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The Starbucks factory audit program is launched by Starbucks. A standard for its suppliers guarantees the source of raw materials, traces the raw materials, and allows us to use them more confidently.
Now let's take a look at some of the common questions of Starbucks factory audit:
Q: What is the zero tolerance standard in Starbucks factory inspection?
A: The Zero Tolerance (ZT) standard is part of the standard for manufactured goods and services. Production sites must meet these minimum requirements before Starbucks may consider doing business with them or maintaining existing business contacts.
Q: What does “opaqueness” mean? How does the auditor know that the factory operation is opaque?
A: The auditor will review the samples of the payroll, attendance, time card and production records to ensure that all working hours are accurately recorded. If there are inconsistencies in the records, it means that the factory has not established a complete system to collect all working hours and salary information. There may also be situations where the auditor is not provided with a true record. These will make it impossible for auditors to assess wages and working hours.
Q: What is the basis of the Starbucks Ethical Sourcing (ES) standard?
A: Ethical procurement standards are based on the International Labor Organization (ILO) Convention and refer to current practices and industry best practices, including provisions that protect employees to the greatest possible extent.
Q: If local laws and regulations are different from Starbucks' expectations, which party should be subject to it?
A: Usually the requirements of local laws and regulations are prevailing; however, in some cases, Starbucks' standards are more stringent, and factory performance will be measured against this standard.
Q: Why does the factory fail to pass the audit because it does not provide an accurate record?
A: In order to verify that the factory does meet our zero tolerance standards, the auditor should be able to calculate the minimum wage. If the factory does not have an effective system to capture the time employees enter and leave the factory, it is impossible to verify the hourly wage. Based on this, it is possible to infer that there is a zero-tolerance violation discovery point in the factory that does not pay wages.
Q: Does Starbucks not let the factory pay wages on a piece-rate basis?
A: Starbucks does not prevent factories from calculating wages on a piece-rate basis; however, the piece-rate system is used in conjunction with an effective attendance and time recording system. To accurately record the time employees enter and leave the factory, calculate the legal minimum hourly wage.
Q: How long does the assessment take?
A: The assessment and reporting process can take up to 8 weeks. During this period, the supplier will arrange an assessment for the payment of the assessment; the assessment will be completed within 4 weeks of the payment confirmation. Draft the report within 7 to 10 business days of completing the assessment and submit it to the supplier for review and approval. The supplier has 5 working days to review and accept the report. After that, complete the report and submit it to the supplier.
Q: How long does Starbucks give the factory an improvement?
A: After the assessment, the factory will first submit the first draft of the Corrective Action Plan (CAP) within 14 days to indicate what project milestones and deadlines are suitable for the factory. After that, our service provider will review the rectification plan, and the rectification plan should be completed by the third party and the supplier within 30 days; we expect the factory to explain every step of its progress to achieve sustainable improvement within the recommended time limit. Once progress is made, a verification assessment can be carried out to confirm progress. Ideally, all improvements will be completed in 12 months.
Q: If a supplier has two sites, the first factory has received an ethical procurement assessment, and the second one does not, can the second factory handle Starbucks orders?
A: No. The two plants will be evaluated before production is approved. The assessment will take place between factories with the same business license.
