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11

Module No.

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100

Maximum ESG Rating

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High

Implementation Complexity

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SUPPLIER MANAGEMENT

Has your manufacturing business established requirements on corporate social duty and sustainability with respect to suppliers?

An example of a corporate social duty and sustainability policy for suppliers can be a code of supplier-specific conduct or a document of business conduct applicable to both internal employees and external business partners, e.g. suppliers.


The aim should be to promote healthy working conditions and environmental duty throughout the supply chain.

Bottom-up supplier management refers to doing meet sustainability requirements in the chain of complete supply, for example, making sure that suppliers have also set the requirements for their own suppliers.


What areas does this set of requirements cover?

• Working conditions and human rights
• Child labor and child labor
• Wages and benefits Hours of work
• Modern slavery (i.e. slavery, servitude and forced or compulsory labor and trafficking in human beings)
• Freedom of association and collective bargaining Harassment and non-discrimination
• Health and safety


Business ethics
• Corruption, extortion and bribery Privacy and statistics protection
• Fair competition and antitrust Conflicts of interest
• Reporting and protection from retaliation


Environment
• Greenhouse gas emissions, energy efficiency and renewable energy
• Water quality and consumption Air quality
• Sustainable source management and waste reduction
• Responsible management of chemical substances


Does your manufacturing business use any of the following channels to communicate its corporate social duty and sustainability requirements to its suppliers?


They are included in the conditions
Supplier Training
Supplier Code of Conduct/Supplier Sustainability Policy
Business website/Supplier Portal Upload the corresponding document


What processes does your manufacturing business have in place to know if its suppliers meet your requirements?

A second-party audit is an external audit conducted by customers or another organization.
on your behalf. It can also be done by regulators or any external entity that has a formal interest in an organization.

A third-party audit is an external audit carried out by independent organizations, such as registrars (certification bodies) or regulators.
(Source: ISO 19011 Audit Definitions)

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