What is a Code of Conduct?
How does our CSR work actually operate and what does a Code of Conduct contain? We try to clear the confusion and sort out the main concepts. It can be nice to know when your customers ask.
We are passionate about our CSR work. You can feel safe when you shop with us.
When we find a new, prospective supplier that we believe can live up to our requirements for quality, price, and social responsibility, we sit down and present our CSR program. Sometimes there may be questions of interpretation and conversations about what rules apply to the situation - national legislation or ILO*? The starting point of negotiation is always with the law or rule that best promotes our company values. Then our Code of Conduct is signed. The supplier then receives a checklist for the upcoming CSR inspection. Of course, with our long experience, we are helpful with action plans to improve the work. The factories carry out an internal audit survey and prepare for the external audit, which is scored by an auditor. Here it is important to have knowledge of whom to choose to effectively minimize the risk of bribery and corruption. The external social audit lasts for a whole day and consists of interviews with management team and employees on topics such as control of wages, overtime, fire protection, working environment and occurrence of child labor. Even if the audit is approved, we produce an improvement plan with action points that the management confirms must be followed. Even after approved, the supplier must ensure the standard is met. Within two years, a new self-evaluation is required. In addition, we do random checks between audits. If the audit is not approved, the process is restarted with a new auditor. Should the supplier still not live up to our requirements, the partnership in most severe cases will be terminated, unless we presume that a new round will result in an approved audit.
Summary of AD company's Code of Conduct.
• Compliance: The supplier complies with rules, laws and conventions set by ILO, UN conventions, and industry standards.
• Child labor: Child labor defined on the basis of UN conventions and the ILO must not occur. It is also important that young people between the ages of 15-17 do not perform work as an adult.
• Freedom of association / collective agreement: Employees must have the right to organize and become members of trade unions. The company must have an open attitude to trade union work.
• Prohibition of discrimination: Suppliers must support human rights. Discrimination based on race, nationality, skin color, religion, gender, political opinion, sexual orientation, trade union membership, social status, or disability is prohibited.
• Compensation: Employees' salaries must at least meet the country's statutory minimum wage. If it turns out that it is not possible to live on, the supplier is asked to increase wages.
• Working hours: Working hours may not exceed 48 hours a week except in exceptional cases. Employees are entitled to at least one day off a week.
• Safety and health: The supplier must strive for and maintain as safe and healthy a workplace as possible and therefore work actively to reduce the risk of accidents.
• Forced labor: No work may be performed involuntarily or on the basis of coercion. Labor law and rules must be followed.
• Environmental considerations: AD company's suppliers should preferably have an environmental management system. If they do not have it, they should at least have an environmental policy and be able to show how they work for better environmental considerations.
• Management system: Suppliers must be able to show a system for how they take responsibility for and comply with our Code of Conduct. All must also work against any form of bribery, corruption, and/or extortion.
* The International Labor Organization (ILO) is the UN's specialized body for employment and working life issues, which aims to fight poverty and promote social justice.