Total supply chain transparency

Read the branded version of the case study here.

As the world's leading trade publisher and one of the Ethical Supply Chain Program’s (ESCP) first ever Buyer Members, Penguin Random House (PRH) is committed to sustainable and ethical practices within its supply chain.

“Responsible sourcing; respecting, protecting and upholding the rights of workers; ensuring fair labour – these are all integral to the way we work and are embedded in our codes of conduct,”says Émilie Hames, Sustainability and Compliance Production Manager.

“Our desire for complete transparency across the global supply chain, as well as the need for a well-rounded program that goes beyond simply auditing suppliers, is why we turned to ESCP in 2017. And it’s why we continue to rely on the program today.”

Responsible for embedding sustainable initiatives within the business, and ensuring ethical compliance within the supply chain across 20 countries, Émilie works closely with PRH colleagues responsible for placing orders and selecting factories, as well as directly with suppliers.

She accesses our support on almost a daily basis: “Without the tools and guidance that ESCP provides, we would probably need an additional member of staff,” she says.

The challenge: 100% transparency and going beyond audit

While there are other data platforms out there for supply chain assessment, Penguin Random House was finding that none quite matched its requirements.

Émilie adds, “We have such a broad range of print and paper suppliers – in China, Malaysia, Singapore, South Korea, Thailand, UAE andVietnam – with various types of audits. It could be a bit of an ordeal finding out who had audited what, which obviously caused problems for us in terms of efficiency and assurance. We needed a consistent, transparent approach that removed any confusion.

“But, more than that, we wanted something which covered beyond audit as well. In both publishing and the wider business world, we need to move away from the belief that worker rights are just about compliance. The rights of individuals should be always protected and respected whatever you do and wherever you are, and every supplier we work with understands our position on this.”

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The solution: risk-free reliable audits and real-time data  

With ESCP membership, PRH gets the peace of mind that comes from working with certified suppliers, plus the tools and dedicated support it needed to drive supply chain transparency.

The program provides the confidence that PRH’s products have been made ethically, respecting the workers making them, and are compliant with legal social requirements. Certification is only awarded to a factory after ESCP remediates and closes 100% of non-compliances found in the audit report.

ESCP’s Connect platform, an online, all-in-one responsible sourcing tool, enables PRH to monitor and manage suppliers. The PRH team can view the full compliance history of factories, download corrective action plans and audit reports the moment they’re published, receive instant social compliance alerts, and access live grievance mechanism information.

The outcome is reduced risks, simplified reporting, and a clear understanding of the situation on-the-ground in the factories where PRH products are manufactured.

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The benefits: Expertise from a best-in-class program

“The ability to view our factories’ audit data in real time makes life a lot easier and more efficient,” says Émilie. “Sometimes suppliers may miscommunicate things, so having this complete transparency is really important in allowing us to appreciate what's going on. And we can go straight to ESCP with any queries we have, something you don't really get with the other platforms.

“It’s also great for spotlighting trends in certain factories where, say, workers felt their contract was a bit ambiguous, or they hadn’t been paid on time. This enables us to work with the supplier to understand why, and address the issues that aren’t necessarily picked up by an audit.”

With ESCP’s special investigation team working on the ground to solve problems and engage with factory management, root causes can be tackled quickly and effectively – another important benefit for PRH.

“Being able to draw on the expertise of people who understand what's needed in that particular country and know the national legislation is incredibly useful,” she says, adding, “For me, ESCP is best in class in terms of what it does.”

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