2. THE CORPORATE BUSINESS COMMUNITY
Section 2.4 - Suppliers
Principles
2.4.P.1
The company accepts responsibility for all those whom it employs
either directly or indirectly through contract suppliers,
sub-contractors, vendors or suppliers.
2.4.P.2
The company is responsible for the labour, social and environmental
conditions under which and in which its products and services
are produced, provided, advertised or marketed under licensing
agreement.
2.4.P.3
The company affirms the concept of joint responsibility with
suppliers for the additional costs of compliance with ILO
labour standards, national law and the companyís code
of conduct.
Criteria
2.4.C.1
The company has a strong code of conduct for vendors and suppliers
which includes, but is not limited to, child labour, forced
labour, harassment, nondiscrimination, healthy and safe workplace,
freedom of association and right to bargain collectively,
sustainable living wages and benefits, hours of work, the
environment, supportive social and physical community infrastructure
and monitoring mechanisms for compliance.
2.4.C.2
The company adopts a policy to involve employees and workers
in the supply chain in formulating, amending and implementing
the companyís code of conduct.
2.4.C.3
The company adopts a policy based on the equitable sharing
of all costs relating to the compliance of ILO standards,
national law and the companyís code.
2.4.C.4
The company adopts a fair pricing policy that enables the
supplier to meet its obligations to
labour, social and environmental standards.
2.4.C.5
The company works with its suppliers to put in place on-going
education and training programmes for workers and management
on workersí rights and how to achieve and sustain compliance
with labour, social and environmental standards.
Bench Marks
2.4.B.1
The company clearly communicates to its suppliers, vendors
and licensees the company's code of vendor/supplier conduct
and its process of enforcement. Violations of the code are
effectively addressed. Cancellation of contract is used only
as a last resort.
2.4.B.2
The company develops long-term business relations with its
supplier in which job security of workers is considered.
2.4.B.3
The company, along with its vendors and suppliers, has a plan
of action with specific time lines to address code violations.
The company has guidelines to terminate its contract if identified
code violations are not dealt with in a reasonable period
of time.
2.4.B.4
The company has an effective internal compliance process of
training, on-site inspections and audits of suppliers and
vendors.
2.4.B.5
The company accepts the role of workers and unions as monitors
of workplace conditions.
2.4.B.6
To supplement its internal monitoring of code compliance,
the company accepts independent monitoring of its suppliers
and/or vendors. Sources of independent monitoring include
non-governmental organizations, local community groups, religious,
human rights, children's rights and labour groups.
2.4.B.7
The company provides regular reports to all stakeholders that
are independently verified on a plan detailing how the company
and the suppliers have shared responsibility for compliance.
2.4.B.8
The company adopts a transparent policy and reports publicly
to all stakeholders on its compliance programme, the findings,
and what changes have been made at the factory level.
2.4.B.9
The company has clear guidelines for the investigation of
possible code of conduct violations, which include a safe,
confidential process of interviewing employees without penalizing
them or jeopardizing their jobs or safety.
2.4.B.10
The company provides on-going, free and compensated education
and training for workers.