Responses from Asics

Proposal A1:

Require suppliers to issue 'Right to Organize' guarantees to workers.

ASICS says it accepts the idea of requiring all suppliers to adopt a “freedom of association policy” and says it is discussing printing information about workers’ right to freedom of association on the back of worker ID cards rather than issuing a formal “right to organize guarantee”.

Full response

It is acceptable to require all suppliers to proactively adopt a “Freedom of Association Policy”. We are discussing to insert the card describing “ Freedom of Association Policy” on the back of their ID card case to enhance awareness of workers’ rights instead of the form of a ‘Right to Organize Guarantee’. We agreed with factories that our contracted auditors can freely communicate with workers to see the “Freedom of Association”.Implementing audit, especially when internal auditor conducted, we check whether they have trade union in the facility. We conduct the management and trade union interview and review the records for trade union organization chart, number of members, workers grievance records and reaction done by trade union and/or factory management, welfare activity, fair election record by workers, etc. Asics reviews the factory policy of Freedom of Association and Right of collective bargaining and training record for workers awareness. We see the value of organization as a way of workers grievance channel and complaints procedures. Asics recommends factory to support the activity of trade union or strengthen labor-employer relationship in any forms of organization including trade union, joint consultation committee, employee committee, and welfare committee.

Proposal A4: Provide an accessible complaints process for workers.

ASICS says it has started establishing a direct grievance channel for some of its factories. The company says that its audits include off-site interviews with workers to hear their complaints after giving workers assurances of non-retaliation.

Full response

Asics recognizes the value of direct grievance channel to brands, and have started establishing direct grievance channel for a part of factories. Asics started management-training project. The aim of new training project is that the grievance channel should work through production site including trade union, and achieve factory environment to be trusted and workers can rely on factory management. Asics attempts several approach to factory. For example, the communication skill program to factory management and supervisors to promote for smoother communication with workers, Facilitating dialogue among factory management, workers and trade union representatives regarding human resource issues from hiring to termination including work operation and life in the factory. During this session, we expect the related people think about by him or her and find solution by themselves, not imposed solution by Asics. Asics implements an off-site interview to workers to hear their complaints, grievance and opinions regarding factory life after giving understanding of non-retaliation to interviewee. The interview report is shared with factory and discusses how to improve the working conditions.Through these activities sitting in worker's chair, Asics is trying to make a much wider audience aware of the value of worker organization such as factory management, worker and workers representatives and to promoting the workers activity in a long-term approach.Asics is a participant company of Fair Labor Association (FLA) and it helps and strengthens improvement of ethical standard in factories, for examples, we are moving forward through better cooperation with FLA to fill the gap of the grievance channel system.

Proposal A9: Require suppliers to sign union access agreements.

ASICS says it does not require the signing of access agreements between factory management and local unions, but recommends that factories open dialogue with trade unions and workers.

Full response

We do not require to sign of access agreements between factory management and local unions, but we ask and recommend factories to open a dialogue with trade union and workers.

Proposal B2: Eliminate third-party employment schemes.

The company does not appear to answer the question posed to it.

Full response

"There are some suppliers hiring workers through third-party such as local labor bureau like China."

Proposal B3: Eliminate short-term contracting.

ASICS will not commit to ensuring workers engaged in its core business are signed to open-ended contracts. The company says that it has not audited to assess whether there are economic disparities between fixed duration contract workers and permanent workers

Full response

"A part of factories workers under open-ended duration contracts. Even if it is fixed duration contracts, the workers are receiving fair treatment. Auditing investigation does not reach to economic disparity between fixed duration contract workers and permanent workers. It is not clearly confirmed, however most of the local laws stipulate that the employee is automatically hired on an undetermined duration contract after working long term."

Proposal B6: Establish long-term relationships with factories.

ASICS says that it awards long-term and/or stable supply contracts based on business considerations, but that it selects and retains factories that comply with its code of conduct. There is no specific commitment to creating long-term stability in the supply chain.

Full response

Long-term and/or stable supply contracts are given based on the business aspect. ASICS selects and retains partner factories that follow business practices that are consistent with ASICS policies and values on the same principles as provided for in "ASICS Vision", "ASICS Philosophy" and "ASICS Code of Conduct". Asics continues business and establish long-term relationship with the partner who shares the same spirits as our founders required, "The person who participate in the Asics business under the philosophy of common destiny should act together."

Proposal C1: Adopt Responsible Transitions policies.

“In the future, Asics would like to develop and adopt the policies and procedures to support the MFA Forum’s Collaborative Framework, however, at this moment, we have no time and no workforce to handle this as we are focusing and making our best effort to establish the effective and creditable supply chain management system.”

Full response

Proposal C3: Report publicly on length of factory relationships.

The company says that “The average length of relationship and details statistics could be provided.”

Full response

“The average length of relationship and details statistics could be provided.”

Proposal C4: Report publicly on how suppliers are chosen and/or eliminated.

ASICS says it has a policy for supplier/vender selection and procedure for starting business with a supplier, but not a termination policy. The company does lists factors taken into account when considering terminations such as: the length of the relationship, changes in the business environment, ASICS’ changing business strategy, product delivery, product quality, etc. The company also says it tries to leave factories gradually by reducing orders through 1-2 seasons and by informing the supplier of the pullout in time to let the supplier look for new clients. No mention of linking CSR performance to sourcing.

Full response

We have policy for supplier/vender selection and procedure for starting business. The termination policy and procedure does not exist. At this moment, data collection is not yet completed. We haven’t sufficient figures to show.There is new source investigation flow chart to see whether the factory complies with the law and our code of conduct. The investigation result is discussed at the decision making of new sourcing. After decision is made, CSR team discussed the date for initial audit to factory. Based on the compliance status, the factory visit will be scheduled at once or after a certain period of time. As a general rule, Asics conducts initial audit by internal auditor and start non-compliance remediation plan.Director and general manager of business unit make the termination decision for existing factories for case-by-case. The prerequisite conditions for termination are various; the length of relationship, changes of business environment, changing business strategy to Asics, delivery, product quality, etc. Asics thinks it is not effective to prepare the termination policy and procedure of factories. We have not a special strategy for managing impact of existing factories.When we leave the factory for instance, we dare not immediate pullout. We try to leave factory smoothly but not to exacerbate factory's economic position to an extreme degree. Asics brings complete pullout into view for 1 to 2 seasons by keeping reducing the order progressively We inform factory in advance before leaving so that they can have time to look for new clients.

Proposal D1:

Make a commitment to paying a living wage.

ASICS says it recognizes the importance of incorporating a living wage standard in its code of conduct but says before putting it into practice “the definition of a living wage should be clarified.”

Full response

Asics recognize the importance of incorporating a living wage standard in our code of conduct. Before we put it into practice, we think the definition of a living wage should be clarified. The definition decision shall be defined after getting consensus among the stakeholders. Union's claim for a living wage is a main theme of trade union activities in the modern age. Labor trouble with this regard has a long history. The turning point of resolving the labor trouble has started from agreement of a living wage definition for both of parties. The recognition for a living wage standard is increasing among World Federation of the Sporting Goods Industry (WFSGI), Play Fair Olympics Campaign (PFOC) and a major suppliers. We expect a constructive conversation regarding a definition of a living wage will be carried in the future. It is declared at International Labour Organization (ILO) that requires the discussion for marinating appropriate living standard between labor-employee related organizations. Since the phrase of an "appropriate living standard" is quite ambiguous, it might be obstacle for negotiation between labor-employee talks. However, we believe both of the parties should keep the attitude of constructive conversation to make their best effort to reach to the agreement which both of them satisfies. Since, company hires many workers and has responsibility to assure their life security, company will not agree on excess definition for a living wage. The achievement for big goal of payable living wage to worker will discourage company if labor organization doesn't show a generous understanding for business management. The combative appearance with claiming one's own opinion is not constructive approach. It is important and core matter to keep moderate attitude based on harmonization approach. The approach trying to resolve the problem in the short time will set up disaffectedness and distrustfulness for both parties. Both of labor-employer organizations are requested to convert of a way of thinking and theory.

Proposal D3: Ensure prices are sufficient to pay a living wage.

ASICS will not commit to determining whether the prices it pays to suppliers are sufficient to allow suppliers to pay wages that meet basic needs. The company says that factories determine wages independently and that ASICS does not pay workers directly.

Full response

Factory is independent firm and they decide the wage from their viewpoint of factory management. We do not pay directly to workers. Factory has a number of clients and we are just one of them. We think even they have various clients, their worker should be paid the same amount of payment if they work the same thing. It becomes common sense to assume that pricing is basically the negotiation issue between supplier and buyer. We do not organize any talks about wage standard including NGOs yet. Asics requests factory pay employees at least a) the minimum wage required by the applicable law or b) the prevailing industry wage, whichever is higher. In addition, we implement verification audit to factories. In case of the intervention by Commission for Industrial Relations will lead the evaluation that the factory management is lack of capability of management. We expect the wages talks should be reach to agreement in a sound collective bargaining from developed and harmonized labor relationship.

Proposal D6: Take steps to improve workers’ wages.

ASICS will not commit to achieving a living wage over time. The company does recognize the necessity of achieving a living wage and thinks consensus-building toward the adoption of the clear definition of living wage is essential for this. The company participates in discussions/forums to this end.

Full response

Asics recognize the necessity of achieving a living wage into wage system. To realize it, we think consensus-building toward the adoption of the clear definition of living wage is essential. Asics takes deep interest in discussion regarding a living wage. We make researches from our own point of view and actively participate the meeting. A living wage issue has a long history that is negotiated at the Asics labor bargaining continuously.We are participating the meeting with PFOC where a living wage becomes one of key issue. The talks with industry group such as WFSGI and/or with suppliers, a living wage is coming one of the key issue to be discussed.

Response Key

The brand claims to implementing all components of this proposal or has agreed to implement them within Play Fair's proposed timeframe.

The brand is currently implementing or has agreed to implement some of the essential components of the proposal but has refused to implement, has overlooked, or has raised issues with one or more important components; or, the brand agrees to implement the proposal but not within Play Fair’s proposed timeframe.

The brand has refused to implement the essential components of the proposal.

The brand has misunderstood or failed to comment on the proposal; or the brand is considering the proposal, but has yet to make a decision.