Program Milestones

1992

• Wal-Mart's program was established, including the Standards for Suppliers. Efforts were focused on major export markets of Bangladesh and China.

1993-1996

• Pacific Resources Exports Ltd. (PREL), our exclusive buying agent, began auditing factories manufacturing merchandise for Wal-Mart's suppliers.

1997-2001

• The program was expanded to include factories located in Egypt, Pakistan, India, and Nicaragua. Domestic suppliers using factories in the above referenced countries were audited by approved third-party service providers.
• Regardless of the country involved, PREL and approved third-party firms audited factories producing private label Wal-Mart brands such as McKids/McBaby®, Faded Glory®, Bobbie Brooks®, Catalina®, Retro Blues®, Basic Equipment®, Sportrax®, and Lady Manhattan®.

2002

• Wal-Mart established the Global Procurement organization and began managing the factory audits.

2003

• The program was strengthened by reclassifying minimum wage and severe working hour violations as high-risk ratings to improve compliance.
• Wal-Mart's Internal Audit began re-auditing a sample of factories soon after an Ethical Standards audit was performed to maintain program integrity and verify findings.
• A training program was instituted for suppliers, factory managers and Wal-Mart buyers on the Standards for Suppliers. More than 4,600 representatives of suppliers and factories were trained.
• U.S. Department of Homeland Security Customs-Trade Partnership Against Terrorism (C-TPAT) requirements were incorporated.

2004

• Unannounced audits increased from less than 1% to 8% of all audits.
• A national brand pilot initiative was conducted with Levi Strauss & Co.™, Sara Lee®, and Jockey® to reduce duplicate inspections.
• 7,900 suppliers and members of factory management were trained on the Standards for Suppliers.
• Select proprietary brands (HomeTrends™ and Mainstays™) were included in the audit scope for Wal-Mart U.S.

2005

• Wal-Mart's program formerly called 'Factory Certification' was renamed 'Ethical Standards' to more accurately reflect the program objectives.
• A relationship with Business for Social Responsibility (BSR), a well-respected nonprofit organization, was initiated to develop a stakeholder engagement program.
• The Standards for Suppliers were expanded to address the right to freedom of association and collective bargaining and compliance with immigration laws and regulations for foreign contract workers. More than 11,000 suppliers and members of factory management were trained on the Standards for Suppliers and new environmental, health, and safety audit requirements that became effective in January of 2006.
• Unannounced audits increased to 20% of total audits.
• The George™ brand was added to the proprietary brand audit scope.
• Local language helplines were instituted in 45 countries to provide an easier mechanism for suppliers' factory workers to share concerns and issues.
• Additional environmental, health and safety audit requirements went into effect January 2006.

2006

• As part of Wal-Mart's global sustainability initiatives, the environmental criteria were expanded to include waste identification, waste handling and disposal, wastewater treatment and discharge, air emissions, and banned substances.
• The re-audit schedule for factories rated Green increased from one year to two years.
• Unannounced audits increased to 26% of total audits.
• Auditors began to use Tablet PCs to enter violations and produce the onsite report during an audit.
• The International Giving Program, focusing on giving back to the communities where merchandise for Wal-Mart are sourced and sold, awarded its first grant to The Asia Foundation to fund scholarships for migrant women in China.
• Ethical Standards' audit scope expanded to include audits of certain factories producing domestically sourced merchandise sold in the Wal-Mart Canada Retail Market.