Non-Compliance Disclosure JD Social Responsibility
Description: Non-Compliance Disclosure JD Social Responsibility Team 1st January 2025 31st December 2025 The compliance team works within an internal audit scope defined by the International Labour Organisation standards, which classifies all
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slide1. Non-Compliance Disclosure JD Social Responsibility Team
1st January 2025 – 31st December 2025<br>
slide2. The compliance team works within an internal audit scope defined by the International Labour Organisation standards, which classifies all non-compliances and from this, action plans are formulated.
Through this scope we review and verify closures of all non-compliances highlighted in the original audit.
In 2025 the group actively managed non compliances from 694 audits. 340 of these audits were received between 1st January 2025 and 31st December 2025. Non-compliances are categorised according to issue type, root cause and severity level. This is used to create the action plan proposed to the factory to work to resolve and close the issues highlighted in the reports/visit.
For the period January 1st, 2025, to December 31st, 2025, the non-compliances disclosed in the audit reports are detailed within this document. SUPPLY CHAIN Yearly Closure Rate %<br>
slide3. ISSUE AREA & ROOT CAUSES ISSUE AREA & ROOT CAUSES Yearly Non-Compliances Split into Issue Type Yearly Non-Compliances Split into Root Causes<br>
slide4. COUNTRY BREAKDOWN Average Non-Compliance Per Factory Split into Country<br>
slide5. DISCLOSURE External Causes – 2
Lack of Internal Communication – 59
Lack of Management Commitment – 144
Lack of Policy – 64
Lack of Procedure – 420
Lack of Responsible Person – 245
Lack of Top Management Review – 55
Lack of Workforce Training – 134
Management Systems – 107
Other – 8 1 Critical
236 Major
73 Minor 0 Critical
20 Major
15 Minor Additional Notes Management
Systems & Code Implementation 0 Critical
63 Major
19 Minor Causes Open – 18
Closed - 64 Awareness – 0
Cost – 0
External Cause – 5
Lack of Internal Communication – 0
Lack of Management Commitment – 9
Lack of Policy - 4
Lack of Procedure – 14
Lack of Responsible Person – 4
Lack of Top Management Review – 12
Lack of Workforce Training - 4
Management Systems – 23
Other – 2
Root Cause Analysis conduct by factory - 5 Employment Is Freely Chosen 3 Critical
0 Major
0 Minor Causes Open – 0
Closed - 3 Awareness – 0
Cost – 0
External Cause – 0
Lack of Internal Communication – 0
Lack of Management Commitment – 1
Lack of Policy - 0
Lack of Procedure – 0
Lack of Responsible Person – 0
Lack of Top Management Review – 0
Lack of Workforce Training - 0
Management Systems – 0
Other – 0
Root Cause Analysis conduct by factory - 2 Freedom Of Association 0 Critical
104 Major
364 Minor Causes Open – 86
Closed - 382 Awareness – 0
Cost – 0
External Cause – 0
Lack of Internal Communication – 133
Lack of Management Commitment – 73
Lack of Policy - 92
Lack of Procedure – 121
Lack of Responsible Person – 4
Lack of Top Management Review – 20
Lack of Workforce Training - 8
Management Systems – 11
Other – 1
Root Cause Analysis conduct by factory - 5 Working Conditions Are Safe & Hygienic 7 Critical
1625 Major
1055 Minor Causes Open – 409
Closed - 2278 Awareness – 1
Cost – 0
External Cause – 13
Lack of Internal Communication – 121
Lack of Management Commitment – 452
Lack of Policy - 29
Lack of Procedure – 1148
Lack of Responsible Person – 104
Lack of Top Management Review – 179
Lack of Workforce Training - 386
Management Systems – 73
Other – 4
Root Cause Analysis conduct by factory - 177 Child Labour Is Not Used 0 Critical
0 Major
1 Minor Causes Open – 1
Closed - 0 Awareness – 0
Cost – 0
External Cause – 0
Lack of Internal Communication – 0
Lack of Management Commitment – 0
Lack of Policy - 0
Lack of Procedure – 0
Lack of Responsible Person – 1
Lack of Top Management Review – 0
Lack of Workforce Training - 0
Management Systems – 0
Other – 0
Root Cause Analysis conduct by factory - 0 Living Wages Are Paid 2 Critical
482 Major
225 Minor Causes Open – 254
Closed - 455 Awareness – 4
Cost – 4
External Cause – 0
Lack of Internal Communication – 430
Lack of Management Commitment – 119
Lack of Policy - 4
Lack of Procedure – 11
Lack of Responsible Person – 2
Lack of Top Management Review – 70
Lack of Workforce Training - 3
Management Systems – 44
Other – 1
Root Cause Analysis conduct by factory - 17<br>
slide6. DISCLOSURE Regular Employment
Is Provided Additional
Notes Living Wages Are Paid Social insurance is an ongoing non-compliance and makes up majority of the open issues in this section. Working Hours Are Not Excessive Closures take time as evidence is collected over at least 3 months to ensure change is implemented permanently. Working Hours Are Not Excessive 22 Critical
553 Major
2 Minor Causes Open – 114
Closed - 463 Awareness – 0
Cost – 0
External Cause – 0
Lack of Internal Communication – 0
Lack of Management Commitment – 5
Lack of Policy - 3
Lack of Procedure – 1
Lack of Responsible Person – 0
Lack of Top Management Review – 0
Lack of Workforce Training - 0
Management Systems – 497
Other – 0
Root Cause Analysis conduct by factory - 71 No Discrimination Is Practiced 0 Critical
7 Major
12 Minor Causes Open – 3
Closed - 16 Awareness – 0
Cost – 0
External Cause – 0
Lack of Internal Communication – 1
Lack of Management Commitment – 4
Lack of Policy - 0
Lack of Procedure – 5
Lack of Responsible Person – 0
Lack of Top Management Review – 4
Lack of Workforce Training - 2
Management Systems – 0
Other – 3
Root Cause Analysis conduct by factory - 0 Regular Employment Is Provided 0 Critical
46 Major
44 Minor Causes Open – 11
Closed - 79 Awareness – 0
Cost – 0
External Cause – 0
Lack of Internal Communication – 8
Lack of Management Commitment – 14
Lack of Policy - 6
Lack of Procedure – 16
Lack of Responsible Person – 1
Lack of Top Management Review – 12
Lack of Workforce Training - 17
Management Systems – 7
Other – 0
Root Cause Analysis conduct by factory - 9 No Harsh or inhumane Treatment 0 Critical
3 Major
12 Minor Causes Open – 0
Closed - 15 Awareness – 0
Cost – 0
External Cause – 0
Lack of Internal Communication – 0
Lack of Management Commitment – 2
Lack of Policy - 3
Lack of Procedure – 2
Lack of Responsible Person – 0
Lack of Top Management Review – 0
Lack of Workforce Training - 5
Management Systems – 1
Other – 0
Root Cause Analysis conduct by factory - 2 Other Findings; Environmental, Business Ethics & RTW 1 Critical
174 Major
218 Minor Causes Open – 63
Closed - 330 Awareness – 0
Cost – 0
External Cause – 3
Lack of Internal Communication – 8
Lack of Management Commitment – 69
Lack of Policy - 48
Lack of Procedure – 112
Lack of Responsible Person – 4
Lack of Top Management Review – 53
Lack of Workforce Training - 48
Management Systems – 35
Other – 1
Root Cause Analysis conduct by factory - 12 Certifications/ Permits Often take 6+ months to obtain from external parties once they apply so closures take time. These include open non compliances in issue types; other findings, health and safety and management systems and code implementation.<br>
1st January 2025 – 31st December 2025<br>
slide2. The compliance team works within an internal audit scope defined by the International Labour Organisation standards, which classifies all non-compliances and from this, action plans are formulated.
Through this scope we review and verify closures of all non-compliances highlighted in the original audit.
In 2025 the group actively managed non compliances from 694 audits. 340 of these audits were received between 1st January 2025 and 31st December 2025. Non-compliances are categorised according to issue type, root cause and severity level. This is used to create the action plan proposed to the factory to work to resolve and close the issues highlighted in the reports/visit.
For the period January 1st, 2025, to December 31st, 2025, the non-compliances disclosed in the audit reports are detailed within this document. SUPPLY CHAIN Yearly Closure Rate %<br>
slide3. ISSUE AREA & ROOT CAUSES ISSUE AREA & ROOT CAUSES Yearly Non-Compliances Split into Issue Type Yearly Non-Compliances Split into Root Causes<br>
slide4. COUNTRY BREAKDOWN Average Non-Compliance Per Factory Split into Country<br>
slide5. DISCLOSURE External Causes – 2
Lack of Internal Communication – 59
Lack of Management Commitment – 144
Lack of Policy – 64
Lack of Procedure – 420
Lack of Responsible Person – 245
Lack of Top Management Review – 55
Lack of Workforce Training – 134
Management Systems – 107
Other – 8 1 Critical
236 Major
73 Minor 0 Critical
20 Major
15 Minor Additional Notes Management
Systems & Code Implementation 0 Critical
63 Major
19 Minor Causes Open – 18
Closed - 64 Awareness – 0
Cost – 0
External Cause – 5
Lack of Internal Communication – 0
Lack of Management Commitment – 9
Lack of Policy - 4
Lack of Procedure – 14
Lack of Responsible Person – 4
Lack of Top Management Review – 12
Lack of Workforce Training - 4
Management Systems – 23
Other – 2
Root Cause Analysis conduct by factory - 5 Employment Is Freely Chosen 3 Critical
0 Major
0 Minor Causes Open – 0
Closed - 3 Awareness – 0
Cost – 0
External Cause – 0
Lack of Internal Communication – 0
Lack of Management Commitment – 1
Lack of Policy - 0
Lack of Procedure – 0
Lack of Responsible Person – 0
Lack of Top Management Review – 0
Lack of Workforce Training - 0
Management Systems – 0
Other – 0
Root Cause Analysis conduct by factory - 2 Freedom Of Association 0 Critical
104 Major
364 Minor Causes Open – 86
Closed - 382 Awareness – 0
Cost – 0
External Cause – 0
Lack of Internal Communication – 133
Lack of Management Commitment – 73
Lack of Policy - 92
Lack of Procedure – 121
Lack of Responsible Person – 4
Lack of Top Management Review – 20
Lack of Workforce Training - 8
Management Systems – 11
Other – 1
Root Cause Analysis conduct by factory - 5 Working Conditions Are Safe & Hygienic 7 Critical
1625 Major
1055 Minor Causes Open – 409
Closed - 2278 Awareness – 1
Cost – 0
External Cause – 13
Lack of Internal Communication – 121
Lack of Management Commitment – 452
Lack of Policy - 29
Lack of Procedure – 1148
Lack of Responsible Person – 104
Lack of Top Management Review – 179
Lack of Workforce Training - 386
Management Systems – 73
Other – 4
Root Cause Analysis conduct by factory - 177 Child Labour Is Not Used 0 Critical
0 Major
1 Minor Causes Open – 1
Closed - 0 Awareness – 0
Cost – 0
External Cause – 0
Lack of Internal Communication – 0
Lack of Management Commitment – 0
Lack of Policy - 0
Lack of Procedure – 0
Lack of Responsible Person – 1
Lack of Top Management Review – 0
Lack of Workforce Training - 0
Management Systems – 0
Other – 0
Root Cause Analysis conduct by factory - 0 Living Wages Are Paid 2 Critical
482 Major
225 Minor Causes Open – 254
Closed - 455 Awareness – 4
Cost – 4
External Cause – 0
Lack of Internal Communication – 430
Lack of Management Commitment – 119
Lack of Policy - 4
Lack of Procedure – 11
Lack of Responsible Person – 2
Lack of Top Management Review – 70
Lack of Workforce Training - 3
Management Systems – 44
Other – 1
Root Cause Analysis conduct by factory - 17<br>
slide6. DISCLOSURE Regular Employment
Is Provided Additional
Notes Living Wages Are Paid Social insurance is an ongoing non-compliance and makes up majority of the open issues in this section. Working Hours Are Not Excessive Closures take time as evidence is collected over at least 3 months to ensure change is implemented permanently. Working Hours Are Not Excessive 22 Critical
553 Major
2 Minor Causes Open – 114
Closed - 463 Awareness – 0
Cost – 0
External Cause – 0
Lack of Internal Communication – 0
Lack of Management Commitment – 5
Lack of Policy - 3
Lack of Procedure – 1
Lack of Responsible Person – 0
Lack of Top Management Review – 0
Lack of Workforce Training - 0
Management Systems – 497
Other – 0
Root Cause Analysis conduct by factory - 71 No Discrimination Is Practiced 0 Critical
7 Major
12 Minor Causes Open – 3
Closed - 16 Awareness – 0
Cost – 0
External Cause – 0
Lack of Internal Communication – 1
Lack of Management Commitment – 4
Lack of Policy - 0
Lack of Procedure – 5
Lack of Responsible Person – 0
Lack of Top Management Review – 4
Lack of Workforce Training - 2
Management Systems – 0
Other – 3
Root Cause Analysis conduct by factory - 0 Regular Employment Is Provided 0 Critical
46 Major
44 Minor Causes Open – 11
Closed - 79 Awareness – 0
Cost – 0
External Cause – 0
Lack of Internal Communication – 8
Lack of Management Commitment – 14
Lack of Policy - 6
Lack of Procedure – 16
Lack of Responsible Person – 1
Lack of Top Management Review – 12
Lack of Workforce Training - 17
Management Systems – 7
Other – 0
Root Cause Analysis conduct by factory - 9 No Harsh or inhumane Treatment 0 Critical
3 Major
12 Minor Causes Open – 0
Closed - 15 Awareness – 0
Cost – 0
External Cause – 0
Lack of Internal Communication – 0
Lack of Management Commitment – 2
Lack of Policy - 3
Lack of Procedure – 2
Lack of Responsible Person – 0
Lack of Top Management Review – 0
Lack of Workforce Training - 5
Management Systems – 1
Other – 0
Root Cause Analysis conduct by factory - 2 Other Findings; Environmental, Business Ethics & RTW 1 Critical
174 Major
218 Minor Causes Open – 63
Closed - 330 Awareness – 0
Cost – 0
External Cause – 3
Lack of Internal Communication – 8
Lack of Management Commitment – 69
Lack of Policy - 48
Lack of Procedure – 112
Lack of Responsible Person – 4
Lack of Top Management Review – 53
Lack of Workforce Training - 48
Management Systems – 35
Other – 1
Root Cause Analysis conduct by factory - 12 Certifications/ Permits Often take 6+ months to obtain from external parties once they apply so closures take time. These include open non compliances in issue types; other findings, health and safety and management systems and code implementation.<br>