2011 - Li & Fung Limited

SUPPLY CHAIN RESPONSIBILITY
Our commitment to being a responsible and sustainable
business goes beyond our four walls to encompass how we
manage our supply chains in over 40 economies around the
world. In 2011, our vendor compliance team, comprising
140 employees worldwide, continued to regularly monitor
compliance and work with our suppliers to meet our Code
of Conduct, as well as industry- and customer-specific audit
standards, protocols and methodologies. This year, over 9,800
audits of our suppliers were conducted.
To further sustainability in our supply chain, we are developing
tools and programs, and working with our partners, to improve
working conditions and environmental performance, and also
provide sustainable sourcing options.
Over the course of 2011, we focused on enhancing our
compliance tools to support our suppliers to improve their
social and environmental sustainability. Our updated Code of
Conduct for Suppliers and Supplier Compliance Manual set out
our baseline expectations of all suppliers with which we work.
The Code requires compliance with local and international
regulations, including the International Labor Organization’s core
conventions. Key revisions include expanded ethical conduct
requirements, enhanced disclosure of suppliers’ performance
information and the issue of human trafficking, in support of the
California Transparency in Supply Chains Act.
The Manual outlines how to meet the Code and is the first
step in building competency for sustainable compliance. In
parallel, we also launched a new assessment tool for suppliers
to identify gaps in meeting Code requirements. This information
enables our employees to follow-up, identify opportunities for
improvement as needed, and support suppliers with training,
education and tools to build management systems that support
ongoing compliance. Suppliers identified as having compliance
issues will have access to capacity-building resources and be
required to resolve the issue(s) to continue business with us.
SUSTAINABILITY (CONTINUED)
Our aim is that through improved visibility, tracking and
performance, impacts and risks will be better managed in
the supply chain. Sustainability and business resilience also
drive innovation, which is critical for creating products with
sustainability attributes that are made in better-managed
factories. We will continue to work with our customers, suppliers
and industry partners to improve our collective knowledge
and capabilities around sustainable sourcing, products and
packaging.
OUR PEOPLE
A strong and sustainable organization has an engaged
workforce that is aligned with its strategic goals. As of the
end of 2011, the Company had a total workforce of 29,624,
of whom 4,518 were based in Hong Kong and 25,106 were
located overseas.
EMPLOYEE ENGAGEMENT
In September 2011, we launched our first Employee Engagement
Survey with the objective of assessing engagement with our
employees and their customer orientation, and finding out more
about our strengths and opportunities for improvement across
our business units and countries. The survey, which was webbased
and implemented through a third-party to safeguard the
anonymity of the respondents, consisted of 56, close-ended
questions and one, open-ended question.
Out of the 14,490 employees who received the survey request,
11,237 completed the survey, representing a response rate
of 78%. The survey helped management to understand the
views of employees and to receive useful feedback. We have
formed a Corporate Engagement Team in conjunction with
business executives to communicate the survey results across
the Company and to identify follow-up actions. In addition,
our business executives will champion improvement initiatives
that focus on the three themes of Communication, Career and
People Care.
LI & FUNG LIMITED | ANNUAL REPORT 2011
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