We always ensure action is taken when audits identify major breaches of the ETI Base Code. Following an audit report, suppliers must address every non-compliance identified and develop improvement plans.

We follow up these plans and have them independently verified or request further improvements as required.

In addition to reports by auditors, breaches of the Code can also be reported by suppliers themselves, workers, non-governmental organisations and trade unions. We investigate any such reports immediately. We have also been piloting a whistle-blower scheme in China which provides an anonymous additional channel to report any concerns. Our priority is to ensure there is no child labour, forced or bonded labour, or any form of abuse in our supply chain.

The most serious problems are relatively rare. In a direct supply chain of 1.8 million workers, there were three reported instances of child labour and one of forced labour in 2008. We followed up all these reports immediately and ensured appropriate action was taken ¨C which, in the case of child labour reports, meant ensuring the child had ceased work as soon as discovered, that the supplier¡¯s systems are tightened to avoid recurrence, and best practice in supporting the child is followed ¨C generally including the guarantee of a job once they turn 16.

We expect suppliers to implement improvement plans as soon as possible and complete all actions within six months. Our emphasis is on assisting improvement rather than simply policing deadlines. We only stop working with a supplier if they continually fail to meet our standards and refuse to take corrective action. In 2008, we ceased trading with 11 suppliers because of ethical trade issues, the same number as in 2007.

Notes on chart

This chart shows the areas in which improvement actions were undertaken by our suppliers against the different elements of the ETI Base Code. It is derived from data from our robust independent audit programme, which is focused on the highest-risk countries and sectors.

Improvement actions can both strengthen systems and address specific problems. For issues such as employment freely chosen, which includes ensuring workers are not required to lodge deposits with employers, procedures are reinforced to reduce the risk of future cases. It is similar for child labour, where measures to verify age are a key priority.

For issues such as health and safety, there are a number of detailed requirements which must be met to achieve full compliance, including on handling machinery, building layout and staff access to facilities for food storage.

Data are for 2007 and verified by the ETI. The ETI will also verify our figures for 2008, although not by the time of publication of this Report.