Supplier Code of Conduct
Etiko Pty Ltd assesses all suppliers through this supplier code of conduct in regulation with national and/or international standards and our own high standards for helping to create a better world. We will always look for suppliers that provide fair, safe, and healthy working conditions and are environmental responsibility. Whilst we acknowledge that our suppliers are independent entities, their practices and actions may impact upon our reputation. As a result, we expect all our suppliers to adhere to our Code.
Definitions (taken from SAI – SA8000 2014)
Child: Any person under 15 years of age, unless the minimum age for work or mandatory schooling is higher by local law, in which case the stipulated higher age applies in that locality.
Child Labour: Any work performed by a child younger than the age(s) specified in the above definition of a child, except as provided for by ILO Recommendation 146.
Collective Bargaining Agreement: A contract specifying the terms and conditions for work, negotiated between an organisation (e.g. employer) or group of employers and one or more worker organisation(s).
Forced or Compulsory Labour: All work or service that a person has not offered to do voluntarily and is made to do under the threat of punishment or retaliation or that is demanded as a means of repayment of debt.
Human Trafficking: The recruitment, transfer, harbouring or receipt of persons, by means of the use of threat, force, deception or other forms of coercion, for the purpose of exploitation.
Living Wage: The remuneration received for a standard work week by a worker in a particular place sufficient to afford a decent standard of living for the worker and her or his family. Elements of a decent standard of living include food, water, housing, education, health care, transport, clothing, and other essential needs including provision for unexpected events.
Ethical Business Practices
Etiko requires suppliers to:
- Comply with all local, national, and international laws and regulations on bribery, corruption and prohibited business practices.
- Be able to report on social and environmental performance. If this is not met, Etiko Pty Ltd may help set up the supplier to track these metrics. This will be done on a case by case basis.
- Have transparency and traceability into all levels of the supply chain and be able to provide transparency to Etiko Pty Ltd upon request
- Have quality control measures.
- Bring to attention any violation of this code of conduct to help remediate the issue.
- 1. Child Labour
- 1.1 There shall be no new recruitment of child labour, as defined above.
- 1.2 Companies shall develop or participate in and contribute to policies and programmes which provide for the transition of any child found to be performing child labour to enable her or him to attend and remain in quality education until no longer a child; “child” and “child labour” defined above.
- 1.3 Children and young persons under 18 shall not be employed at night or in hazardous conditions.
- 1.4 These policies and procedures shall conform to the provisions of the relevant ILO standards.
- Forced Labour, Compulsory Labour and Human Trafficking:
- 2.1 Employment is freely chosen
- 2.2 Suppliers must not be involved in human trafficking of any kind
- 2.3 There is no forced, bonded or involuntary prison labour.
- 2.4 Workers are not required to lodge “deposits” or their identity papers with their employer and are free to leave their employer after reasonable notice.
- 2.5 Suppliers must have a code of conduct regarding the use of labour brokers to recruit workers and the steps to be taken if an employee uses a labour broker to get employment
- 2.6 Any fees or costs charged by labour brokers or third-party recruiters associated with recruitment such as travel costs, processing of and work visas must be fully paid by employers.
- 2.7 Any payments made to employees, labour brokers or third party recruiters as mentioned above, should be recorded.
- 3. Health and Safety
- 3.1 A safe and hygienic working environment shall be provided, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Adequate steps shall be taken to prevent accidents and injury to health arising out of, associated with, or occurring in the course of work, by minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment.
- 3.2 Workers shall receive regular and recorded health and safety training, and such training shall be repeated for new or reassigned workers.
- 3.3 Access to clean toilet facilities and to potable water, and, if appropriate, sanitary facilities for food storage shall be provided.
- 3.4 Accommodation, where provided, shall be clean, safe, and meet the basic needs of the workers.
- 3.5 The company observing the code shall assign responsibility for health and safety to a senior management representative.
- 4. Freedom of Association & Right to Collective Bargaining
- 4.1 Workers, without distinction, have the right to join or form trade unions of their own choosing and to bargain collectively.
- 4.2 The employer adopts an open attitude towards the activities of trade unions and their organisational activities.
- 4.3 Workers representatives are not discriminated against and have access to carry out their representative functions in the workplace.
- 4.4 Where the right to freedom of association and collective bargaining is restricted under law, the employer facilitates, and does not hinder, the development of parallel means for independent and free association and bargaining.
- 5. Discrimination
- 5.1 There is no discrimination in hiring, compensation, access to training, promotion, termination or retirement based on race, caste, national origin, religion, age, disability, gender, marital status, sexual orientation, union membership or political affiliation.
- 6. Disciplinary Practices
- 6.1 The organisation shall treat all personnel with dignity and respect. The organisation shall not engage in or tolerate the use of corporal punishment, mental or physical coercion or verbal abuse of personnel. No harsh or inhumane treatment is allowed.
- 7. Working Hours
- 7.1 Working hours must comply with national laws, collective agreements, and the provisions of 7.2 to 7.6 below, whichever affords the greater protection for workers. Sub-clauses 7.2 to 7.6 are based on international labour standards.
- 7.2 Working hours, excluding overtime, shall be defined by contract, and shall not exceed 48 hours per week*.
- 7.3 All overtime shall be voluntary. Overtime shall be used responsibly, taking into account all the following: the extent, frequency and hours worked by individual workers and the workforce as a whole. It shall not be used to replace regular employment. Overtime shall always be compensated at a premium rate, which is recommended to be not less than 125% of the regular rate of pay.
- 7.4 The total hours worked in any seven day period shall not exceed 60 hours, except where covered by clause 7.5 below.
- 7.5 Working hours may exceed 60 hours in any seven day period only in exceptional circumstances where all of the following are met:
- this is allowed by national law;
- this is allowed by a collective agreement freely negotiated with a workers’ organisation representing a significant portion of the workforce;
- appropriate safeguards are taken to protect the workers’ health and safety; and
- the employer can demonstrate that exceptional circumstances apply such as unexpected production peaks, accidents or emergencies.
- 7.6 Workers shall be provided with at least one day off in every seven day period or, where allowed by national law, two days off in every 14 day period.
*International standards recommend the progressive reduction of normal hours of work, when appropriate, to 40 hours per week, without any reduction in workers’ wages as hours are reduced.
- 8. Regular Employment
- 8.1 To every extent possible work performed must be on the basis of recognised employment relationship established through national law and practice.
- 8.2 Etiko does not allow the use of offsite subcontractors
- 8.3 Obligations to employees under labour or social security laws and regulations arising from the regular employment relationship shall not be avoided through the use of labour-only contracting, sub- contracting, or homeworking arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment, nor shall any such obligations be avoided through the excessive use of fixed-term contracts of employment.
- 9. Renumeration
- 9.1 Wages and benefits paid for a standard working week meet, at a minimum, national legal standards or industry benchmark standards, whichever is higher. In any event wages should always be enough to meet basic needs and to provide some discretionary income.
- 9.2 All workers shall be provided with written and understandable information about their employment conditions in respect to wages before they enter employment and about the particulars of their wages for the pay period concerned each time that they are paid.
- 9.3 Deductions from wages as a disciplinary measure shall not be permitted nor shall any deductions from wages not provided for by national law be permitted without the expressed permission of the worker concerned. All disciplinary measures should be recorded.
Etiko Pty Ltd understands the importance of protecting the environment and minimising the negative impact of business operation. Etiko Pty Ltd is committed to improving environmental performance across all of our business activities and will encourage our business partners and members of the wider community to share that commitment.
Suppliers must be able to prove the following minimum standards are met:
- Respect animal welfare and work towards implementing healthy and humane practices based on best practice.
- Environmental performance report.
Suppliers will be preferred if the following are met:
- Tracking of operational and product carbon footprint.
- Implemented plans to help reduce carbon footprint each year.
- Reduction targets of water use via grey water use and/or collecting rain water.
- Reduction targets of one time use packaging.
- Have ISO 14000 accreditation or similar environmental accreditation for products and organisational.
- Reduction targets of waste to landfill, by attempting to maximise use of materials and inputs.
The following remediation steps will be followed should any breach of code be found or alleged in our supply chain. At minimum, Etiko Pty Ltd is committed to performing the following actions in all reported cases. The process will be overseen by the CEO.
Review and Investigate the Allegation(s)
- 1. Upon report of violation of any of the above codes, Etiko Pty Ltd’s director will immediately start the remediation protocol. Including:
- a. Review the findings and local laws to understand key gaps and problem areas
- b. Communicate with the source of the report to ensure full information is collected. Any breach of the ILO convention will require contacting either the Fair Labour Association (FLA) or ILO or Fairtrade Label Organisation (FLO) for assistance in dealing with the report. FLA will be kept informed of our on-going process.
- c. All orders from that supplier may be put on hold until after the investigation.
- d. Etiko Pty Ltd may put together an investigative team with qualified specialists if we identify the need. As Etiko Pty Ltd grows, it will do its best with its resources to help the violating supplier achieve compliance. Shall Etiko Pty Ltd not have the resources to perform an investigation, we may ask the supplier to hire a third party to help them resolve their violation. If the supplier elects not to solve its violation, Etiko Pty Ltd will no longer conduct business with that supplier.
- 2. Once the root cause analysis process has been satisfied, Etiko Pty Ltd will advise the supplier on how to develop a sustainable corrective action plan and timeline.
- 3. Etiko Pty Ltd may monitor the supplier’s progress according the agreed timeline. Thereafter, it may monitor the supplier’s progress annually.
- 4. If the supplier refuses to cooperate, makes little progress or no progress in remediation and/or demonstrates a lack of commitment, Etiko Pty Ltd will cease trading with that supplier. In addition, Etiko Pty Ltd holds the rights to report the violation to the relevant authorities shall it breach any national and/or international law.