The company mentions corrective action plans in relation to externally conducted audits and internal accountability, but does not provide any details as to what the plan contains. See page 2: "Any factory or vendor that wishes to work with Esprit must produce a current BSCI Audit Report with an A, B
or C rating, a recent Better Work Audit Report with a Corrective Action Plan, or other select audit reports
that Esprit may accept on a case-by-case basis. Once on-boarded, suppliers without a BSCI audit report,
or a Better Work audit report, must obtain one within a prescribed period"
BSCI audits are conducted by third-party auditors. Esprit’s Social Compliance sta8works closely with appointed BSCI auditors to ensure understanding of Esprit’s andthe BSCI’s codes of conduct and standardize and maximize information gathering.Audit methodology includes a review of internal management systems (includingmanagement interviews and documents review), and worker interviews. Esprit’s global Social and Environmental Sustainability Department directly monitorscorrective action after audits are completed, as well as all other e8orts to assist suppliers towards continuous improvement on Code of Conduct performance.2
Esprit encourages its employees, business partners and suppliers to reportissues/non-compliances to its Code of Conduct through a con#dential complaintsmechanism. Esprit commits to evaluate all reports and take corrective action if non-compliances are veri#ed. Its Code of Conduct Implementation Guidelines require itssuppliers to establish e8ective, multi-channel grievance mechanisms that workerscan access in con#dence to report non-compliances to its Code.3
Esprit generally tries to work with suppliers to resolve compliance issues uncoveredby audits. However, where remediation e8orts fail, or an issue is exceptionallysevere or deemed irremediable, Esprit may take action up to and includingsuspension and/or termination of business with a supplier. “Human tra!cking” fallsunder “illegal activity”, which Esprit considers a zero-tolerance indicator, and will because for immediate termination of business with appropriate procedures in placefor the protection of and reparation to victims.3