About the data

Purchasing practices are the way that a company interacts and does business with the manufacturers that supply their products. It encompasses strategic planning, sourcing, development, purchasing (buying) and the underlying behaviours, values and principles which impact workers. Ensuring that adequate labour costs are factored into price negoitations is one way to ensure that the payment of living wages to workers in the supply chain is possible.

In this question you are being asked to identify whether the company discloses their method for calculating and ring-fencing labour costs in price negotiations.

Where to look for this information:
- Corporate Social Responsibility report
- In Modern Slavery Statement or
- California Transparency Act disclosure
- Company documents
- Company policies
- Company websites
- Company code of conduct
- Parent company documents (only if the parent company is linked to from the brands website)
- Parent company policies (only if the parent company is linked to from the brands website)
- Parent company websites (only if the parent company is linked to from the brands website)
- Parent company code of conduct (only if the parent company is linked to from the brands website)

Good keywords for your searches include:
- Ring-fencing
- Labour Isolation
- Labour cost
- Purchasing Practices

Things to keep in mind:
- Ring-fencing labour cost such as wage rates + overtime, social security, sick leave, vacation and other forms of leave as well as the cost of indirect labour and wage increases
- Most of these indicators are required as part of ACT brand membership.

Value Type
Options
Research Policy
Designer Assessed