Marks & Spencer's response to 'Who pays for the crisis' tracker allegations - March 2024
[...]
We are very proud to hold strong long-term relationships with our suppliers and it has always been a priority to respect human rights and to stand up for our workers across our global supply chains.
These relationships allow us to honour supplier commitments when supply chain “shocks” occur as we did for example during and after Covid.
To support meeting our commitments to our clothing and home suppliers, and to ensure we manage our supply so that we have a viable business on the other side of any crisis, we worked with our suppliers in the following ways:
Prices are negotiated to ensure that all workers are entitled to fair and equal compensation, which at least meets the legal minimum wage, industry standards, or negotiated wages and includes all legally mandated benefits (medical insurance, social insurance, pension).
Our critical path, delivery dates and volumes are discussed with suppliers prior to orders being placed to ensure appropriate and achievable leadtimes.
As well as agreed standard payment terms with our suppliers, we offer vendor finance and letters of credit meaning suppliers can get early access to cash regardless of payment terms. Therefore in the wake of any unpredictable events where production may be interrupted or halted, our payment terms are maintained. We always pay for shipped product and across all our partners we aim to ensure that no fabric goes to waste.
Regarding the sites named in your letter, we do source from Quantum Clothing and Tripos International, but we do not source from Shoe Premier.
Our compliance team regularly visit all our supplier factories and in conjunction with annual 3rd party audits, monitor conditions and situations in these sites...
[The full response is attached]