We aim to provide great products at the lowest prices for our customers while respecting human rights. We are on a journey to continuously improve our ethical sourcing standards and processes and are working in close partnership with our suppliers, non-government organisations, trade unions and government representatives to ensure better working conditions in the countries and communities where we source.
We are committed to conducting business in accordance with our international obligations and in compliance with all applicable laws and we work with suppliers who share and follow our high standards of conduct in whichever country they operate.
Ethical Sourcing Program
We have joined Kmart Australia, our sister company within the Wesfarmers Group, to establish a combined Ethical Sourcing Program. The program represents a comprehensive compliance framework designed to ensure our suppliers meet the ethical sourcing standards as outlined in our Ethical Sourcing Code.
The Ethical Souring Program includes requirements relating to:
Our ethical sourcing audits are conducted by third party auditors. In FY 20, 21% of audits were announced, 72.5% semi-announced and 6.5% unannounced.
To obtain a complete overview of the program, please see our Ethical Sourcing Program Supplier Manual.
Target has established a scorecard system to assess supplier performance on quality, delivery, value and sustainability. Target forms strategic partnerships with those best performing suppliers for long term business growth.
Target is a member of the Better Work program in Bangladesh, Vietnam and Indonesia. Our approach to audits and remediation is aligned with the Better Work methodology in these countries, including the active involvement of workers via worker-management committees and other mechanisms.
Ethical Sourcing Code
Our Ethical Sourcing Code (ESC) includes minimum requirements and expectations that all suppliers must meet as a condition of doing business with us.
The ESC is based on our commitment to respecting the core labour standards established by the International Labour Organization (ILO), protecting and respecting human rights as set out in the United Nations Universal Declaration of Human Rights and promoting environmental sustainability.
The ESC forms part of the contract with our suppliers and is supported by a rigorous audit program. We expect our suppliers to be honest and transparent in their dealings with us and to commit to making continuous improvements in their operations.
Read our Ethical Sourcing Code here:
- Ethical Sourcing Code - English
- Ethical Sourcing Code Poster - English
- Ethical Sourcing Code - Chinese
- Ethical Sourcing Code Poster - Chinese
We report on our ethical sourcing performance as part of the Wesfarmers Group Sustainability report. This includes the number of suppliers audited in the financial year and the number of critical breaches identified or reported. See here for our most recent ethical sourcing data.
Target Australia together with Kmart Australia opposes slavery in all its forms and reports on modern slavery risk mitigation processes within the Wesfarmers Group Modern Slavery Statement.
Target Australia is a signatory of the following professional associations and industry partnerships in support of our human rights commitments. Progress updates and selected audit findings and reports linked to our supplier facilities (final factories and processing facilities) can be accessed on these websites.
- Accord on Fire and Building Safety in Bangladesh
- Better Work
- COVID-19: Action in the Global Garment Industry
Whistle blower/grievance mechanism
Target has established a whistle blower/grievance mechanism that any person may use to report violations of our ethical sourcing code. Each of our factories is required to display a poster communicating details of the mechanism in a location that can be seen by all factory workers. Checks on poster compliance are part of the Target Audit checklist.
In FY20, Target received eight reports through the grievance mechanism. Each report is investigated and followed up in accordance with an investigation procedure deigned to ensure a speedy and adequate response (objective 30 days), as well as procedural fairness to the parties involved. Where the complainant’s identity is disclosed, they will be notified of the investigation outcome. All reports are escalated to the relevant General Manager and other leadership members as required.