Supply Chain Ethics | Carter Industrial Company

Supply Chain Ethics

Carter Industrial Company is a leading GRS-certified synthetic leather manufacturer with an international presence. We recognise the importance of maintaining a sustainable supply chain and upholding ethical standards throughout our operations. As we expand our business and collaborate with new suppliers, we are committed to ensuring that our supply chain adheres to national, international, and Carter Industrial Company's Code of Conduct regulations and guidelines.

Policies and Principles

Carter Industrial Company's Code of Conduct applies to all our suppliers, sub-suppliers, and business partners, as well as our Board of Directors, management teams, employees, and contractors. This Code of Conduct encompasses the principles and guidelines that we expect to be followed throughout our supply chain. These principles cover areas such as human rights, health and safety, working conditions, environmental responsibility, and business ethics. Our Code of Conduct is based on internationally recognised frameworks, including the United Nations Global Compact, the International Labour Organization (ILO), and the Organisation for Economic Co-operation and Development (OECD).

Monitoring and Assessment

We maintain a rigorous monitoring and assessment process to ensure compliance within our supply chain. This process includes written supplier self-assessments, on-site audits conducted by our internal auditors, as well as external audits carried out by independent auditors.

Every new supplier undergoes a comprehensive self-assessment based on Carter Industrial Company's Code of Conduct, the company's Restricted Substances List (RSL), and relevant labour laws, health and safety regulations, human rights standards, and climate and environmental requirements. We also conduct annual follow-up evaluations on a selected group of suppliers using either third-party auditors or our internal audit team. These evaluations aim to verify compliance with our standards and identify opportunities for improvement. We pay particular attention to high-risk categories such as dyeing fabric, handling PVC, surface treatments, and suppliers operating in high-risk countries.

Our on-site audits involve in-depth meetings, document verifications, questionnaires, site inspections, and group and individual employee interviews. These audits assess over 100 criteria across seven different topic areas, including but not limited to human rights, labour practices, wages, working hours, health and safety, and environmental responsibility.

Corrective Actions

In the event that issues are identified during audits, we follow a clear procedure that involves issuing a corrective action request to the supplier. The supplier is required to develop a corrective action plan within two weeks of the request. We conduct follow-up reviews to ensure that the necessary corrective actions are implemented within the specified timelines.

If a supplier's audit score falls below 50 per cent, we restrict further purchases from that supplier and schedule a new audit within the next six months to reassess their compliance.

In cases where problems are reported through Carter Industrial Company's whistleblowing tool, a separate process is followed. This process involves the company's Compliance Committee, legal support, and objective third-party advice from organisations such as Control Union.

Corporate Social Responsibility Audits

When onboarding new suppliers, we conduct self-assessments based on Carter Industrial Company's Code of Conduct, the Restricted Substances List (RSL), and relevant national laws and regulations related to labour practices, health and safety, human rights, and environmental aspects. Additionally, we conduct annual follow-up audits on a selected group of suppliers, utilising either third-party auditors or our internal audit team. These audits ensure ongoing compliance with our requirements and help identify areas for improvement. We pay special attention to high-risk categories such as dyeing fabric, handling PVC, and surface treatments, as well as suppliers located in high-risk countries.

At Carter Industrial Company, we remain committed to upholding ethical standards, promoting responsible practices, and continuously improving our supply chain's sustainability and compliance.