Suppliers whose customers accept the SLCP’s CAF in lieu of buyer-specific audits are investing the savings in ways that are directly and indirectly benefiting workers in global supply chains.

Savings were invested about equally in the workplace (36.7%) and in new programs or services for workers (35.3%). Investments in the workplace would encompass health and safety improvements, such as enhanced lighting, better egress, social distancing, and ergonomics. New programs or services for workers would include medical testing and vaccinations to reduce the spread of Covid-19, and others that support the total workforce. While only 7.7% of suppliers reported being able to pay higher wages to workers as a result of the savings, this is undoubtedly influenced by competing financial pressures suppliers are facing due to continued requests for lower prices and poor forecasting that leads to inefficient and more costly operations. Paying higher wages to workers requires suppliers with sound financials, supported by a broad range of better purchasing practices.

Another point important not to overlook is the benefit to workers that results from suppliers having more clarity on corrective action plans. When suppliers and customers agree about the improvements needed, violations that harm workers can be remedied more quickly, and reduce the risk of future noncompliances to labor standards in codes of conduct.