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Good morning everyone, my name is Wallis Etienne, and I am the new Chief Compliance Officer here, at Costco Whole Sale Corporation. We are currently ranked number 15th, in Fortune 500 companies in the United States. As we make strides to increase our revenue and move up on the Fortune 500 list, it’s important that we maintain our commitment to protecting the working rights of those who produce, process and harvest the merchandise we sell. (1)
Today I would like to discuss and review Costco’s Wholesale Corporation Supplier Code of Conduct.
Our expectations for the Suppliers and Facilities is to comply with all applicable labor, employment, health and safety, and environmental laws and regulations of the country where the merchandise is produced. (1) If your country does not have the applicable laws and regulations in place, we expect you to meet the requirements provided in Costco’s Supplier Code of Conduct. (1) We encourage our suppliers to work to achieve Costco’s “Above and Beyond Goals.” (1) The Above and Beyond Goals are programs and policies created by suppliers who have set the bar in exceeding the local laws and continuously find ways to improve working conditions for their employees and their environment.
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In order, let me begin with the highlighted subjects. The first section identifies the roles of all stakeholders that are governed by the Supplier’s Code of Conduct. The following are:
Suppliers: who are defined to be responsible for ensuring compliance with Costco’s Supplier Code of Conduct throughout the Merchandise supply chain.
(1)
Facilities: are engaged in the production of Merchandise sold to Costco are required to be disclosed to and approved by Costco. (1)
Subcontractors: are those disclosed and approved to work with Costco’s supplier’s.
Section I. Documentation. All facilities are required to maintain and keep licenses, permits, certifications, policies and procedures and employee and facility records. (1) The documentation is necessary to verify compliance with Costco’s Supplier Code of Conduct and with all Applicable Laws and Regulations, and shall be made available upon request of Costco or its third-party auditor. (1)
Section II. Child Labor and Young Workers. All employees must be at legal age to work. If your country does not have a set legal age, the minimum age in the Code of Conduct is fourteen (14) years old. Every employee is required to have a valid photo identification or official and verifiable documentation of the employee’s date of birth. (1) Employees under the age of eighteen (18) shall not perform hazardous work that may jeopardize their health, safety or morals. Hazardous work includes, but is not limited to, work at dangerous heights or in confined spaces; work with hazardous substances, dangerous machinery, equipment and tools, or work that involves the manual handling or transport of heavy loads; and night work (1)
In this section, Costco has adopted parts of the policies from the International Labour Association, to help construct its child labor and youth policies.
Section III. The Forced, Bonded, Indentured, Slave and Prison Labor, and Human Trafficking.
It has adopted parts of its policies from Protocol to Prevent, Suppress and Punishing Trafficking Especially in Women and Children. This policy states all employees will work is voluntary and not subject to any exploitation, such as forced, bonded and indentured labor, or sexual exploitation. (1) Employees shall not be subject to any forms of coercion, fraud, deception, or giving up control of their person to another for the purpose of such exploitation. (1)
Supplier and facility will use employment agencies that are legal and conduct lawful recruitment for employees. (1) Employees are not required to pay any fees for travel expenses, or payments to the employer or agent for the purpose of being hired or as a condition of employment. No fees will be withheld from wages or passed on to other the employees. (1)
Prison or convict labor must be consistent with laws where the merchandise is assembled, and with the laws where the merchandise is imported. (1)
Section IV. Abuse, Harassment and Disciplinary Action. All Employees will be treated with respect. Physical, sexual, verbal or mental abuse, coercion or threats, corporal punishment, or any form of harassment during hiring or employment is prohibited. (1)
Written disciplinary policies and procedures and records of disciplinary actions for all Employees shall be maintained. Illegal or excessive disciplinary actions or monetary fines are prohibited. (1)
In Section V. Labor and Employment Management, the supplier and facility will comply with all applicable laws and regulations that address the following: wages, working hours, discriminatory hiring and employment practices, employees’ right to associate freely, and use of foreign contract or migrant workers. (1) Further detailed information for employment management is provided in the Supplier Conduct of Conduct.
The next section is VI. Health Safety and Housing, employees will be provided with written information on health and safety, and good sanitation maintenance. (1) Employees who work with or are exposed to chemicals and hazardous materials shall be trained on safe handling, storage and disposal of these materials. (1) Employees who work with dangerous equipment will be trained on safe operation and handling. We will provide you with safety signs and manuals for all dangerous equipment. (1) Employees will be trained on evacuation procedures in case of emergency situations. Please note throughout the year we will announce our safety and hazardous trainings; for those of you who have expired certifications we expect that you comply and complete the certifications.
For employee housing, you will comply with all applicable laws and regulations. Employee housing will be separate from their work areas. Each person in their own beds at no cost to the employee. Married people will have their own rooms and singles will be separated by genders and private. (1) All employees will have access to safe drinking water, hot water, and toilets that are separated by gender and private. (1)
Employees are free to leave the housing areas during nonworking hours. Curfews can only be mandated if set by law. If curfews apply, the employees will be notified and instructed on safety risks in their housing environments. (1) Foreign or migrant Employees shall not be subject to lock-in/lock-out policies. (1)
Section VII. Environmental Management, in manufacturing and processing operations, adverse impacts upon the community, environment and natural resources shall be minimized while safeguarding the health and safety of the public. (1)
Section VIII. Labor and Employment Management, goes in depth with the terms of employment; wages; and benefits, regular work hours and overtime hours; discrimination; freedom of association and collective bargaining; foreign or migrant employees and grievance mechanism.
In section IX. Audit Ethics, we take ethics seriously and expect the facility to provide full transparency during an audit process. Our business practices do not condone bribery, falsification of records, correction and deception. (1) Costco employees and independent auditors acting on behalf of Costco are prohibited from accepting gratuities from suppliers, vendors, and service agencies that we currently have business, has done business with or any future entities.
With continuing efforts to assure compliance to our Code of ethics, we have provided a global confidential hotline, to express your concerns. (2) feel free to email us at www.costco.ethicspoint.com. Any supplier who believes a supplier or employee is in violation of any of the following: transactional issues, deliveries, and payments, should address it via the website tool provided. (2) We encourage reports from the suppliers about possible violations of our policy and misconduct. (2)
I want to thank all of the suppliers for joining us and partaking in this meeting today. I look forward to meeting you again at our annual Code of Conduct Meeting.
Challenges In The Business Global Environment. (2021, Dec 09). Retrieved from https://studymoose.com/challenges-in-the-business-global-environment-essay
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