The Power of Clothing Vol. 11 Published by Fast Retailing Co., Ltd. www.fastretailing.

com/eng/csr
We would like to thank everyone who shared their ideas with us.
Altogether we received 739 ideas from 46 countries around the world.
After reviewing these ideas, we selected the following eight for
implementation.

Set up “UNIQLO DREAM WALLS” for children across the world

to use when playing sports.
By: Yosuke Kawada

Provide work experience classes for children with limited access

to formal education and have professionals in fields such as sports,
the arts and engineering teach them.
By: pntswrks

Create opportunities for children in refugee centers in Serbia to

experience selecting and buying clothes.
By: Mahito Takahashi

Address educational disparities in developing countries by offering

courses on DVD by outstanding lecturers.
By: eedu_jp

Establish libraries to raise the literacy rate among children in

developing countries in Asia.
By: sva_1981

Create hospices where children suffering from life-threatening

diseases can be at peace with their families.
By: Hideki Takaba

Set up a facility to provide vocational training and incubate

businesses as a means for enabling underprivileged Filipino youths
to become independent adults.
By: Takako Yamada

Create girls soccer clubs in developing countries to foster their

independence.
By: Ayako Hayashi

© Plan Japan CLOTHING THAT UNIQLO ASPIRES TO PROVIDE

For more information about these projects, including progress reports, visit:

ht tp://cl othes forsmiles.uniqlo.com

 From Fa s t Retailing
Making Progress in Bringing a Sense of
Satisfaction to PeopleTable
The Power of Clothing across
of Contentsthe World UNIQLO and Partner Factory Initiatives Combine

11
Making the World a Better Place 0 4 How One Factory Produces UNIQLO Clothing
through UNIQLO Clothing Production
0 8 Taking Life in Stride with Pride
to Produce Truly Great Clothing
A view of UNIQLO initiatives from outside the UNIQLO’s
companyClothing Production in New
Locations around the World Fast Retailing’s primary mission is “To create truly great clothing with new and unique
By Toshihiko Fujii —Indonesia values, and to enable people all over the world to experience the joy, happiness and
By Kazunori Kobayashi satisfaction of wearing such great clothes.” In this context, “truly great clothing” refers to not

Great clothing has many characteristics and 10 Joint Initiatives of UNIQLO and Partner
the supply chain,” whereby companies take
only high quality products but also their production under ethical working conditions. We
Factories also place priority on incorporating public expectations, including the ideas of our
properties such as comfort, beautiful colors and responsibility for ensuring environmental
reasonable prices. Everyone has their own ideas14 soundness
Making Progressand appropriate
in Bringing a Sense employment
of customers, into our considerations for producing truly great clothing.
about what makes great clothing. But these days Satisfaction
conditions toand
People across the
workplace World
environments exist
the trend among consumers worldwide seems to through UNIQLO
throughout the Clothing Production
supply chain. In this issue, we have introduced UNIQLO’s concept of truly great clothing along with joint
be that they are increasingly adding a new By Toshihiko Fujii initiatives and collaboration with partner factories. From these initiatives, our trusted,
criterion for greatness: the sense of being UNIQLO is one of Japan’s companies that are
15 UNIQLO and Partner Factory Initiatives long-term partner factories are now seeing far fewer negative findings during Workplace
connected with production workers to share a actively to
Combine committed
Produce to implementing
Truly CSR through-
Great Clothing Monitoring as a result of their efforts to take corrective actions. At the same time, however,
sense of satisfaction. out supply chains, but many of UNIQLO’s
initiatives still require a lot of work. There are new partner factories often have to make major improvements due to a lack of knowledge
Many people work in clothing production, and many corporations involved in the production of or experience.
it’s not unusual today for supply chains in this clothing, which takes on numerous processes,
industry to span multiple countries. Now people so workplace environments can differ dra- We believe establishing stronger communication is essential, especially with new partner

Clothing that UNIQLO Aspires

want clothing that brings an equal amount of
satisfaction to people who make it and wear it. In
matically, requiring a tremendous effort from
companies to create workplaces that make all
factories, and to share information and work even closer together to tackle unresolved
problems. That is why we are actively addressing problems in advance through pre-contract

to Provide
other words, increasingly more consumers are employees proud to work there. The steady
monitoring, holding seminars for factory managers and related departmental leadership at
measuring greatness in clothing based on how it expansion of UNIQLO’s clothing production
is made, and not just on appearance. across the world makes this effort even more our production offices in various parts of Asia, and also dispatching FR employees to
provide in-person, onsite guidance. In addition, we welcome feedback from people at our
MADE FOR ALL: Clothing We Believe ischallenging.
Truly Great partner factories and incorporate their comments into the creation of better solutions. We
Until quite recently, environmental impacts were
the public’s main concern for how clothing is This effort and commitment increasingly believe these ongoing efforts will generate more effective initiatives.
made.
WeWhile
wantit tois clear to alltruly
provide of usgreat
that factories representaround
clothing to people the truethe
power of clothing, which can
world.
should
We minimize harm the
realize that to the environment,
definition the type also
of this be foundgoes
of clothing in creating
beyondmore jobs for people We want to establish solid and lasting relationships with factories that also hold our vision in
well-being of production
excellence workers did
in appearance, not really
quality around theClothing
and functionality. world andoffered
working opportunities that
the framework of shared, mutually beneficial business initiatives and not merely operational
attract
at significant
a reasonable attention.
price does not make it truly resultgreat
in genuine satisfaction.
either. For us, When people try “transactions.” By doing this we hope to produce truly great clothing under healthy working
out UNIQLO clothing, I hope they take a moment
clothing production must involve the development of the best conditions, which will in turn make the world a better place.
As consumers started to perceive an imbalance to think about the people who they now share a
materials and products and direct control over all aspects of the
between the disadvantaged people who make bond with across the world. I want UNIQLO to
the manufacturing process,
clothing and the satisfied from
people whothe procurement
wear continue ofworking
materials
toward and
a style of clothing
fabrics to production and
it, many international apparel manufacturersdelivery. We also
production that allows our
believe that all for people to feel
production
started consideringprocesses
this new should be sustainable
criterion of and supported
connected with productionby aworkers in order to
framework
“greatness.” thatcontext,
In this promotes continual
I would like toimprovement. These
share a sense points are
of satisfaction.
vital tothe
introduce ourconcept
missionofto“CSR produce truly great clothing.
throughout

Key to supporting this mission are approximately 70 partner

Toshihiko Fujii that are committed to working and growing with us. The
factories
Visiting professor at the Graduate School of Economic Science, Saitama University
factories produce roughly 600 million items of UNIQLO clothing per
After receiving a BA in Economics at the University of Tokyo in 1987, he joined the Ministry of International Trade and Industr y
(nowyear, and of
the Ministry we must ensure
Economy, Trade and this production
Industry). is taking
In 1994 he received an MBAplace under
from the safe,
University of Washington. He served
reliableGeneral
as Secretary working of the conditions
Japan Businessthat
Councilarein also
Europeenvironmentally
(Brussels) in 2000 and sound.
returned toWethe Ministry of Economy, For more information about our CSR activities, please visit:
also
Trade and believe it is toessential
Industry in 2004 serve as theto build
Director solid
of the relationships
Office for Trade Remedywith partner
Investigations. Since 2010 he has been
teaching as a visiting professor at the Graduate School of Economic Science, Saitama University. that
Fujii is one of the pioneering
http://www.uniqlo.com/en/csr/
factories and maintain advanced technologies and facilities
Japanese lobbyists for the European Union and has been active as a CSR researcher. He has published many books on CSR
achieve high quality and an efficient production system. For Please direct your comments and inquiries to:
from a global perspective. His major publications include: Europe’s CSR and Japan’s CSR—What Can We Learn?, Japanese,
UNIQLO, the ideal
Nikkagiren Publishing, in clothing
2005; Global production
CSR Procurement, Supply can
Chainonly be realized
Management onceSocial Responsibilities,
and Corporate FR_G_frgcsr@fastretailing.com
all ofNikkagiren
Japanese, these elements areGlobal
Publishing, 2006; closely integrated,
Rules as and only
Competitive Strategy, thenToyo
Japanese, can weInc., 2012.
Keizai
produce truly great clothing.

14 The Power of Clothing

How One Factory Produces UNIQLO Clothing
What is Checked during
Sewing factories are integral to the production of clothing. High quality UNIQLO clothing production is

Workplace Monitoring?
made possible through strong partnerships with factories and a combination of the latest manufacturing
equipment for efficient and dynamic production, detailed work using one’s hands and eyes, and the
Sewing Fabrics Sewing Finishing and
Inspection
Shipping

experience
Sewing of artisans.that
factories Here is a brief explanation
manufacture of the must
UNIQLO clothing majorundergo
production processes.
Workplace
Monitoring. After an opening meeting, auditors will inspect the factory as well Sewing accuracy combined with speed is key. During the sewing process, articles of clothing
as other facilities such as dormitories and cafeterias. After that, more checks in production undergo multiple inspections so that superior quality is guaranteed.

Fabrics
are carried out to assess the working conditions at the factory, which include
Fabrics Sewing Finishing and
interviews with workers and inspections of Inspection
Shipping
documents. Corrective action is Sewing Lines
instructed on the spot in the event unsafe or unacceptable conditions are
discovered.
Sampling UNIQLO employees
inspections not only
are conducted givematerials,
for all instructions but also
including work
fibers andwith
dyes. Only Life and Health Parts of items are pieced to-
gether by different workers,
the factories by helping them identify and effectively address problems
materials that are confirmed as highly reliable are woven into fabrics and at cut.
their from one worker to the next,
source. UNIQLO employees later confirm that corrective measures have been Ensuring the Safety and Well-being of Workers with experienced sewing
workers being generally faster
taken and that the problems have been remedied. These procedures ensure that and more accurate. UNIQLO
Material Delivery and the factory strive to
UNIQLO products are manufactured in a safe and reliable working environment.
Yarn, dyes and chemicals Cafeteria kitchen increase worker satisfaction
by, for example, carefully
are carefully selected for
fabric weaving. Materials that
Auditors inspect the hygienic maintaining
conditionsworkplace
of the safety
pass a final inspection at the cafeteria kitchen, which prepares andfood
reliability
for while making the
workers
fabric factories are delivered every day. They also check thatfactory a comfortable and
the factory keeps
to the sewing factories (see secure place to work for the
certificates of health for all cafeteria
longworkers.
term (see pages 10–13).
interview below).

Safety Fabric Inspections

Employee dormitories
Auditors check if drinking water isEven
Cutting Threads
safe ifand if showers
there is only a little
Safety Checks at Clothing Production Sites Fabrics are inspected with
backlighting to check for any
flaws, smudges or uneven
and toilets in the dormitory are sanitary.
exit routes are also inspected.
All emergency
excess thread at the end of a
stitch, a worker will cut the
thread off with thread nippers.
dye. Since this requires a high

Materials and equipment

degree of concentration, Job-specific medical examinations
Auditors determine whether workers Intermediate
inspection work is done on a
rotational basis so that all the have received the
Auditors make their way throughout the factory while
fabrics can be meticulously appropriate medical examinations forInspections
specific jobs with
looking for potentially hazardous stacking of boxes or
checked. due consideration for occupationalEvery
healthtime a part is sewn,
risks.
incorrectly placed equipment. an intermediate inspection
follows. Inspectors confirm
Emergency safety measuresCutting the accuracy of all stitching
lines and check thread ten-
Fabrics are cut by a machine
Emergency equipment and supplies such as fire sion by pulling on the fabric
after exacting calculations
extinguishers and first-aid kits toare checked
minimize to make
waste. Workers to make sure the threads will
sure they are where they should be metal
wear and can begloves
safety easily to not break.

Checks and Interviews

accessed and used. avoid injuries when cutting
detailed pieces of fabric by
hand.
Takumi
Emergency exits UNIQLO dispatches takumi
Emergency exits must be free of obstructions and Document Cross-checks and Worker Interviews textile experts with a wealth of
experience in Japan’s textile
evacuation routes are required to be clearly indicated industry to partner factories
on the floor. (see interview below).
Working hours and wages
Appropriate protective gear Auditors cross-check documents related to working
Workers are required to wear appropriate protective hours, wages and payroll deductions to identify any
gear for their specific tasks. Anyone handling chem- inappropriately long working hours or unpaid wages. To
Iwao Hirami (UNIQLO), Manager, icals,
Material
forTechnology
example, Expertize,
must wearProduction,
masks, gloves and Takahiro Shiraishi (UNIQLO), Takumi Expert if any documents have been falsified, workers
determine
Product Development and Merchandising
goggles. are interviewed anonymously to safeguard their privacy.
UNIQLO has been implementing the takumi system since 2000 as a driver for technical
In addition to its firm commitment to product safety, UNIQLO strives to procure raw materials improvements, process management and personnel training at production sites. Every week,
Handling of chemical substances
that fully consider social concerns including environmental issues. For example, we pay Labor agreements
takumi experts visit factories, check products on site and provide guidance on making
attention to animal welfare and health in our procurement
Auditors confirm thatofchemical
wool andsubstances
down feathers.
areWith the
being improvements. As production volumeAuditors
rises, takumi
checkexperts also play
copies important
of worker IDroles
cardsin developing
and other
cooperation of fabric factories, we have beenproperly
handled working and
to eliminate hazardous
safely. For chemicals
example, in core
they check if new factories and building strong partnerships
documents by forsharing production
unreasonable planning
terms in laborstrategies and
agreements
fabrics as well as garment accessories
bottlesused in our products,
are correctly labeled andsuch asthe
that buttons.
bottlesWe have
cannot issues that need to be resolved. As the number of countries with production sites
and to ascertain that underage workers have not beenincreases, we
pledged to eliminate all hazardous chemicals from our products by 2020. All finished products face the additional challenge of maintaining the same high quality for all of our products made in
be mistaken to contain beverages. employed.
as well as production processes undergo hazardous chemical inspections so that we can factories across the world. Although this is further complicated by the varying conditions of each
deliver clothing that is environmentally sound and safe for customers. nation and factory, I believe we can effectively overcome any problem that arises.

04
12 The Power of Clothing Illustrations: Aki Soeda The Power of Clothing 0135
 Joint Initiatives of UNIQLO and Partner
Factories toInspection
Finishing and Ensure the Safety and Fabrics Sewing Finishing and
Inspection
Shipping Shipping Fabrics Sewing Finishing and
Inspection
Shipping

Reliability of Production Sites

The finishing process includes ironing and other tasks required after each Finished articles of clothing are packaged and sent to the needle detector.
article has been sewn, which are followed by a final inspection.
UNIQLO products are manufactured in various Asian countries including China, Vietnam,
Workplace Monitoring Framework
Only products confirmed to be absolutely safe are shipped.
Bangladesh and Indonesia. The factories must be safe and reliable to turn out risk-free products
for our customers, which is why UNIQLO has implemented Workplace Monitoring at Ironingits partner Pre-contract monitoring Packaging
factories since 2004. Working together, UNIQLO and the factories are making continual
Finished products are ironed
Pre-contract monitoring
Finished products are pack-
improvements to create better working environments. by applying body weight to Pre-contract monitoring
agedis byconducted
hand with to great
press and remove any fine determine whether UNIQLO
care socan
thatestablish a folds
the perfect
wrinkles in the fabric. business relationshipare
with
not adisturbed.
factory. The
company’s rules state that it can only form

What is Workplace Monitoring? Folding

Code of Conduct endorsements
business relationships with factories that
meet its standards. Needle Detector
The needle detector can
Workplace Monitoring is an initiative aimed at Folding is done carefully to detect even the smallest met-
avoid wrinkling and clips are al fragment. Each packaged
consistently producing truly great clothing in the Regular inspections
used to secure folds. Plastic product is passed through
sewing factories that manufacture UNIQLO products. collar supports are inserted to UNIQLO employees the and needle
externaldetector
auditorsseveral
Specialized external organizations also help to prevent any creasing during times on
monitor working conditions different
at the sewing sides.
monitor manufacturing operations to ensure that distribution. Regular monitoring (twice annually, in principle) Items in
factories. After inspecting thewhich
sites metal
and has
prohibitions on child labor or forced labor are upheld Approach and Objectives of UNIQLO and been detected
going over related documents, they are stored in
review
and working environments are safe, in addition to Partner Factories Attaching Tags
a locked
their findings with factory box so they are not
representatives
and provide feedback mixed in with safeareas
on important products.
other conditions that must be met. UNIQLO
Product tags with details that require improvement.
employees implement appropriate measures based
such as size, material and
on the findings of these monitoring initiatives. If a
country of production are
violation is found, UNIQLO employees directly visit attached by hand.
Grade A or B Grade C Grade D Grade E Shipping
Strengthening the
the site to check the conditions and identify root Factory Grading Products
System are shipped using
causes. After that, they work with the factory to adopt
factory’s brand Achieving the world’s Within Within as few according
cardboardtoboxes
UNIQLO evaluates factories
corrective measures, implement the necessary highestFinal Inspection
quality standards 6 months 1 month as Apossible
a five-tier system, from to E. For as highly
a primary
guidelines and work toward establishing a systematic After the series of inspections environmental
unethical or serious offenses, suchconsideration.
as the
solution. Throughout this process, UNIQLO and the conducted at each stage of For falsified
use of child labor and/or example,reporting,
uniform-sized
Larger scale
production, product quality is
Acceptable Contract factories are given Eboxes
gradesareandused for shipping
UNIQLO
factories collaborate closely to make improvements. Positive feedback Follow-up monitoring review
from customers and
business during a final in-
checked immediately reviews products fromwith
its contract the factory
the to
the general public spection before shipping. facilities in question.warehouses in the that
For factories country of
This collaboration goes far beyond simply checking Greater employee distribution and can be easily
satisfaction receive C or D grades, UNIQLO provides
Unacceptable, rectified reused for repacking
off monitoring items to develop better working Excellent personnel Unacceptable guidance on how to improve. UNIQLO then and
Workplace within six months shipping from warehouses
environments that can boost productivity and conducts follow-up evaluations to ensure
monitoring
product quality; their efforts also enhance employee Higher productivity improved results, andtoifstores.
the company finds
and quality that key problems have not been resolved, it
satisfaction and attract outstanding workers. In every Acceptable Contract
Shorter working hours Follow-up immediately reviews its contract with the
way, Workplace Monitoring creates win-win Better working environments monitoring review factories in question.
situations in that UNIQLO and its partner factories
can establish better working environments and
secure a solid reputation among customers and Unacceptable
communities, which strengthens the brand of
UNIQLO and the factories. This is how Workplace
Monitoring should work, and we feel it is essential in Contract
the production of UNIQLO clothing. review

UNIQLO’s clothing is produced in factories Sulastri, 20 years old Martomo, 25 years old Riyanti, 28 years old
What is UNIQLO’s Code of Conduct?
around the world that have been equipped
Key Guidelines
I walk to work every day because I commute by motorcycle I’ve been working at this factory for
with
FastaRetailing
thoroughly maintained
(FR), the qualitythat
holding company andoperates UNIQLO, established a Codemyofhouse
Conduct for Production
is only a 15-minute Partners
walk • Prohibition of with
childmy
labor
lunch box. I’ve been • Health and safety • Environmental
more protection
than ten years and became a
safety
basedcontrol system. Weand
on the conventions asked some of the by governing bodies such as theaway.
recommendations International
The work Labour Organization
is enjoyable, as ofI • Prohibition of working at the factory for
forced labor • Freedom of association manager two of
• Preparation years ago.regulations
internal My passion
workers at aNations.
the United sewingThese
factory in Indonesia,
guidelines forbid child labor and set rules for overtime
have working hoursand
friends here, andtheother issues
cafeteria • Prohibition of about
coercionfour
and years, and I’d
harassment • Wages and benefits for clothing and
• Monitoring makes my jobwith
compliance fun.theI’m
which is ato key
related production
factory base, aboutFRtheir
working conditions. requires its partner factories to endorse the Code
lunches of Conduct.
are delicious. After I save like to build my career here married
Code and have a four-year-old child,
of Conduct
• Prohibition of discrimination • Working hours
jobs
Forand
morefuture aspirations.
information, see the CSR section of Fast Retailing’s website. enough money from this job, I want and start my own business so I try to maintain a good balance
to go to school to become a nurse. someday. between family and work.

06
10 The Power
The Power of
of Clothing
Clothing The Power
The Power of
of Clothing
Clothing 011
7

S p e c i a l Fe a t u re
Taking Life in Stride
with Pride
UNIQLO’s Clothing Production in New
Locations around the World
—Indonesia
By Kazunori Kobayashi
Kazunori Kobayashi,
Sustainability Program Planner
Kazunori Kobayashi graduated from the University
of California, Berkeley and since 1999 has been
locally and internationally engaged in planning and
implementing projects and writing dedicated to the
environment and sustainability. Since 2005, he has
served as the CEO of EcoNetworks, a team of
specialists in languages, the environment, business,
culture and other diverse fields. The team shares the
same vision of creating sustainable societies and its
network spans more than 100 countries worldwide.
08
After the plane touched down in Jakarta at mid-
night, the passengers and I occasionally rubbed our
weary eyes as we waited in the immigration line.
The immigration officers did not appear to be in any
hurry to clear us. “We don’t rush things here – we
take life in stride with pride,” a local explained, and
I nodded my acknowledgement.
Indonesia is an archipelago of countless islands
reaching from the South Pacific to the Indian
Ocean. The country has a vibrant culture and
history; it is also a “young” nation with about half its
population under the age of 30. While agriculture
continues to be its primary industry, its textile
industry is growing. The country has also become
renowned for the manufacturing of clothes.
Leaving the major city of Jakarta behind me, I
moved on to Solo. This once royal city was home to
a divided sultanate, and descendants of its former
rulers still live here. Vestiges of Dutch colonialism
remain in the city, and expanses of land as well as
factories spread throughout the suburbs. In a place
where the past and present seemed to coexist
peacefully, I visited a sewing factory that is now in
its second year of partnership with UNIQLO. There
I was greeted by the president and vice president,
who are both around 40 years old. They smiled
warmly and the president said: “We’ve worked with
various global brands for many years. At first we
were surprised by the level of quality that UNIQLO
requires. Its acceptable product defect rate is more
than three times stricter than that of other global
brands. UNIQLO also has a policy to conduct “one
hundred percent inspections,” which is practically
unheard of in the industry. We initially thought that
UNIQLO would be a stern partner, but the company
helped us in our preparations months before
production here started, and we’ve been impressed
by the earnestness and care it has shown us. We
now strongly believe in the partnership and our
united long-term vision.”
What I noticed first were the orderly rows of
manufacturing lines in an area spacious enough
to fit 1,000 people. The workers’ hands moved
skillfully and rhythmically. The manufacturing
process relies on the operations of state-of-the-art
machinery and manual labor as well as continuous
quality control that includes visual inspection. This
makes it possible for the same product to be
produced efficiently, over and over again. Each
article of clothing is passed from one worker to the
next until it is ready to wear, like a ball being passed
by team members as they move toward the goal.
As for UNIQLO, its relationship with the factory is
in a sense deeper than conventional contractor-
contractee partnerships. Both businesses ex-
change ideas for improving quality and together
aim to boost productivity in a better working
environment.
The workers looked quite serious and focused on
their jobs, but they really lightened up at lunchtime
and the air was filled with laughter. Most of them are
local youths who ride bikes or walk to the factory
from their parents’ homes. A bit bashfully they
made comments like “It’s fun to work with friends I
grew up with” and “It would be great to open up a
shop in my hometown one day.”
“They could show a little more hunger for success,
and there is still room for improving their skills,” the
president noted with a bitter smile. But these
young, diligent workers, who are good with their
hands, possess infinite potential. Under Indonesia’s
vast blue sky, I could envision great things
happening in their futures and for UNIQLO, as they
take things slowly with pride.
09
 Joint Initiatives of UNIQLO and Partner
Factories
Finishing andtoInspection
Ensure the Safety and Fabrics Sewing Finishing and
Inspection
Shipping Shipping Fabrics Sewing Finishing and
Inspection
Shipping

Reliability of Production Sites

The finishing process includes ironing and other tasks required after each Finished articles of clothing are packaged and sent to the needle detector.
article has been sewn, which are followed by a final inspection.
UNIQLO products are manufactured in various Asian countries including China, Vietnam,
Workplace Monitoring Framework
Only products confirmed to be absolutely safe are shipped.
Bangladesh and Indonesia. The factories must be safe and reliable to turn out risk-free products
for our customers, which is why UNIQLO has implemented Workplace Monitoring atIroning its partner Pre-contract monitoring Packaging
factories since 2004. Working together, UNIQLO and the factories are making continual
Finished products are ironed
Pre-contract monitoring
Finished products are pack-
improvements to create better working environments. by applying body weight to Pre-contract monitoring
agedis by
conducted
hand withto great
press and remove any fine determine whether UNIQLO
care socan
thatestablish a folds
the perfect
wrinkles in the fabric. business relationship are
with
notadisturbed.
factory. The
company’s rules state that it can only form

What is Workplace Monitoring? Folding

Code of Conduct endorsements
business relationships with factories that
meet its standards. Needle Detector
The needle detector can
Workplace Monitoring is an initiative aimed at Folding is done carefully to detect even the smallest met-
avoid wrinkling and clips are al fragment. Each packaged
consistently producing truly great clothing in the Regular inspections
used to secure folds. Plastic product is passed through
sewing factories that manufacture UNIQLO products. collar supports are inserted to UNIQLO employees and the needle
externaldetector
auditorsseveral
Specialized external organizations also help to prevent any creasing during times at
monitor working conditions on the
different
sewing sides.
monitor manufacturing operations to ensure that distribution. Regular monitoring (twice annually, in principle) Items in
factories. After inspecting thewhich
sites metal
and has
prohibitions on child labor or forced labor are upheld Approach and Objectives of UNIQLO and been detected
going over related documents, are stored in
they review
and working environments are safe, in addition to Partner Factories Attaching Tags
a locked
their findings with factory box so they are not
representatives
other conditions that must be met. UNIQLO and provide feedbackmixed in with safe
on important products.
areas
Product tags with details that require improvement.
employees implement appropriate measures based
such as size, material and
on the findings of these monitoring initiatives. If a
country of production are
violation is found, UNIQLO employees directly visit attached by hand.
Grade A or B Grade C Grade D Grade E Shipping
Strengthening the
the site to check the conditions and identify root Factory Grading System
causes. After that, they work with the factory to adopt
factory’s brand Achieving the world’s Within Within
Products are shipped using
as few according
cardboardto boxes
UNIQLO evaluates factories
corrective measures, implement the necessary highestFinal Inspection
quality standards 6 months 1 month as Apossible
a five-tier system, from to E. Forashighly
a primary
guidelines and work toward establishing a systematic After the series of inspections environmental
unethical or serious offenses, such consideration.
as the
solution. Throughout this process, UNIQLO and the conducted at each stage of For falsified
use of child labor and/or example, uniform-sized
reporting,
Larger scale
production, product quality is
Acceptable Contract factories are given E boxes
gradesareand used for shipping
UNIQLO
factories collaborate closely to make improvements. Positive feedback Follow-up monitoring review
from customers and
businessduring a final in-
checked immediately reviews products
its contractfromwith
the the
factory to
the general public spection before shipping. facilities in question.warehouses
For factoriesin thethat
country of
This collaboration goes far beyond simply checking Greater employee distribution
satisfaction receive C or D grades, UNIQLOand can be easily
provides
Unacceptable, rectified reused UNIQLO
for repacking
off monitoring items to develop better working Excellent personnel Unacceptable guidance on how to improve. then and
Workplace within six months shipping from warehouses
environments that can boost productivity and conducts follow-up evaluations to ensure
monitoring
product quality; their efforts also enhance employee Higher productivity improved results, andtoif stores.
the company finds
and quality that key problems have not been resolved, it
satisfaction and attract outstanding workers. In every Acceptable Contract
Shorter working hours Follow-up immediately reviews its contract with the
way, Workplace Monitoring creates win-win Better working environments monitoring review factories in question.
situations in that UNIQLO and its partner factories
can establish better working environments and
secure a solid reputation among customers and Unacceptable
communities, which strengthens the brand of
UNIQLO and the factories. This is how Workplace
Monitoring should work, and we feel it is essential in Contract
the production of UNIQLO clothing. review

UNIQLO’s clothing is produced in factories Sulastri, 20 years old Martomo, 25 years old Riyanti, 28 years old
What is UNIQLO’s Code of Conduct?
around the world that have been equipped
Key Guidelines
I walk to work every day because I commute by motorcycle I’ve been working at this factory for
with
FastaRetailing
thoroughly maintained
(FR), the quality that
holding company andoperates UNIQLO, established a Codemy of Conduct
house for Production
is only a 15-minute Partners
walk • Prohibition of with
child my lunch box. I’ve been •
labor Health and safety • Environmental
more protection
than ten years and became a
safety
basedcontrol
on the system. We and
conventions asked some of the by governing bodies such as theaway.
recommendations International
The work Labour Organization
is enjoyable, as Iof • Prohibition of working at the factory for •
forced labor Freedom of association manager two ofyears
• Preparation ago.regulations
internal My passion
workers at aNations.
the United sewingThese
factory in Indonesia,
guidelines forbid child labor and set rules for overtime workinghere,
have friends hours
andand
theother issues
cafeteria • Prohibition of about
coercionfour years, and I’d •
and harassment Wages and benefits for clothing and
• Monitoring makes my jobwith
compliance fun.
theI’m
which is atokey
related production
factory working base, aboutFRtheir
conditions. requires its partner factories to endorse the Code
lunches of Conduct.
are delicious. After I save like to build my career here married and
Code of have a four-year-old child,
Conduct
• Prohibition of discrimination • Working hours
jobsForand
morefuture aspirations.
information, see the CSR section of Fast Retailing’s website. enough money from this job, I want and start my own business so I try to maintain a good balance
to go to school to become a nurse. someday. between family and work.

010
6 The
The Power
Power of
of Clothing
Clothing The
The Power
Power of
of Clothing
Clothing 11
07
How One Factory Produces UNIQLO Clothing
What is Checked during
Sewing factories are integral to the production of clothing. High quality UNIQLO clothing production is

Workplace Monitoring?
made possible through strong partnerships with factories and a combination of the latest manufacturing
equipment for efficient and dynamic production, detailed work using one’s hands and eyes, and the
Sewing Fabrics Sewing Finishing and
Inspection
Shipping

experience
Sewingoffactories
artisans.that
Here is a brief explanation
manufacture of the must
UNIQLO clothing majorundergo
production processes.
Workplace
Monitoring. After an opening meeting, auditors will inspect the factory as well Sewing accuracy combined with speed is key. During the sewing process, articles of clothing
as other facilities such as dormitories and cafeterias. After that, more checks in production undergo multiple inspections so that superior quality is guaranteed.

Fabrics
are carried out to assess the working conditions at the factory, which include
Fabrics Sewing Finishing and
interviews with workers and inspections of Inspection
Shipping
documents. Corrective action is Sewing Lines
instructed on the spot in the event unsafe or unacceptable conditions are
discovered.
Sampling UNIQLO employees
inspections not only
are conducted give
for all instructions
materials, but also
including work
fibers andwith
dyes. Only Life and Health Parts of items are pieced to-
gether by different workers,
materials that are confirmed as highly reliable are woven into fabrics andat cut.
the factories by helping them identify and effectively address problems their from one worker to the next,
source. UNIQLO employees later confirm that corrective measures have been Ensuring the Safety and Well-being of Workers with experienced sewing
workers being generally faster
taken and that the problems have been remedied. These procedures ensure that and more accurate. UNIQLO
Material Delivery and the factory strive to
UNIQLO products are manufactured in a safe and reliable working environment.
Yarn, dyes and chemicals Cafeteria kitchen increase worker satisfaction
by, for example, carefully
are carefully selected for
fabric weaving. Materials that
Auditors inspect the hygienic maintaining
conditionsworkplace
of the safety
pass a final inspection at the cafeteria kitchen, which prepares andfood
reliability
for while making the
workers
fabric factories are delivered every day. They also check thatfactory a comfortable and
the factory keeps
to the sewing factories (see secure place to work for the
certificates of health for all cafeteria
longworkers.
term (see pages 10–13).
interview below).

Safety Fabric Inspections

Employee dormitories
Auditors check if drinking water is Even
safe ifand
Cutting Threads
if showers
there is only a little
Safety Checks at Clothing Production Sites Fabrics are inspected with
backlighting to check for any
flaws, smudges or uneven
and toilets in the dormitory are sanitary.
exit routes are also inspected.
excess All emergency
thread at the end of a
stitch, a worker will cut the
thread off with thread nippers.
dye. Since this requires a high

Materials and equipment

degree of concentration, Job-specific medical examinations
inspection work is done on a
rotationalthe
basis so thatwhile
all the
Intermediate
Auditors determine whether workers have received the
Auditors make their way throughout factory
fabrics can be meticulously appropriate medical examinations for Inspections
specific jobs with
looking for potentially hazardous stacking of boxes or
checked. due consideration for occupational Every
healthtime
risks.a part is sewn,
incorrectly placed equipment. an intermediate inspection
follows. Inspectors confirm
Emergency safety measuresCutting the accuracy of all stitching
lines and check thread ten-
Fabrics are cut by a machine
Emergency equipment and supplies such as fire sion by pulling on the fabric
after exacting calculations
extinguishers and first-aid kitstoare checked
minimize waste.to Workers
make to make sure the threads will
sure they are where they should bemetal
wear and can
safetybegloves
easilyto not break.

Checks and Interviews

accessed and used. avoid injuries when cutting
detailed pieces of fabric by
hand.
Takumi
Emergency exits UNIQLO dispatches takumi
Emergency exits must be free of obstructions and Document Cross-checks and Worker Interviews textile experts with a wealth of
experience in Japan’s textile
evacuation routes are required to be clearly indicated industry to partner factories
on the floor. (see interview below).
Working hours and wages
Appropriate protective gear Auditors cross-check documents related to working
Workers are required to wear appropriate protective hours, wages and payroll deductions to identify any
gear for their specific tasks. Anyone handling chem- inappropriately long working hours or unpaid wages. To
Iwao Hirami (UNIQLO), Manager, Material
icals, forTechnology
example, Expertize,
must wearProduction,
masks, gloves and Takahiro Shiraishi (UNIQLO), Takumi Expert if any documents have been falsified, workers
determine
Product Development and Merchandising
goggles. are interviewed anonymously to safeguard their privacy.
UNIQLO has been implementing the takumi system since 2000 as a driver for technical
In addition to its firm commitment to product safety, UNIQLO strives to procure raw materials improvements, process management and personnel training at production sites. Every week,
Handling of chemical substances
that fully consider social concerns including environmental issues. For example, we pay Labor agreements
takumi experts visit factories, check products on site and provide guidance on making
attention to animal welfare and health in our procurement
Auditors confirm thatofchemical
wool and substances
down feathers.
areWith the
being improvements. As production volume rises, takumi
Auditors checkexperts also of
copies playworker
important
ID roles
cards in developing
and other
cooperation of fabric factories, we have been properly
handled working to eliminate
and safely. hazardous chemicals
For example, in core
they check if new factories and building strong partnerships
documents by for sharing production
unreasonable planning
terms in laborstrategies and
agreements
fabrics as well as garment accessories
bottlesused in our products,
are correctly suchthat
labeled and as the
buttons.
bottlesWe have
cannot issues that need to be resolved. As and
the number of countries with production sites increases,
to ascertain that underage workers have not been we
pledged to eliminate all hazardous chemicals from our products by 2020. All finished products face the additional challenge of maintaining the same high quality for all of our products made in
be mistaken to contain beverages. employed.
as well as production processes undergo hazardous chemical inspections so that we can factories across the world. Although this is further complicated by the varying conditions of each
deliver clothing that is environmentally sound and safe for customers. nation and factory, I believe we can effectively overcome any problem that arises.

012
4 The
The Power
Power of
of Clothing
Clothing Illustrations: Aki Soeda The
The Power
Power of
of Clothing
Clothing 13
05
 From Fa s t Retailing
Making Progress in Bringing a Sense of
Satisfaction to PeopleTable
The Power of Clothing across
of Contentsthe World UNIQLO and Partner Factory Initiatives Combine

11
Making the World a Better Place 0 4 How One Factory Produces UNIQLO Clothing
through UNIQLO Clothing Production
0 8 Taking Life in Stride with Pride
to Produce Truly Great Clothing
A view of UNIQLO initiatives from outside the UNIQLO’s
companyClothing Production in New
Locations around the World Fast Retailing’s primary mission is “To create truly great clothing with new and unique
By Toshihiko Fujii —Indonesia values, and to enable people all over the world to experience the joy, happiness and
By Kazunori Kobayashi satisfaction of wearing such great clothes.” In this context, “truly great clothing” refers to not

Great clothing has many characteristics and 10 Joint Initiatives of UNIQLO and Partner
the supply chain,” whereby companies take
only high quality products but also their production under ethical working conditions. We
Factories also place priority on incorporating public expectations, including the ideas of our
properties such as comfort, beautiful colors and responsibility for ensuring environmental
reasonable prices. Everyone has their own ideas14 soundness
Making Progressand appropriate
in Bringing a Sense employment
of customers, into our considerations for producing truly great clothing.
about what makes great clothing. But these days Satisfaction
conditions toand
People across the
workplace World
environments exist
the trend among consumers worldwide seems to through UNIQLO
throughout the Clothing Production
supply chain. In this issue, we have introduced UNIQLO’s concept of truly great clothing along with joint
be that they are increasingly adding a new By Toshihiko Fujii initiatives and collaboration with partner factories. From these initiatives, our trusted,
criterion for greatness: the sense of being UNIQLO is one of Japan’s companies that are
15 UNIQLO and Partner Factory Initiatives to long-term partner factories are now seeing far fewer negative findings during Workplace
connected with production workers to share a actively Truly
Produce committed
Great toClothing
implementing CSR through-
Monitoring as a result of their efforts to take corrective actions. At the same time, however,
sense of satisfaction. out supply chains, but many of UNIQLO’s
initiatives still require a lot of work. There are new partner factories often have to make major improvements due to a lack of knowledge
Many people work in clothing production, and many corporations involved in the production of or experience.
it’s not unusual today for supply chains in this clothing, which takes on numerous processes,
industry to span multiple countries. Now people so workplace environments can differ dra- We believe establishing stronger communication is essential, especially with new partner

Clothing that UNIQLO Aspires

want clothing that brings an equal amount of
satisfaction to people who make it and wear it. In
matically, requiring a tremendous effort from
companies to create workplaces that make all
factories, and to share information and work even closer together to tackle unresolved
problems. That is why we are actively addressing problems in advance through pre-contract

to Provide
other words, increasingly more consumers are employees proud to work there. The steady
monitoring, holding seminars for factory managers and related departmental leadership at
measuring greatness in clothing based on how it expansion of UNIQLO’s clothing production
is made, and not just on appearance. across the world makes this effort even more our production offices in various parts of Asia, and also dispatching FR employees to
provide in-person, onsite guidance. In addition, we welcome feedback from people at our
MADE FOR ALL: Clothing We Believe ischallenging.
Truly Great partner factories and incorporate their comments into the creation of better solutions. We
Until quite recently, environmental impacts were
the public’s main concern for how clothing is This effort and commitment increasingly believe these ongoing efforts will generate more effective initiatives.
made.
WeWhile
wantit tois clear to alltruly
provide of usgreat
that factories representaround
clothing to people the truethe
power of clothing, which can
world.
should
We minimize harm the
realize that to the environment,
definition the type also
of this be foundgoes
of clothing in creating
beyondmore jobs for people We want to establish solid and lasting relationships with factories that also hold our vision in
well-being of production
excellence workers did
in appearance, not really
quality around theClothing
and functionality. world andoffered
working opportunities that
the framework of shared, mutually beneficial business initiatives and not merely operational
attract
at significant
a reasonable attention.
price does not make it truly resultgreat
in genuine satisfaction.
either. For us, When people try “transactions.” By doing this we hope to produce truly great clothing under healthy working
out UNIQLO clothing, I hope they take a moment
clothing production must involve the development of the best conditions, which will in turn make the world a better place.
As consumers started to perceive an imbalance to think about the people who they now share a
materials and products and direct control over all aspects of the
between the disadvantaged people who make bond with across the world. I want UNIQLO to
the manufacturing process,
clothing and the satisfied from
people whothe procurement
wear continue ofworking
materials
toward and
a style of clothing
fabrics to production and
it, many international apparel manufacturersdelivery. We also
production that allows our
believe that all for people to feel
production
started consideringprocesses
this new should be sustainable
criterion of and supported
connected with productionby aworkers in order to
framework
“greatness.” thatcontext,
In this promotes continual
I would like toimprovement. These
share a sense points are
of satisfaction.
vital tothe
introduce ourconcept
missionofto“CSR produce truly great clothing.
throughout

Key to supporting this mission are approximately 70 partner

Toshihiko Fujii that are committed to working and growing with us. The
factories
Visiting professor at the Graduate School of Economic Science, Saitama University
factories produce roughly 600 million items of UNIQLO clothing per
After receiving a BA in Economics at the University of Tokyo in 1987, he joined the Ministry of International Trade and Industr y
(nowyear, and of
the Ministry we must ensure
Economy, Trade and this production
Industry). is taking
In 1994 he received an MBAplace under
from the safe,
University of Washington. He served
reliableGeneral
as Secretary working of the conditions
Japan Businessthat
Councilarein also
Europeenvironmentally
(Brussels) in 2000 and sound.
returned toWethe Ministry of Economy, For more information about our CSR activities, please visit:
also
Trade and believe it is toessential
Industry in 2004 serve as theto build
Director solid
of the relationships
Office for Trade Remedywith partner
Investigations. Since 2010 he has been
teaching as a visiting professor at the Graduate School of Economic Science, Saitama University. that
Fujii is one of the pioneering
http://www.uniqlo.com/en/csr/
factories and maintain advanced technologies and facilities
Japanese lobbyists for the European Union and has been active as a CSR researcher. He has published many books on CSR
achieve high quality and an efficient production system. For Please direct your comments and inquiries to:
from a global perspective. His major publications include: Europe’s CSR and Japan’s CSR—What Can We Learn?, Japanese,
UNIQLO, the ideal
Nikkagiren Publishing, in clothing
2005; Global production
CSR Procurement, Supply can
Chainonly be realized
Management onceSocial Responsibilities,
and Corporate FR_G_frgcsr@fastretailing.com
all ofNikkagiren
Japanese, these elements areGlobal
Publishing, 2006; closely integrated,
Rules as and only
Competitive Strategy, thenToyo
Japanese, can weInc., 2012.
Keizai
produce truly great clothing.

14 The Power of Clothing