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Revised Red-Disapproval Policy:
Beginning May 1, 2009, 3 Orange assessments in 2 years from the last audit date = Red Disapproved status for 1 year.
In January of 2009, the Orange Follow-up audit period was revised from 120 to 180 days, to enable factories to more effectively remediate and also to allow supplier development to take effect. Given this extension, the Red-Disapproval process for both GP and non-GP suppliers’ factories was also revised. Previously, 4 Orange assessments in 2 years from the last audit date = Red Disapproved status for 1 year.
Wal-Mart Ethical Standards ~ Confidential
7
Green
Orange
Yellow
Red -
Failed
- No/minor violations
- Re-audit in 2 years
- Medium risk violations
- Re-audit in 1 year
- High risk violations
- Re-audit in 180 days
- 3rd Orange: Factories that receive 3
Orange assessments in a 2-year period are
Red-Disapproved for 1 year
- Most serious violations (Underage Labor,
Forced/Prison Labor, Corporal Punishment,
Life threatening Working Conditions,
Transshipment)
- No future business |
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