What is meant by implementation of a code of conduct?
In the past, some companies adopted codes but have failed to implement
them. For the CCC, implementation refers to all the necessary activities
that should be undertaken by the buying company to ensure that the
code standards are being met. Making the code part of the contract
between the buying company and the supplier is not sufficient. Good
implementation requires the integration of a range of positive actions
into the company's management system and business practices, including
the following:
-
companies should fully map their supply chains, inform the
management of their suppliers and have discussions with them
about the scope of the code of conduct;
-
within their organisation companies should assign clear and
full responsibility for matters pertaining to the code and
inform all relevant partners and bodies on where it lies;
-
implementation should be regularly reported to the company's
board, which must regularly review it;
-
all workers should be aware of the full contents of the code;
they should also be orally informed about its scope in a language
that they understand;
-
employees who provide information on compliance with the
code should never be disciplined, dismissed or discriminated
against;
-
all agreements with production partners should allow for
the termination of the contract in the event that the code
is not observed; agreements will also allow for a correction
period under certain conditions, e.g. in case the code is
only partially complied with and it is expected that the situation
will be corrected in due course;
-
companies should adapt their buying practices (in particular
regarding profit margins, pricing and deadlines) so that their
suppliers are able to meet the standards outlined in the code.
For example, when an order is negotiated, buyers should assess
whether or not the supplier can comply with the maximum hours
of work provision in the code, given the order size and delivery
time negotiated. It is also important that companies work
towards long-term relationships with their suppliers.
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