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Ethical Trading Code
 
  Within Woolworths, we are committed to ensuring the safe and fair treatment of all employees around the world who are involved with the manufacture of our products. In addition, we are committed to minimising any impact on the environment that occurs during the manufacturing process. To ensure this is achieved, it is our policy to source products from vendors and factories who share our commitment to improving worker welfare, and reducing environmental impact.
   
  Customer expectations are growing, and becoming ever more demanding. Our customers now expect to buy quality goods that are made:
   
 
· In safe and healthy conditions.
· By adult workers who are properly paid.
· In factories where damage to the environment is minimised.
   
  We all want to run successful, efficient businesses. Woolworths believes that good workplace standards, decent health and safety requirements, fair pay and conditions, and care for the environment are important elements in business success. We want to expand partnerships with factories, to improve the welfare of workers, environmental standards, and continuously develop factories to be proud of.
   
  Woolworths has determined a set of aspirational standards reflecting the way in which we would like the factories we buy from to be managed. These standards are detailed in this Code of Conduct, and provide clear direction and guidance to our supply base as to what we recognise as best practice. All of these standards are achievable within a reasonable time frame, and all exist within our current supply base. Woolworths’ Standards cover the aspects of child labour; hours of work; wages; employee relations; health and safety; hygiene; accommodation; supply chain management; and environment.
   
  Woolworths understands and recognises that it can help improve the quality of life of the people making its products, by working with factories to improve where required. However, we acknowledge that there are certain situations or practices that are totally unacceptable, and cannot be condoned under any circumstances. These are detailed as Woolworths’ Critical Failure Points.
   
  Woolworths will never knowingly buy from factories which fail any of the Woolworths’ Critical Failure Points.
   
   
   
   
 
  Critical Failure Points
   
 
  Woolworths will NOT source from factories that demonstrate one or more of the following ten critical failure points:  
   
   
 
1 An adequate number of safe, unblocked fire escape routes are NOT accessible to workers from each floor or area of the factory and accommodation if provided.
   
   
 
2 Accommodation, if provided, is NOT clearly segregated from the factory / production area.
   
   
 
3 The factory employs children below the local legal minimum age, and / or the age of 15 (or 14 where allowed by ILO Conventions).
   
   
 
4 The factory uses forced, bonded or involuntary labour.
   
   
 
5 Workers are forced to lodge “unreasonable” deposits or their identity papers with their employers, so they are not free to leave after reasonable notice.
   
   
 
6 Workers are subjected to physical abuse, the threat of physical abuse, or intimidating verbal abuse.
   
   
 
7 The factory actively hides the true records so the auditor is unable to assess the critical failure points during the audit.
   
   
 
8 Workers are not being paid the minimum legal wage.
   
   
 
9 The supplier/factory knowingly and continually contravenes local or national environmental legislation without being able to demonstrate a plan of action to improve.
   
   
 
10  The factory/supplier management does NOT demonstrate a willingness to improve on any significant areas of concern identified during the audit.
   
   
   
   
   
 
  Woolworths Standards
   
 
  These standards have been determined to reflect current best practice on Ethical and Environmental issues within our supply chain. Achievement of these standards forms the basis for the grade awarded to each factory.  
 
  Woolworths wants to source from factories that meet, or are keen to improve their standards and practices, on labour, welfare, health and safety, and environmental management.  
   
   
  Child Labour
 
· All workers must meet the local legal minimum age, and / or a minimum age of 14.
· Factories should hold appropriate records on the ages of all workers.
· Young persons up to the age of 18 should not work at night (between the hours of 10pm and 6am), or on tasks that are potentially hazardous to their health.
· The factory should develop and participate in policies and programmes which help the elimination of any exploitation of children in their industries.
   
  Hours of Work
 
· Factories should hold appropriate records, showing the hours worked by each worker, both as part of their contractual agreement, and as overtime.
· Contractual hours do not exceed 48 hours per week.
· All overtime is voluntary and paid at an additional rate.
· Workers should be provided with at least one day off in every seven.
· Workers should be allocated breaks, the length and frequency of which is appropriate to the tasks undertaken.
   
  Wages
 
· Wages and benefits should be consistent with industry benchmarks and/or local/regional standards.
· Any deductions made to the basic wage must be clearly understood, and reasonable in the context of the total wage.
   
  Employee Relations
 
· There is no unfair discrimination in hiring, or employment conditions on any grounds.
· Workers should have a written contract of employment. The terms of which must be clearly communicated to the worker in a language or method that is understood.
· All disciplinary rules must be written and clearly communicated to workers in a language and/or method that is understood.
· There should be a clear recognised process of worker representation to ensure good flow of communication between workers and management.
· Workers should be allowed to negotiate collectively, in unions or groupings of their choice.
   
  Hygiene
 
· The factory should provide a clean and hygienic place of work and rest, consistent with local standards and the nature of the industry.
· Workers should have access to acceptable drinking water at all times.
   
  Accommodation
 
· Adequate provision should be made for prevention and fighting of fire.
· Accommodation should be comfortable and provide for an individual’s privacy.
· Accommodation should be clean and hygienic.
· Recreational facilities should be provided within or accessible to the living area.
· The factory should provide parents with childcare facilities or arrangements. (Where applicable/appropriate)
· Toilets and bathing facilities should be clean and hygienic.
· Where food preparation facilities are provided, they should be clean and hygienic.
   
  Supply Chain Management
 
· The factory management should understand the product’s supply chain, and be willing to divulge its details.
· The factory management should ensure visits and assessments are made of all parts of the product’s supply chain where there is obvious potential for environmental or ethical problems.
· The factory management systematically measures standards within their supply chain and where necessary encourages improvements on key issues.
· Sub-contract cottage units or homeworkers should only be used where there are benefits for the sub-contractor/homeworker.
· Sub-contracted “factory” manufacturing sites should adhere to the Woolworths’ Standards.
   
  Health and Safety
 
· Factories should be safe, with risk of harm from hazardous activities, minimised through the provision of safety equipment, training and a safe factory infrastructure.
· There should be a Manager with responsibility for Health and Safety issues.
· Factories should be able to demonstrate active management and improvement of Health and Safety issues.
   
  Environment
 
· Factories should have an Environment Policy signed by the Chief Executive.
· Factories should have an Environmental Action Plan against which progress is measured.
· Factories supplying timber products should have a “Chain of Custody” in place, which is, or can be certified, and they should understand forest certification and be prepared to deliver if Woolworths requires.
· Factories supplying Toiletry and Cosmetic products should be able to substantiate any claims on Animal Testing.
   
  Download Ethical and Environmental Code of Conduct in PDF format (66Kb)