Byline: GRAEME BEATON
WAL-MART, the US owner of Asda, has been dropped by two major investors over allegations that it is infringing human rights by selling goods made in sweatshop factories.
The US retail giant has been singled out in a report by Boston-based social research company KLD that accused Wal-Mart of being 'unresponsive' to calls that its factories met adequate labour and human rights standards.
Juicy Couture EarringsKLD highlighted a handbag factory in China where workers were held in 'prison-like conditions' and another in Bangladesh where women worked seven 12-hour days for just nine cents (seven pence) an hour.
abercrombie clothingDomini Social Investments and the Catholic Healthcare Investment Trust both sold their holdings following the report and it is believed further fund holders may also be considering switching from Wal-Mart.
The report is the third piece of bad news for Wal-Mart in as many weeks.
embroidered patches
The US chain gave a profit warning at the beginning of the month blaming poor weather for missing first-quarter expectations.
On Friday, Wal-Mart announced it was scrapping its expansion plans in Germany, saying it would only open two new stores this year and would not be launching 50 new stores by the end of 2002, as planned.
Last night Wal-Mart defended its use of foreign factories, adding the company had stepped up its inspection programme and had quit many of the facilities identified by protesters.
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