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Walmart to tighten supplier norms, to introduce new zero tolerance approch

RBR Staff Writer Published 23 January 2013

US retail major Wal-Mart plans to adopt a more stringent stance with its suppliers, who subcontract work without the former’s knowledge.

The retailer plans to introduce a 'zero tolerance policy' under which contacts will be immediately terminated for suppliers who fail to fall in line.

Wal-Mart plans to have the policy in place from 1 March 2013 as part of the new global sourcing standards to be unveiled.

Wal-Mart ethical sourcing vice president Rajan Kamalanathan told The Wall Steert Journal that the new plan of 'zero tolerance policy' was introduced as 'three strikes' approach wasn't working as expected.

"Our message of zero tolerance is meant to get people's attention."

The new policy comes in the wake of a fire incident at the Tazreen factory in Bangladesh that killed 112 workers.