Code of Conduct Audit --- Use the Code of Conduct to verify your compliance with the highest standards of business ethics:
As the business expands its international manufacturing and sourcing capabilities, operators are becoming more aware of the conditions under which workplaces in the supply chain are subject to scrutiny in countries where they are expected to enter. As customers' demands for ethical and safe working conditions strengthen in global supply chains, workplace conditions have become an important part of a brand's value proposition. That's why it is necessary to have processes for managing the risks associated with social responsibility in the supply chain to comply with the highest standards of business ethics. The lack of such a process can lead to brand reputation damage and poor financial results.
What is a Code of Conduct?
A code of conduct is a set of regulations that governs corporate and business conduct in accordance with acceptable standards. By implementing a code of conduct, a company or organization can conduct business to the highest standards of business ethics. And it is higher than required by local laws. Each brand and importer can develop their own code of conduct and require suppliers to comply. These standards are often tailored to meet international retailer requirements in Europe and the United States based on International Labor Organization (ILO) requirements.
Companies need to conduct regular audits of suppliers to ensure that the entire supply chain complies with the requirements of the code of conduct. The review process should be carried out by qualified persons, that is, professionals who can speak the local language, understand local cultural issues, and understand the latest local legislation.
Why is the code of conduct so important?
Companies and organizations that implement audited codes of conduct ensure and demonstrate their commitment to social and environmental ethical standards throughout the supply chain. Implementing CoC is the first step in developing future action plans and demonstrating the company's commitment to ethical practices.
Five steps to a Code of Conduct
1. Analyze the company's unique code of conduct or apply existing social responsibility standards such as SA8000® or ETI requirements.
2. If necessary, adopt your own Code of Conduct.
3. Develop monitoring systems to ensure that you are robust in your supply chain.
4. Notify and train suppliers on the Code of Conduct and audit agreed requirements.
5. Hire a review company to conduct an audit of suppliers.
A typical code of conduct covers elements that include:
• Child labour
• Forced labour
• Disciplinary practices
• Harassment and abuse
• Freedom of association
• Working hours and overtime
• Compensation and benefits
• Health and safety and environmental protection, etc
What are the benefits of a Code of Conduct Audit?
• New opportunities for market development
• Laying the foundation for trade relations
• Increase disfaith among customers and partners
• Setting an example of fair production conditions
• Gain the trust of partners and the public
• Gain a competitive advantage over companies that do not take social responsibility
• Ensure a harmonious atmosphere at your production site.
• Maintain your brand and company image through basic social standards
• Fulfilling your social responsibility in the import market by • providing appropriate working conditions at the production site
• Cost savings by improving the productivity and quality of suppliers and trading partners
• Independent and impartial third-party evaluation of sustainable development management to ensure broad external acceptance
• Enhance your competitiveness
• Attract new customers and increase loyalty from older customers
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