

PANDORA ETHICS REPORT 2016
All PANDORA paper bags originate
from wood from sustainable forestry
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SUPPL I ER AUDITS
In 2016, we reached our target, stipulating that 85% of our
total sourcing value must come from suppliers who have
been audited by either our external auditing company or
are certified members of the RJC. This means that they have
been audited against the broadest and strictest standards
within the jewellery supply chain. The majority of non-
compliance cases identified during the independent supplier
audits involve either health and safety standards or working
conditions. PANDORA’s crafting facilities in Thailand has
worked diligently to achieve high standards as well as
expertise within both areas. Thus, we seek to transfer our
knowledge and expertise to our suppliers helping them
to raise safety levels, job satisfaction and commitment
– and thereby also attraction, retention, productivity and
profitability. Further, in 2016, 199 participants from our
key suppliers attended a one day conference at our new
facility in Lamphun. Here we showcased our state-of-art
green solutions.
55% Health & safety
15 % Compensation & benefits
14 % Working hours
9 % Environment
2 % Disciplinary
practice
2 % Freedom of association
1 % Discrimination
3 % Insufficient child/forced
labour procedures
NON-COMPL IANCE I SSUES IDENTI F I ED
AT AUDITED SUPPL I ERS IN 2016
LIKE RINGS
IN WATER
Audits, dialogue and close cooperation with our
suppliers make a world of difference when it comes
to ethical standards. MTG Group, one of our long-time
suppliers of jewellery boxes and bags, are a good
example of this. Both of our businesses have evolved
rapidly and ethically since our collaboration began
in 2009.
Thomas Ahlmann-Liisberg, Director of MTG Group,
states: “Many things have happened in our company
through the close cooperation with PANDORA.
Having external auditors on site makes us all more
aware, but it is the ongoing dialogue that has
underlined the importance of health and safety,
good working environments, facilities for staff and
their families and even regular social events. This in
turn improves job satisfaction, retention rates and
quality levels.”
A focus on auditing and dialogue has enabled MTG
Group to plan ahead and implement various
initiatives such as certifications. MTG Group now
conduct their own supplier audits to ensure
compliance with their quality standards and ethical
stance. MTG has been certified by the Forest
Stewardship Council (FSC) ensuring that their wood
materials originate from sustainable forestry.
Additionally, MTG is in the process of becoming
SA8000 certified, regarded as among the highest
standard for Social Accountability.
While audits and certifications involves extra work
and cost, MTG Group believes that the resulting
learning curve, supply chain developments and
employee satisfaction make it all worthwhile.
“Teaming up with PANDORA, front runners in
ethical standards in the jewellery industry, means
that we also become front runners,” continues
Thomas Ahlmann-Liisberg. “We are a strong,
confident company with open doors, we are ahead
of legislation and so are our suppliers. Positivity is
spreading like rings in water.”