J. Crew - Template

Summary

I chose J. Crew as the first company to evaluate for no other reason than it was part of my list of companies for another research project.

J. Crew has really re-established itself over the last few years as a higher-end fashion company. Gone is the emphasis on Gap-like basics, replaced with bright colors, of-the-moment silhouettes and patterns, but with many pieces still having that classic J. Crew feel. J. Crew went public in 2006.

Perhaps a remnant of its privately-held past, J. Crew does not issue any annual report besides the mandated SEC Filings. Although the filings require an assessment of operations, the company is not obligated to report on any social responsibility issues (i.e., policy on wages paid by foreign suppliers, greenhouse gas emissions). Consequently, it is quite difficult to assess its CSR performance using the template. But, we did our best.

Some Key Facts

J. Crew does not own or operate any manufacturing facilities. In 2007, approximately 85% of J. Crew merchandise was sourced from Asia (with 73% of products from China, Hong Kong and Macau).

Although the company does not state so on its website, the SEC filing shows that J. Crew maintains a Code of Vendor Conduct, which requires that each J. Crew supplier operate in compliance with applicable wage, benefit, working hours and other local laws, and forbids the use of practices such as child labor or forced labor. The Code of Vendor Conduct is currently administered internally by J.Crew employees, including a dedicated J.Crew employee [ed.note: just one??], and two outside compliance audit firms that make periodic visits to the facilities that produce J. Crew goods to monitor compliance. New suppliers are prequalified based on the Code of Vendor Conduct and each existing supplier must execute an annual compliance certification. J. Crew's also works with the Fair Factories Clearinghouse, which is a provider of software to manage factory evaluations.

Here is our evaluation of J. Crew based on the Scale of Involvement:

Indicator	Commitments/Comments	SOI Rank
Environment – Operations
GHG Emissions	No Information available	1
Energy Efficiency	No Information available	1
Air & Water Pollution	No Information available	1
Promoting Employee Enviro. Awareness	No Information available	1
Waste Reduction (Haz & Non)	No Information available	1
Environment – Materials
Use of Toxics in Products	No Information available	1
Use and Promotion Of Sustainable Materials (i.e. organic cotton)	No Information available	1
Social
Workplace Diversity	Generic diversity policy outlines in Code of Ethics	4
Unions	Brief statement on unions in SEC filings. No unions at J. Crew.	2
Workplace Safety	No reference to workplace “safety”; generic statement on workplace “violence” in Code of Ethics.	2
Community Relations	No Information available	1
Strategic Partnerships with NGOs	No Information available	1
Animal Welfare	No Information available; though stopped carrying fur after pressure from PETA.	1
Human Rights
Operating in Countries of Conflict	No Information available	1
Child Labor	Forbidden under Code of Vendor Conduct; no specific procedures discussed.	4
Forced Overtime	Forbidden under Code of Vendor Conduct. No specific procedures discussed.	4
Indentured Servitude	No Information available	1
Compliance with ILO Standards?	No Information available	1
UN Global Compact?	No Information available	1
Supplier Management Issues
Code of Conduct	Yes, though it is not public.	5
Fair Wages	Code of Vendor Conducts states that all vendors must “operate in compliance with applicable wage, benefit, working hours and other local laws”	3
Training	No Information available	1
Environmental Management	No Information available	1

External Verification
Member of FLA?	No.		n/a
CSR Reporting Standard?	No.		n/a
Other	Working with Fair Factories Clearinghouse to share factory data with other brands.		n/a
Demonstrated CSR Leadership Among Peers?		No.

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