Dave Forsey Chief Executive 19 July 2012 - Sports Direct International

64 / MANAGEMENT AND GOVERNANCE
Corporate Responsibility Report
community
The Group continues to procure merchandise from manufacturers
who can show that they uphold ethical employment and
trading practices.
The Group has a Code of Ethics that it requires every supplier
to adhere to. Amongst other matters the Code provides for
fair treatment of workers ensuring products are made in a safe
environment, in accordance with all the relevant local and national
laws to ensure workers are treated with respect and are paid fairly
for what they do. It also ensures there is no child labour and no use
of illegal means or materials in the production of goods.
The Group has worked for many years with two leading supply
chain companies in Singapore and in South Korea to procure much
of its own brand goods.
The Group believes that using their local knowledge, expertise and
experience, it benefits the business and the communities in which
they operate more effectively than if the Group carried on its own
procurement activities in those countries. Both companies have the
highest social and business ethics codes which match our Code of
Ethics, the BSCI Code of Conduct (which is based upon the United
Nations Universal Declaration of Human Rights), ISO9001 and the
Social Accountability 8000 (SA8000) Code.
The Group relies on those supply chain companies to inspect all
suppliers and manufacturers premises.
Frequent inspections are carried out randomly at short notice to
ensure that the goods meet the Group’s quality standards as well
as assessing continued compliance with SA8000 and the Group’s
Code of Ethics. We immediately cease work with suppliers who do
not meet our criteria.
The Group complies with an internationally recognised list of
chemicals that are banned for use in fabrics. The supply chain
companies conduct random tests on fabric which are then taken to
a recognised laboratory for quality testing and to check that these
banned chemicals are not being used.
The Group has forged long-term relationships with suppliers who
have demonstrated that their work practices are consistent with
the Group’s standards. Approximately 40% of the Group’s current
suppliers have been working with Group companies for 10 years
or more.
Slazenger is the exclusive cricket equipment supplier to the
country’s most recognised grassroots cricket development
programme, ‘Chance to Shine’ supported by Brit Insurance. It
is run by the Cricket Foundation charity and delivers individual
projects across England and Wales. The projects provide structured
coaching alongside a competition programme for a Group of
schools that would not normally have the chance to participate
in the sport. In 2011, ‘Chance to Shine’ in its 6th year delivered
qualified coaching sessions throughout 3,807 schools with 12,532
new club members achieved. Subject to funding, the programme
will reach one third of all primary and secondary schools and
support two million young people by 2015.
To date, over 1 million children have benefited from the programme,
45 percent of whom were girls. Cricket equipment to the value
of £250,000 has been supplied by Slazenger to enable the
programme to run successfully.
Over 1,000 children worldwide are continuing to benefit from
Dunlop’s global “D Squad” talent support programme which
continues to increase participation and performance levels of the
most talented juniors in tennis from around the world.
Dunlop also work in conjunction with its sponsored professional
golfers Lee Westwood and Darren Clarke to supply clothing to their
respective ‘Golf Schools’, which provide qualified coaching and
mentoring to youngsters from across the UK. Over £15,000 worth
of clothing has been donated to the schemes so far.
In the United States, Everlast, one of the Group’s specialist fight
sports brands, supports numerous initiatives. Everlast is the official
sponsor of USA Boxing, which is are the national governing body
of amateur Olympic-style boxing. Each year Everlast supplies the
not-for-profit organisation with training and competition apparel,
footwear and equipment. Everlast contributed $280,000 to support
the men and women’s teams that competed in the 2012 Olympic
Games in London.
Additionally, in 2012 Everlast will continue to support the New York
Golden Gloves, the most prestigious grassroots boxing competition
in the US. Each year Everlast supply over $20,000 worth of apparel,
footwear and equipment to the 900 amateur men and women
boxers who participate.
Everlast is also a major supporter of the Dr. Theodore A. Atlas
Foundation, a non-profit organisation that provides financial support
to those in need, particularly children. In 2011, Everlast made
charitable contributions of $14,000 and was present at the annual
Atlas golf outing and the Atlas Foundation dinner.
Everlast has been a proud supporter of The Breast Cancer
Research Foundation® (BCRF) since 2006. Each year, Everlast
donates a proportion of sale proceeds from select Everlast pink
products to help the foundation raise money for clinical and genetic
research. In 2011, Everlast donated $115,000, the largest donation
to date.
Antigua golf apparel was once again appointed the official apparel
sponsor for all staff and officials of the prestigious Sime Darby
LPGA 2011 Malaysia tournament, due to its solid reputation in
quality and performance. Antigua is retailing at all 42 MST GOLF
retail outlets nationwide and a percentage of all apparel sales were
donated to the Cancer Research Initiatives Research Foundation
(CARIF) and Breast Cancer Welfare Association of Malaysia
(BCWA), under MST Golf Breast Cancer Awareness Campaign.
MST Golf donated over RM 100,000 (U$35,000) in the first year
alone, to be shared by both foundations from sales proceeds of
Antigua apparel. Being an ardent supporter of this worthy cause,
MST Golf has decided to extend its Breast Cancer Awareness
Campaign for another year until next year’s event in October. By
taking a proactive stand, the company intends to work closer with
CARIF and BCWA in 2012 with activities such as seminars and
in-store campaigns to educate the public, in hope of reducing
mortality rate through better knowledge and early detection.