Supplier Code of Conduct | Carter Industrial Company
Supplier Code of Conduct
Introduction
The Supplier Code of Conduct is a fundamental part of our business relationships with suppliers. At Carter Industrial Company, as a GRS-certified synthetic leather manufacturer, we are committed to promoting fair and safe working conditions, upholding human rights, ensuring environmental responsibility, and maintaining high ethical standards throughout our supply chain. Our Supplier Code of Conduct outlines the principles and directives that suppliers must adhere to in order to align with the values and expectations of Carter Industrial Company.
Compliance and Consequences
Carter Industrial Company strictly prohibits any violations of the Supplier Code of Conduct. If a supplier is found to be non-compliant with the agreed-upon directives, appropriate actions will be taken, which may include demanding corrective measures or terminating the supplier relationship. We expect all suppliers to comply with the requirements outlined in the Supplier Code of Conduct, ensuring that these requirements are cascaded throughout their own operations and by their direct suppliers. We encourage suppliers to proactively implement equivalent standards within their supply chains.
Responsibilities and Accountability
Suppliers are responsible for appointing a senior executive who will oversee compliance with the Supplier Code of Conduct. This individual should be diligent and proactive in addressing any potential violations within their facilities and supply chain. Additionally, suppliers are expected to have their own Code of Conduct in place, aligning with the principles and requirements of Carter Industrial Company's Supplier Code of Conduct. We reserve the right to evaluate whether such codes are equivalent and sufficient.
Open Communication and Transparency
Transparency and open communication are vital to maintaining a sustainable supply chain. Suppliers are expected to be open, honest, and transparent about areas that require improvement, providing relevant facts and data when requested. We value an ongoing dialogue with our suppliers regarding sustainability goals, and suppliers should be prepared to share data related to production, products, and transport to facilitate Life Cycle Assessments (LCAs) conducted by Carter Industrial Company.
Grievance Channels and Remediation
Suppliers are required to establish and make available channels for grievance and remediation to all employees and third parties. These channels should allow individuals to raise complaints, concerns, and recommendations for improvements without fear of retaliation. Carter Industrial Company values the well-being and fair treatment of all workers within the supply chain and encourages suppliers to provide accessible and effective avenues for resolving issues.
Compliance with International Standards
Carter Industrial Company is dedicated to complying with international standards and frameworks. We adhere to the Declaration of Human Rights, the United Nations Global Compact, the International Labour Organization (ILO) core conventions, the OECD Guidelines for Multinational Enterprises, as well as applicable legislation related to competition and anti-corruption. Our Supplier Code of Conduct reflects these commitments and expects suppliers to align with these standards.
Scope
The Supplier Code of Conduct applies to all suppliers delivering goods and/or services to Carter Industrial Company, including their parent, subsidiary, or affiliated entities. This encompasses all employees and agents associated with the Supplier, including full-time and part-time employees, contractors, consultants, trainees, temporary workers, migrant workers, senior management, and the board of directors.
Framework
Management Systems
Suppliers are required to have management systems in place that provide effective routines and open dialogue to oversee compliance with Carter Industrial Company's Supplier Code of Conduct. These systems should be appropriate to the size, complexity, and risk of the Supplier's business activities.
At a minimum, the management system should include a policy commitment from the Supplier's management, effective due diligence, risk assessment, and clear assignment of responsibilities to relevant personnel for monitoring and reporting on the areas covered by this Supplier Code of Conduct. The management system should be continuously assessed, reviewed, and improved, preferably through third-party certification.
Striving for Excellence
Carter Industrial Company aims to contribute to a more sustainable world and is committed to responsible manufacturing by seeking the least possible negative impact on climate, environment, and people. It is important for us that Suppliers commit to implementing the standards and requirements outlined in this Supplier Code of Conduct into their operations and supply chain. We acknowledge that this endeavour is a dynamic process, and we expect Suppliers to demonstrate diligence, care, and progress over time in meeting the requirements of this Supplier Code of Conduct. Furthermore, we present to our suppliers Carter Industrial Company's best practice standard to provide guidance for suppliers who want to excel. While this set of standards is not mandatory, it allows us to recognize suppliers for their business practices.
Legal Compliance
Suppliers are required to comply with the laws and regulations in the places where they operate. If this Supplier Code of Conduct contradicts applicable law in any country or territory, the applicable law takes precedence and prevails. In such cases, Carter Industrial Company should be immediately informed, and alternative arrangements will be sought to ensure that the principles and spirit of this code are followed. Carter Industrial Company provides a flexible approach, except in cases where national law or regulations violate general ethical and universal principles.
If legal and regulatory requirements are less strict than the Supplier Code of Conduct, the principles and requirements of this document shall apply. In cases where a requirement is covered by both the Supplier Code of Conduct and applicable law, the stricter regulation that offers the greatest protection and standard shall apply.
Implementation and Compliance
Committing to participating in Carter Industrial Company's supplier assessments, audits, and reporting to evaluate sustainability performance is a prerequisite for doing business with us. Carter Industrial Company verifies compliance with the requirements of this Supplier Code of Conduct through self-assessment questionnaires and reserves the right to conduct on-site audits at any time, either through Carter Industrial Company's employees or third parties appointed by Carter Industrial Company. Lack of cooperation, diligence, failure to address violations, and timely implementation of corrective actions to the requirements of this Supplier Code of Conduct may result in reduced business and, ultimately, termination of the business relationship with Carter Industrial Company.
GRS-certified synthetic Leather Manufacturing
Carter Industrial Company, as a leading GRS-certified synthetic leather manufacturer, sets forth the following additional provisions specific to the production and supply of synthetic leather:
Raw Material Sourcing
Suppliers shall ensure that materials used in the manufacturing process of synthetic leather are sourced from pre/post-consumer waste and complies with the Global Recycled Standard (GRS) requirements.
Traceability and Documentation
Suppliers shall maintain detailed records of the origin and traceability of the post-consumer waste used in the production of rPVB leather. These records should be readily available for inspection by Carter Industrial Company or its designated representatives.
Chemical Management
Suppliers shall comply with all applicable laws and regulations regarding chemical management, including the restriction and elimination of hazardous substances. The use of harmful chemicals in the production process of rPVB leather should be minimized, and safer alternatives should be considered whenever possible.
Quality Control and Testing
Suppliers shall implement robust quality control measures to ensure that the rPVB leather produced meets the required quality standards and specifications. Regular testing should be conducted to verify the absence of harmful substances and to ensure compliance with relevant industry standards.
Environmental Protection
Suppliers shall implement measures to minimize environmental impact, including but not limited to reducing energy consumption, water usage, and waste generation throughout the production process of rPVB leather. Efforts should be made to optimize resource efficiency and promote sustainable practices.
Worker Health and Safety
Suppliers shall prioritize the health and safety of their workers involved in the production of rPVB leather. Adequate training, protective equipment, and safety protocols should be provided to mitigate risks and prevent work-related injuries or illnesses.
Continuous Improvement
Suppliers are encouraged to engage in continuous improvement initiatives to enhance the sustainability and social responsibility of their rPVB leather manufacturing processes. This may include exploring innovative technologies, collaborating with stakeholders, and adopting best practices to achieve higher standards.
Health, Safety, and Work Environment
At Carter Industrial Company, we prioritize the health, safety, and well-being of our workers and employees. We expect our business partners to share the same commitment and provide a safe and healthy work environment. This section outlines the minimum requirements and our striving for excellence standards regarding health, safety, and work environment.
Minimum Requirements:
Occupational Health and Safety Hazards:
Employees shall not be exposed to severe occupational health and safety hazards.
Suppliers shall assess and control hazards through proper design, preventive maintenance, and safety procedures.
Personal Protective Equipment (PPE):
Employees shall be provided with appropriate PPE and clothing, free of charge, clean, and in working condition.
Access to first-aid supplies should be readily available.
Occupational Health and Safety Risks:
Risks, including those related to mental health and ergonomics, shall be assessed, and actions must be taken to mitigate them.
Safety Information and Training:
Safety information shall be provided to educate, train, and protect employees from safety hazards.
Reporting and Emergency Procedures:
Fatalities shall be immediately reported to Carter Industrial Company.
Suppliers shall implement emergency plans, fire safety procedures, and evacuation protocols, including training and drills.
Fire safety procedures should be periodically reviewed and approved by competent authorities.
Basic Facilities:
Employees shall have access to unlimited clean drinking water.
Hygienic toilet facilities equipped with basic supplies shall be available during working hours.
If provided, hygienic food preparation with adequate dietary options should be available.
Storage, Rest, and Eating Facilities:
Employees shall have safe storage, rest, and eating facilities proportional to the number of employees.
Facilities should have adequate ventilation, light, temperature levels, and acceptable levels of noise and air pollution.
Striving for Excellence Standards:
Reporting and Follow-up:
Accidents or "near misses" should be reported according to local laws and requirements.
Accidents shall be documented with root cause analysis, and actions must be taken to prevent reoccurrence.
A defined process for following up on decided actions should exist, along with evidence of completed actions.
Environmental Protection
Carter Industrial Company is committed to conducting business with a long-term perspective, minimizing our environmental impact. We expect our suppliers to share this commitment and uphold environmental principles. This section outlines the minimum requirements and our striving for excellence standards regarding environmental protection.
Minimum Requirements:
Environmental Management System:
Suppliers shall have an environmental management system in place, with designated employees responsible for identifying, measuring, evaluating, and addressing environmental impacts.
Handling of Environmental Violations and Complaints:
Suppliers are expected to handle environmental violations and complaints diligently and systematically.
Communication of affected stakeholders, including Carter Industrial Company, is required if relevant.
Business Activities and Conservation Areas:
Suppliers' business activities shall not be conducted in High Conservation Value Areas.
Activities shall not harm humans or biodiversity or contribute to emissions to land, air, water, and soil, including noise emissions.
Greenhouse Gas Emissions and Waste Management:
Monitoring and Reporting:
Emissions to air, noise, water, and soil, as well as waste streams, shall be monitored, tracked, and documented.
Information shall be provided to Carter Industrial Company upon request.
Suppliers shall report their greenhouse gas emissions on relevant platforms, such as the Carbon Disclosure Project (CDP).
Striving for Excellence Standards:
Waste Management:
Waste should not be landfilled or incinerated on-site except for energy recovery purposes.
Suppliers shall identify aspects within their control and influence to foster change and improvement.
Greenhouse Gas Emissions and Packaging:
Suppliers shall set greenhouse gas emission reduction targets in line with the goals of the Paris Agreement (Scopes 1, 2, and 3).
Monitoring and tracking the composition of packaging materials and setting targets for reuse aligning with the circular economy principles.
Energy and Resource Efficiency:
Monitoring and Tracking:
Suppliers shall monitor, track, and document the use and consumption of natural resources such as water, energy, and raw materials.
Information shall be provided to Carter Industrial Company upon request.
No use of ozone-depleting substances or hydrofluorocarbons is allowed.
Striving for Excellence Standards:
Renewable Energy and Fossil Fuel Phase-out:
Suppliers shall identify aspects within their control and influence to foster change and improvement.
Clear goals should be set to increase renewable energy consumption, ensuring all electricity consumed comes from renewable sources in the medium term.
Goals for phasing out fossil fuels as primary energy sources should be established.
Responsible Sourcing of Parts, Services, and Raw Materials
Carter Industrial Company, a leading GRS-certified rPVB leather manufacturer, is committed to responsible sourcing practices throughout our supply chain. We recognize that the extraction of raw materials can have both positive and negative impacts on human rights and the environment. Therefore, we strive to work only with suppliers who align with our values and meet the following minimum requirements:
Conflict Minerals
If our suppliers produce or use conflict minerals, including tin, tungsten, tantalum, cobalt, or gold, in the products they supply to Carter Industrial Company, they must annually provide information on the use of conflict minerals, actions taken to verify their origin, and their due diligence activities. Suppliers are expected to follow the OECD Due Diligence Guidelines and utilize the Conflict Minerals Reporting Template provided by responsiblemineralsinitiative.org. Additionally, suppliers must have a policy and process in place to ensure that the sourcing of conflict minerals does not contribute to armed groups or human rights violations. All smelters must engage in third-party audit programs to ensure compliance, and this information should be made available to Carter Industrial Company upon request.
Hazardous Substances and Chemicals
Suppliers must identify potentially hazardous substances and chemicals in the products, raw materials, and articles used in production. These substances must be handled, stored, transported, recycled, and disposed of safely. The substances included in products or services delivered to Carter Industrial Company must comply with our Prohibited and Restricted Substances list, as well as with basic statutory requirements. Suppliers are required to provide a 100% declaration of the substances used in the products delivered to Carter Industrial Company.
Counterfeit Products
Suppliers must verify that the sourcing of parts and raw materials does not involve counterfeit products or parts. Counterfeit goods imitate trademarks with the intention of passing themselves off as genuine brands. Carter Industrial Company does not engage in business relationships with suppliers that handle, sell, or promote counterfeit goods.
Animal Products
Carter Industrial Company is committed to using animal parts or products that are produced in a sustainable and cruelty-free manner. Suppliers must identify and report to Carter Industrial Company the use of any animal parts or products in their processes.
Natural Fibres
Suppliers that use natural fibres must certify the origin of these fibres, sustainable harvesting practices, and traceability. This information should be made available to Carter Industrial Company upon request.
Green Transportation
Carter Industrial Company prioritizes the least greenhouse gas-emitting freight options and routes, such as sea and train, for the transportation of products or parts. Suppliers are expected to prioritize environmentally friendly transportation methods when doing business with Carter Industrial Company.
Business Ethics
Carter Industrial Company upholds fair and free competition in all aspects of our business and expects our suppliers to follow the same approach.
Corporate Structure
Suppliers are required to disclose details of their corporate structure upon request.
Open and Transparent Business Practices
Suppliers must conduct business in an open and transparent manner, fostering long-lasting business relationships with Carter Industrial Company.
Conflict of Interest
Suppliers shall avoid situations where private, financial, or other external interests conflict with their business relationship with Carter Industrial Company. Any such relationships should be disclosed in advance to determine their appropriateness. Employees of suppliers shall not engage, with or without compensation, in activities that conflict, or appear to conflict, with the interests of Carter Industrial Company.
Anti-Corruption
Carter Industrial Company strictly prohibits the offering, request, or acceptance of bribes, extortion, or money laundering. We encourage our employees to avoid any situations where loyalty to the company may conflict with personal interests. Suppliers shall neither offer nor accept any form of improper benefit, whether to or from a third party, private or public, with the purpose of obtaining or retaining business or any form of preferential treatment. An improper benefit is defined as something that could influence the recipient's behaviour by encouraging disloyal or illegal action for personal gain. For more information, please refer to our policy document.
Confidentiality and Property Rights
Suppliers shall respect the confidential and privileged information and intellectual property rights of Carter Industrial Company. They must safeguard against misuse, mishandling, counterfeiting, theft, fraud, or improper disclosure in accordance with applicable laws and the contractual terms with Carter Industrial Company. Suppliers are required to sign confidentiality clauses, and all their work, tools, and other documents shall be considered the property of Carter Industrial Company.
Data Protection
Suppliers must ensure the safeguarding of any personal data provided by Carter Industrial Company and take active measures to prevent its misuse in accordance with data privacy laws and regulations. Suppliers are expected to comply with applicable laws and fulfil contractual obligations when collecting, using, processing, storing, and sharing personal data provided by Carter Industrial Company.