Supplier code of conduct to promote sustainability.
A supplier code of conduct is a set of guidelines created to ensure that a company’s suppliers adhere to high standards of safe working conditions, fair and respectful treatment of employees, and ethical practices. It includes work practices and standards, environmental policies, ethics, and a review and documentation policy:
- Work practices and standards: Work practices and standards refer to compliance with regulations against child labour, non-discrimination practices, health and safety, working conditions, working hours, remuneration, the right of association, and freely chosen work.
- Environmental policy: It considers product and material use and transportation technology.
- Ethics: Ethics involves anti-corruption measures by adhering to fair trade practices in the business and managing relationships with partners (e.g., in the upstream supply chain).
- Review and documentation policy: Outlines how components are monitored and reviewed.
Benefits of the Supplier Code of Conduct
Creating a supplier code of conduct sets clear expectations for suppliers to consult and interact with. It helps protect a company’s brand image in the event of a site incident affecting a supplier.
A supplier code of conduct is vital if your company sources materials and products from countries where environmental and labour laws are absent or poorly enforced
