Levi Strauss & Co. Global Sourcing Guidelines

Although Levi Strauss & Co. was virtually the only major apparel firm that produced in its own factories, by 1991 it had a network of almost 700 outside contractors, mostly in Asia and Latin America. This change presented a dilemma to Peter Jacobi, Levi Strauss & Co.’s President for Global Sourcing, and other senior management. Levi Strauss & Co.’s relationship with the suppliers focused on quality and delivery and not with the full range of issues addressed in its owned-and-operated facilities. Because most of these contractors operated in cultural and legal systems different from those in the United States, some Levi Strauss & Co. executives feared that the company’s brand image and its reputation for high ethical standards could be hurt by its contractors’ business practices regarding wages, workplace conditions, human rights, and the environment.