Supply Chain Solutions No.13 – Supplier Code of Conduct and Social Accountability

The Supplier Code of Conducts intend is to ensure all vendors who manufacture your brands product met a minimum level of Social Accountability and Compliance.  The Code of Conduct is a means to constitute an agreement with the vendor that they will meet a minimum standard within the Code and Conduct and are responsible to constantly maintain that standard within their organisation.

Vendor evaluations can be conducted by an internal auditor or 3rd party.  Depending on the size of the organisation will dictate if the auditor is a social compliance specialist or conducted by a senior QA who will evaluate social compliance and technical competence.  Where additional requirements are needed for social compliance to meet end customer standards, the evaluation process should be used as a precursor to the customer’s evaluation.

Ethical Sourcing Supplier Assessment format please refer to; http://wp.me/p7z4o2-ng

Supplier Code of Conduct “Example”

The Supplier Code of Conduct applies to all factories that manufactures goods and raw materials, including subcontract Vendors, for ID Global Concepts “IDGC” and or any of its brands, subsidiaries, divisions, affiliates or agents.  While IDGC recognises that there are different legal and cultural environments in which Vendors operate globally, this Code of Conduct sets forth the basic requirement that Vendors must meet in order to do business with IDGC.  This Code of Conduct is based on internationally accepted labour standards, including the International Labour Organisation “ILO” core conventions and the Universal Declaration of Human Rights.  The Code of Conduct provides the foundation of IDGC’s on-going evaluation of the Vendor’s employment practices, environmental, counter terrorism and quality compliance.

  1. Compliance with Laws. Vendors that produce goods for IDGC shall operate in full compliance with laws of their respective countries and with all other applicable law, rules and regulations.
    1. The Vendor operates in full compliance with all applicable laws, rules and regulations, including those relating to labour, worker health and safety, and the environment.
    2. The Vendor allows IDGC and or any of its representatives or agents unrestricted access to its facilities, including subcontractors, and to all relevant records at all times, whether or not notice is provided in advance.
  2. Environment.  Vendors shall comply with all applicable environmental laws and regulations.  Where such requirements are less stringent than IDGC’s own, Vendors are strongly encouraged to meet the standards outlined in IDGC’s Vendor evaluation.
    1. The Vendor has an environmental management system “EMS”
    2. The Vendor has an environmental emergency plan “EEP” that includes procedures for notifying local community authorities in case of accidental discharge or release of any other environmental emergency.
    3. The Vendor stores hazardous and combustible materials in secure and ventilated areas and disposes of them in a safe and legal manner.
  3. Labour.
    1. Child Labour.  Vendors shall employ only workers who meet the applicable minimum legal age requirement or are at least 15 years of age, whichever is greater. Vendors must also comply with all other applicable child labour laws.  Vendors are encouraged to develop lawful workplace apprenticeship programs for the educational benefit of their workers, provided that all participants meet both IDGC’s minimum age standard or 15 and the minimum legal age requirement.
      1. Every worker employed by the Vendor is at least 15 years of age and meets the applicable minimum legal age requirement. If the minimum legal age is higher under local law, the higher age applies.
      2. The Vendor maintains official documentation for every worker that verifies the workers date of birth. In those countries where official documents are not available to confirm exact date of birth, the Vendor confirms age using an appropriate and reliable assessment method.
    2. Contract Labour Requirements. Vendors that recruit or employ foreign contract workers shall ensure that those workers are treated fairly and on an equal basis with its local workers.
    3. Discrimination.  Vendors shall employ workers on the basis of their ability to do the job, not on the basis of their personal characteristics or beliefs.
      1. The Vendor hires, employs, promotes, terminates, and provides access to training and retirement to workers without regard to race, colour, gender, nationality, religion, age, maternity, marital status, indigenous status, social origin, disability, sexual orientation, membership in worker’s organisations including unions, or political affiliation. Notwithstanding the minimum age requirements of 15 years, if a country’s minimum age has been set at 14 in compliance with ILO Convention 138, that minimum age shall apply.
      2. The Vendor pays worker’s wages and provides benefits without regard to race, colour, gender, nationality, religion, age, maternity, marital status, indigenous status, social origin, disability, sexual orientation, membership in worker’s organisations including unions, or political affiliation.
    4. Forced Labour. Vendors shall not use any prison, indentured or forced labour.  The Vendor does not use involuntary labour of any kind, including prison labour, debt bondage or forced labour by governments.
    5. Freedom of association and the right to collective bargaining. Workers are free to join associations of their own choosing.  Vendors shall not interfere with workers who wish to lawfully and peacefully associate, organise or bargain collectively.  The decision whether or not to do so should be made solely by the workers.
      1. Workers are free to choose whether or not to lawfully organise and join associations. If freedom of association and or the right to collective bargaining are restricted by law, workers shall be free to develop parallel means for independent and free association and collective bargaining.
      2. The Vendor does not threaten, penalize, restrict or interfere with worker’s lawful efforts to join associations of their choosing or to bargain collectively.
    6. Humane Treatment. Vendors shall treat all workers with respect and dignity.  Vendors shall not use corporate punishment or any other form of physical or psychological coercion.
      1. The Vendor does not engage in or permit physical acts to punish or coerce workers.
      2. The Vendor does not engage in or permit psychological coercion or any other form of non-physical abuse, including threats of violence, sexual harassment, screaming or other verbal abuse.
      3. The Vendor ensures the highest standards of animal welfare are complied with for all animal based materials used in raw materials and or finished products.
    7. Wages and Benefits. Vendors shall pay wages and overtime premiums in compliance with all applicable laws.  Workers shall be paid at least the minimum legal wage.
      1. Workers are paid at least the minimum legal wage.
      2. The Vendor pays overtime and any incentive (or price) rates that meet all legal requirements, whichever is greater. Hourly wage rates for overtime must be higher than the rates for the regular work shift.
      3. The Vendor provides paid annual leave and holidays as required by law.
      4. For each pay period, the factory provides workers an understandable wage statement which includes days worked, wage or piece rate earned per day, hours of overtime at each specified rate, bonuses, allowances and legal or contracted deductions.
    8. Working Hours. Factories shall set working hours in compliance with all applicable laws.  While it is understood that overtime is often required in manufacturing operations, Vendors shall carry out operations in ways that limit overtime to a level that ensures humane and productive working conditions.
      1. The Vendor complies with all applicable laws, regulations and industry standards on working hours. Except in extraordinary business circumstances the maximum allowable working hours in any week shall be the lesser of a.) what is permitted by national law; or b.) a regular work week of 48 hours plus overtime not in excess of 12 hours.
      2. Workers shall have at least one day, 24 hours, off in every seven days.
  4. Working Conditions. 
    1. Occupational Health and Safety. Vendors shall comply with all applicable laws and regulations regarding working conditions and shall provide workers with a safe and healthy environment.
      1. The Vendor complies with all applicable laws regarding working conditions, including worker health and safety, sanitation, fire safety, risk protection, and electrical, mechanical and structural safety.
      2. Work surface lighting in production areas, such as cutting, sewing, knitting and pressing, is sufficient for the safe performance of production activities.
      3. The Vendor is well ventilated. There are windows, fans, air conditioning or heaters in all work areas for adequate circulation, ventilation and temperature control.
      4. There are sufficient, clearly marked exits allowing for the orderly evacuation of workers in case of fire or other emergencies. Emergency exit routes are posted and clearly marked in all sections of the premises.
      5. Aisles, exits and stairwells are kept clear at all times of work in process, finished garments, rolls of fabric, boxes and all other objects that could obstruct the orderly evacuation of workers in case of fire or other emergencies. The factory indicates with a “yellow box” or other markings that the areas in front of exits, firefighting equipment, control panels and potential fire sources are to be kept clear.
      6. Doors and other exits are kept accessible and unlocked during all working hours for orderly evacuation in case of fire or other emergencies. All main exit doors open to the outside, with safe external access.
      7. Fire extinguishers are appropriate to the types of possible fires in the various areas of the factory, are regularly maintained and charged, display the date of their last inspection, and are mounted on walls and columns throughout the factory so they are visible and accessible to workers in all areas.
      8. Fire alarms are on each floor and emergency lights are placed above exits and on stairwells.
      9. Evacuation drills are conducted at least annually.
      10. Machinery is equipped with operational safety devices and is inspected and serviced on a regular basis.
      11. Appropriate personal protective equipment, such as masks, gloves, goggles, ear plugs and rubber boots, are made available at no cost to all workers and instruction in its use is provided.
      12. The factory provides potable water for all workers and allows reasonable access to it throughout the working day.
      13. The factory places at least one well-stocked first aid kit on every factory floor and trains specific staff in basic first aid. The factory has procedures for dealing with serious injuries that require medical treatment outside the factory.
      14. The factory maintains throughout working hours clean and sanitary toilet areas and places no unreasonable restrictions on their use.
    2. Dormitory (if applicable). Factories that provide housing for workers shall keep these facilities clean and safe.
      1. Dormitory facilities meet all applicable laws and regulations related to health and safety, including fire safety, sanitation, risk protection, and electrical, mechanical and structural safety.
      2. Sleeping quarters are segregated by sex (with the exception of couple’s quarters)
      3. The living space per worker in the sleeping quarters meets both the minimum legal requirement and the local industry standard.
      4. Workers are provided their own individual mats or beds.
      5. Dormitory facilities are well ventilated. There are windows to the outside or fans and or air conditioners and or heaters in all sleeping areas for adequate circulation, ventilation and temperature control.
      6. Workers are provided their own storage space for their clothes and personal possessions.
      7. There are at least two clearly marked exits on each floor, and emergency lighting is installed in halls, stairwells and above each exit.
      8. Halls and exits are kept clear of obstructions for safe and rapid evacuation in case of fire or other emergencies.
      9. Directions for evacuation in case of fire or other emergency are posted in all sleeping quarters.
      10. Fire extinguishers are placed in or accessible to all sleeping quarters.
      11. Hazardous and combustible materials used in the production process are not stored in the dormitory or in the buildings connected to sleeping quarters.
      12. Fire drills are conducted at least every six months.
      13. Sleeping quarters have adequate lighting.
      14. Sufficient toilets and showers are segregated by sex and provided in safe, sanitary, accessible and private areas.
      15. Dormitory residents are free to come and go during their off-hours under reasonable limitations imposed for their safety and comfort.

Monitoring, Enforcement and Compliance Management

As a Condition of doing business with IDGC, each and every vendor must comply with this Code of Conduct.  IDGC will continue to develop monitoring systems to assess and ensure compliance.  If IDGC determines that any vendor has violated this Code of Conduct, IDGC may at our discretion either terminate the business relationship and or require the vendor in implement a corrective action plan.  If corrective action is advised but not taken, IDGC will suspend placement of future orders and may terminate current production.

IDGC strongly encourages vendors to define and implement a policy for social accountability and to adopt or establish a management system to ensure that the requirements of the Code of Conduct can met in a consistent way.

Notes;

  1. ID Global Concepts (“IDGC”, “We” or “Us”) must be changed to your company to become effective.
  2. Your businesses lawyer must verify this document prior to use that it is relevant to your territory jurisdiction.
  3. Both parties to this agreement must execute the agreement by authorised representatives.
  4. International Labour Organisation “ILO” link http://www.ilo.org/global/about-the-ilo/lang–en/index.htm
  5. Environmental Management System “EMS” ISO14001 link http://www.iso.org/iso/iso14000

ID Global Concepts are experts in supply chain management. We add value to your supply chain through consultancy or management contract to ensure the business has the best practice systems that are the right fit for your business, customer and meet your value expectations.

We have worked with and delivered apparel and accessories product and systems to numerous retailers globally over the last ten years as follows;

Macy’s, Urban, Sears, Marks & Spencer, Myer, Kmart US & Kmart Australia, Dunnes Stores, Debenhams Monsoon Accessorize, Asos, Witchery, Brown Sugar, RM Williams, Coles, Chloe, John Lewis, Disney, Next, Firetrap, Lonsdale, Postie, ASDA, Harris Scarf, River Island, Tesco, Woolworths, Walmart, Glassons, Babies’R’Us, New Look, Target US & Australia, Primark, David Jones, Best & Less, Sophie, Yakka, Top Shop, BHS, Burlington, BigW, Oasis, JayJays, Blue Illusion, Driza-Bone, Just Jeans, Volcom, House of Fraser, Pumpkin Patch, Suzanne Grae, Pelaco, Laura Ashley, Sportsgirl, Ted Baker, Truetex, TableEight, French Connection

If you would like to learn more or wish to discuss other supply chain challenges, please email us at info@idgc.co or visit our website www.idgc.co

 

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