ACM works to ensure that its operations are characterised by responsible behaviour towards employees, shareholders, customers, suppliers, stakeholders, agencies and the wider community. Therefore, we seek to ensure that all of our suppliers operate in compliance with the terms and conditions of this Code of Conduct. ACM expects suppliers and sub-suppliers to follow internationally recognised principles relating to anti-corruption, human rights, health and safety, and the environment. Compliance with this Supplier Code of Conduct is a pre-requisite of any agreement or contract between our supppliers and ACM.
Conventions and legislation
ACM supports the ten principles of the UN Global Compact, the eight fundamental conventions of the International Labour Organization (ILO) and OECD’s guidelines for multinational companies. The Code of Conduct is based on these principles and clarifies what ACM expects of its suppliers. The Supplier must comply with all applicable legislation and if the principles of the Code of Conduct are incompatible with legislation, applicable laws and regulations take precedence. The Supplier must also inform ACM of this fact without delay.
The Supplier’s commitments
ACM doesn’t tolerate any form of corruption or fraud. The Supplier may not give, promise, offer, request or receive compensation or benefits that conflict with applicable laws and good business practice or which may affect or be considered to affect the objectivity of decision making. The Supplier’s agreements with agents, intermediaries, sub-suppliers and consultants shall contain a section on fighting corruption and a requirement that applicable laws and good business practice shall be followed.
The Supplier must support and respect protection of internationally recognised human rights. The Supplier must not commit or benefit from war crimes, genocide or crimes against humanity under international law. Where the Supplier identifies a risk that, through its operations, it is contributing towards breach of human rights, appropriate action must be taken.
The Supplier shall not engage in, or benefit from, the use of child labour in accordance with the ILO convention 138.The lowest age of employment must not be lower than the compulsory school leaving age and must never be lower than 15. If permitted under national law, the Supplier may employ children aged 12–15 for “light work” or on an apprenticeship scheme. Wages shall be paid and the work tasks must be simple and not interfere with schoolwork. The Supplier must not employ young workers (under 18 years of age) for any form of work that may pose a risk to their health, safety or well-being, in accordance with the ILO convention 182.
The Supplier must not use or benefit from any form of forced labour. Forced labour is considered to include debt bondage or other forms of slavery, forced prison labour, hard labour or human trafficking, in accordance with the ILO conventions 29 and 105. Employees must be able to move freely during their employment and must be free to leave their employment following termination in line with applicable legislation and agreements. The Supplier is thus not permitted to withhold the employees’ pay, benefits, property or documents, such as ID documents and travel documents. The supplier shall not engage in, or tolerate the use of corporel punishment, mental or physical coercion and verbal abuse of personnel.
Freedom of association
The Supplier must not prevent or work against the right of each employee to join, or refuse to join, a union or other organisation. The Supplier shall recognise the employees’ chosen representatives and negotiate with them in good faith on all key issues affecting the workplace.
If unions are not permitted in the area where the operation is located, or if only state-approved organisations are permitted, the Supplier must not prevent the employees from gathering independently under other forms to discuss issues concerning their work, and the Supplier must offer the employees a forum for bringing up work-related concerns with the management.
Health and safety
The Supplier must provide a healthy and safe working environment. Adequate health and safety policies and procedures must be established and followed. The Supplier must provide protective equipment and safety training for carrying out tasks safely, a suitable, clean sanitary infrastructure including toilets and potable water. Accomodation, if provided by the supplier, shall conform to the same requirements.
Gender equality, diversity and equal opportunities
All decisions concerning employment must be based on relevant and objective criteria such as competence, experience and performance. The Supplier’s employees are to be treated with dignity and respect, and given equal development opportunities. There must be no incidence of discrimination, harassment, abuse or threats in the workplace.
Pay, working hours and other terms of employment
The Supplier must pay a living wage that meets the requirements regarding a minimum wage as set out in law or in an agreement. The wage must be paid regularly and in the form of legal tender. The Supplier’s employees must be provided with a written, comprehensible and legally binding contract of employment.
The Supplier must ensure that working hours comply with any collective agreement and should not exceed 48 hours per week or 60 hours including overtime. The employees are entitled to at least one day off per week and they are to be given sufficient breaks during their work and sufficient daily rest between shifts. The Supplier must give its employees paid holiday every year, plus sick leave and parental leave.
The Supplier must respect employees’ privacy and handle personal data in confidence and in line with applicable legislation.
The Supplier must comply with the applicable requirements set out in environmental legislation. In addition, the Supplier shall work to ensure efficient use of raw materials and energy. The Supplier must not cause any significant pollution of air, water or land. The Supplier must draw up procedures for effectively preventing all health risks and industrial accidents that may affect the production line and the local community, or may have a negative impact on the environment.
Implementation and control
The requirement concerning compliance with the Code of Conduct covers all employees associated with the Supplier, including permanent or temporary employees, but also people engaged in other ways without formal employment. The Supplier is also responsible for ensuring that its sub-suppliers follow the principles in the Code of Conduct.
ACM expects that the Supplier can account for its procedures for ensuring compliance with the Code of Conduct.
Consequences of breaches
The Supplier’s compliance with the content of the Code of Conduct is a contractual condition for ACM at the point of entering into an agreement and throughout the lifetime of the agreement.
· A serious breach of the requirements is always considered a material breach of contract that gives ACM the right to immediately terminate businessrelations with the Supplier. In this context, serious breaches are defined as shortcomings that occur intentionally. Serious breaches also include shortcomings concerning fundamental human rights such as the worst forms of child labour, all forms of forced labour, punishments and life-threatening work environment risks, plus crimes against humanity, including war crimes and genocide.
· If it becomes apparent that the requirements are in some respect not being met, the Supplier must promptly inform ACM. The Supplier must also present and commit to following an action plan of remedial action. In the event of repeated breaches of the requirements, ACM reserves the right to terminate businessrelations with the Supplier.
Gothenburg, June 2018