Factory audits are one of several tools in the Officeworks ethical sourcing program helping to identify and address modern slavery risks.

A comparison of audit findings for sites with reportable breaches in the 2023 financial year against ratings in the prior period showed an improvement in the audit status among 76 per cent of suppliers or supplier sites, where Officeworks had ongoing commercial relationships. While compliance items remain, they were classified as having a lower level of impact and a lower risk rating. This demonstrates that the audit program is encouraging ongoing improvements in Officeworks’ ethical sourcing risks.

Out of 499 audits reviewed in 2024, the audit program identified 33 reportable breaches across 18 supplier sites, involving 14 suppliers. The most common reportable breaches related to excessive recruitment fees charged by agencies or employers, a lack of evidence or inconsistent records to verify workers’ rights to work and working hours and failure to provide workers with legally required leave entitlement.

In accordance with the Officeworks ethical sourcing program procedure, the 18 supplier sites with reportable breaches were given red audit ratings. The Officeworks ethical sourcing team worked with the suppliers or their sites to remediate the items identified and follow-up with an independent audit. Two of these sites were exited after the supplier refused to remediate breaches relating to recruitment fees and insufficient fire safety.

Officeworks worked closely with suppliers to develop corrective action plans to remediate the reportable breaches identified in the audits.

This year, 27 reportable breaches were remediated, 10 of which were identified in the previous reporting period. Most of these related to lack of documentation to verify the right to work and excessive overtime.

Where the auditor was unable to review consistent evidence at seven supplier sites, Officeworks worked with suppliers to ensure documentation was provided and verified in a follow-up audit.

Where overtime hours were excessive at four supplier sites, suppliers were supported to develop better planning and rostering for peak production periods, systems were implemented to monitor overtime and alert management when excessive hours were worked, and new policies were introduced to ensure a regular rest day.

Of the breaches identified during the year, 11 are still open and Officeworks is currently working to remediate these as part of its regular supplier audits.

Audits are complemented by worker grievance mechanisms, training for suppliers and team members and worker surveys.

This year, Officeworks also remediated 516 major non-conformances by advising suppliers of their factory compliance rating and major non-conformances, including guidance on remediation after an audit, along with a reminder notification as to when a new audit is due to be provided.