WOOLWORTHS CODE OF BUSINESS PRINCIPLES

Transcription

1 WOOLWORTHS CODE OF BUSINESS PRINCIPLES All Suppliers, Service Providers, Franchisees or other contractors ( contractors ) of Woolworths irrespective of their location around the world, are bound to this ethical Code of Conduct and are required to comply, at the very least, with the minimum standards set out in this Code. Woolworths strives to conduct business in a manner that reflects its core brand values i.e. quality and style, value, service, integrity, energy, innovation and sustainability. Woolworths is committed to ensuring that, in all its business interactions including sourcing, franchising and commercial operations, it only deals with legal entities and organisations that apply similar socially-acceptable and environmentally-responsible business practices. This is the cornerstone of the way we do business. As Woolworths expands its sourcing and sale operations beyond the South African boundaries, it has become increasingly necessary to ensure that our contractors abide by certain standards. Woolworths takes compliance of the Code very seriously and all our contractors are assessed against this Code. These standards will ensure that the employees of our contractors are treated fairly and that negative impacts on the environment as a result of the contractor s operations are avoided or minimised. All contractors are required where reasonably practicable to extend the principles of this code through their supply chains. Contractors are expected to implement and maintain systems for delivering compliance to this code. A senior member of management must be appointed to be responsible for compliance to this code. Contractors are expected to communicate this code to all employees and to their suppliers. The Code will be reviewed from time to time at the sole discretion of Woolworths. The social aspect of the Code is based on the ETI base code which is available on SCOPE OF THE CODE This Code applies to all people working for the contractor, whether temporary or permanent as well as to all production sites. When entering into any sub-contracting or secondary contractor arrangements for the purposes of delivering a product or service to Woolworths, contractors are required to ensure that they only deal with ethical and legal contractors. Contractors must agree with us in advance the production site or sites to be used for each order. No subcontracting of our orders from these agreed locations is allowed. The point of manufacture being the exact site where the goods are produced must be audited as must all product processing sites e.g. steaming, ticketing and product care facilities. The primary contractor is accountable for auditing any additional outsourced functions to the same standards. FORCED AND COMPULSORY LABOUR No contractors may make use of forced, bonded or involuntary prison labour and employees should be free to leave their employment on reasonable notice. Employees should be treated fairly and should have the freedom to leave employment should they so wish. Employers may not require employees to lodge deposits, identity papers or passports with them for the duration of employment as this could inhibit an employee s freedom to leave employment. CHILD LABOUR Contractors may not employ children under the age of 15 years or a person who falls below the local legal minimum working age, whichever is the greater. Contractors must also ensure that employees under the 1

2 age of 18 do not perform potentially hazardous work and that there are adequate steps to ensure that there are no adverse effects on the education and safety of the employee. Furthermore, where possible, they should not be permitted to work at night. It is the contractor s responsibility to ensure that proper enquiry is made into the employee s age and that this is properly controlled and recorded. Contractors are required to ensure that they do not recruit or utilize child labour. Where an employer already does employ child labour, such employer is required to ensure that they provide for the transition of any child performing child labour to stop work and enable him or her to attend and remain in quality education until he or she is no longer a child. HEALTH AND SAFETY It is a requirement that contractors provide a safe place of work and comply with all local laws relating to health and safety in the workplace. Contractors are required to have written guidelines as well as regular training in order to ensure health and safety in the workplace. Fresh drinking water and clean toilet facilities must be provided for employees. If accommodation is provided, such accommodation must be clean and safe and meet the basic needs of employees. It is the intention of this Code to ensure that employees of contractors work in safe and hazard free environment, and that other persons who may visit the premises of the contractor are also protected from potential danger. Contractors are required to take proactive steps to ensure safe working conditions. This includes assessing risks and taking necessary steps to eliminate hazards, and maintaining high safety standards in the workplace. Management of safety issues should be conducted in a regulatory manner ensuring compliance. Employees should be informed, trained and conversant with the specific safety requirements of the business, and be fully conversant with his / her responsibilities in respect of personal safety, the safety of others and the premises of the contractor. No employee should be permitted to work unless the necessary safety precautions have been taken. Each contractor should have a Health and Safety policy signed by the CEO of the contractor and displayed on the premises. Furthermore, contractors are to establish a sufficiently representative number of health and safety representatives. An employer must provide such facilities, assistance and training as a representative may reasonably require. Each contractor should develop rules or procedures and training for the workplace concerning the prevention of and the dealing with: accidents and injuries; prevention and management of fires; and disaster management and evacuation plan; Such rules or procedures should be displayed in the workplace. Contractors should ensure that the working environment is a healthy one and that there is adequate provision of fresh drinking water, ventilation and lighting. Furthermore sanitary and adequate toilet facilities should be available. Reasonable steps must be taken to reduce the health and safety risks to new and expectant mothers. All personnel shall have the right to remove themselves from imminent danger without seeking management permission. All contractors are required to comply with the provisions of any local health and safety legislation applicable to their specific sector. 2

3 Where living accommodation is provided it should allow for sufficient space for sleeping, cooking and toilet purposes. The contractor is required to ensure that there is adequate space for segregation by gender or family group. In addition sleeping mats or beds and personal storage areas should be available for each employee. There should be a safe water supply and adequate ventilation. Proper fire precautions should be in place. Where dormitories or hostels are in use, employees must have reasonable freedom of movement during their off-work hours. South African contractors are obliged to comply with the Occupational Health and Safety Act as well as the Compensation for Occupational Injuries and Diseases Act. WAGES, HOURS OF WORK AND ENTITLEMENTS TS Local laws on conditions of employment, including where applicable, laws governing minimum wages are required to be adhered to by contractors. Where no minimum wage is stipulated, contractors must pay their employees a reasonable wage. Contractors are obliged to comply with local laws regarding hours of work, rest periods and overtime payment and leave periods. In the absence of local laws, contractors may not require their employees to work regularly in excess of 45 hours a week. Where there are minimum wages in place for the sector or country as a whole, contractors are required to ensure that employees received no less than the minimum wage. In the absence of a legislated minimum wage, contractors are required to ensure that employees are reasonably remunerated in order to ensure that they can afford basic needs and provide for some discretionary income. Employees must be promptly paid in cash, by cheque, or direct deposit. Working hours must not be excessive and in all instances must comply with national laws and benchmark industry standards, whichever affords the greater protection. Employees should have at least one rest day in every 7 days worked. Employees must be permitted to take annual leave, sick leave and maternity leave in accordance with the local laws. Special measures to protect employees before and after the birth of a child are required. Employees should be provided with written information about their employment conditions prior to entering into employment as well as remuneration details at each payment period. Any obligations due to employees under labour or social security laws and regulations arising from regular employment should not be avoided by the contractor making use of excessive fixed term contracts, subcontracting, and home working or apprenticeship schemes. South African contractors are obliged to comply with the minimum standards set out in the Basic Conditions of Employment Act ( BCEA ) or any sectoral determination issued in terms thereof. Contractors should display a copy of the BCEA or determination in the workplace. Generally, employees may not work more than 45 ordinary hours in any week, or more than 12 hours in any day. Employees should have a weekly rest period of at least 36 hours. Any hours worked in excess of ordinary hours, must be subject to overtime limitations and must be remunerated as such. Employees should be granted at least 21 consecutive day s annual leave. DISCRIMINATION No contractor may discriminate against employees, applicants for employment or groups of employees on any basis which is not job related or in accordance with a legal affirmative action process, including but not limited to discrimination on the basis of race, age, religion, political affiliation, sexual orientation, caste, disability or gender. Contractors should ensure that there is no discrimination in recruitment, compensation, access to training, promotion, demotion, or dismissal unless such discrimination is based on a genuine occupational requirement or a legislation affirmative action programme. 3

4 South African contractors are obliged to comply with the Employment Equity Act ( EEA ) in order to ensure that discriminatory practices are prohibited and where the contractor employs more than 50 employees or exceeds the stipulated turnover, the contractor is required to submit Employment Equity plans to the Department of Labour. A summary of the EEA should be displayed in the workplace. Special measures should be in place to handle instances of sexual harassment. HIV / AIDS testing or discrimination is prohibited unless there is a Labour Court order to the contrary. FREEDOM OF ASSOCIATION AND THE RIGHT TO COLLECTIVE BARGAINING It is a requirement that contractors respect the right of employees to join legal associations of their choice and to bargain collectively in terms of local laws. Employees should be free to associate with trade unions of their choice. Implicit in this statement is the requirement that employees may not be discriminated against as a result of their involvement in lawful trade union activities. Where local laws govern collective bargaining rights, contractors are obliged to familiarise themselves with the provisions of such laws and to comply therewith. South African contractors should familiarise themselves with the requirements of the Labour Relations Act with respect to an employee s freedom of association to join a trade union, requirements in order for a union to exercise organisational rights or to enter into collective agreements. HARSH OR CRUEL TREATMENT Contractors or their employees, during the course and scope of their work, are required to prohibit and may not engage in any form physical or mental abuse, harassment, punishment or the threat thereof as against any person. Disciplinary action in the event of misconduct must be lawful and fair. Disciplinary action must be for a valid reason and should be effected by means of a fair procedure. Ideally, a proper record of disciplinary action should be kept for each employee. Disciplinary action may not include physical abuse or punishment. Furthermore, disciplinary action may not include fines or deductions from salary unless this is permitted by law and has the agreement of the employee concerned. Cruel treatment or corporal punishment of any employee is prohibited. South African contractors should comply with the provisions of the Labour Relations Act with respect to labour practices, discipline and dismissals. PREVENTION OF BRIBERY AND ANTI-CORRUPTION All contractors must work against corruption in all its forms including bribery and extortion, avoid conflicts of interest, and not participate in measures designed to stifle competition. BROAD-BASED BASED BLACK ECONOMIC EMPOWERMENT It is a requirement for South African contractors to commit to the principles of Broad-Based Black Economic Empowerment as set out in the Department of Trade and Industry (DTI) B-BBEE Codes of Good Practice. In April 2007 Woolworths publicly announced that it intends to reach Level 4 by In the interests of transformation and a more sustainable society, Woolworths expects its contractors to commit to reaching a similar or better level. 4

5 South African contractors are required to deliver to Woolworths a scorecard in accordance with the Broad-Based Black Economic Empowerment Codes of Good Practice published in the Government Gazette on 9 February 2007, as amended from time to time. Please send your verified scorecard to the Woolworths representative as specified on the covering letter. A link to a list of accredited B-BBEE verification agencies is available on and websites. The B-BBEE Codes of Good Practice provide a standard framework that enables the measurement of broad-based black economic empowerment across all sectors of the South African economy. This means that no industry will be disadvantaged over another when presenting B-BBEE credentials. There is a framework, stipulated in Statement 003 of the B-BBEE Codes, which provides guidelines for the development and alignment of transformation charters to be gazetted as Codes of Good Practice. This is to ensure that even when different gazetted charters are applied to different entities presenting their B-BBEE credentials, neither of the entities will be unfairly disadvantaged over the other because of the application of a more rigorous industry charter. The intention of the B-BBEE Codes of Good Practice is therefore to level the playing field for all entities operating within the South African economy by providing clear and comprehensive criteria for the measurement of Broad-Based Black Economic Empowerment. South African contractors are required to comply with the provisions of the Unemployment Insurance Fund Act and the Skills Levies Act. ENVIRONMENT In line with the Woolworths Good business journey strategy, contractors are expected to follow good environmental practice and subscribe to the following environmentally-sound principles: reduce dependency on substances and activities that are harmful to people and the environment reduce waste and appropriately dispose of hazardous materials; use natural resources(soil, water, energy, etc) as efficiently as possible; promote the protection of biodiversity, especially that impacted by its operations; integrate environmental considerations into decision-making at all levels; involve and support employees in achieving environmentally-sound objectives. strive for continuous improvement Woolworths expects its contractors to: be committed to continually improving their environmental performance, to have a systematic approach in place to manage their environmental risks and opportunities, to be able to show evidence of improvement in the areas that matter to their business. All contractors must comply at minimum with the relevant local and national environmental legislation. All products sold in Woolworths stores must be labelled with their country of origin. ANIMAL WELFARE All contractors and their subcontractors are required to promote animal welfare by minimising any potential harm, stress or pain to animals. Cruel treatment of animals is not permitted. Any contractor that has animals in the workplace or living areas, or that utilises animals in the production or development of product process is required to ensure that animals are properly and humanely cared for and fed. Contractors must wherever possible endeavour to minimise any harm, pain or stress to animals. Testing of products on animals is not permitted and compliance with Woolworths animal policies is required. 5

6 AUDITS, FREQUENCY AND DOCUMENTATION Woolworths standard practice is for audits against this Code to be conducted on a yearly basis but depending on a Woolworths risk assessment, this frequency may be reduced at Woolworths sole discretion. Woolworths reserves the right to carry out selective audits further back in the supply chain if it believes there is a potential reputation risk. Small family businesses employing fewer than 15 people may, at the discretion of Woolworths, be exempt from official audits. If exempt, they must still supply Woolworths with a completed pre-audit questionnaire. Contractors who supply Woolworths with branded merchandise i.e. non-woolworths labelled merchandise, are not subjected to audits but the contractor must give Woolworths reassurance in writing that they operate their business to similar ethical principles and standards. It is the contractor s responsibility to ensure compliance is maintained, updated and renewed in advance of the audit expiry date. Contractors are required to keep records of compliance in accordance with local laws and in order for Woolworths to monitor compliance with this Code. This Code should be used as a minimum or entry standard with the view to improving upon these standards with time. We ask that all our contractors nominate a senior person to take accountability for ensuring compliance with the Code in the workplace. As Woolworths is committed to ensuring ethical and legal practices amongst its contractors, it will gladly assist any contractor with regard to what is required to ensure compliance and improvement upon the Code. Contractors who require assistance in applying or understanding the Code should contact their Woolworths representative directly in this regard. In future Woolworths will require its contractors to upload their audit documentation, corrective action reports and certifications to its Total Quality Management System or such other system as Woolworths may from time to time specify to the contractors. NEW CONTRACTORS No merchandise may be supplied to Woolworths by a new contractor before the new contractor s preaudit questionnaire has been assessed by the relevant technical manager and the compliance manager of Woolworths. Other retailer s audits and certifications like ISO 9000 are considered as supporting information and do not replace the need for a Woolworths audit. APPROVED AUDIT PARTNERS Approved audit partners of Woolworths include, but are not limited, to International Britannia Limited (IBL), Intertek Testing Services (ITS), SGS and Bureau Veritas (SA). If you require their contact details, please request them from your Woolworths representative. AUDIT COSTS All costs pertaining to the audit will be paid by the contractor unless agreed to differently by the Buying Group. 6

7 ALTERNATIVE AUDIT CERTIFICATIONS To avoid audit duplication, Woolworths accepts the following certifications: Marks & Spencer plc WRAP SA 8000 (Social Accountability 8000) SMETA (only from overseas suppliers) COMMITMENT TO EXTENDING THESE PRINCIPLES THROUGHOUT THE SUPPLY CHAIN All contractors are required where reasonably practicable to extend the principles of this code through their r supply chains Contractors must apply these principles at all times, and must also be able to demonstrate that they are doing so. We will work with contractors to support any necessary improvements but we will also take action, which may involve cancelling ng contracts and ceasing to trade, if contractors are not prepared to make appropriate changes. SIGNED AT THIS THE DAY OF 2010 For & on behalf of: (Reg. No: ) (Print full name, style and registration number of contractor) Print name of signatory: he/she being duly authorised thereto 7