Hidden cost: Human rights policy and practice in Mexico’s apparel supply chains
Apparel supply chains in Mexico are complex and fragmented, with a handful of large companies, behind the major apparel brands produced and sold in Mexico These companies demonstrate poor transparency and outsource production to medium-sized companies which then outsource to small and micro-maquilas for production This structure dilutes traceability and transparency in the production supply chain Reports of abuse underscore the need for apparel brands to urgently implement human rights-based approach and ensure corporate accountability for abuse in the industry.
This report examines how Mexico’s leading apparel companies address human rights risks in their supply chains. It identifies key labour risks in the industry and analyses the human rights policies of 18 major parent companies behind the country’s top apparel brands. The report also provides specific recommendations for stakeholders to promote human rights in Mexico’s apparel industry.
Key findings
- We asked 18 companies to respond to questions on their human rights due diligence processes. Only one company, C&A México, responded to the survey Its parent company, Alfar Group, did not respond.
- Only three out of 18 companies (H&M, Levi Strauss México and Diltex Group) publicly disclose information about their supply chain below the first tier. Five companies (El Puerto de Liverpool, Palacio de Hierro Group, Kaltex Group, Sanborns Group and Axo Group) disclose only partial information about their first tier, while the remaining 10 disclose none.
- Only three companies (H&M, Levi Strauss México and El Puerto de Liverpool) have publicly available human rights and responsible supply chain policies that apply to all suppliers and partners Diltex Group and Palacio de Hierro Group have CSR-focused policies, although Diltex Group reports that it has internal procedures in place to ensure the use of suppliers that respect human rights.
- Five companies (H&M, Levi Strauss México, El Puerto de Liverpool, Diltex Group and Palacio de Hierro Group) publish Codes of Conduct for suppliers that include requirements on human rights Kaltex Group and Sanborns Group’s Codes of Conduct only apply to their direct operations.
As the most powerful actors in supply chains, the large companies covered in this report ultimately have a responsibility to manage the risks associated with their activities Importantly, they have the potential to make a significant difference to the lives of people working in their own operations and throughout their supply chains by ensuring respect for labour rights.
Download and read the full report here