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.
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:
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 2015 Auditing Results as described in our Annual Report, please click here.