THE CHALLENGE
During a routine sourcing review, two long-standing buyers, one based in the UK and one in Italy, flagged this leather goods exporter for insufficient social governance documentation. The feedback was specific: product quality scores were strong, but the company could not demonstrate any structured approach to labour practices, supplier oversight, or worker grievance management.
Operating out of Kanpur with annual revenue of approximately INR 55 Cr, the company manufactured finished leather goods, wallets, belts, and bags, and exported primarily to the UK and EU markets. The workforce of around 120 included a significant number of piece-rate and seasonal workers. The supply chain involved 16 suppliers, mostly small tanneries and component vendors, several operating in conditions that would attract scrutiny under EU import due diligence expectations.
Leather is a high-risk category for European importers. Buyers face pressure to demonstrate that their sourcing does not involve exploitative labour, unsafe working conditions, or environmentally harmful tanning processes. This company had good practices in many areas but had never documented, formalised, or structured them into a governable system.
THE APPROACH
SVEGA delivered a combined supplier compliance and governance system build engagement, working across Pillar 02 (Workforce Governance Architecture), Pillar 03 (Ethical Supply Chain Controls), Pillar 04 (Grievance and Escalation Infrastructure), and Pillar 05 (Social KPI Assurance Readiness).
TIMELINE
8 Weeks
KEY OUTCOMES
- Workforce governance framework covering permanent, piece-rate, and seasonal workers with defined ownership, documented policies, and consistent metric definitions
- Supplier due diligence system covering all 16 suppliers with risk-tiered assessment, onboarding standards, and periodic review triggers
- Formal grievance mechanism with accessible reporting channel for factory floor workers and a documented investigation and closure process
- Evidence pack structured for buyer and import compliance review, covering labour practices, supply chain oversight, and governance controls
- UK buyer removed the compliance flag after reviewing the governance documentation. Italian buyer scheduled a follow-up site visit and subsequently confirmed continued sourcing
