How can you ensure that your suppliers pay fair wages?

1 Assess your supply chain

The first step is to assess your supply chain and identify the potential risks of wage violations. You can use tools such as the Fair Wage Network's self-assessment questionnaire, the WageIndicator Foundation's wage comparison database, or the Global Living Wage Coalition's benchmarks to evaluate the wage levels and practices of your suppliers. You can also consult with industry associations, trade unions, NGOs, or local experts to gain more insights into the labor conditions and standards in your sourcing regions.

2 Communicate your expectations

The next step is to communicate your expectations and requirements to your suppliers regarding fair wages. You can do this by incorporating wage clauses into your contracts, codes of conduct, or supplier policies. You can also provide guidance and training to your suppliers on how to implement fair wage systems, such as regular reviews, performance-based incentives, social dialogue, or grievance mechanisms. You can also join initiatives or platforms that promote fair wages, such as the Fair Labor Association, the Ethical Trading Initiative, or the Fair Wear Foundation.

3 Monitor and audit your suppliers

The third step is to monitor and audit your suppliers to verify their compliance with your wage standards. You can use different methods, such as self-reporting, third-party auditing, worker surveys, or on-site visits, to collect and analyze data on the wages and working conditions of your suppliers' workers. You can also use technology, such as blockchain, artificial intelligence, or digital platforms, to enhance the transparency and traceability of your supply chain.

6 Review and improve your performance

The sixth step is to review and improve your performance on ensuring fair wages in your supply chain. You can do this by setting goals, indicators, and targets to measure and report on your progress and impact. You can also solicit feedback, conduct evaluations, or benchmark your performance against best practices or industry standards. You can also learn from your successes and failures, and adapt your strategies and actions accordingly.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?