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 company's 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 company's 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 company's 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 workers' 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.