deviations in 50% or in the majority of requirements or/and in crucial points (double framed) Requirements do not match to the company structure

7 Pandora Sweaters Ltd. November 21, Page 7 of 21 Previous Corrective Action Plan (CAP) Part B BSCI Social Requirements Findings and Requested Improvements Implementation Date Fullfilled? Management Practice 1. In accordance with BSCI Audit Questionnaire, point B.1.5: Executive, management and staffs are aware of the legal rights and duties under labour legislation. October 30, 2011 Full filled It was noted through documents review and management interview that the executives and staffs of the factory were not very much aware about legal rights. It is recommended that the factory management provide training to the executives and staffs regarding the legal rights and duties under labour legislation. 1st Re-audit comments (Conducted on November 21, 2011): Corrected: It was noted through documents review and management interview during 1st re-audit that factory management provided training to the executives and staffs regarding the legal rights and duties under labour legislation. Documentation No non-compliance issue was noted on the audit day. applicable Working Time 1. In accordance with Bangladesh labour law 2006, section 102 (1), (2), BSCI audit questionnaire point # B.3.8.a.b.c Immediate Applicabl e Full filled (1) No adult worker in an establishment shall generally work or s/he shall be made to work in excess of fourty eight hours per week. (2) under clause 108 an adult worker in an establishment may work in excess of fourty eight hours a week : provided that the total work hours of an adult worker shall not exceed sixty hours in any week and on an average fifty-six hours per week in a year. Any worker employed in any establishment In shops, commercial or industrial establishments one and a half days holiday and in factories and establishments one day holiday shall be provided. The Company complies with the national statutory regulation with regard to- - Maximum amount of daily overtime hours. - Maximum amount of weekly overtime hours. - Maximum amount of monthly overtime hours. Maximum amount of working hours does not exceed 48 hours regular working time and 12 hours overtime per week on a regular basis, in the case that there are no stronger legal regulations. It was noted through documents review, management and workers interview that general working hour of the factory is 8:00am to 5:00pm. But in the month of August 11 (Ramadan month-when people fast for the whole day in entire month) management changed the general working hour of the factory from 7:00am to 4:00pm. Through review of timecards of August 2011, it was found that 15 out of 32 interviewed workers worked till 07:00 pm on an average 06 days in that month. As a result those workers worked 01 hour more than law requirement. Due to this reason weekly working hours were also exceeded in those particular week.

8 Pandora Sweaters Ltd. November 21, Page 8 of 21 It is recommended that the factory management should have ensured the working hours to comply with the law requirements. 1st Re-audit comments (Conducted on November 21, 2011): Corrected: It was noted through documents review, management interview and workers interview during 1st re-audit that maximum over time found in the factory monthly, weekly and daily 48 hours, 12 hours and 2 hours respectively which were within legal limit. Compensation 1. In accordance with Bangladesh labour law 2006, section 108 (1) and BSCI audit questionnaire point 4.6: Where a worker works in an establishment on any day or week for more than the hours fixed under this Act, he shall in respect of overtime work, be entitled to allowance at the rate of twice his ordinary rate of basis wage and dearness allowance and ad-hoc or interim pay, if any. Overtime hours paid at the individual hourly rate. It was noted through documents review, management and workers interview that general working hour of the factory is 8:00am to 5:00pm. But in the month of August 11 (Ramadan month-when people fast for the whole day in entire month) the factory management changed the general working hour of the factory from 7:00am to 4:00pm. Based on the above timing the hour/s after 04:00 pm should have been considered as overtime wage. But, through job cards and payroll records review it was noted the factory management considered 01 hour less overtime than the actual overtime hours were done by the workers. The payment was also done accordingly. As for example: the IN time of X worker was 07:08 am in a day of August 11. The OUT time of same worker in that day was 07:03 pm. In between there was 01 hour of break. So, as general calculation the overtime hours should be 03 hours (from 04:00 pm to 07:00 pm). But, the factory management considered the same situation as 02 hours overtime and paid accordingly. By this way, 15 out of 32 workers got average 06 hours less overtime wage. It is recommended that the factory manasgement should have considered the overtime which was actually done by the workers and paid accordingly. 1st Re-audit comments (Conducted on November 21, 2011): Corrected: It was noted through documents review, management interview and workers interview during 1st re-audit that maximum over time found in the factory monthly, weekly and daily 48 hours, 12 hours and 2 hours respectively which were within legal limit. However, factory management provided back payment to those workers who were looser for not being paid one hour extra over time compensation which the auditor was confirmed through documents review, management interview and workers interview. Immediate Full filled Child Labour / Young Employees No non-compliance issue was noted on the audit day. applicable applicabl e Forced Labour / Prisoner Labour / Disciplinary Measures No non-compliance issue was noted on the audit day. applicable applicabl e Freedom of Association and Collective Bargaining 1. In accordance with BSCI Audit Questionnaire, point B.7.6(a)(b)(c). Employees have the possibility to complain anonymously (about minor and major problems) Immediate Full filled

9 Pandora Sweaters Ltd. November 21, Page 9 of 21 a. Employees know about these possibilities b. Those possibilities secure that the management takes note of the complaints. c. The management tries to find solutions for those complaints with the employees. It was noted through workers interview that the they are not very much aware about the Worker's Participation Committee. Most of the interviewed workers do not know the activities of this committee. During cross checking with management representative, it seemed that no activity done by the management as well. Further, it was noted the committee was formed by selection process by management instead of election. Till closing meeting the factory management could not show any evidence whether the 'Worker's Welfare Committee' is elected or selected though factory management informed they have some documentation on this. It is recommended that the factory management should take initiative for the awareness of workers about the workers participation committee and should form the committee by election instead of selection. 1st Re-audit comments (Conducted on November 21, 2011): Corrected: It was noted through documents review, management interview and workers interview during 1st re-audit that factory management formed the workers participation committee by election instead of selection and workers were awareness of the workers participation committee. Discrimination No non-compliance issue was noted on the audit day. applicable Working Conditions No non-compliance issue was noted on the audit day. applicable applicabl e Applicabl e Health and Social Facilities No non-compliance issue was noted on the audit day. applicable applicabl e Occupational Health and Safety No non-compliance issue was noted on the audit day. applicable Full filled Dormitories applicable applicable Environment Environment No non-compliance issue was noted on the audit day. applicable Applicabl e applicabl e

10 Pandora Sweaters Ltd. November 21, Page 10 of 21 Current Re-Audit Corrective Action Plan (CAP) Part B BSCI Social Requirements Management Practice Findings and Necessary Improvements No non-compliance issue was noted on the re-audit day. Implementation Date applicable Documentation No non-compliance issue was noted on the re-audit day. applicable Working Time No non-compliance issue was noted on the re-audit day. applicable Compensation No non-compliance issue was noted on the re-audit day. applicable Child Labour / Young Employees No non-compliance issue was noted on the re-audit day. applicable Forced Labour / Prisoner Labour / Disciplinary Measures re-audited applicable Freedom of Association and Collective Bargaining No non-compliance issue was noted on the audit day. applicable Discrimination re-audited applicable Working Conditions No non-compliance issue was noted on the audit day. applicable Health and Social Facilities No non-compliance issue was noted on the re-audit day. applicable Occupational Health and Safety No non-compliance issue was noted on the audit day. applicable Dormitories applicable applicable Environment No non-compliance issue was noted on the re-audit day. applicable November 21, 2011/ Md. Anisur Rahman & Mohammad Mosabberul Hasan Date / signature / stamp Auditor Md. Abdur Rahim Signature / stamp Company

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12 Pandora Sweaters Ltd. November 21, Page 12 of 21 C. Best Practice for Industry - Voluntary implementation but auditing is mandatory Date of Initial Audit: October 02 & 03, 2011 Date of First Re- Audit: November 21, 2011 Date of Second Re- Audit: Initial Results First Re-audit Results Second Re-audit Results 2 1 NA 2 1 NA NR 2 1 NA NR C.1 Policy C.2 Planning and Implementation C.3 Management Review C.4 Control of Subcontractor / Suppliers / Sub-suppliers C.5 Control of Homeworkers C.6 Compensation C.7 Child Labour C.8 Evasion C.9 Outside Communication Ripe for SA8000 Certification with regard to audit results B and C YES NO Training and assistance necessary but SA8000 certifiable YES NO Please fill in under results 2 = Good 1 = Improvements Needed NA = Applicable No deviation from requirements Deviation from requirements Requirements do not match to the company structure

13 Pandora Sweaters Ltd. November 21, Page 13 of 21 Previous Corrective Action Plan (CAP) Part C Best Practice for Industry - Voluntary implementation but auditing is mandatory Findings and Requested Improvements Agreed Implemen- Tation date Yes No Fulfilled? Policy Planning and Implementation Management Review 1. In accordance with BSCI Audit Questionnaire, Point- C.1.1. It was noted through management interview that the top management of the factory did not define a company policy to their employees for social accountability and labour condition including witha. Commitment to confirm to all requirements of SA8000 standard b. Commitment to comply with national and other applicable law, other requirements to which the company subscribes and to respect the international instruments and their interpretation c. Commitment to continual improvement d. Effectively documented, implemented, maintained, communicated and is accessible in a comprehensible form for all personnel, including directors, executives, management, supervisors and staff, whether directly employed, contracted or otherwise representing the company. It is recommended that the top management of the factory should define a company policy to their employees for the social accountability and labour condition including the mentioned requirement. 1. In accordance with BSCI Audit Questionnaire, Point- C.2.1. It was noted through management interview that the top management of the factory did not ensure the requirement of the SA 8000 Standard are understood and implemented at all levels of the organisation includinga. Clean definition of roles, responsibilities and authority b. Training of new/temporary employees upon hiring c. Periodic training and awareness programme for existing employees d. Continuous monitoring of activities and results to demonstrate the effectiveness of systems implemented to meet the company s policy and the requirement of this standard. It is recommended that that the top management of the factory should ensure the requirement of the SA 8000 Standard are understood and implemented at all levels of the organisation. 1. In accordance with BSCI Audit Questionnaire, Point- C.3.1. It was noted through management interview that the top management of the factory did not review the adequacy, suitability, and continuing effectiveness of the company policy, procedures and performance results vis-à-vis the requirements of the SA 8000 Standard periodically and requirements to which the company subscribes. It is recommended that the top management of the We need to discuss with our top management We need to discuss with our top management We need to discuss with our top management full filled full filled full filled

14 Pandora Sweaters Ltd. November 21, Page 14 of 21 factory should review the adequacy, suitability, and continuing effectiveness of the company policy, procedures and performance results vis-à-vis the requirements of the SA 8000 Standard periodically and requirements to which the company subscribes. 2. In accordance with BSCI Audit Questionnaire, Point- C.3.2. It was noted through management interview that the top management of the factory did not amendments and improvements implemented the system where appropriate. It is recommended that the top management of the factory should improvements implemented the system where appropriate. Control of Subcontractor / Suppliers / Subsuppliers 1. In accordance with BSCI Audit Questionnaire, Point- C.4.1. It was noted through management interview that the factory did not establish and maintain appropriate procedures to recruit subcontractors/suppliers/subsuppliers based on their ability to meet the requirements of the SA8000 standard. We need to discuss with our top management full filled It is recommended that the factory management should establish and maintain appropriate procedures to recruit sub-contractors/suppliers/subsuppliers based on their ability to meet the requirements of the SA8000 standard. 2. In accordance with BSCI Audit Questionnaire, Point- C.4.2. It was noted through management interview that the factory do not maintain appropriate records of subcontractors/suppliers/sub-suppliers commitments to social accountability and written commitment to a.conform to all requirements of the SA 8000 standard, b. Participate in the companies monitoring activies as required c. Prompty implement remedial and corrective actions to address any non conformance identified with regard to requirements of the SA 8000 standard d. Promptly and completely inform the company of any and all relevant business relationship (s) with own subcontractors/suppliers/subsuppliers. It is recommended that the factory management should maintain appropriate records of subcontractor/suppliers/sub-suppliers commitments to social accountability. 3. In accordance with BSCI Audit Questionnaire, Point- C.4.3. It was noted through management interview that the factory did not establish a system to monitor the subcontractor/supplier/sub-supplier's social performance against the requirements of the SA8000 Standard. It is recommended that the factory management should establish a system to monitor the subcontractor/supplier/sub-suppliers social performnace against the requirements of the SA8000

15 Pandora Sweaters Ltd. November 21, Page 15 of 21 standard. 4. In accordance with BSCI Audit Questionnaire, Point- C.4.4. It was noted through management interview that the factory did not maintain reasonable evidence that the subcontractor/supplier/sub-suppliers continuously improve conditions to meet the requirements of the SA 8000 standard. It is recommended that the factory management should maintain reasonable evidence that the subcontractor/supplier/sub-suppliers continuously improve conditions to meet the requirements of the SA 8000 standard. Control of Homeworkers No Homeworkers N/A Applica ble Compensation 1. In accordance with BSCI Audit Questionnaire, Point- C.6.2. It was noted through documents review, management and workers interview that the factory did not provide basic need wage to the workers and did not have a well defined plan for achieving this. We need to discuss with our top management full filled It is recommended that the factory should provide basic need wage to the workers also have a well defined plan for achieving this. Child Labour 1. In accordance with BSCI Audit Questionnaire, Point- C.7.1. It was noted through management interview that, the factory did not establish, document and effectively communicate to personnel and other interested parties, policies, procedures for remediation of children found to be working. It is recommended that the factory management should establish, document and effectively communicate to personnel and other interested parties, policies, procedures for remediation of children found to be working. We need to discuss with our top management full filled Evasion No non-compliance was noted on the audit day. N/A applica ble Outside Communication 1. In accordance with BSCI Audit Questionnaire, Point- C.9.1. It was noted through management interview that the factory did not establish any procedures to communicate regularly to all interested parties data and other information regarding performance of the requirements of the SA8000 Standard, including but not limited to, the results of management review and monitoring activities. It is recommended that the factory management should establish any procedures to communicate regularly to all interested parties data and other information regarding performance of the requirements of the SA8000 Standard, including but not limited to, the results of management review and monitoring activities. No noncompliance was noted on the audit day. full filled

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17 Pandora Sweaters Ltd. November 21, Page 17 of 21 Current Re-Audit Corrective Action Plan (CAP) Part C Best Practice for Industry Policy Findings and Necessary Improvements Agreed Implementation date Yes No 1. In accordance with BSCI Audit Questionnaire, Point-C.1.1. It was noted through management interview that the top management of the factory did not define a company policy to their employees for social accountability and labour condition including witha. Commitment to confirm to all requirements of SA8000 standard b. Commitment to comply with national and other applicable law, other requirements to which the company subscribes and to respect the international instruments and their interpretation c. Commitment to continual improvement d. Effectively documented, implemented, maintained, communicated and is accessible in a comprehensible form for all personnel, including directors, executives, management, supervisors and staff, whether directly employed, contracted or otherwise representing the company. We will think in future regarding Part C Planning and Implementation Management Review It is recommended that the top management of the factory should define a company policy to their employees for the social accountability and labour condition including the mentioned requirement. 1. In accordance with BSCI Audit Questionnaire, Point-C.2.1. It was noted through management interview that the top management of the factory did not ensure the requirement of the SA 8000 Standard are understood and implemented at all levels of the organisation includinga. Clean definition of roles, responsibilities and authority b. Training of new/temporary employees upon hiring c. Periodic training and awareness programme for existing employees d. Continuous monitoring of activities and results to demonstrate the effectiveness of systems implemented to meet the company s policy and the requirement of this standard. It is recommended that that the top management of the factory should ensure the requirement of the SA 8000 Standard are understood and implemented at all levels of the organisation. 1. In accordance with BSCI Audit Questionnaire, Point-C.3.1. It was noted through management interview that the top management of the factory did not review the adequacy, suitability, and continuing effectiveness of the company policy, procedures and performance results vis-à-vis the requirements of the SA 8000 Standard periodically and requirements to which the company subscribes. It is recommended that the top management of the factory should review the adequacy, suitability, and continuing effectiveness of the company policy, procedures and performance results vis-à-vis the requirements of the SA 8000 Standard periodically and requirements to which the company subscribes. We will think in future regarding Part C We will think in future regarding Part C

18 Pandora Sweaters Ltd. November 21, Page 18 of In accordance with BSCI Audit Questionnaire, Point- C.3.2. Control of Subcontractors / Suppliers / Sub-suppliers Control of Homeworkers It was noted through management interview that the top management of the factory did not amendments and improvements implemented the system where appropriate. It is recommended that the top management of the factory should improvements implemented the system where appropriate. 1. In accordance with BSCI Audit Questionnaire, Point-C.4.1. It was noted through management interview that the factory did not establish and maintain appropriate procedures to recruit suppliers/subsuppliers based on their ability to meet the requirements of the SA8000 standard. It is recommended that the factory management should establish and maintain appropriate procedures to recruit suppliers/subsuppliers based on their ability to meet the requirements of the SA8000 standard. 2. In accordance with BSCI Audit Questionnaire, Point-C.4.2. It was noted through management interview that the factory do not maintain appropriate records of suppliers/subsuppliers commitments to social accountability and written commitment to a.conform to all requirements of the SA 8000 standard, b. Participate in the companies monitoring activies as required c. Prompty implement remedial and corrective actions to address any non conformance identified with regard to requirements of the SA 8000 standard d. Promptly and completely inform the company of any and all relevant business relationship (s) with own suppliers/subsuppliers. It is recommended that the factory management should maintain appropriate records of suppliers/sub-suppliers commitments to social accountability. 3. In accordance with BSCI Audit Questionnaire, Point-C.4.3. It was noted through management interview that the factory did not establish a system to monitor the supplier/subsupplier's social performance against the requirements of the SA8000 Standard. It is recommended that the factory management should establish a system to monitor the supplier/sub-suppliers social performnace against the requirements of the SA8000 standard. 4. In accordance with BSCI Audit Questionnaire, Point-C.4.4. It was noted through management interview that the factory did not maintain reasonable evidence that the supplier/subsuppliers continuously improve conditions to meet the requirements of the SA 8000 standard. It is recommended that the factory management should maintain reasonable evidence that the supplier/sub-suppliers continuously improve conditions to meet the requirements of the SA 8000 standard. Applicable We will think in future regarding Part C Applicable

19 Compensation Pandora Sweaters Ltd. November 21, Page 19 of In accordance with BSCI Audit Questionnaire, Point-C.6.2. It was noted through documents review, management and workers interview that the factory did not provide basic need wage to the workers and did not have a well defined plan for achieving this. We will think in future regarding Part C Child Labour It is recommended that the factory should provide basic need wage to the workers also have a well defined plan for achieving this. 1. In accordance with BSCI Audit Questionnaire, Point-C.7.1. It was noted through management interview that, the factory did not establish, document and effectively communicate to personnel and other interested parties, policies, procedures for remediation of children found to be working. It is recommended that the factory management should establish, document and effectively communicate to personnel and other interested parties, policies, procedures for remediation of children found to be working. We will think in future regarding Part C Evasion re-audited applicable Outside Communication 1. In accordance with BSCI Audit Questionnaire, Point-C.9.1. It was noted through management interview that the factory did not establish any procedures to communicate regularly to all interested parties data and other information regarding performance of the requirements of the SA8000 Standard, including but not limited to, the results of management review and monitoring activities. It is recommended that the factory management should establish any procedures to communicate regularly to all interested parties data and other information regarding performance of the requirements of the SA8000 Standard, including but not limited to, the results of management review and monitoring activities. We will think in future regarding Part C November 21, 2011/ Md. Anisur Rahman & Mohammad Mosabberul Hasan Date / signature / stamp Auditor Md. Abdur Rahim Signature / stamp Company

20 Pandora Sweaters Ltd. November 21, Page 20 of 21 Remarks The factory management informed the auditors that they will discuss with the top management for the implementation of Best Practice for Industry. List of Re-Audit Attachments Obligatory Attachments Attached? 1. Employees Interview Sheet Yes 2 Photos: outside factory compound, production floor, canteen, dormitories, display of the code of conduct, nursery, etc. 3 Child Labour Record Sheet No Yes Required copies to be available as part of the audit pack, if no legal prohibition for collecting the record, according to local law. Available with the audit files? 4 Collective Bargaining Agreement No 5 Personnel File sample Yes 6 Time Record sample Yes 7 Payslip sample Yes 8 Payment to Social Insurance Fund No 9 Wage List sample Yes 10 Maternity Leave sample Yes 11 Work Rules Yes 12 Documentation on Health and Safety Training Yes 13 Documentation on Social Issues made by officials or other social audit No 14 Agreement with a union or other worker representative No 15 Authorization for exemptions from statutory regulations No 16

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