We allocate audits based on the risk level of the country in which a facility is located so we can drive the biggest impact in our broad and diverse supply chain. We classified the facilities into one of three risk categories. The risk category of a facility determines the requirements of that facility under our Responsible Sourcing audit program. We currently use data compiled by the World Bank to determine the risk category of a facility based on indicators of good governance in the country where the facility is located.
We are always looking for ways to refine our risk-based audit program. In addition to a facility’s country, we may look at other variables, including industry-specific risks, supplier compliance management systems and other factors as we evaluate the risk of facilities over time.