TRANSPARENCY IN SUPPLY CHAINS ACT
At Haide Packaging, we believe everyone touched by our business should be treated with fairness, dignity and respect. We are a cross nation, principles-driven company seeking to promote and advance respect for human rights across our value chain - from the business relationship to our suppliers’ factories to our own workshops.
Based from our oriental traditional culture and developed with western philosophy, Haide Five Principles of Quality, Responsibility, Mutuality, Dedication and Equity in pursuit of creating shared growth and opportunity. Our goal is to work with partners who share our principles-based approach to business, and we expect our strategic partner suppliers to respect ethical and social responsibility.
1. VERIFICATION OF SUPPLY CHAINS
We use third-party supplier risk assessment to help identify and verify risk, including indicators of forced labor, and inform the types of actions we take with both current and new suppliers. These actions may range from alignment with the Haide Supplier Code of Conduct, registration with a third party supplier information management system, completion of completion of an initial responsible sourcing audit or a site-specific self-assessment.
Our Supplier Code of Conduct outlines our global ethical expectations of all first-tier suppliers, including workplace standards and guidelines aligned with the International Labour Organization’s Fundamental Principles and rights at Work. It prohibits the use of prison, slave, bonded, forced and indentured labor and human trafficking. The following areas are included in the Code:
Forced labor, including slavery and human trafficking
Abuse, harassment, disciplinary action
Fair and equal treatment/non-discrimination
Compensation and benefits
Freedom of association and collective bargaining
Health and Safety
Ethical business practices
The Code encourages our partnership and suppliers to implement relevant systems to manage risk in their own operations, such as confidential grievance mechanisms. Suppliers have an important role in promoting responsible sourcing policies and principles in their own supply chains, and as part of our commitment to building supplier capability.
2. AUDITS OF SUPPLIERS
We evaluate human rights risks associated with operating in specific geographies or purchasing specific commodities and services. We work with suppliers accordingly to assess and improve how they manage these risks and their implementation of our Code. If a supplier repeatedly fails to meet our Code and other verification standards and does not credibly commit to meeting them in a given time period, we may terminate our relationship.
Independent Auditing - Select suppliers are further required to have an independent third party conduct semi-announced workplace assessments based on a range of factors, such as whether they are operating in a high human rights risk geography. The scope of the audit includes factors related to forced labor. Audited suppliers are required to implement corrective actions and are reassessed to measure compliance.
3. CERTIFICATION OF SUPPLIERS
We expect our first tier suppliers to align with our Code of Conduct, including its provisions on forced labor, by affirming their commitment to uphold our Code or demonstrating an equivalent policy of their own. Suppliers are expected to maintain transparent records to demonstrate compliance with applicable law and regulations.
4. BUILDING INTERNAL ACCOUNTABILITY
Supplier codes and standards are most effective when they are integrated into day-to-day supply chain management. Our purchasing teams are supported by a global Responsible Sourcing team with representatives covering key buying regions. The central Human Rights team works alongside buyers and suppliers to promote consistency in responsible sourcing across HD.
Purchasing teams and buyers are expected to take a course in responsible sourcing and have related criteria embedded in their personal development plans. This training is based in the core elements of our Code of Conduct, including forced labor. Purchasing organizations across the business have established annual targets regarding completion of responsible sourcing activities by suppliers and are measured against established targets through regular reporting.
Our dedicated global human rights team works with colleagues across our business as our policies are applied who meets monthly and brings together day-to-day practitioners from relevant business segments and functions to discuss and advance human rights priorities. Our Human Rights Steering Committee, comprised of senior executives in Corporate Affairs, Legal, Human Resources, Operations and Commercial, meets quarterly to review our global human rights progress, issues and performance. Our Board of Directors and our global management team review an annual report on our human rights progress and challenges.
Haide labour colleague, our internal framework for learning and development opportunities provided to Haide associates, includes responsible sourcing courses that are required for specific Associates. All of our Commercial Associates are expected to take our Responsible Sourcing training course - content includes our human rights standards and expectations of our suppliers, including with regard to forced labor. General training is available for all other Associates, reviewing both the core issues of our Code and processes applied in Responsible Sourcing.