Kappa
Since the early 1980s Kappa has manufactured,
marketed and sold a wide range of athletic
apparel and footwear for sport and leisure
purposes.
In 1994, the company was consolidated into
the BasicNet Group that includes brandnames
Kappa, Robe di Kappa and Jesus Jeans. Based
in Turin, Italy, the BasicNet Group operates
by controlling marketing, research and development,
finance and IT services from headquarters,
while conducting its sourcing through the
LF Basic Group, a joint venture with Li
& Fung, a Hong-Kong based trading company.
Distribution of products is handled through
38 licensees, covering 83 countries.
Through this operational web, Kappa has
captured a fair share of the global sportswear
market, reporting revenues of US$ 144,473,000
and pre-tax profits of US$ 7,568,000 in
2002. Kappa has invested heavily in sponsorship
of sport, especially football.
Through the LF Basic Group, Kappa's production
is completely outsourced to suppliers in
a number of countries, including Taiwan,
India, Thailand, China, Viet Nam, Indonesia,
Mauritius, Turkey, and Romania. The LF Basic
Group has adopted and is responsible for
implementing a Compliance Programme for
the Code of Conduct. This code includes
provisions on child labour, forced labour,
disciplinary practices, discrimination,
health and safety, wages, working hours,
freedom of association, and environmental
protection. It states that all workers should
be familiar with the code.
although the LF Basic Group code of conduct
includes provisions for inspections and
corrective action plans where violations
are found, no proof of its implementation
has been provided so far. Kappa has been
the target of a campaign in Italy and in
the UK to ask the company to withdraw from
Burma. Workers in Chinese and Turkish workplaces
producing for Kappa reported:
-
Being under threat of dismissal if
they participate in trade union activities.
-
Forced overtime. Chinese workers work
up to eight hours of overtime during
peak season without being paid the legal
overtime premium.
-
Wages being withheld to prevent them
resigning during peak periods.
-
Not knowing about the existence of
a Kappa Code of Conduct on labour practices.
Kappa appears to have invested in developing
an elaborate Compliance Programme. It needs,
however, to ensure that this is genuinely
being implemented and is not being undermined
by its purchasing practices.
|