Working conditions

Since 1996, a Code of Conduct has been an essential part of our business relationships. It is based on the core labor standards of the International Labour Organization (ILO), the UN Convention on the Rights of the Child, the UN Convention on the Elimination of all Forms of Discrimination against Women, the Global Compact, and the Guidelines for Multinational Enterprises from the Organisation for Economic Co-operation and Development (OECD).

As a founding member of the Business Social Compliance Initiative (now known as amfori BSCI), its values and requirements have been integrated into the sustainability management of the Otto Group since 2004. In 2018, we decided to adopt the amfori BSCI Code of Conduct for our supply chain as well, contributing to greater consistency in the industry.

Additionally, each of our business partners is required to accept the "Business Partner Declaration on Sustainability". This document consolidates all our requirements for our business partners for merchandise. Signing the document is a fundamental prerequisite for all business relationships with the Otto Group.

To systematically improve working conditions in the supply chains, we launched our social program in 1999 and have continuously developed it since then. The goal of the program is to create transparency regarding working conditions in our supply chains and to support our business partners and their factories in complying with human rights.

In addition to signing and complying with the Code of Conduct and the Business Partner Declaration on Sustainability, audits for all facilities in high-risk countries¹ are a basic requirement for collaborating with the Otto Group (with the exception of third-party brands). Accordingly, every final assembly facility producing for the Otto Group must present one of the valid social audits recognized by the Otto Group: a certification according to the international labor standard SA 8000, an audit (result A to C) from amfori BSCI, or an audit according to the Otto Group's own standard.

The Otto Group sources its merchandise goods only from partners that can provide this evidence. This ensures that working conditions in all factories are monitored by accredited inspection companies, and necessary improvements can be initiated. If a business partner does not disclose the production structure or places orders with facilities that do not meet the requirements, the Otto Group reserves the right to terminate the collaboration with the business partner.

¹ Definition according to amfori BSCI

To assess and improve working conditions, it is essential to first create transparency in the supply chain. Therefore, our business partners are required to disclose the factories that produce for the Otto Group. This data is recorded in the so-called Supply Chain Database, allowing us to identify nearly 100 percent of the final assembly facility. We aim to continuously expand our information regarding social and environmental production conditions, including in the deeper supply chains and in non-risk countries. In 2024, we were able to identify over 3,500 previously unknown facilities in the deeper supply chains, significantly increasing transparency.

As a retail and services group, we also offer products from third-party brands through our platforms and outline our expectations regarding social and environmental standards in our Business Partner Declaration on Sustainability. For these products, the responsibility for compliance with the standards lies with the brands themselves.

In addition to auditing production sites, training business partners and factory employees for self-responsible action is a key element in achieving lasting improvements in the facilities. For this reason, we offer capacity building programs to actors in the supplys. These include workshops, e-learnings, webinars, training sessions, and on-site visits. The measures create a protected environment in which factories can improve their social and environmental production conditions. At the same time, they provide us with opportunities to learn more about the challenges on the ground. 

By the end of fiscal year 2035/36, we aim to involve the majority of our key stakeholders – including business partners, management, and workers in final assembly facilities – in training measures on the following relevant human rights topics: child-free production, freely chosen employment, living wages, reasonable working hours, and a safe working environment.

Many challenges, such as low wage levels, free unionization, the protection of human rights, and the impacts of climate change, cannot be addressed by individual actors alone. The societal transformation towards greater sustainability is a collective task. For this reason, the Otto Group relies on collaborations and regular exchange with relevant stakeholders to achieve improvements.

To tackle the complex tasks along our supply chains, we are engaged in initiatives such as the German Partnership for Sustainable Textiles, the amfori Business Social Compliance Initiative (BSCI), the International Accord for Health and Safety in the Textile and Garment Industry, and Save the Children.

We are convinced that by pooling our strengths and knowledge, we can achieve the greatest possible reach and effectiveness, thereby contributing to the continuous improvement of working conditions.

We have also established social standards in a code of conduct for our own employees as well as for the employees of our business partners and service providers—such as external cleaning services at our own locations. The requirements are based on internationally recognized standards, such as the Universal Declaration of Human Rights, the UN Convention on the Rights of the Child, and applicable ILO conventions, as well as the legislation of the respective country. In Germany, as well as in all other countries, we adhere to the applicable laws and existing collective agreements.