Ethical Sourcing Policy

 

ETHICAL SOURCING POLICY

1. Purpose

At Insource Australia, we are committed to our role in our industry, by subscribing to high standards of ethical conduct. Operations and supply chain is an integral part of our business at INSOURCE. We are committed to procuring products in a responsible manner, respecting human rights and environmental impacts.

2. Our Policy

We recognise and continually seek to ensure that the products and services we source are ethically produced.  We will do this by working with all of our suppliers to positively influence our social, ethical and environmental performance.
Our policy and requirements for our suppliers respect and comply with relevant laws, regulations treaties, covenants or other agreements, such as the International Labour Organisation (ILO) standards.  We look for suppliers who demonstrate a commitment to implementing policies and practices consistent with and complementary to, our own.  

3. Our ethical sourcing standards expected by suppliers

3.1 Forced or bonded labour

Employment is freely chosen, we expect suppliers to have sound labour practices; we expect them to treat their employees fairly, in accordance with local laws and regulations relating to labour and employment.

Suppliers will not use forced, bonded or involuntary labour.  Workers must be free to leave once their shift ends, or after giving their employer reasonable notice.

3.2 Child Labour

Suppliers shall not use child labour.  ‘Child’ is defined as a person who is younger than the local legal age for completing compulsory education.  Suppliers shall verify the age of their workers and maintain copies of their workers’ proof of age.  Suppliers shall follow all applicable laws, regulations and the ILO standards regarding working hours and conditions for all employees. Where such labour is discovered suppliers must establish and implement appropriate remediation for such workers and introduce effective systems to prevent the use of child labour in the future.

3.3 Modern Slavery

Suppliers must comply with all modern slavery laws and regulations relevant to their jurisdiction (including local, domestic or international laws regarding labour, health, safety and the environment) and including, but not limited to the Modern Slavery Act 2018 (Australia).

Suppliers must have appropriate controls in place to avoid modern slavery practices in their operations and supply chains and must not knowingly deal with third parties who engage in modern slavery practices. All suppliers must have in place and maintain adequate policies and procedures in relation to business ethics and compliance to ensure compliance with modern slavery laws and to enforce all relevant policies and procedures where appropriate. This includes policies for reporting, investigating and remediating suspected or known breaches of modern slavery laws.

3.4 Involuntary Labour

Suppliers shall not use involuntary labour.  ‘Involuntary Labour’ is defined as work or services extracted from any person under threat or penalty of its non-performance, and for which the worker does not offer himself or herself voluntarily.  It includes all manner of prison, bonded, indentured and forced labour.  Workers must be free to leave once their shift ends and free to leave their employment after reasonable notice.

3.5 No discrimination is practiced

Suppliers must not discriminate in hiring, compensation, access to training, promotion, termination, or retirement based on race, caste, national origin, religion, age, disability, gender, marital status, sexual orientation, union membership or political affiliation.

Sexual abuse or harassment must be prohibited and pregnant workers must not be dismissed.

3.6 Immigration Law Compliance

Suppliers shall only employ workers who have a legal right to work, including workers obtained through an employment agency.  Workers’ legal rights to work must be validated by reviewing original documentation prior to commencement of work.

3.7 Working Conditions are Safe and Hygienic

Suppliers shall provide a safe and hygienic working environment.  They shall also provide continuous monitoring of workplace health and safety to ensure compliance with applicable legislation, regulations and the ILO standards.  Suppliers shall ensure that personal protective safety equipment is available and that workers are adequately trained in its use.  Safeguards on machinery must meet or exceed local laws, and workers shall be provided with all appropriate protective equipment.

3.8 Working Hours

All working hours will comply with national laws and benchmark industry standards, whichever affords greater protection.  Overtime work should be voluntary, and overtime should not be requested on a regular basis.  Suppliers shall guarantee breaks and days off in compliance with applicable law.

3.9 Wages and Benefits

Suppliers shall provide wages and benefits that comply with all local laws and regulations or match prevailing local manufacturing or industry rates.  Overtime pay shall be calculated at the legally required rate, regardless of whether workers are compensated hourly or by piece rate.

3.10 Regular Employment is Provided

To every extent possible, suppliers must ensure that all work is performed according to a recognised employment relationship established through local national law and practices.  Obligations to employees still apply even if employees :
- work under labour-only contracts
- work from home
- work under apprenticeship schemes where there is no real intent to impart skills or provide regular employment
- are required to sign and re-sign fixed-term contracts of employment

4. Sustainable business practices

Suppliers are required to assess environmental impacts of the business and aim to do responsible business without causing significant environmental harm.

Waste of all types, including water and energy, shall be reduced or eliminated at the source or by practices such as modifying production, maintenance and facility processes, materials substitution, conservation, recycling and re-using materials. Effective controls of waste in respect of ground, air and water pollution shall be adopted. In the case of hazardous materials, emergency response plans shall be in place. Air emissions, wastewater and solid waste generated from operations, industrial processes and sanitation facilities are to be characterised, monitored, controlled and treated as required prior to discharge or disposal.

5. Business Critical Issues and Business Integrity

INSOURCE considers bribery and corruption in any form and denial of site access to be a business critical issue resulting in immediate cease of trade. Suppliers must engage ethically in all dealings and provide transparent documentation and records. Bribes, favours, benefits or other similar unlawful or improper payments, in cash or in kind, are strictly prohibited, whether given to obtain business or otherwise. Factories are required to grant access to the site of manufacture, if an independent audit is requested.