The Procurement Glossary » Supplier Code of Conduct

Supplier Code of Conduct

Compliance & Risk

Definition

A statement of the ethical, labour, safety and environmental standards a buyer expects its suppliers to uphold.

Explanation

The code sets expectations on issues like labour rights, safety, anti-corruption and environment, and is often contractually binding with audit rights. It extends the buyer's values and risk management into the supply base.

Example

Suppliers must sign the code of conduct, agreeing to no child labour and to audit rights.

Related terms

• Ethical Sourcing — Sourcing goods and services in a way that respects human rights, fair labour and responsible practices throughout the supply chain.
• Corporate Social Responsibility (CSR) — A company's commitment to operate ethically and contribute positively to society and the environment.
• Modern Slavery Compliance — Measures to identify and prevent forced labour, human trafficking and exploitation in supply chains.
• Supplier Audit — A formal on-site or documentary review of a supplier's processes, quality systems or compliance.

Frequently Asked Questions

What is Supplier Code of Conduct?

A statement of the ethical, labour, safety and environmental standards a buyer expects its suppliers to uphold. The code sets expectations on issues like labour rights, safety, anti-corruption and environment, and is often contractually binding with audit rights. It extends the buyer's values and risk management into the supply base.

Can you give an example of Supplier Code of Conduct?

Suppliers must sign the code of conduct, agreeing to no child labour and to audit rights.

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