Human Rights & Working Conditions

HUMAN RIGHTS HAVE TOP PRIORITY

We take responsibility not only for our own products but also for the people who develop, produce and sell them. We are therefore committed to respecting human rights along our entire value chain and expect the same from our employees, business partners and third parties directly or indirectly related to HUGO BOSS. To meet this goal, we have established a process (due diligence process) for complying with human rights due diligence obligations, which is updated at regular intervals.

OUR FRAMEWORKS FOR RESPECTING HUMAN RIGHTS

Respect for human rights along our entire value chain is fundamental to us – as explained in the Human Rights Statement by the HUGO BOSS Managing Board. This position is applied throughout our organization through the HUGO BOSS Code of Conduct, the HUGO BOSS Supplier Code of Conduct and the HUGO BOSS Human Rights Policy. In this way, our own employees and those of our partners around the world are covered by the rules, which are based on international standards.

Collaboration with our suppliers

Work has to be humane, safe, and fair. These are the foundations of the HUGO BOSS Supplier Code of Conduct, which the company and its suppliers pledge to follow. They define a minimum standard for countries where local laws have weaker provisions and are a prerequisite for collaboration with HUGO BOSS. Learn more about our supplier management and the fundamental social and environmental standards that apply here.

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RISK ANALYSIS OF HUMAN RIGHTS IMPACTS

We are aware that our international sourcing activities are connected to potential and actual negative impacts on human rights. Human rights-related risks such as working hours or occupational health and safety are therefore fundamental components of the company's management of risks, in which a defined process (due diligence process) is applied. This involves analyzing and classifying risks and determining specific measures according to their type and evaluation. External stakeholders are also involved in order to prioritize the risk areas and risk groups. We carry out risk assessments for the entire value chain – from the production of raw materials to the manufacture of fabrics and apparel, including administration and transportation, through to the sale of the products to the customer, as well as when entering into new business relations such as mergers & acquisitions or joint ventures. In our human rights due diligence process, we focus on materiality, severity of violations, and the possibilities for compensation. It also considers those known as "vulnerable groups", which are generally at increased risk of potential human rights violations. These include children, young workers, women, migrant workers, indigenous peoples, and homeworkers.

As we bear a particularly large responsibility for our own employees, who have a direct influence on how we deal with human rights issues, we also consider them as a separate group in our risk analysis. Furthermore, our NPM (Non-Production-Materials) suppliers and own production facilities are taken into account in the due diligence process.
DUE DILIGENCE PROCEDURE

Our due diligence process includes the industry risks, the country risk, and the individual risk of the respective partners’ operations. If the country risk level is too high, the country would be excluded as a procurement market in advance. The industry and country risks are assessed automatically and integrated into the overall risk analysis. To calculate the individual risk, every supply chain partner must fill out a Self-Assessment Questionnaire (SAQ) or a Due Diligence Questionnaire (DDQ) on an annual basis and be available for regular in-person audits that include interviews with workers. The individual risk monitoring procedures include all important human rights and environment-related aspects. The information obtained about a specific supply chain partner is summarized, and an overall risk level for that supply chain partner is determined. The supply chain partner then receives Corrective Action Plans (CAPs), and is asked to work on them to minimize the identified risks and improve their performance.

The supplier then provides proof of the risk reduction measures from the specific CAPs, which are checked with the help of a four-eyes principle. In a final step, the risk level is reduced. If a supplier does not successfully improve human rights risks within a predefined timeframe and provide evidence of this, an escalation process is initiated which could lead to the termination of the business relationship (Responsible exit).
RESULTS OF THE CURRENT RISK ANALYSIS

The current analysis shows that there is an increased risk of potential human rights violations on the level of our finished goods and raw materials suppliers. The results of this analysis are also in line with the results of our materiality analysis. In this context, relevant risk areas such as child and forced labor (including modern slavery and human trafficking), working hours, occupational health and safety, freedom of association and collective bargaining, fair remuneration, and discrimination are assessed. Due to the severe consequences of actual violations in the areas of child and forced labor, these risks were prioritized. In addition, the main affected individuals were identified as children and migrant workers, which are considered vulnerable groups.
PREVENTIVE AND REMEDIAL ACTION

The results of the due diligence process show us where we need to take action to minimize human rights risks. In doing so, we pursue an approach that aims to reduce the likelihood of human rights violations occurring in the first place. To this end, we have introduced targeted measures for our supply chain that prevent negative impacts on human rights or, in the event of a negative impact occurring, guide our partners to adjust the situation accordingly. For example, supply chain partners participate in an online social compliance training in order to comply with certain social standards that we have defined in our HUGO BOSS Supplier Code of Conduct. Their compliance is monitored at regular intervals. In addition, we provide our supply chain partners with guidelines for particularly sensitive issues, for example, the HUGO BOSS Child Labor and Forced Labor Policy. To holistically prevent risks in the long term, we engage in external multi-stakeholder improvement projects. Extensive information on our management of preventive and remedial actions in the supply chain, such as social audits, trainings and engagement on key issues, can be found here.

Transparent grievance mechanism

If, in individual cases, our preventive measures are not sufficient to prevent negative human rights or environmental consequences, we give those affected the opportunity to report them. Employees of HUGO BOSS, its partners and suppliers, as well as customers of the company and other third parties, have the opportunity to report potential or existing human rights or environmental damage in connection with the business activities, products, or services of HUGO BOSS.

HUGO BOSS guarantees the greatest possible protection for whistleblowers, affected persons, and employees who are involved in the investigation of reported misconduct. Concerns are treated confidentially, while reports and communication can be anonymous.

In order to overcome barriers to access, various channels to file complaints may be necessary. For this reason, HUGO BOSS offers several different whistleblowing channels to provide access for everyone.

Our grievance channels

Speak Up Channel

The HUGO BOSS Speak Up Channel offers confidential and anonymous communication with the HUGO BOSS Compliance Department. The channel is available in over 50 languages and can be accessed via the following QR code:

Ombusperson

The HUGO BOSS Ombudsperson is an external lawyer who can be contacted confidentially and anonymously – in person or via a form.

Dr. Carsten Thiel von Herff, LL.M. External Attorney-at-Law

Phone: +49 521 55 7 333 0

Mobile: +49 151 58 23 03 21

E-Mail: ombudsmann(at)thielvonherff.com

Thiel von Herff Rechtsanwälte

Loebellstraße 4

33602 Bielefeld

Germany

The form is available in many languages. View the form

FAIR COMPENSATION AS A HUMAN RIGHT

Everyone has the right to a fair wage that makes a decent life possible. Fair remuneration therefore plays an important role not only in our human resources work. We are also committed to fair compensation in our supply chain to enable local workers and their families to have a decent standard of living.

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