How it works | Transparency in Action

Transparency Disclosure Steps

How it works

The Transparency Disclosure Steps

There are four key steps to improving transparency:

General
theory

Production/
Sourcing Locations

Transparency
of performance

Purchasing
Practices

01.

Collect and disclose data: general theory

Data is collected and publicly disclosed by brands, suppliers, NGOs or workers. Data should be disclosed digitally in a standardised format and with an open licence. An open licence explicitly gives permission for others to freely share an use the information, examples include Creative Commons licences and Open Data Commons licences.

02.

Analyse and compare data: general theory

Standardised data can be analysed and compared with data from other brands, suppliers or production locations/factories. Such analysis can lead to action points being identified.

03.

Take action: general theory

Companies should follow up on identified action points, which may include changing policies and practices, and collaborate with civil society organisations or other companies to implement improvements.

04.

Monitor and evaluate: general theory

Through regular monitoring and evaluation, brands, suppliers, NGOs and workers can review whether actions have been effective or if additional changes are required.

Regularly repeating the steps in this cycle leads to continuous improvement.

01.

Production and sourcing - collect & disclose data

Kings of Indigo collects data about its factories, including names, addresses and parent companies, and shares the data publicly via the Open Apparel Registry (OAR).

02.

Analyse and compare data: production and sourcing

Through information included in the Open Apparel Registry, Kings of Indigo is able to identify other brands which source from the same suppliers, or from the same region.

03.

Take action: production and sourcing

Kings of Indigo uses this data to collaborate with other brands sourcing from the same factories and encourage the suppliers to make improvements.

Before placing orders, Kings of Indigo uses the Open Apparel Registry as part of its due diligence process to contact organisations or companies sourcing in a facility to understand how it performs in terms of responsible production.

04.

Monitor and evaluate: production and sourcing

Kings of Indigo updates its data regularly in the Open Apparel Registry, adding new facilities to their supplier list and removing facilities the brand no longer works with.

01.

Collect and disclose data: performance

Better Factories Cambodia’s transparency initiative discloses factory compliance information for over 500 factories on 21 critical issues in a standardised, comparable format.

02.

Analyse and compare data: performance

Suppliers can use the data to identify areas to improve.

Brands can use the data as part of their due diligence process, comparing factories for sourcing purposes.

Unions can use the data to have constructive dialogue with factory management on areas of non-compliance.

03.

Take action: performance

Suppliers can address issues by changing their policies and practices, training staff and management, and engaging with workers to make sure the changes are responding to their priorities.

Brands can use the data to make sourcing decisions and help their suppliers to come compliance.

04.

Monitor and evaluate: performance

Better Factories Cambodia conducts a new cycle of assessment every year to measure the same 21 critical issues and track factory improvements.

In 2019, the number of factories fully compliant on critical issues rose from 31% to 45%.

01.

Collect and disclose data: purchasing practices

Increasingly, data about purchasing practices is being collected and disclosed. For example, Fair Wear Foundation members are required to disclose their purchasing practices.

SanMar Corporation has become the first BetterBuying subscriber to disclose its purchasing practices scores.

02.

Analyse and compare data: purchasing practices

Brands, suppliers and NGOs compare the purchasing practices of one company to another.

NGOs and multi-stakeholder initiatives may rate or grade brands based on their purchasing practices. For example, Fashion Revolution's Transparency Index rates brands on their purchasing practices.

03.

Take action: purchasing practices

Brands work internally to improve purchasing practices.

Brands may decide to work with multi-stakeholder institutions or initiatives (e.g., Better Buying) to obtain guidance on how to improve, and may choose to adopt the American Bar Association’s Buyer Code of Conduct.

04.

Monitor and evaluate: purchasing practices

Improvements can be disclosed on a brand's website and will be reflected in ratings.

Brands establish better relationships with their suppliers.

Get started with transparency

Guidance tool for companies in the fashion and apparel industry.

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