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NA-KD's response to the non-payment of wages at Mim Design

[...]

Confirmation of Supplier Relationship

NA-KD had a business relationship with Mim Design from March 2024 to January 2025, with the last order shipped in mid-November 2024. However, we were not involved in the factory’s financial decisions or closure. We take these allegations seriously and are currently reviewing all available information to assess whether the reported non-payment of wages falls within our supply chain responsibility.

Ensuring Compliance with the amfori BSCI Framework

To uphold ethical labor standards and mitigate risks, NA-KD ensures compliance through astructured approach within our supply chain:

  • Pre-engagement Due Diligence: Before working with any supplier, NA-KD requires a valid social audit according to our requirements. This audit evaluates compliance with fair wages, ethical labor practices, and responsible management systems, reducing risks such as non-payment of wages.
  • Monitoring & Accountability: Suppliers must adhere to the amfori BSCI Code of Conduct, which mandates timely and full wage payments to workers. NA-KD conducts regular supplier performance reviews and, where necessary, requires corrective actions to address any non-compliance.
  • Responsible Purchasing & Supplier Expectations: NA-KD upholds ethical sourcing with clear supplier expectations, regardless of contract length. We ensure transparent payment terms and require adherence to the amfori BSCI Code of Conduct, including fair wages and labor rights. While our engagement with Mim Design was short-term, our due diligence process aims to mitigate risks and uphold worker protections.

Responsible Offboarding

  • NA-KD recognizes the importance of responsible supplier transitions to minimize risks for workers when a business relationship ends. Our offboarding approach aligns with amfori BSCI’s guidance on responsible disengagement, which emphasizes due diligence and the protection of workers’ rights throughout the transition. When disengaging, we ensure that suppliers uphold their contractual obligations, including final wage payments. While our collaboration with Mim Design was short-term, we expect all suppliers to comply with fair labor standards both during and after our business engagement.

Addressing Allegations & Next Steps

If verified breaches of labor rights are identified within our supply chain responsibility, we will engage with relevant stakeholders to explore appropriate remediation steps. These may include:

  • Supplier accountability measures
  • Dialogue with affected stakeholders
  • Strengthening our due diligence processes

[...]

[The full response is attached]

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