Case studies

The values and standards that we subscribe to as a company are core to our CR programme.  

Across all our global operations, we operate to the highest business and employment standards and together we share the responsibility for developing and maintaining a working environment that we can be proud of.   

It is vitally important that everyone who represents Coats (or acts on our behalf) understands their role in upholding our responsible approach to business and abiding by the elements of our Ethics Code.    To promote this understanding we have developed a suite of three online training courses together with the international law firm Eversheds.  These three courses cover: 

1. Ethics in general including:

• Fraud
• Conflict of Interest
• Environment
• Health and Safety
• Employment

2. Bribery and Corruption

3. Competition Law  

By the end of 2012, the courses, which have been translated into the 18 most common languages across Coats, have been completed by all 4,700+ of our senior employees and those with customer or supplier facing roles.  To finish the training all participants were required to pass a test on each subject in order to confirm that they had read and understood the relevant Group policies.  This training will be repeated on a periodic basis, and has been included in the on-boarding process for new recruits as appropriate.  

We believe that this represents a very positive step in ensuring that Coats senior employees, as well as those engaged in sales and procurement roles, have a clear understanding of our expectations.

In order to deliver our business strategy, both now and in the future, we need to attract, retain and motivate employees with the necessary skills and talent across the company.  We employ over 20,000 people worldwide and value our workforce highly.  

With employees from so many different cultures based in over 70 countries, it is vital that we listen to what they think about Coats.  We do this through our annual employee engagement surveys for which we achieve a very high participation rate.  In 2012, 95% of our employees took part, which is two percentage points higher than 2011 and much higher than the industry average of 82%. 

Research has shown that organisations with high employee engagement scores also have better customer service, enhanced performance (productivity, sales, profit), and reduced absenteeism.  Our 2012 overall engagement score (reflecting how people feel about working at Coats) has increased by 11 percentage points since December 2010 to 77%.  This is a very encouraging result, outperforming the manufacturing industry norm of 69% and the global high performance norm of 74% (the average score for the top 25% of all companies surveyed^[1]).  The high score is testimony to the efforts of the many employees and managers who strive to make Coats a great place to work.   

On a global basis, we equalled or increased our engagement scores on all dimensions in the survey, including Teamwork, Communication, Learning and Development, Manager Effectiveness and Recognition.  We were especially pleased to see that 87% of our employees feel that Coats is socially and environmentally responsible and 91% that we are committed to employee safety.     

Even though this is very good news at the group level, we have learned from past experience that, as we work through the organisation with more granularity, there are overall trends or individual priority items, dimensions and scores that need to be improved.  Throughout 2013 more detailed results will be shared amongst our colleagues through our bi-monthly newsletter, and we shall be running workshops to help managers communicate the results and create action plans with their teams.  Our CEO has encouraged all managers to participate in our action planning workshops so that they can help shape the future and make Coats an even better place to work.

[1] Kenexa 2012 results

It is important that our people have the skills they need to do their job effectively and to create a safe and pleasant workplace.  This is vital for our business to operate and enhances employee job satisfaction and well-being.

In Tunisia, the local management have implemented extensive annual training plans for their employees.  In 2012, 196 participants received 3,635 hours of training, which amounts to 19 hours of training per participant.

To help bolster customer service and day-to-day tasks, external courses in English, Excel, and customer relationship management were given.

To support managers in improving their ability to lead their teams, sessions on leadership, coaching, and team building were given by experts from outside Coats.

Making Coats a safe and secure workplace is of paramount importance.  Therefore our people are trained regularly on health and safety.  In 2012 the employees in Tunisia received training on first aid, using a defibrillator, and fire safety.

In addition to offering professional training courses, Coat Tunisia makes sure the internal knowledge and skills are shared through internal training sessions.  In 2012 these focused on internal systems and processes, health and safety, the use of electronics, and management software.

Looking ahead to 2013, priority areas for training will include training trainers, stress management, internal systems, and English.

As a manufacturing business it is important that we keep our employees safe and we rely on the co-operation of all our employees to achieve success.  Over the past year we have been rolling out Behaviour Based Safety programmes around the world.  As a result we have observed increased levels of health and safety awareness and changes in behaviour have been noticeable.    

Here are four success stories from across the world:

• Last year Bangladesh recorded 1 million accident-free work hours, rewarding all employees with a special key ring;
• Coats Thailand recorded 1.5 million accident-free man hours in March and all employees received a celebratory hat in recognition of their contribution;
• The Greer distribution centre, in the US, hosted a cookout to celebrate a whole year of accident-free operations;
• The thread and zip manufacturing operations in our Shenzhen, China plant recently passed the milestone of 20 million working hours without an accident.

The Coats Crafts plant in Nagyatad, Hungary recognises the value of its employees in a variety of ways.  Each quarter, employees are empowered to choose the most outstanding employee – with the award presented by the department manager.  Each year, one employee from the quarterly winners is chosen as employee of the year and receives an award at the plant-wide family day.

Understanding the importance of experienced and dedicated teams, Nagyatad employees are recognised when they reach five years of service, and every five years after that is acknowledged as another service milestone.  A meal is held for all employees reaching a milestone and everyone is recognised by his or her manager.

During the year, employees are invited to meals to celebrate outstanding group results or significant events.  Often, management shows its appreciation by serving the meal to the employees.

In 2012, a recognition meal was introduced for employees participating in group volunteering activities.  Their families were invited and everyone’s efforts were acknowledged.

Creating an atmosphere of team spirit at the Nagyatad plant improves morale by creating a supportive workplace environment, and in many cases supports the local community as well.  Team activities include a knitting club, sports days, fishing competitions, volunteer activities, family days, and flower garden building.

Ensuring the safety of our employees is a top priority for Coats. We have a robust approach to minimising the risks to our employees and visitors to our business.

Driven by the efforts of local management, Coats factory in Bursa, Turkey, achieved remarkable improvement in its Health & Safety (H&S) performance from 2007 to 2009.  The “Recordable Rate” (reportable health and safety incidents per hundred full time employees) dropped from 3.29 in 2007 to 1.23 in 2009.  However, to secure further improvement, we recognised that a different strategy would be required.  Based on previous positive experience from across the group, we decided to implement a tool called Behaviour Based Safety (BBS), which Coats Turkey launched in July 2010.

The BBS road map is built upon the following ‘pillars’:

• Training the workforce to be safety conscious, to use safe work methods and embrace BBS principles
• Communication of H&S news / statistics / documents through billboards, posters and LCD screens
• Observation Teams consisting of volunteer employees (mostly from the factory floor) to carry out daily observations of co-workers against a checklist of items
• H&S Suggestion (“Red Tag”) System to encourage the workforce to report anything they might consider as a risk to safety
• Accident / Near Miss Investigation & Reporting to analyse all incidents for root causes and take preventive actions
• Recognition given to the employees and departments with high safety standards and performance, to encourage safe behaviour in others

In the relatively short time since Coats Turkey started its BBS journey towards a safer workplace, positive results have been achieved, with the Recordable Rate now at 1.10.

To ensure that we are meeting the expectations of our stakeholders, including our customers and the brands we supply, we have introduced a programme of auditing at our operations in China.  This helps us to make sure that we are adhering to our robust CR standards, as well as offering us opportunities to improve the way we operate. Starting in mid-2011, we introduced a training programme for employees that would help us do this.  The initiative progressed through two phases:

Certified CR Lead Auditor Training Programme

This external training programme (conducted by the Intertek testing agency) is designed to equip attendees with the skill sets, capabilities and up-to-date intelligence on environmental issues, practices and effective performance management.  It provides participants with a systematic and holistic approach to managing social compliance audits, covering the essential key topics, such as audit criteria/standards, typical codes of conduct, auditor professionalism, obtaining objective evidence, overall audit workflow, on-site audit processes, audit tools, writing corrective action plans, writing audit reports, etc.

Coats China’s Shenzhen unit sent participants from different functions (CR, HR, H&S, Procurement) to attend, and after five days comprehensive training, they all passed the training exam and were officially recognised as “CPI Certified CSR Auditors” by the Compliance Practitioners Initiative (CPI) and City & Guilds.

CR Internal Auditor Training Programme

In order to expand the CR Auditor Team within Coats China, the accredited Lead Auditors developed our own CR Internal Auditor Training Programme using the CPI materials, sharing their experience and knowledge by playing the trainer’s role.  A number of individuals from three business units and different departments were selected to participate in the training.  Following the classroom training participants underwent an assessment which they had to pass in order to become qualified Coats CR Internal Auditors.  So far 21 trainees have completed the programme and more training is planned.

Coats’ Product Safety programme ensures that all products supplied to the customer are safe to use and do not contain any potentially allergenic or harmful substances.  The programme is underpinned by rigorously enforcing our Coats Restricted Substance List (CRSL), which is now in its 8th year.  This list is drawn from all current regulations and directives in the countries in which we operate, as well as our customers’ own restricted substances lists.  The CRSL now extends to some 500 chemicals and 140 banned dyes.  We are proud of the fact that our CRSL is one of the most exacting in the industry and all of our suppliers are required to sign compliance to our CRSL.

Coats has taken on board the ‘Joint Roadmap to Zero Discharge of Hazardous Chemicals’, published in November 2011 by several leading fashion brands and retailers such as adidas, Nike, Puma, Li Ning, C&A and H&M.  The target set by this group was to have 11 ‘priority chemicals’ eliminated from the apparel and footwear supply chain by 2020.  In our version 8 of the CRSL, we placed a ‘Usage ban’ on all of these 11 hazardous chemicals and have systematically worked them out of our supply chain.  For example, in June 2012 we detected low levels of one of these ‘priority chemicals’ - an alkyl phenol ethoxylate (APEO) - in one of our thread products.  APEOs, although commonly found in washing and cleaning products, are being banned more and more as they are endocrine disruptors in humans and animals.  Although the measured amount of this APEO in our thread was well below the current industry limits, we immediately tracked down the source of the APEO and worked with the raw material supplier to replace the non-compliant spin finish with an APEO-free alternative.  Now all of our thread and zip products are completely APEO-free.  There will be no APEO on our products and neither will there be any APEO in our effluent.

Consumers are increasingly considering the environment in their buying decisions and brands such as Marks & Spencer (M&S) are responding by setting challenging sustainability goals for their products.  By 2020, M&S intends that all its products will have “Plan A” sustainability attributes and the company is working with their suppliers to help it meet this goal.    

Coats is committed to sustainable product development and has a reputation in the marketplace as a trusted global supply partner.  As a result, Coats EcoVerde zips and threads have been chosen for the new M&S sustainable garment range focusing on some of their key “Iconic” products.  The range is made in the most sustainable way possible and relies on close collaboration and commitment from key supply chain partners, such as Coats.  The “Iconic” suit, the first of the range, was launched by M&S in 2012.

As a part of this project, the Coats Opti team in China created a 100% recycled zip which is believed to be the only one of its kind on the market.  A range of recycled materials is used in manufacturing these zips, all supported by traceability documentation and proof of recycling.  The brass is sourced from household electronics such as switches and contacts, the copper comes from recycling electrical wires, and the plastic is derived from recycled bottles.

Recycling is becoming increasingly important in a world coming to terms with the challenges of environmental and climatic change.   At home we are all learning to recycle glass, paper and plastic and for many of us recycling has become a part of our lifestyle.  At Coats we also take this issue very seriously and have developed products made from recycled raw materials in both our Crafts and Industrial divisions.

Rowan Purelife Recycled Handknitting Yarns

Under our Rowan handknitting brand we have introduced the Purelife collection of yarns made from recycled garments.   The first stage of the process is to sort the garments - these may be old and used, faulty, or even new - by colour and quality.  After being sterilised, the garments are then sorted by fibre composition (e.g. put all the 100% cotton ones together, all the 100% silk garments together etc.).  It is at this stage that superfluous parts such as any linings, buttons, ribbons, seams and trims are removed.  The sorted garments are then cut into pieces and introduced into a fabric shredder that reduces them to loose fibres.  These are then processed to make regenerated fibre, which is then spun into the cotton, silk and viscose yarns of high quality. 

In this way we not only recycle materials which might otherwise end up in a landfill, but we also produce yarns which can be made into fashionable garments with a vintage allure. Since launching the Purelife Revive and Renew brands three years ago, we have sold over 27 tonnes of yarn.

EcoVerde Industrial Sewing & Embroidery Threads

We recognise that consumers increasingly want to know more about the sustainability of the products they buy and how they are made.

Coats EcoVerde is the umbrella brand that we use for our range of environmentally friendly products which are intended for the garment industry.  Coats EcoVerde recycled polyester was the first of these products to be launched and is a sewing and embroidery thread range made from recycled plastic (PET) bottle flakes. 

The PET bottle is a very useful container but it is a problem for the environment as it is non-biodegradable.  With millions of such bottles being produced daily around the world, the disposal of the used bottles has become a major concern, but the EcoVerde range gives them a new lease of life!  The bottles are collected, washed, sorted, and ground into flakes which are then depolymerised back into their original components.  When this material is re-polymerised into chip form, extruded and drawn, it becomes a purified filament yarn from which EcoVerde recycled polyester sewing and embroidery threads are made.

Three versions of the thread have been produced: two designed for lockstitch and chain stitch derived stitch types, plus a trilobal version of EcoVerde recycled polyester, which has heightened lustre, for use in embroidery.

In addition to the recycled polyester range, Coats has its EcoVerde organic cotton sewing thread, made from the best quality Giza organic cotton staple fibre.  This is available in an undyed state (for sewing post-dyed garments), or in a wide selection of colours using only dyestuffs certified by GOTS (Global Organic Textile Standard).

Our production processes rely heavily on the use of water and energy.  We encourage our sites to improve efficiency where they can, to reduce resource use, save money, and help protect the environment.  

In Korea, waste water from the dyeing process, still hot from production, is stored so that the heat can be recovered and re-used.  A recent leak meant the system needed to be replaced and gave the team the opportunity to think about improvements that could be made.  

They decided to replace three water tanks, each with a five tonne capacity, with one that holds twenty-five tonnes.  This increased storage capacity by two-thirds.  The larger tank is also more efficient, allowing more heat to be retained as the water can now be kept 20ºC warmer.  The new system has generated a 28% reduction in fossil fuel costs at the plant, 6% savings in electricity, and nearly a quarter less in water costs.  

During the changeover…

..and after the work was completed…

Our group-wide commitment to the environment is continually being driven forward by our production teams, who innovate wherever possible to reduce the resources used to make our products. 

In China, successful zip engineering has meant our Opti S series is now made with less material - yet the superior strength and reliability which defines this range is maintained.  In addition to saving valuable resources in production, the zips have further potential to reduce the environmental impact after they leave our factory… 

…the sturdiness of Opti zips make them ideal for use by luggage makers whose bags and suitcases repeatedly end up as air cargo.  The saving of material and weight of a zip can have a knock-on effect.  The typical reduction per product is 28 grams.  So, every time the traveller takes a flight with his or her slightly lighter luggage, less fuel will be consumed and therefore fewer carbon emissions generated.  Although this may not sound like much, for the many flights over the life time of the bag, it can really add up!

At Coats we work to manufacture our products in the most efficient way possible.  This not only saves us time and money but helps us reduce our impact on the environment.  

In our production process we use water which is a scarce resource in many areas.  The team at our Faridabad factory in India recognises the importance of reduced water use to the local community.  In 2012 this drove them to make a number of improvements that achieved dramatic results – water use dropped by 40% and they eliminated wasted water in the factory’s production system. 

To accomplish this, they embraced “Zero basing” techniques (part of Lean Six sigma manufacturing philosophy) to look closely at their existing process.  To start, the team installed water meters to gain an accurate picture of how much water was actually being used.  This was then compared to the amount of water known to be needed in manufacturing.  They discovered that 12% of the water was unaccounted for in the existing process.  By closely examining the system the team was able to cut out all waste and make design changes that improved the entire structure.  The result of greater efficiency and lower water usage was reached without a large capital investment – just good factory management.

As part of our commitment to minimise our impact on the environment, we seek to use materials in the most efficient way that we can.

By re-engineering the standard two degree cone – as used for Epic, Astra, and other popular industrial thread brands – Coats India has been able to reduce plastic (polypropylene) usage by over 30%.

The initial challenge faced by our cone manufacturer was the modification of the moulds to produce the reduced weight cone, without affecting its strength or any other performance characteristics.  Coats India has three different types of cone winding machines and this made the initial trials and developments all the more complex.  Extensive trials were conducted using all these winding machines for different thread products, and samples were tested and evaluated by the Marketing team.  Following the successful completion of the trials, the new, lighter cone was introduced in all Coats India’s manufacturing locations over the course of six months.

In 2011 – the first full year of using the lighter cone – Coats India consumed 22 million of them across all of its manufacturing locations, representing a reduction in plastic usage of 110 tonnes.

Water is a key resource for us. We recognise that it is scarce in many parts of the world, including in some of the countries in which we operate.

Reverse osmosis (RO) is a membrane-technology filtration method that removes salts and other impurities from solutions, and can produce water that meets the demanding specifications that are required for accurate dyeing. RO is achieved by applying pressure to the solution when it is on one side of a selective membrane. The result is that the contaminant is retained on the pressurised side of the membrane and the pure water is allowed to pass to the other side.

At our plant in Turkey, effluent used to be directly discharged to the Bursa Organised Industrial District Management (BOID)'s Waste Water Treatment Plant without any treatment. However, in July 2011 we installed an RO system to re-use some of this effluent water instead of it all going to waste. In terms of efficiency, the RO system manages to convert nearly 70% of the effluent into clean water for use in the dyeing process, the rest is discharged to the BOID's Waste Water Treatment Plant.

Coats Turkey is looking forward to a significant reduction in total water consumption with the RO system's first full year of operation in 2012.

We recognise that our climate is changing, and as a significant energy user we have a role to play in reducing our contribution to it. 

In 2012, the carbon footprint of our operations (excluding transport) was 374 thousand tonnes of carbon dioxide equivalent (CO2e), 11% down compared to the previous year.  The reduction to date has been achieved through a combination of investment in energy efficiency – such as utilising better manufacturing schedules, regular maintenance and optimising building management – as well as in new technology.  Comparing over a longer period, our 2012 emissions are 52% lower than 2000 levels.  In terms of the products we manufacture, we generated 5.6 kg CO2e per kg of dyed product in 2012 compared to 6.2 kg CO2e in the previous year.  This is nearly a 10% reduction in one year alone.

During 2012 we also saw an increase in the amount of energy taken from renewable sources, particularly wind power, and also an increase in the amount of energy produced at our sites.  Last year we used over 1,018 million kWh of energy, of which just under 40% was electricity, a third gas and the remainder coal, oil and renewables.  In 2000, the overall figure was 1.7 billion kWh.  

We have made good progress over the past 12 years and will continue to drive down our energy consumption and reduce emissions from our business.

Wherever possible, Coats aims to reduce the impact of its operations on the environment.  As a result of our focus on converting demand to renewable sources and improving our energy efficiency, emissions of greenhouse gases from our global operations were reduced by 11% in 2012, and by more than 50% compared to 2000. 

In the Tamil Nadu region of India, the state run energy grid has proven inadequate to meet the demands of industry, resulting in inconsistent power supply and power cuts that can last for many hours.  In addition, the limited state supply has seen energy costs increase by 37%.  This has impacted our mills in Madurai, Ambas and Tuticorin, and to maintain production, our Indian team had to run costly diesel generators to supplement the energy available from the grid.  

A longer-term solution to reduce reliance on the grid and the generators was needed.  The management in India considered electricity from wind power as one option amongst a choice of other private producers who used coal, gas or bio fuel.  However, the desire to reduce carbon emissions and source non-polluting energy was a big influence on the team’s final choice.   

As a result, Madura Coats in India is now sourcing renewable energy from a company that uses wind power to generate electricity.  20% of the electricity used in Coats India now comes from a clean source, emitting zero emissions from its generation.   Furthermore, the price of wind power is less likely to vary over time and is lower in cost than the state owned supply.

Improving the environmental footprint of our operations is a priority for Coats.  Where possible we encourage our local teams to save energy or find other efficiencies which will reduce carbon emissions. 

At Coats Shenzhen, in southern China, many of our employees stay in a dormitory on site.  Until recently the heating of the hot water for the dormitory was generated using a combination of a diesel boiler and solar panels.  The system was expensive and inefficient and limited hot water availability in the dormitory to certain hours a day.  Relying heavily on diesel fuel, it also contributed a large amount to the site’s greenhouse gas emissions.   

To find a better alternative, the Regional Manufacturing Director in Shenzhen assembled a multi-discipline team from the engineering, admin and purchasing departments.  They came up with an innovative new system which takes waste water from the dyeing process, still hot from production, and pumps it through a heat exchanger.  The exchanger then heats water which is transferred on to the dormitory.   Whenever the dyehouse is in operation, usually 24 hours per day, there is heat and hot water available for the showers and laundry – not usual in most company dormitories.  Note that to ensure there is no risk of our operators showering in contaminated water (if a heat exchanger got punctured) we have two independent sensors that check colour and conductivity.  If there is any increase in either of these parameters, the system is shut down for checking. 

The new method is not only more reliable, it also saves US$40,000 per year in diesel fuel.  This amounts to annual savings of over 89,000 kilograms of carbon (CO2 equivalent).  This is a great example of innovation that brings environmental improvement, cost savings, time efficiency and greater comfort for our people. 

Here is the team that proposed and implemented the scheme, standing in front of the control panel

Picture of the dormitories, with the solar panels on the roof.  (Not enough energy is generated by the solar panels alone.)

Water is a key resource for us. We recognise that it is scarce in many parts of the world, including in some of the countries in which we operate.

Reverse osmosis (RO) is a membrane-technology filtration method that removes salts and other impurities from solutions, and can produce water that meets the demanding specifications that are required for accurate dyeing. RO is achieved by applying pressure to the solution when it is on one side of a selective membrane. The result is that the contaminant is retained on the pressurised side of the membrane and the pure water is allowed to pass to the other side.

At our plant in Turkey, effluent used to be directly discharged to the Bursa Organised Industrial District Management (BOID)'s Waste Water Treatment Plant without any treatment. However, in July 2011 we installed an RO system to re-use some of this effluent water instead of it all going to waste. In terms of efficiency, the RO system manages to convert nearly 70% of the effluent into clean water for use in the dyeing process, the rest is discharged to the BOID's Waste Water Treatment Plant.

Coats Turkey is looking forward to a significant reduction in total water consumption with the RO system's first full year of operation in 2012.

Working in partnership on matters that impact our business and the communities where we operate is very important to Coats.  Because we are located in so many different places, it is vital that we connect with local organisations who can help us respond in a way that is best suited for their particular culture.  

In Colombia, Coats Cadena Andina actively supports a programme of crafts training courses across the country.  These courses are set up on a micro-enterprise basis and by covering the cost of instruction Coats has helped people to develop a skill that can improve their livelihood.  In 2012 8,000 people were trained across the country.  

A few years ago, the team decided it could have a greater impact if it worked with the Capullos Foundation of Pereira, a charity that provides support to kidney patients awaiting organ transplants, as well as their families.  Knitting and other craft-making can be very therapeutic and additionally, the new skill can help supplement family income during a difficult time. 

The collaboration with the Capullos Foundation provides craft training courses at number of medical centres in Colombia.  Coats donates all the thread and yarn for the crafts, and since the beginning of the collaboration 1,168 patients and family members have been trained.  In 2012 318 people learned a craft as a part of the programme.

Coats recognises the value of working in partnership on matters that impact our business and the communities where we operate.  We are spread across many geographic locations and teaming up with local organisations can help us respond in a way that is best suited for the local context.  

We see the health of our people and our communities as important because it underpins productivity and happiness.  Health is a necessary starting point for any individual and community to flourish.  

In Pailles, Mauritius, there are on-going gaps in access to information and screening for a range of health concerns.  Therefore, our local team identified an opportunity to partner with JCI Curepipe, a community group seeking to initiate positive change in local people.  Together we have worked on a series of health campaigns covering a range of issues, including:

• Health Challenges targeting older people and promoting a society in which old people are cared for, respected and valued;
• Awareness Programmes on Non-Communicable Diseases with a particular focus on heart disease, diabetes and cancer; ·      
• Awareness Programmes on Communicable Diseases with particular focus on HIV/AIDS;
• On-going awareness of healthy eating, proper nutrition and the importance of a balanced diet;
• Promoting the importance of exercise in order to keep fit.  

Coats and JCI have worked together for over two years, organising more than 10 different events.  Examples being:

• An awareness forum on nutrition and diabetes.  This was followed by an educational seminar on HIV/AIDS, cancer and sexual health, seeking to raise awareness and understanding of these serious health issues.
• The annual ‘Take Care Lepep Health Day’ (lepep means people in Mauritius) which offered HIV/AIDS and diabetes tests, dental care for young people, demonstrations on exercise and its benefits, tips on nutrition and eating well, a forum on cancer, and a blood donation campaign.

All the activities were well received by the community who really appreciated the access to health facilities and information.

To ensure that we are meeting the expectations of our stakeholders, including our customers and the brands we supply, we have introduced a programme of auditing at our operations in China.  This helps us to make sure that we are adhering to our robust CR standards, as well as offering us opportunities to improve the way we operate. Starting in mid-2011, we introduced a training programme for employees that would help us do this.  The initiative progressed through two phases:

Certified CR Lead Auditor Training Programme

This external training programme (conducted by the Intertek testing agency) is designed to equip attendees with the skill sets, capabilities and up-to-date intelligence on environmental issues, practices and effective performance management.  It provides participants with a systematic and holistic approach to managing social compliance audits, covering the essential key topics, such as audit criteria/standards, typical codes of conduct, auditor professionalism, obtaining objective evidence, overall audit workflow, on-site audit processes, audit tools, writing corrective action plans, writing audit reports, etc.

Coats China’s Shenzhen unit sent participants from different functions (CR, HR, H&S, Procurement) to attend, and after five days comprehensive training, they all passed the training exam and were officially recognised as “CPI Certified CSR Auditors” by the Compliance Practitioners Initiative (CPI) and City & Guilds.

CR Internal Auditor Training Programme

In order to expand the CR Auditor Team within Coats China, the accredited Lead Auditors developed our own CR Internal Auditor Training Programme using the CPI materials, sharing their experience and knowledge by playing the trainer’s role.  A number of individuals from three business units and different departments were selected to participate in the training.  Following the classroom training participants underwent an assessment which they had to pass in order to become qualified Coats CR Internal Auditors.  So far 21 trainees have completed the programme and more training is planned.

As a leading global thread supplier, Coats is committed to maintaining and promoting world class standards of business integrity.  One way that Coats North America supports these beliefs is through collaboration with its plastic support supplier.  Every day, we collect thousands of used plastic supports from our supply chain and internal processing and send them to the South Carolina Vocational Rehabilitation Department (SCVRD) for recycling.

The SCVRD centre’s mission is to “enable eligible South Carolinians with disabilities to prepare for, achieve and maintain competitive employment”.  They operate 24 work training centres located throughout the state and contract with many businesses and industries to do outsource work.

They take the supports and – using their equipment and manpower – process them into small plastic chips suitable for injection moulding.  The chips are then sent to our supplier, who produces thread spools of various sizes for reuse.

In this way, we are keeping thousands of kilograms of plastic out of the landfills each year, whilst at the same time helping those in need in our local community. See more about the work the SCVRD does at their website.

Due to our global presence, when a disaster strikes somewhere in the world Coats is rarely far from the impacted areas.  In August 2012 the Philippines were hit with severe weather as a tropical storm combined with monsoon rainfall to cause severe flooding.

Coats Manila Bay saw waters rise on site but luckily they did not reach our buildings.  All employees remained safe and unharmed and we reported no damage or loss.  The team was credited for their efforts and commitment which resulted in minimal interruption to operations and distribution.

However, although no one was injured, many employees’ homes were affected.  We responded by distributing emergency relief bags to all our people (272 in total).  In addition we made loan assistance available so those who suffered losses could recover quickly.

Working in partnership on matters that impact our business and the communities where we operate is very important to Coats.  Because we are located in so many different places, it is vital that we connect with local organisations who can help us respond in a way that is best suited for their particular culture.  

In Colombia, Coats Cadena Andina actively supports a programme of crafts training courses across the country.  These courses are set up on a micro-enterprise basis and by covering the cost of instruction Coats has helped people to develop a skill that can improve their livelihood.  In 2012 8,000 people were trained across the country.  

A few years ago, the team decided it could have a greater impact if it worked with the Capullos Foundation of Pereira, a charity that provides support to kidney patients awaiting organ transplants, as well as their families.  Knitting and other craft-making can be very therapeutic and additionally, the new skill can help supplement family income during a difficult time. 

The collaboration with the Capullos Foundation provides craft training courses at number of medical centres in Colombia.  Coats donates all the thread and yarn for the crafts, and since the beginning of the collaboration 1,168 patients and family members have been trained.  In 2012 318 people learned a craft as a part of the programme.

Across our sites in 70 different countries we encourage our teams to engage with their communities in ways that best suit them and their circumstances.  We understand that in each locality cultures and needs vary.  Diversity and inclusion is important to Coats across the company as is the health and well-being of the community.  

About 15% of the world's population lives with some form of disability, of whom 2-4% experience significant difficulties in functioning^[1].  Like a lot of developing countries, Bangladesh has a high proportion of people with disabilities who need care and support.   

CRP is an organisation working across Bangladesh to support people with spinal cord injuries.  They provide comprehensive assistance to patients after an injury, helping them through physical, emotional and economic rehabilitation, as well as integration back into their home and community.   

Coats Bangladesh is proud to have the opportunity to contribute to the work of CRP by donating 10 wheelchairs to their centre.  This is in addition to supporting the on-going work of the rehabilitation centre which offers sewing machine training to patients. 

[1] World Report on Disability , World Bank and World Health Organisation 2011

With operations around the world we are proud of the way our local teams develop relationships with members of their communities.  Health, something often taken for granted, is a necessary starting point for any individual and community to flourish.  We see the health of our people and our communities as important because it underpins productivity and happiness.  

In Turkey, our team took the opportunity to support a local charity, LÖSEV - The Foundation for Children with Leukaemia, as part of its annual New Year’s gift-giving tradition.  Before the start of 2013, each of our key business partners in Turkey received a certificate signed by the Chairman of LÖSEV thanking them for the donation we made on their behalf.  Nearly US$3,000 was given to support LÖSEV.  

The charity supports families as they cope with the heavy burden of caring for a sick child, which is often in large part financial.  The first priority for LÖSEV is that the children receive the treatment they need.  This helps families avoid difficult trade-offs in providing healthcare by offering financial assistance.  In addition, emotional support and information is given to help them through the difficult time.

Recently, Coats Cadena Peru helped create the Largest Sweater in the World – officially recognised by the Guinness Book of World Records!  With the participation of more than 1,500 volunteer knitters, over 6,000 squares (each measuring 40 cm by 40 cm) were made using Coats Cadena’s acrylic knitting yarn, which was donated by the company. 

These were then sewn together to form a sweater with a chest measurement of over 10 metres, body length of nearly 14 metres, and sleeves each over 6 metres long!  This massive garment was then lifted up on a huge structure in the car park of the Plaza San Miguel mall in Lima.

However, all these efforts were not simply aimed at getting into the record books.  After the raising ceremony, the gigantic sweater was taken to pieces and over 1,500 children’s ponchos were made with volunteers’ support. 

The first donation helped 930 children in the community of Huancavelica, one of the poorest parts of Peru, located in the Andes.  Every year many children die in this area because of the harsh temperatures and lack of shelter from the cold.  The rest of the ponchos were given to children in the “Ticlio Chico” community, just outside Lima.

Helping the Coats Thailand ‘Family’

The recent flood crisis in Thailand has had a devastating effect on many Thai families.  Millions were displaced, agricultural land was swamped and factories flooded.  While our factory was lucky enough to remain unscathed, many of our employees’ homes were flooded, some to depths of up to two metres.  As a result many staff had to relocate their families to alternative accommodation in unaffected areas.  Coats Thailand’s Welfare Committee swiftly implemented the following package:

1. We provided a hardship allowance for 40 employees and families who had to evacuate their homes but were still coming to work on a daily basis.
2. As a preventative measure against rising flood levels, we relocated our finished goods warehouse to another part of Bangkok.  Staff who were forced to move to the new site were given a relocation allowance.
3. Special leave was granted for those who needed extra time to relocate and/or clean up.

This was very well received by all the affected employees and was a real demonstration of positive teamwork within the Coats Thailand family.

The photos show some of Coats employees affected by flooding.

Helping Others

In addition, Coats Thailand set up a 'Flood Relief Volunteer Team' to support the Thai Red Cross Society.  Thai Red Cross relief volunteers produced on average 5,000 Red Cross Relief Kits per day with drinking water and other necessities which were distributed to flood victims in 32 provinces.

We were proud that we did something on behalf of the Company to help flood victims in Thailand and we were very happy to greet and pay respect to HRH Princess Maha Chakri Sirindhorn (Executive Vice President of the Thai Red Cross Society) when she paid a surprise visit to the Thai Red Cross Society while the Coats team was volunteering.

As a leading global thread supplier, Coats is committed to maintaining and promoting world class standards of business integrity.  One way that Coats North America supports these beliefs is through collaboration with its plastic support supplier.  Every day, we collect thousands of used plastic supports from our supply chain and internal processing and send them to the South Carolina Vocational Rehabilitation Department (SCVRD) for recycling.

The SCVRD centre’s mission is to “enable eligible South Carolinians with disabilities to prepare for, achieve and maintain competitive employment”.  They operate 24 work training centres located hroughout the state and contract with many businesses and industries to do outsource work.

They take the supports and – using their equipment and manpower – process them into small plastic chips suitable for injection moulding.  The chips are then sent to our supplier, who produces thread spools of various sizes for reuse.

In this way, we are keeping thousands of kilograms of plastic out of the landfills each year, whilst at the same time helping those in need in our local community. See more about the work the SCVRD does at their website.