Walk Free+MSA incidents remediation (revised)+Inditex+2016+Discussion

p. 5 " Effectiveness

Inditex's commitment to continual improvement places both remedial and preventative measures at the heart of the company's Sustainability Strategy. It adoptscorrective action plans– designed by Inditex– and their purposeis two-fold (i )establishing measures intended to mitigate and/or remedy breaches of the Code of Conduct for Manufacturers and Suppliers and, in parallel, (ii) preventrepeated breaches in the future. Discovery of a compliance breach triggers the immediate rollout of a corrective action plan that imposes stringent targets and timelines. If a supplier wants to preserve its business relationship with Inditex it must carry out these corrective plans, to which end it can count on the full support and engagement of Inditex's Sustainability teams."

Discovery of a compliance breach triggers the immediate rollout of a corrective action plan that imposes stringent targets and timelines. If a supplier wants to preserve its business relationship with Inditex it must carry out these corrective plans, to which end it can count on the full support and engagement of Inditex's Sustainability teams.5

The Group's philosophy is to help its suppliers grow and improve alongside Inditex, meaning that the audits undertaken are always followed-up on with constructive proposals to remedy any identified shortfalls. Nevertheless, and given Inditex's zero tolerance on forced labour and human trafficking, if the breach is not corrected, Inditex will immediately cease business relationships with the supplier.5