CORPORATE GOVERNANCE AT KiK
Corporate governance provides the framework for how a company is directed and controlled. It encompasses all processes, practices, and policies that guide decision-making. In addition, it promotes transparency, accountability, and fairness in business operations. Corporate governance also aims to ensure that the company acts ethically, complies with legal requirements, and takes the interests of its stakeholders into account. Altogether, this not only builds trust and fosters a positive corporate culture, but also contributes to long-term sustainable development.
SUSTAINABILITY MANAGEMENT AT KiK
Sustainability has a long-standing tradition at our company: as early as 2006, a dedicated department was established within the purchasing division. Since 2012, the Environmental, Social and Governance (ESG) unit has operated as an independent entity reporting directly to the executive management. This unit works in close collaboration with various departments, including Purchasing, Quality Management, and the Executive Division for Legal Affairs, Governance, and Compliance.
Supplier Relationship Management
Through responsible sourcing of goods and services, we ensure compliance with ethical, social, and environmental standards. To manage our supplier relationships efficiently and sustainably, we have established a sophisticated and systematic supplier management program. This program covers the entire process – from supplier selection and onboarding to long-term collaboration – through regular audits, evaluations, capacity building, and, when necessary, corrective actions.
- Initial Audit: Before entering into a business relationship, an on-site initial audit is conducted in accordance with our Code of Conduct. ESG specialists and internal experts assess all relevant criteria.
- Right to Veto: A business relationship will not be initiated if deficiencies in minimum requirements are identified. Even after corrective measures, a follow-up audit is required. If this is not passed, the supplier cannot be onboarded.
- Post-Onboarding: Once a business relationship begins, human rights and environmental standards are regularly reviewed in line with the German Supply Chain Act (LkSG).
- Corrective Action: If any shortcomings are identified, an action plan with clear deadlines is developed. In cases of severe violations, a zero-tolerance policy applies.
- Evaluation: Suppliers are assessed using a traffic light rating system based on criteria such as minimum wage compliance, occupational safety, and fire protection. This system provides a clear and transparent framework for supplier selection.
- Re-Audit: After corrective actions are implemented, a follow-up audit is conducted. Any issues are addressed through direct dialogue.
- Special Audits: Regular audits focus on specific topics such as electrical safety, minimum wage compliance, occupational safety, and subcontractor management.
- Capacity Building: On-site training supports suppliers in areas such as overtime prevention planning and implementing fire safety measures.
Code of Conduct
All manufacturers we work with are required to sign our Code of Conduct and Human Rights Policy, which we consider fundamental to all business relationships. These agreements are intended to ensure that collaboration takes place under fair and appropriate conditions. We see it as our responsibility to respect internationally recognized human rights and labor standards for all individuals involved.
Our Code of Conduct is based on the conventions of the International Labour Organization (ILO), its core labor standards, the United Nations Guiding Principles on Business and Human Rights, and the requirements of the German Supply Chain Act (LkSG). The ILO core labor standards are social benchmarks within the global trade system that aim to ensure decent working conditions and adequate protection. They include the prohibition of forced and child labor, freedom of association, collective bargaining, equal pay, and the prohibition of discrimination.
Partners and memberships
At KiK, we believe that participation in multi-stakeholder partnerships is the most effective way to drive social, environmental, and structural improvements within the textile industry.
The UN Global Compact is the world’s largest corporate sustainability initiative. Participating companies commit to aligning their strategies and operations with ten universally accepted principles in the areas of human rights, labor standards, environmental protection, and anti-corruption.
With more than 16,000 participants, the initiative also promotes the exchange and implementation of the United Nations’ 17 Sustainable Development Goals (SDGs).
For KiK, joining the UN Global Compact represents an important step in taking responsibility and actively advancing improvements within the textile industry.
The network offers its members a wide range of learning and dialogue formats across the areas of environment, social, and governance, with a focus on human rights, climate action, water and biodiversity protection, and reporting.
More information: https://www.globalcompact.de/
The Partnership for Sustainable Textiles is a multi-stakeholder initiative with around 120 members, bringing together actors from business, politics, civil society, trade unions, and standard-setting organizations. Together, they work to improve social and environmental conditions in the global textile sector.
For more information: https://www.textilbuendnis.com
Reports & Documents
LkSG Report – 2024
LkSG Report – 2023
Code of Conduct (EN)
Human Rights Policy (EN)
ESG-Bereiche
KiK IS FOR EVERYONE
We believe that everyone has the right to afford beautiful things. That is why, as a true local retailer, we are there for our customers on almost every corner. KiK offers textile and non-food products for everyday needs for the whole family. In addition to women’s, men’s, children’s and baby clothing, our range also includes household items, home textiles, party and gift items, toys, decorative products and much more. We stand for good quality at affordable prices - across Europe.