Supplier Code of Conduct Services
Supplier Code of Conduct Services
Supplier Code of Conduct – Many firms are required by their customers to issue a set of rules on how a firm expects its suppliers to act and behave. When a customer purchases a product from a company, they expect it to have been produced and sourced ethically. TCI has provided a Supplier Code of Conduct support service to its clients for over 20 years.
A firm needs to demonstrate that it takes its Supplier Code of Conduct Policy seriously. Suppose their customers find any malpractices or unethical actions of a supplier in a firm’s supply chain. In that case, that firm may lose sales and face backlash from its customers.
If you require any assistance in designing, implementing and monitoring a Supplier Code of Conduct Policy, please contact TCI today. Alog with our other range of support services, we are here to help you.
Why a Supplier Code of Conduct matters
The objective of a Supplier code is to provide ethical advice and direction to its suppliers in terms of their business practices and company culture.
The advantages and benefits of a Supplier Code of Conduct:
- Having a designated Supplier Code of Conduct, a firm clearly states to its suppliers how it expects them to behave toward their employees, the environment and other business partners.
- An active Supplier Code of Conduct policy can protect a firm’s brand and image if one of its suppliers is found to have unethical practices.
- If a firm is sourcing items or goods from territories or countries with questionable child labour practices, employee welfare or weak environmental laws. Then, demonstrating that a firm has an active Supplier Code of Conduct policy is vital to communicate a firm’s minimum standards that it requires to enable any supplier to trade with it.
Writing a Supplier Code of Conduct
It usually takes one of our team between 5-6 hours to design and write a Supplier Code of Conduct Policy (SCCP) for your firm. TCI charges an hourly rate of €150.
When TCI is hired to write an SCCP, we aim to provide a client with a policy that covers four areas:
- Worker practice and standards
- Environmental Policy
- Ethical Policies
TCI’s Supplier Code of Conduct Policies are designed for multi-use, so a firm can issue the same Code of Conduct policy to all its current and future suppliers.
Are Supplier Codes of Conduct Enforceable?
The objective of issuing a Supplier Code of Conduct to your suppliers is to communicate your firm’s minimum expectations of the Supplier’s obligations to the welfare of its employees, its duty of care to the environment and its business ethics.
Today firms’ stakeholders require that it trades equitably and ethically. While having a signed Supplier Code of Conduct is essential, it is vital that a firm can demonstrate to its stakeholders that it actively engages in the monitoring of the adherence of its suppliers to the signed code of conduct.
While a Supplier Code of Conduct is not legally enforceable, it is necessary to include a term that states that the suppliers must permit independent inspection firms to visit the supplier’s facilities to check that they are adhering to the Code of Conduct. If a supplier is found not to be adhering to the Code of Conduct, then the firm would be obliged to move its business away from that Supplier to an alternative Supplier who can comply with its Code of Conduct.
How to Monitor a Supplier Code of Conduct Policy?
Firms need to be seen to be actively monitoring the adherence of their Suppliers to the Code of Conduct. The purpose of a Supplier code is to provide expectations, give guidance, and promote ethical practices that a company expects of its Supplier.
The best approach is to hire an independent third-party inspection firm to visit, audit and issue a report on the Supplier. TCI recommends Goodada Inspections. Goodada has particular expertise in this area and it offers this service in over 76 countries. To learn more about this audit, please visit their Supplier Code of Conduct Audit page.