PUMA’s Auditing Process

A PUMA auditor controls safety appliances at a workplace in Vietnam.

Factory audits remain the main enforcement tool of compliance to PUMA’s Code of Conduct and provides us with an instant picture of the level of compliance at the factory.

Our audit tool covers labour, health & safety, environmental and anti-corruption issues. The current questionnaire is available here.

PUMA SAFE Rating Sheet 2017

If you would like to provide any comments on the tool, please contact

sustain@puma.com

 

PUMA’s factory rating system uses the ratings A, B+, B-, C and D. Based on the audit grade received, a factory may be eligible to be audited annually (grade A to B) or within 4 months (grade C) depending on the severity of the issues found in the first audit.

The range between ratings is 5% with a minimum passing grade of 85%. The ratings and the corresponding grades are as follows:

Social Audit Results 2016

We continue to assess both core and noncore suppliers for compliance on a regular basis, but focus our own team’s efforts on our core suppliers, while non-core suppliers are covered by third-party auditors. These freed-up resources have allowed us to expand our assessments deeper into the supply chain. From 2016 onwards, our core suppliers’ list also includes the major component and material suppliers, while we have started to systematically conduct audits further upstream in our supply chain. Those suppliers often have never received any brand compliance audits before. In total 428 factories were audited, some of them more than once, leading to a total of 499 audits conducted in 2016. 

  • (100% to 95%): The required social, health, safety and environmental standards are complied with, and there are indications of strategic initiatives to maintain compliance to the Code. These factories are subject to routine biannual audits.
  • B+ (below 95% to 90%): Non-compliance issues are of minor importance that can be rectified immediately. Audits for factories with this rating are conducted once a year.
  • B- (below 90% to 85%): Non-compliance issues are of minor importance but there are a larger number of such issues being found compared to a B+ rating. Another audit is done within the next 12 months to check improvements.
  • C (below 85% to 75%): Serious or numerous non-compliance issues were found during the audit and must be rectified immediately. A warning letter is issued and a follow up audit is conducted within the next four months to check on the remediation of the issues. C-rated factories have to implement improvements immediately. If they do not, the business relationship is terminated with a new factory-applicant, or business is reduced or terminated in the case of an accredited factory.
  • D (below 75%): Many serious violations of the standards were found. The business relationship is terminated or, in the case of a first audit, there is no commencement of a business relationship.

For the full set of PUMA's 2016 Auditing Results as described in our Annual Report, please click here.