SOCIALANDENVIRONMENTALREPORT2002BEHINDOURBRANDPAGES2–11PAGES12–52ANINTRODUCTIONTOTHEISSUESWEFACESOCIALANDENVIRONMENTALREPORT20022002WASAYEARTHATMARKEDASIGNIFICANTCHANGEINTHEWAYWEWORKWITHOURSUPPLIERS.THISREPORTEXPLAINSHOWWEAREBEGINNINGTOCREATEDEEPERBUSINESSPARTNERSHIPSWITHTHEM,ANDWHYWEBELIEVETHISSTRATEGYWILLLEADTOIMPROVEDLABOURANDENVIRONMENTALSTANDARDSTHROUGHOUTOURSUPPLYCHAIN.THENEXTFEWPAGESPROVIDEANINTRODUCTIONTOSOMEOFTHEMAINSUSTAINABILITYISSUESWEFACE.TOGETHERWITHOURMAINREPORT,BEGINNINGONPAGE12,ITSHOWSHOWWEATTEMPTTOGOBEHINDTHEPUBLICFACEOFSPORTINORDERTOADDRESSOURGLOBALRESPONSIBILITIES.adidas-Salomonsocialandenvironmentalreport2002///1BEHINDOURBRAND2///adidas-Salomonsocialandenvironmentalreport2002ANYCOMPANYTHATWANTSTOMANAGEITSIMPACTSONPEOPLE,SOCIETYANDTHEENVIRONMENTNEEDSTOSTARTBYUNDERSTANDINGTHENATUREOFITSBUSINESS.WEUNDERSTANDTHATSOMEOFTHEBIGGESTISSUESWEFACE,ANDTHEONESTHATPEOPLEAREMOSTCONCERNEDABOUT,AREISSUESRELATEDTOWORKINGCONDITIONSINTHEFACTORIESTHATMAKEOURPRODUCTS.FindouthowwearemonitoringlabourstandardsinourfactoriesFairwages33///Childlabour34///Labourrights35///ANINTRODUCTIONTOTHEISSUESWEFACELABOURRIGHTSHEALTHANDSAFETYBECAUSEWEDON’THAVEDIRECTCONTROLOVERTHESEFACTORIES,IT’SHARDERTOMAKESURETHATTHEIRCONDITIONSANDEMPLOYMENTSTANDARDSAREDECENT.THATDOESN’TMEANWEDON’TTAKERESPONSIBILITYFORHOWFACTORYWORKERSARETREATED.OURGOALISTOFINDTHEMOSTACCEPTABLESOURCESOFSUPPLYTHATMEETALLOURCRITERIA,NOTSIMPLYTHECHEAPEST.adidas-Salomonsocialandenvironmentalreport2002///5WorkplacehealthandsafetyremainsapriorityTraining27///Women’shealth38///OccupationalhealthandsafetyinChina38///WEJUDGELABOURSTANDARDSTHROUGHOURCODEOFCONDUCT,WHICHWECALLOUR‘STANDARDSOFENGAGEMENT’.THESEAREGUIDINGPRINCIPLESCOVERINGALLSORTSOFEMPLOYMENTISSUES,INCLUDINGWORKERS’RIGHTS,THEENVIRONMENT,ANDHEALTHANDSAFETY.BASEDONINTERNATIONALLAWS,CONVENTIONSANDPRINCIPLES,THESTANDARDSHELPUSTOCHOOSETHEFACTORIESWEWANTTOWORKWITH.6///adidas-Salomonsocialandenvironmentalreport2002LearnhowweareattemptingtoreduceourenvironmentalimpactsHazardoussubstances41///Transportation43///Progressagainsttargets46///THEENVIRONMENTCOMMUNITYINVOLVEMENTASWELLASHELPINGUSSPOTPROBLEMS,WEUSETHESTANDARDSOFENGAGEMENTTOHELPFACTORYMANAGERSPLANHOWTOIMPROVETHEWAYTHEIRFACTORIESARERUN.TOGETHERWITHINDEPENDENTAUDITORS,WECHECKPROGRESSREGULARLY.ALLOFTHEFACTORIESWEWORKWITHMUSTBEABLETOSHOWTHEYAREMAKINGCONTINUALIMPROVEMENTSINORDERTOMEASUREUPTOTHESTANDARDS.adidas-Salomonsocialandenvironmentalreport2002///9WemakeeffortstocontributetothecommunitiesweworkinCommunitysupportinPakistan44///Ourtargets48///10///adidas-Salomonsocialandenvironmentalreport2002STANDARDSOFENGAGEMENTThesearethecorevaluesoftheadidas-SalomonGroup.Wemeasureourselvesbythesevaluesandwemeasureourbusinesspartnersinthesameway.Consistentwiththesevalues,weexpectourbusinesspartners–contractors,subcontractors,suppliers,andothers–toconductthemselveswiththeutmostfairness,honestyandresponsibilityinallaspectsoftheirbusinesses.TheStandardsofEngagementaretoolsthatassistusinselectingandretainingbusinesspartnerswhofollowworkplacestandardsandbusinesspracticesconsistentwithourpoliciesandvalues.Asguidingprinciples,theyhelpidentifypotentialproblemssothatwecanworkwithbusinesspartnerstoaddressissuesofconcernastheyarise.Businesspartnersmustdevelopandimplementactionplansforcontinuousimprovementinfactoryworkingconditions.Progressagainstactionplanswillbemonitoredbybusinesspartnersthemselves,ourinternalmonitoringteamandexternalindependentmonitors.Specifically,weexpectourbusinesspartnerstooperateworkplacesaccordingtothefollowingstandardsandpractices.Authenticity/Inspiration/Commitment/Honestyadidas-Salomonsocialandenvironmentalreport2002///11GENERALPRINCIPLEBusinesspartnersmustcomplyfullywithalllegalrequirementsrelevanttotheconductoftheirbusinesses.EMPLOYMENTSTANDARDSWewilldobusinessonlywithbusinesspartnerswhotreattheiremployeesfairlyandlegallywithregardtowages,benefitsandworkingconditions.Inparticular,thefollowingstandardsapply:FORCEDLABOUR:Businesspartnersmustnotuseforcedlabour,whetherintheformofprisonlabour,indenturedlabour,bondedlabourorotherwise.Noemployeemaybecompelledtoworkthroughforceorintimidationofanyform.CHILDLABOUR:Businesspartnersmustnotemploychildrenwhoarelessthan15yearsoldorlessthantheageforcompletingcompulsoryeducationinthecountryofmanufacture,wheresuchageishigherthan15.DISCRIMINATION:Businesspartnersmustmakerecruitmentandpost-hiringdecisionsbasedonabilitytodothejob,ratherthanonthebasisofpersonalcharacteristicsorbeliefs.Businesspartnersmustnotdiscriminateinhiringandemploymentpracticesonthegroundsofrace,nationalorigin,gender,religion,age,disability,maritalstatus,parentalstatus,associationmembership,sexualorientationorpoliticalopinion.WAGESANDBENEFITS:Wagesareessentialformeetingthebasicneedsofemployeesandreasonablesavingsandexpenditure.Inallcases,wagesmustequalorexceedtheminimumwagerequiredbylawortheprevailingindustrywage,whicheverishigher,andlegallymandatedbenefitsmustbeprovided.Wagesmustbepaiddirectlytotheemployeeincashorcheckortheequivalent.Informationrelatingtow