Social Responsibility
Social Responsibility – A Heartfelt Issue for Us at AD Company
Social responsibility is one of our core values and has been a foundational principle for us for many years. For us, CSR is not just about requesting certificates or getting signed codes of conduct. It's about truly understanding and engaging with the realities of our suppliers and genuinely taking responsibility for the people we work with.
That’s why we go a step further. In addition to the social audits we conduct with our producers, we visit their factories ourselves to check the conditions on-site. We don’t just want to check that everything is correct; we aim to understand the real challenges, and by doing so, we can work together in a development process.
Our care for people in our Asian import countries is not just something we do to meet requirements. It’s a given, because we care. It’s part of our business philosophy, and it's something we want your brand to stand for as well. For us, it’s not only an ethical matter—it’s about building long-term relationships with those we work with so we can jointly achieve cost-effective, high-quality production that is safe, sustainable, and secure for everyone involved.
We are deeply committed to our CSR work, and it is one of the first criteria we examine when establishing new supplier relationships. When we find a new potential supplier, we sit down and present our CSR program. Sometimes there are questions and discussions regarding what should apply—national legislation or ILO*? The starting point is always to follow the law or regulation that best supports the purpose. Then, our Code of Conduct is signed. Afterward, the supplier receives a checklist in preparation for the upcoming CSR inspection. Of course, with our extensive experience, we assist with action plans to improve the work. The factories conduct an internal audit as a mapping and preparation for the external audit, which is scored. This is followed by an inspection by an external auditor. It is important to have knowledge about who to choose to minimize the risk of bribery and corruption. The social audit lasts for a full day and includes interviews with management and employees, checks of wages, overtime, fire safety, working conditions, and the presence of child labor, etc. Even if the audit is approved, we develop an improvement plan with action points that management confirms will be followed. However, an approved supplier cannot rest on its laurels. Within two years, a new self-assessment is required. We also conduct spot checks in the meantime. If the audit is not approved, the process is repeated with a new auditor. If the supplier still does not meet our standards, the collaboration is terminated, unless we can reasonably expect that a new round will result in an approved audit.
Summary of AD Company’s Code of Conduct
• Compliance: The supplier agrees to comply with agreed rules, laws, and conventions (ILO*, UN conventions, and industry standards).
• Child Labor: Child labor, as defined by UN conventions and ILO, must not occur. It is also important that young people aged 15–17 do not perform work that is typically done by adults.
• Freedom of Association/Collective Bargaining: Employees should have the right to organize and join trade unions. The company should have an open attitude toward union work.
• Non-Discrimination: Suppliers should support human rights, meaning discrimination based on race, nationality, color, religion, gender, political beliefs, sexual orientation, union membership, social status, or disability is prohibited.
• Compensation: Employees' wages must meet at least the country’s legal minimum wage. If it turns out that this is insufficient for a decent living, the supplier is encouraged to raise wages.
• Working Hours: Working hours should not exceed 48 hours per week, except in exceptional cases. Employees are entitled to at least one day off per week.
• Safety and Health: The supplier must strive to maintain a safe and healthy workplace and actively work to reduce the risk of accidents.
• Forced Labor: No work should be performed involuntarily or under duress. Labor laws and regulations must be followed.
• Environmental Considerations: AD Company’s suppliers should preferably have an environmental management system. If they don’t, they should at least have an environmental policy and be able to show how they are working for better environmental considerations.
• Management System: Suppliers should have a system for how they take responsibility for and meet our Code of Conduct. They should also work against all forms of bribery, corruption, and extortion.
The International Labour Organization (ILO) is the UN agency for employment and labor issues, which aims to combat poverty and promote social justice.
