Vendor Code of Conduct
Vendor Code of Conduct ("COC") applies to any Vendor which provides goods, merchandise or services to Ethically Made Goods Inc. Ethically Made Goods Inc. recognizes there are different legal and cultural environments factories throughout the world operate in. These are the basic requirements our vendors must meet in order to do business with us. Our COC was guided by the core conventions of the International Labor Organization (ILO), the Ethical Trade Initiative (ETI) and the United Nations Universal Declaration of Human Rights. Our code is reviewed to ensure alignment with our core principles and the guidance of the Fair Labor Association (FLA) workplace code of conduct. We regularly review and update our code of conduct, as needed. Vendors will receive updates as necessary. Vendors will be expected to keep current third party certifications for social responsibility and corporate compliance. Vendors will be audited regularly through both in-person direct visits and third party audits.
The Ten Standards below encompass at a minimum what is expected of our supply chain partners. We highly encourage every Vendor to exceed the standards and operate by recognizing the individuality, value and contributions each person has in the success of their organization and its operations. This includes giving consideration to the needs of their local communities and whenever possible, developing programs and incentives to help address the needs within the communities they operate in. The Vendor Code of Conduct is part of our ongoing commitment to ensure those we partner with share the same commitment to fair and legal employment practices, social responsibility and environmental impact.
An Ethically Made Goods Inc vendor must adopt and adhere to rules and conditions of employment which, at a minimum, respect their workers and safeguard their rights under applicable national and international labor and social security laws and regulations. To every extent possible, work performed must be on the basis of recognized employment relationships established through national law and practice. Obligations to employees under labor or social security laws and regulations arising from the regular employment relationship shall not be avoided through the use of labor-only contracting, sub-contracting, or homeworking arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment, nor shall any such obligations be avoided through the excessive use of fixed-term contracts of employment.
An Ethically Made Goods vendor must not subject any person to discrimination in employment, including hiring, salary, benefits, advancement, discipline, rewards, access to training, termination, or retirement on the basis of gender race religion age, pregnancy, disability, sexual orientation, gender identity, veteran status, nationality, political opinion, or social or ethnic origin. Women must receive equal treatment and all aspects of employment. Pregnancy testing may not be a condition of employment. Vendors may not force workers to use contraceptives. Vendor must provide reasonable accommodations to workers for religious practice.
HARASSMENT AND ABUSE
Every vendor employee must be treated with respect and dignity and be provided a safe and healthy working environment. Under no circumstances should any employee be subjected to physical, sexual or psychological harassment or abuse. Vendor must not engage in or permit physical acts to punish or coerce workers or engage in or permit psychological coercion or any other form of non-physical abuse, including threats of violence, sexual harassment, or any other verbal abuse.
Ethically Made Goods Inc. will not do business with a vendor if they or their subcontractors or agents engage in or support forced labor and/or human trafficking of persons of any kind. Forced labor includes slavery of any form, prison labor, indentured labor, and bonded, including debt bondage labor. Human trafficking includes transportation, harboring, recruiting, transferring, or receiving person’s by means of threat, force, coercion, abduction, fraud, or payments to any person having control over another person for the purpose of exploiting the labor or services or permitting its subcontractors, business partners or agents to do so. Vendor assures all workers are not required to lodge “deposits” or their identity papers with their employer and are free to leave their employer with reasonable notice.
Ethically Made Goods vendors and their subcontractors must not permit a person to be employed under the age of 15 years old or under the age for completion of compulsory education, whichever is higher. All manufacturing sites encouraged to develop a lawful workplace apprenticeship programs for the educational benefit of their workers, provided that all participants meet minimum legal age requirements. Compliance with all applicable child labor laws including those related to hiring, wages, hours worked, overtime, and working conditions expected. Young persons under 18 shall not be employed at night or in hazardous conditions. In the absence of local law specifically regulating child labor, the wage rate for student workers, interns, and apprentices shall be the same wage rate of other entry level workers who perform equal or similar tasks. Policies and procedures relating to child labor standards shall conform to the provisions of the relevant standards of the International Labor Organization (ILO).
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
Workers must be free to join associations of their own choosing. Vendor must not threaten, penalize, restrict, or interfere with workers who wish to lawfully and peacefully organize or bargain collectively. The decision to do so should be solely at the workers discretion. Workers’ representatives are not discriminated against and have access to carry out their representative functions in the workplace. Where the right to freedom of association and collective bargaining is restricted under law, Vendor must facilitate, and not hinder, the development of parallel means for independent and free association and bargaining.
HEALTH AND SAFETY
Vendor must maintain a healthy, safe, and secure work environment and must incorporate sound health and safety management practices to minimize the risk of accidents, injury, and exposure to health risks. Vendors physical facilities must comply with all applicable laws regarding working conditions, including workers health and safety, sanitation, fire safety, risk protection, and electrical, mechanical, and structural safety. Workers shall receive regular and recorded health and safety training, and such training shall be repeated for new or reassigned workers. Access to clean toilet facilities and to potable water, and, if appropriate, sanitary facilities for food storage shall be provided. Accommodation, where provided, shall be clean, safe, and meet the basic needs of the workers. Appropriate health and safety related information should be clearly posted in a language understood by the workers in the workplace, and a senior management representative must be assigned responsibility for adherence to the health and safety code.
HOURS OF WORK
Vendor must set working hours, wages, and overtime pay and compliance with all applicable laws. Workers must be paid at least the minimum legal wage or wage that meets the local industry standards, whichever is greater. Wages must be paid accurately and in a timely manner. While it is understood that overtime is often required in garment production, factories must carry out operations in ways that limit over time to a level that ensures humane and productive working conditions. Vendor must not require, except in emergencies or unusual situations, a work week in excess of 60 hours or the maximum allowed by applicable law, whichever is less. Regular (non-overtime) hours must not exceed 48 hours per week. Workers may refuse overtime without any threat of penalty, punishment or dismissal. Overtime shall be used responsibly, taking into account the extent, frequency and hours worked by the individual worker and the workforce as a whole. Overtime shall always be compensated at a premium rate, which is recommended to be no less than 125% of the regular rate of pay. Workers shall be provided with at least one day (24 consecutive hours) off per seven-day period. For each pay period, vendor must provide a timely and understandable wage statement to verify accurate compensation for work performed which includes hours/days worked, wage or piece rate earned per days, hours of overtime at each specified rate, bonuses, allowance and legal or contractual deductions.
Every worker has the right to compensation for a regular work week that is sufficient to meet the workers basic needs and provide some discretionary income, “livable wage“. Our business partners must pay at least the minimum wage or the appropriate prevailing wage, whichever is higher, comply with all legal requirements on wages, and provide any fringe benefit required by law or contract. When compensation paid does not meet the workers basic needs and provide some discretionary income, an Ethically Made Goods vendor is required to take appropriate actions to seek to progressively realize the level of compensation that does. Vendor must comply with all provisions for legally mandated benefits. Vendor may not take deductions from workers’ wages as a disciplinary measure.
Vendor must have an environmentally safe responsible management system, a plan for addressing air emissions, solid waste, hazardous waste, wastewater, and other production byproducts. The plan must include identifying, managing, monitoring, reducing, and responsibly disposing of or controlling such materials. Vendor must adhere to applicable laws, regulations, and Ethically Made Goods 's requirements regarding prohibition or restriction of specific substances and products and manufacturing, including proper labeling as required. Vendor is encouraged to look for cost effective methods to improve energy efficiency, minimize energy consumption, and greenhouse gas emissions, and reduce or eliminate use of resources and the generation of waste of all types by implementing conservative and substitution measures. The vendor code of contact, COC, must be promptly displayed in the workplace and posted in the language that is used by the workers.
Ethically Made Goods aims to reduce environmental impact and eliminate the use of harmful chemicals to protect consumer health and the environment. In accordance with the core conventions of global legislation and regulatory requirements, including Proposition 65, REACH and AFIRM. Vendors must review all materials used and Ethically Made Goods product made for compliance as part of the product development process. Vendors must review and adhere to the Restricted Substance List (RSL), which outlines Ethically Made Goods’ acceptable limits of potentially toxic or harmful substances which can be present in finished products. This RSL has been developed to
comply with legislative and regulatory requirements of global trading, including specifically REACH and Proposition 65. A copy of the RSL will be given out to all vendors.
Our specific RSL can be found here.
Information on chemical restrictions of REACH and Proposition 65 can be found here: https://oehha.ca.gov/proposition-65/proposition-65-list
Vendors are responsible for keeping up to date on legislative changes.