Supplier Code of Conduct

Acme Best Corp is committed to ensuring safe working conditions in its supply chains, treating workers with dignity and respect, and conducting business operations in an environmentally responsible and ethical manner. To uphold these values, Acme Best Corp has established this Supplier Code of Conduct ("Code") and requires its suppliers to adhere to these principles in the countries where they operate. Additionally, Acme Best Corp expects its suppliers to hold their own suppliers, contractors, and service providers to the standards defined in this Code.
A. LABOR

Suppliers are committed to upholding the human rights of workers and treating them with dignity and respect, as defined by the international community. This commitment applies to all workers, including temporary, migrant, student, contract, direct employees, and any other type of worker. The recognized standards outlined in the annex were referenced in the preparation of this Code and can serve as additional sources of information. The labor standards are as follows:

  1. )Freely Chosen Employment:
    2. Workers are not obligated to pay any recruitment fees, including those to employers' agents or sub-agents. If any such fees are discovered to have been paid by workers, these fees must be reimbursed to the worker. As part of the hiring process, all workers must receive a written employment agreement in their native language, outlining the terms and conditions of employment. Foreign migrant workers should receive the employment agreement before departing from their country of origin. Upon arrival in the receiving country, no substitutions or changes are allowed in the employment agreement unless these modifications are necessary to comply with local laws and provide terms that are equal to or better than the original ones.
  2. )Child Labor/Young Workers:
    3. Child labor is strictly prohibited at any stage of manufacturing. The term "child" refers to any person under the age of 15, or under the age required to complete compulsory education, or under the minimum age for employment in the country, whichever is the highest. Legitimate workplace learning programs, complying with all laws and regulations, are endorsed. Workers under the age of 18 (Young Workers) are not allowed to engage in work that might endanger their health or safety, including night shifts and overtime. Suppliers must ensure proper management of student workers by maintaining accurate student records, conducting thorough due diligence on educational partners, and safeguarding students' rights in line with applicable laws and regulations. Adequate support and training must be provided to all student workers. In the absence of local regulations, the wage rate for student workers, interns, and apprentices should be at least equivalent to the wage rate of other entry-level workers performing similar tasks.
  3. )Working Hours:
    4. The supplier must ensure that employees' working hours comply with national laws and are not excessive. Employees should be granted at least one day off in every seven-day period. The supplier is required to adhere to applicable laws, which grant employees rights to breaks, vacation time, leave periods, and holidays.
  4. )Wages and Benefits:
    5. Wages are crucial for fulfilling the basic needs of employees. The supplier is obligated to compensate their employees by providing wages, including overtime pay, and benefits that align with all relevant laws and regulations. The use of temporary, dispatch, and outsourced labor must adhere to local legal limits. Deductions from wages as a disciplinary measure are strictly prohibited. Workers must receive a clear and timely wage statement containing sufficient information to verify accurate compensation for the work performed.
  5. )Human Treatment:
    6. There should be no harsh or inhumane treatment, including sexual harassment, sexual abuse, corporal punishment, mental or physical coercion, or verbal abuse of workers. Moreover, there should be no threat of such treatment. Disciplinary policies and procedures that uphold these requirements must be clearly defined and communicated to workers.
  6. )Non-Discrimination:
    7. Discrimination in employment, including recruitment, hiring, training, working conditions, job assignments, pay, benefits, promotions, discipline, termination, or retirement based on gender, race, ethnicity, social origin, religion, age, disability, sexual orientation, national origin, political opinion, or any other status protected by country law is strictly prohibited. Employment decisions, such as hiring, pay, benefits, training, advancement, discipline, termination, retirement, or any other related decision, must be made based on relevant and objective criteria. Furthermore, workers or potential workers should not undergo medical tests or physical exams that could be used in a discriminatory manner. Employers are required to provide reasonable accommodation for religious practices.
  7. )Freedom of Association:
    8. In compliance with local laws, suppliers must respect the right of all workers to form and join trade unions of their own choice, to engage in collective bargaining, and to participate in peaceful assemblies. Additionally, suppliers must acknowledge workers' rights to abstain from such activities. Workers and their representatives should be able to openly communicate and share ideas and concerns with management about working conditions and management practices, without the fear of discrimination, reprisal, intimidation, or harassment.
B. HEALTH AND SAFETY
The supplier is responsible for ensuring a healthy and safe working environment for employees. Conditions in all work facilities must be safe, clean, and compliant with all relevant laws and regulations. Additionally, all pertinent health and safety information must be clearly posted in a location easily identifiable and accessible to workers. The supplier should have systems in place to detect, prevent, and respond to potential health and safety risks. Workers should be encouraged to voice any health and safety concerns without fear of retaliation. The supplier must identify, evaluate, and control workers' exposure to hazards arising from physically demanding tasks, such as manual material handling, heavy or repetitive lifting, prolonged standing, and highly repetitive or forceful assembly tasks. Acme Best Corp recognizes the importance of integrating comprehensive health and safety management practices into all aspects of the business. Therefore, the supplier is required to commit to creating a healthy work environment and safe working conditions for all their associates. At a minimum, the supplier must:
  1. )Healthy and Safe Working Environment: Work facilities must be safe, clean, and comply with all applicable laws. Workers should have access to potable water, sanitary facilities, and appropriate personal protective equipment.
  2. )Safety Training: Employees should receive training in their language on performing jobs safely and using personal protective equipment correctly.
  3. )Emergency Plans: Emergency plans and procedures, including evacuation, medical, and fire drills, should be in place and communicated to workers.
  4. )Safety Hazards: Hazards related to physically demanding tasks should be identified, evaluated, and controlled. Safety protocols, guards, interlocks, and barriers should be implemented where machinery poses injury hazards.
ENVIROMENTAL
A supplier should acknowledge that environmental responsibility is essential for producing high-quality products. In manufacturing operations, efforts must be made to minimize adverse effects on the community, environment, and natural resources, all while safeguarding the health and safety of the public. The environmental standards include:
  1. )Environmental Permits and Reporting:
    2. All necessary environmental permits (such as discharge monitoring), approvals, and registrations must be obtained, maintained, and kept up-to-date. Operational and reporting requirements associated with these permits should be followed diligently.
  2. )Pollution Prevention and Resource Reduction:
    3. Emissions and discharges of pollutants and waste generation must be minimized or eliminated at the source. This can be achieved through practices such as adding pollution control equipment, modifying production, maintenance, and facility processes, or employing other effective methods. Furthermore, the use of natural resources, including water, fossil fuels, minerals, and virgin forest products, should be conserved. This conservation can be accomplished through practices like modifying production, maintenance, and facility processes, materials substitution, re-use, conservation, recycling, or other sustainable means.
  3. )Solid Waste:
    4. Chemicals and other materials that pose a hazard to humans or the environment must be identified, labeled, and managed to guarantee their safe handling, movement, storage, use, recycling, or reuse, and proper disposal.
  4. )Solid Waste:
    5. The supplier shall implement a systematic approach to identify, manage, reduce, and responsibly dispose of or recycle solid waste, including both hazardous and non-hazardous materials.
  5. )Air Emissions:
    6. Air emissions of volatile organic chemicals, aerosols, corrosives, particulates, ozone-depleting chemicals, and combustion by-products generated from operations must be characterized, routinely monitored, controlled, and treated as necessary before discharge. The supplier is required to conduct regular monitoring of the performance of its air emission control systems.
  6. )Materials Restrictions:
    7. Suppliers are required to adhere to all applicable laws, regulations, and customer requirements concerning the prohibition or restriction of specific substances in products and manufacturing. This includes labeling for recycling and disposal purposes.
  7. )Water Management:
    8. The supplier must implement a water management program that documents, characterizes, and monitors water sources, usage, and discharge. The program should actively seek opportunities to conserve water and control channels of contamination. All wastewater must be characterized, monitored, controlled, and treated as necessary before discharge or disposal. The supplier is obligated to conduct regular monitoring of the performance of its wastewater treatment and containment systems to ensure optimal functionality and compliance with regulatory standards.
D. ETHICS
To meet social responsibilities and achieve success in the marketplace, suppliers and their agents must uphold the highest standards of ethics, including:
  1. )No Corruption, Extortion, or Embezzlement:
    2. All forms of corruption, extortion, and embezzlement are strictly prohibited, leading to immediate termination and legal actions.
  2. )No Improper Advantage:
    3. Promising, offering, authorizing, giving, or accepting bribes or any other means of obtaining undue or improper advantage is strictly prohibited. This includes anything of value, directly or indirectly, to obtain or retain business, direct business to any person, or gain an improper advantage. Monitoring and enforcement procedures will be in place to ensure compliance with anti-corruption laws.
  3. )Disclosure of Information:
    4. The supplier may have access to Acme Best Corp's confidential (non-public) information. This information must be held in the strictest confidence and should not be disclosed to anyone without ABC's prior approval, except as required by law. Disclosure should be on a need-to-know basis, and ABC retains exclusive ownership of its confidential information.
  4. )Intellectual Property:
    5. Intellectual property rights must be respected. The transfer of technology and know-how must be done in a manner that protects these rights. Customer and supplier information must be safeguarded.
  5. )Fair Business, Advertising, and Competition:
    6. Standards of fair business, advertising, and competition must be upheld.
  6. )Responsible Sourcing of Minerals:
    7. Suppliers must have a policy to reasonably assure that tantalum, tin, tungsten, and gold in the products they manufacture do not directly or indirectly finance or benefit armed groups involved in serious human rights abuses in the Democratic Republic of the Congo or adjoining countries. Suppliers must exercise due diligence on the source and chain of custody of these minerals and make their due diligence measures available to customers upon request.
E. MANAGEMENT SYSTEM
Suppliers are required to adopt or establish a management system aligned with the content of this Code. The management system should be designed to ensure:
  • Compliance with Applicable Laws, Regulations, and Customer Requirements: The system must ensure adherence to laws, regulations, and customer requirements related to the supplier’s operations and products.
  • Conformance with this Code: The management system should align with the principles outlined in this Code.
  • Identification and Mitigation of Operational Risks: The system should identify and mitigate operational risks related to this Code and facilitate continuous improvement.
The management system should encompass the following elements:
  1. )Company Commitment:
    2. Include a corporate social and environmental responsibility policy statement affirming the supplier’s commitment to compliance and continuous improvement
  2. )Management Accountability and Responsibility:
    3. Clearly identify senior executives and company representatives responsible for implementing the management systems and associated programs. Senior management should regularly review the status of the management system.
  3. )Legal and Customer Requirements:
    4. Establish a process to identify, monitor, and understand applicable laws, regulations, and customer requirements, including those outlined in this Code.
  4. )Improvement Objectives:
    5. Define written performance objectives, targets, and implementation plans to enhance the supplier’s social and environmental performance. Include periodic assessments of the supplier’s progress in achieving these objectives.
  5. )Training:
    6. Develop training programs for managers and workers to implement supplier policies, procedures, improvement objectives, and to meet applicable legal and regulatory requirements.
  6. )Communication:
    7. Establish a process for clear communication of information about the supplier’s policies, practices, expectations, and performance to workers, suppliers, and customers.
  7. )Worker Feedback, Participation, and Grievance:
    8. Implement an ongoing process, including an effective grievance mechanism, to assess employees’ understanding and obtain feedback on violations against the practices and conditions covered by this Code. This process should foster continuous improvement.
  8. )Audits and Assessments:
    9. Conduct periodic self-evaluations to ensure conformity to legal and regulatory requirements, the content of the Code, and customer contractual requirements related to social and environmental responsibility.
  9. )Corrective Action Process:
    10. Establish a process for timely correction of deficiencies identified by internal or external assessments, inspections, investigations, and reviews.
  10. )Documentation and Records:
    11. Create and maintain documents and records to ensure regulatory compliance and conformity to company requirements. Ensure appropriate confidentiality to protect privacy.
  11. )Supplier Responsibility:
    12. Implement a process to communicate Code requirements to next-tier suppliers and monitor their compliance with the Code.