As our monitoring increased and improved, we discovered that assessments have limitations. Audits are simply a measure of what appears to be happening at a point in time and there is no recognition of incremental change. Often factories would make necessary modifications, and then months or years later the problems would reappear. Audits also do not assist factories to reach the required targets. Seeing changes that didn’t stick—over and over again—is what first motivated us to seek a way of achieving lasting change.

We observed that our intervention is often viewed as a way to keep Reebok happy. Improvements were implemented by top down mandate, with little worker involvement, and often not supported by systems or wide-spread awareness within the factory. Factory management may be inclined to adopt a short-term response.

Factory audits can also be unreliable. Some issues such as discrimination and harassment are difficult to uncover. We reasoned that if workers are aware of our requirements and involved in meeting them, standards are less likely to backslide when we’re not there. In essence, workers can be our eyes and ears in between factory audits.

The causes of poor working conditions are varied and complex. Inspections are focused inside the factory but many external factors contribute to noncompliance such as industry conditions, country conditions and international trade practices.

Our first step will be to gain buy-in from factories. The goals of the S-process are as follows:

• Management and employment activities are guided by factory policies and procedures

• Documentation is reliable and used for day-to-day management decisions and long-term planning

• Designated staff is empowered to implement and enforce policies and procedures

• Exchange of information between employees and management, through multiple channels in the factory, is used to inform decisions and influence behavior

• An independent and credible grievance system identifies and resolves concerns

• Regular consultation and exchange of views occurs among employees and their representatives in a manner that is transparent, responsive to needs and respects freedom of association

We also emphasize how upgrading employment systems can support a factory’s business objectives. For example, sound recruitment practices help a factory hire the most qualified individuals, and improve worker motivation.

We pilot tested the program in 2005. We’ve conducted 28 assessments in 9 countries. The S-Process takes 3 to 10 days to complete, depending on the size of the factory and the complexity of its operations. Since it is not feasible to conduct S-Process assessments with our entire vendor base, we are targeting factories that are long-standing partners with a high volume of business.