Patagonia is a founding and accredited member of the Fair Labor Association® (FLA), a non profit based in Washington, D.C. established to hold apparel companies accountable to responsible labor practices. I am the Jerome Kohlberg professor of ethics and finance at NYU Stern School of Business and director of the Center for Business and Human Rights. In recent years, a growing number of investors have sought to identify companies with strong environmental and human rights records, looking to invest in industry leaders. Participating Companies whose labor compliance programs have been accredited have demonstrated substantial compliance with the Workplace Code of Conduct throughout their supply chain. 29 USC 201 et al The FLSA creates two classifications of employees for purpose of minimum wage and overtime purposes. It is high time for American investors to embrace a longer-term horizon to give environmental and social initiatives time to succeed.The biggest set of challenges relate to the S, or social component, of ESG. There has been a lack of rigor in defining S, and this has resulted in a wide range of topics coming under the S rubric. Mixing these issues with environmental and human rights concerns invites confusion. Fair Labor Association® Membership in the FLA holds us and other apparel companies accountable to responsible labor practices. Second, progress in implementing meaningful environmental or social reforms will require expenditures of significant time and money. Even where the S topics are clear, such as on workers-rights issues, these subjects are hard to measure and harder still to address.
SanMar Corporation works with supplier factory following an FLA assessment to ensure timely and accurate compensation for workers producing garments.Report offers recommendations for addressing forced laborFollowing an FLA assessment, Liz Claiborne works with a supplier factory to address health and safety issues and end harassment.COVID-19 Workplace-Level Preparations & SafeguardsEA works with a supplier factory in Mexico to protect worker health and safety and remedy issues related to wages and benefits following an FLA assessment.New Report on Project Addressing Wages in India's Seed SectorFLA joins a coalition seeking to protect workers amid COVID-19Case Study Reflects on Lessons Learned from Turkey Cotton Projectadidas and Nike work with a Vietnamese apparel supplier to prevent forced labor, respect freedom of association, and protect the health and safety of the factory's 2,275 workers following an FLA assessment. An audit of the Fair Labor Association, which garnered international attention last year for its monitoring of Apple's Foxconn facilities, found that the group spent more than $2 million over its budget last year, according to an email to staffers from Kathryn Higgins, chair of the group's board. The FLA provides transparency and accountability into our internal program, and provides an independent channel to solve egregious labor rights violations rapidly as a collective industry. The Fair Labor Association (FLA) is a non-profit collaborative effort of universities, civil society organizations, and businesses. Thus, it’s not surprising that companies and investors have been hesitant to tackle this agenda and ratings agencies have failed to adopt or apply meaningful metrics or assessment standards.It is in this very challenging context that the FLA undertakes its accreditation program. I served in the Obama Administration from September 2009 until March 2013, as the assistant secretary of state for democracy, human rights and labor. Last week, the Fair Labor Association (FLA) marked its 20th year of protecting worker rights around the world with the voluntary cooperation of major corporations. And while its process needs to continue to evolve, and to focus ever-greater attention on performance, the leading companies that are being put through their paces and achieve FLA accreditation, deserve public recognition for doing so. They also are entitled to preferred standing with investors and ultimately with consumers.