The Canadian Ombudsperson for Responsible Enterprise (CORE) has announced investigations into the Canadian units of Walmart (WMT.N) and Hugo Boss (BOSSn.DE) over allegations of Uyghur forced labor in the companies’ supply chains and operations.
In a swift reaction, both companies denied the allegations.
The nation’s corporate ethics watchdog said it had published an initial assessment report after complaints filed by a coalition of 28 civil society organizations in June 2022.
In a statement, CORE said it will also investigate the Canadian unit of fashion firm Diesel, which is owned by Italy’s OTB (OTB.L). meanwhile, it has already launched probes into Nike Canada (NKE.N), Dynasty Gold (DYG.V) and Ralph Lauren (RL.N).
Sheri Meyerhoffer, CORE’s Ombudsperson, said in a statement “As mediation between the parties is not currently an option, we will be launching investigations into the allegations outlined in these reports”.
In a statement, Walmart Canada said it did not tolerate forced labor of any kind in its supply chain.
“None of the entities in the complaint are in our active disclosed supply chain,” it said in a statement.
On their part, Hugo Boss said “the allegations are without any basis”. In an email, the company said it no longer received supplies from a Chinese firm that CORE had expressed a concern about.
Recall that in March, a U.N. committee said it was concerned about China’s treatment of its Muslim minority, including the use of forced labor against Uyghurs. China denies the allegations.
It is germane to note that CORE was launched in 2019 to monitor and investigate human rights abuses, mainly by Canadian garment, mining and oil and gas companies operating abroad.
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