A 2022 third-party audit of Cotopaxi’s supply chain unearthed several issues at a tier 1 supplier, including questionable recruitment methods, healthcare costs unfairly passed to employees, and workplace safety concerns. These findings, detailed in the brand’s 2023 Impact Report, prompted Cotopaxi to opt for remediation rather than severing ties with the supplier, avoiding further negative impacts on workers.
Collaborative Remediation Efforts
Cotopaxi, in collaboration with other brands sharing the same supplier, formed a working group to address the infractions. They engaged Elevate, a consultancy specializing in audit and remediation, to assist the supplier in correcting the issues. Cotopaxi funded the necessary changes and follow-up audits, committing to ongoing oversight through weekly meetings to ensure sustained improvements.
Sustainable and Ethical Focus
As a certified B corporation, Cotopaxi’s brand ethos is rooted in ethical and sustainable production. Regular audits, anonymous worker surveys, and direct communication with supplier management are part of their strategy to mitigate risks of human rights abuses and environmental harm within their supply chain. While some companies may resort to terminating relationships with non-compliant suppliers, Cotopaxi believes in supporting suppliers to enhance their practices, aligning with their stance against exacerbating worker hardships.
