ES Audit Results Definition and Management Procedure

Audit result definition and management procedures All factories must be inspected to ensure that the products are produced under the conditions of Wal-Mart's "Supplier Standards". After the audit, the factory will be evaluated for a certain audit result (level). The audit results (levels) are divided into the following types:
GREEN
If no violations or only low-risk violations are found during the audit, the factory will be rated .Green.
. Orders can be shipped normally. New orders can be accepted. The factory obtains .Green. Results. One year later, if it still produces Wal-Mart products, it must undergo annual inspection.
YELLOW
Factories found to have medium-risk violations during the audit will be rated Yellow.
. Orders can be shipped normally. New orders can be accepted. The factory will re-examine within 120 days after the evaluation results come out.
ORANGE
Factories found to have higher risk of non-compliance during the audit will be rated Orange.
. Orders can be shipped normally. New orders can be accepted. The factory will re-examine within 120 days after the evaluation results come out.
RED
Factories found to have serious violations during the audit will be rated .red.
. The factory has committed the following violations: child labor, forced labor, corporal punishment, illegal transshipment, discrimination, human rights violations, bribery and/or unsafe working conditions. Cancel the orders that have been placed. All orders that have not been shipped will be cancelled. If the full container of goods has been shipped, it must be accepted after the retail market agrees. If the LCL goods have been delivered to the designated LCL carrier, they will be accepted. Retail markets that do not agree to accept should follow the return/claim procedure