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Carter's

OVERALL

Owned
USA
Rating
Criticisms

Clothing

Founded in 1865 by William Carter. Acquired competitor OshKosh B'Gosh in 2005.

Carter's Inc   USA     website         

> About the Ratings

Company Assessment

PRAISE CRITICISM INFORMATION
Carter's Inc
Social Uzbek cotton commitment
This company has signed the Cotton Pledge with the Responsible Sourcing Network, signifying a public commitment to not knowingly source Uzbek cotton for the manufacturing of any of their products until the Government of Uzbekistan ends the practice of forced labor in its cotton sector. The Uzbek government uses local government officials, hospital directors, and school presidents to mobilize workers; and detains and tortures human rights defenders seeking to monitor the harvests.
Source: As You Sow (2019)
Social Forced labour in China
The Chinese government has facilitated the mass transfer of Uyghur and other ethnic minority citizens from the far west region of Xinjiang to factories across the country. Under conditions that strongly suggest forced labour, Uyghurs are working in factories that are in the supply chains of at least 83 well-known global brands in the technology, clothing and automotive sectors, including brands owned by this company. The Australian Strategic Policy Institute's 2020 report estimates (somewhat conservatively) that more than 80,000 Uyghurs were transferred out of Xinjiang to work in factories across China between 2017 and 2019, and some of them were sent directly from detention camps.
Source: ASPI (2020)
Social Human Rights Benchmark
The 2019 Corporate Human Rights Benchmark assessed 200 of the largest publicly traded companies in the world from the Agricultural Products, Apparel, Extractives and ICT Manufacturing sectors on 100 human rights indicators. This company's score was in the 10-20 band range. The overall average score was a disappointing 24%.
Source: CHRB (2019)
Business Ethics 10/100 S&P Global ESG Score
This company received an S&P Global ESG Score of 10/100 in the Textiles, Apparel & Luxury Goods category of the 2019 SAM Corporate Sustainability Assessment, an annual evaluation of companies' sustainability practices. The rankings are based on an analysis of corporate economic, environmental and social performance, assessing issues such as corporate governance, risk management, environmental reporting, climate strategy, human rights and labour practices.
Source: S&P Global (2019)
Business Ethics CEO Pay Ratio of 700:1
In 2019 the median pay for a worker at this company was US$10,890. The CEO was paid 700 times this amount. Exorbitant CEO pay is a major contributor to rising inequality. CEOs are getting more because of their power to set pay, not because they are increasing productivity or possess specific, high-demand skills. The economy would suffer no harm if CEOs were paid less (or taxed more). In contrast, the CEO-to-typical-worker compensation ratio was 20-to-1 in 1965 and 58-to-1 in 1989.
Source: AFL-CIO (2020)
Business Ethics 42.4% at JUST Capital
JUST Capital polls Americans every year to identify the issues that matter most in defining just business behaviour. For their 2021 rankings the public identified 19 issues, which are organised under the headings Workers, Communities, Customers, Shareholders and Environment. JUST Capital then define metrics that map to those issues and track and analyse the largest, publicly traded U.S. companies. This analysis powers their rankings, in which this company ranked 689th of 928 companies, and 23th of 38 Household Goods & Apparel companies.
Source: JUST Capital (2020)
Business Ethics Alleged violation of Securities Laws
There is a long term shareholder investigation into Carter's Inc alleging violations of Federal Securities laws by issuing statements that were materially false and misleading in relation to turning around the operations of the acquired company Osh Kosh B'gosh resulting in large write downs and share falls.
Source: Shareholders Foundation (2012)
Business Ethics Fraud and insider trading charges
Former Carter's Inc President and Vice President indicted in federal court on 37 charges of alleged fraud security cover up. The charges carry maximum sentences of up to 25 years in prison and fines up to $US5m. Additional charges of insider trading have also been brought.
Source: Federal Bureau of Investigation (2012)
Business Ethics Transparency Pledge
The Apparel and Footwear Supply Chain Transparency Pledge (Transparency Pledge) helps demonstrate apparel and footwear companies' commitment towards greater transparency in their manufacturing supply chain. Transparency of a company's manufacturing supply chain better enables a company to collaborate with civil society in identifying, assessing, and avoiding actual or potential adverse human rights impacts. This is a critical step that strengthens a company's human rights due diligence. This company is not aligned with the Transparency Pledge and has made no commitment to publish supplier factory information.
Source: Clean Clothes Campaign (2019)
Business Ethics Alliance for Bangladesh Worker Safety member
This company is a member of the Alliance for Bangladesh Worker Safety, a legally binding, five-year commitment to improve safety in Bangladeshi ready-made garment factories. The Alliance aims to improve worker safety in the Bangladesh garment industry by upgrading factories, educating workers and management, empowering workers, and building institutions that can enforce and maintain safe working conditions throughout Bangladesh. However it lacks an important enforcement mechanism included in the Accord on Fire and Building Safety in Bangladesh, and unlike the Accord, the Alliance has not received the endorsement of the ILO.
Source: Alliance for Bangladesh Worker Safety (2020)
Social 43/100 in KnowTheChain Benchmark
In 2018 KnowTheChain benchmarked 120 large global companies in the ICT, Food & Beverage, and Apparel & Footwear sectors on their efforts to address forced labour and human trafficking in their supply chains. This company received a score of 43/100.
Source: KnowTheChain (2018)
Social Modern Slavery statement
California, the UK and Australia have all enacted legislation requiring companies operating within their borders to disclose their efforts to eradicate modern slavery from their operations and supply chains. Follow the link to see this company's disclosure statement.
Source: Modern Slavery Registry (2016)

> About the Icons

Company Details

Type Public company

Contact Details

Address Atlanta, Georgia, USA
Website www.carters.com

Products / Brands

Carter's
Osh Kosh Childrenswear
Osh Kosh Babywear


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