Chabaso Bakery Supplier Code of Conduct
Chabaso’s mission is to create good jobs, bake amazing bread, and support the health of our community and environment.
Chabaso’s Code of Conduct is designed to ensure that our company’s suppliers enforce safe working conditions, that their workers are treated with respect and dignity, and that their manufacturing processes are environmentally responsible. This Code of Conduct is one chapter in Chabaso’s Code of Ethics. These standards are based on best practices created by the Fair Labor Association (FLA), the International Labor Organization (ILA), the International Bill of Human Rights, and the UN Universal Declaration of Human Rights.
1.1 Scope
All suppliers must commit to adhering to our Code of Conduct.
Requirements in this Code apply to the whole supply chain, including sub-suppliers and subcontractors. Standards equally apply to permanent, temporary, and agency workers, as well as piece-rate, salaried, hourly paid, legal young workers (minors), part time, night, and migrant workers.
1.2 Policy
Chabaso expects all suppliers to make improvements when any of these Code standards are not met, and to develop sustainable management, reporting and tracking systems within their operation, to ensure ongoing Compliance. Timelines for achieving compliance shall be reasonable and defined. Providing proof of correction to Chabaso for each non-compliance is also required.
Chabaso pledges to help our suppliers improve labor, health and safety and environmental conditions in the workplace, and to help our suppliers understand how to improve their sustainability practices. We recognize that this effort requires listening to our suppliers and their employees’ needs, and requires a collaborative approach using capacity building tools such as root-cause analysis, training, and management-system development to drive meaningful change. On a case by case basis, Chabaso may use incentives for Code of Conduct compliance including improved trade terms (larger purchases, longer-term commitments or contracts, or price premiums), providing B Lab guides, or other B Corp tools.
Chabaso seeks at all times to exercise the best possible practices for the respectful and ethical treatment of workers and promote sustainable conditions in which workers earn fair wages in safe and healthy workplaces.
1.3 Definitions
Many sections of the Code of Conduct fit into one of the following three categories, and has the associated consequences:
Zero Tolerance Violation
A Zero Tolerance (ZT) violation is one that is a serious breach of Chabaso’s Social Accountability Standards & Supplier Code of Conduct that results in severe impact to individual rights, life, safety and/or Chabaso’s reputation. Suppliers found with a ZT violation will have all orders cancelled and relationship terminated immediately.
Immediate Action
An Immediate Action (IA) Item is one that is a breach of Chabaso’s Social Accountability Standards & Supplier Code of Conduct that results in negative impact to individual rights and life safety and/or Chabaso’s reputation.
Continuous Improvement
A Continuous Improvement (CI) Item is one where Labor, health & safety, and environmental issues that can be improved in the supplier’s operation for the well being of workers and/or betterment of its reputation or management practice.
2.I Law and Code Compliance
Our suppliers are expected to comply with (1) all relevant and applicable laws and regulations of the country in which workers are employed including those at the federal, state/provincial and local community levels, and (2) our Supplier Code of Conduct.
2.2 Child Labor
General Compliance Child Labor
No person shall be employed under the age of 15 or under the age for completion of compulsory education, whichever is higher. Juvenile workers (ages 15-17) shall not perform work which, by its nature or the circumstances in which it is carried out, is likely to compromise their health, safety or morals. (ILO Convention 138 and 182)
2.3 Employment of Young Workers
Employers shall comply with all relevant laws that apply to young workers, (e.g. those between the minimum working age and the age of 18) including regulations related to hiring, working conditions, types of work, hours of work, proof of age documentation, and overtime.
2.4 Government Permits and Parental Consent Documentation
Employers shall abide by all relevant rules and procedures where the law requires government permits or permission from parents as a condition of employment, and shall keep documentation on-site for inspection at all times.
2.5 Hazardous Work for Young Workers
No person under the age of 18 shall undertake hazardous work, i.e. work which, by its nature or the circumstances in which it is carried out, is likely to harm the health, safety or morals of persons under the age of 18.
2.6 Young Workers Identification System
Employers shall have a system for identifying work stations and operations that are inappropriate for young workers according to applicable laws.
2.7 Apprenticeships and Vocational Training/Minimum Working Age
Apprentices or vocational students shall not be under the age of 15 or under the age for completion of compulsory education, whichever is higher.
2.8 Apprenticeships and Vocational Training/Legal Compliance
Employers shall comply with all regulations and requirements of apprentice or vocational education programs, and shall be able to document to monitors that these are legally recognized programs. Informal arrangements of any kind are not acceptable.
2.9 Compliance
Supplier shall establish, document, maintain, and effectively communicate to personnel and other interested parties, policies and written procedures for remediation of children found to be working in situations which fit the definition of child labor, and shall provide adequate financial and other support to enable such children to attend and remain in school until no longer a child as defined above.
Zero Tolerance Violation
Immediate Action
Continuous Improvement
Forced or compulsory labor is considered all work or service that a person has not offered to do voluntarily and is made to do under the threat of punishment or retaliation, or is demanded as a means of repayment of debt. There shall be no use of forced labor, including prison, indentured, bonded, slave or other forms of forced labor, defined as such:
Acts of human trafficking are also prohibited.
Neither the Supplier nor any entity providing labor to the Supplier shall withhold any part of any personnel’s salary, benefits, property, or documents in order to force such personnel to continue working for the Supplier. Personnel shall have the right to leave the workplace premises after completing the standard workday, and be free to terminate their employment provided that they give reasonable notice to their employer.
Suppliers are required to monitor any third party entity which assists them in recruiting or hiring employees, to ensure that people seeking employment at their facility are not compelled to work through force, deception, intimidation, coercion or as a punishment for holding or expressing political views. (ILO Conventions 29, 105, 182)
Zero Tolerance Violation
Immediate Action Item
Every employee shall be treated with respect and dignity. No employee shall be subject to any physical, sexual, psychological or verbal harassment or abuse or to monetary fines or embarrassing acts as a disciplinary measure.
4.1 Discrimination
No person shall be subject to any discrimination in any aspect of the employment, relationship including recruitment, hiring, compensation, benefits, work assignments, access to training, advancement, discipline, termination or retirement, on the basis of race, religious belief, color, gender, pregnancy, childbirth or related medical conditions, age, national origin, ancestry, sexual orientation, gender identification, physical or mental disability, medical condition, illness, genetic characteristics, family care, marital status, status as a veteran or qualified disabled veteran (in the USA only), caste, socio-economic situation, political opinion, union affiliation, ethnic group, illness any other classification protected under applicable law. All employment decisions must be made based on the principle of equal employment opportunity, and shall include effective mechanisms to protect migrant, temporary or seasonal workers against any form of discrimination. (ILO Conventions 100 and 111)
Supplier shall not interfere with the exercise of personnel’s rights to observe tenets or practices, or to meet needs relating to race, national or social origin, religion, disability, gender, sexual orientation, family responsibilities, union membership, political opinions or any other condition that could give rise to discrimination.
Supplier shall not allow any behavior that is threatening, abusive, exploitative, or sexually coercive, including gestures, language, and physical contact, in the workplace and, where applicable, in residences or other facilities provided by the Supplier for use by personnel.
Zero Tolerance Violation
Immediate Action Item
Continuous Improvement Item
Employers shall adopt and adhere to rules and conditions of employment that respect workers and, at a minimum, safeguard their rights under national and international labor and social security laws and regulations.
5.1 Wages and Benefits
We seek and favor suppliers who progressively raise employee living standards through improved wage systems, benefits, welfare programs and other services, which exceed legal requirements and enhance quality of life. Every worker has a right to compensation for a regular work week that is sufficient to meet the worker’s and their family’s basic needs and provide some discretionary income. Employers shall pay wages which equal or exceed minimum wage or the appropriate prevailing wage, whichever is higher, comply with all legal requirements on wages, and provide any fringe benefits required by law and/or contract. (ILO Conventions 26 and 131)
Supplier shall ensure that deductions from wages are not made for disciplinary purposes. Exceptions to this rule apply only when both of the following conditions exist:
Supplier shall ensure that personnel wages and benefits composition are detailed clearly and regularly in writing for them for each pay period. Supplier shall also ensure that wages and benefits are rendered in full compliance will all applicable laws and that remuneration is rendered either in cash or check form, in a manner convenient to workers.
Supplier shall not use labor-only contracting arrangements, consecutive short-term contracts, and/or false apprenticeship schemes to avoid fulfilling its obligations to personnel under applicable laws pertaining to labor and social security legislation and regulations.
Zero Tolerance Violation
Immediate Action Item
5.2 Overtime Wages
In addition to compensation for regular working hours, employees must be compensated for overtime hours at the rate legally required in the country of manufacture or, in those countries where such laws do not exist, at a rate exceeding the regular hourly compensation rate by at least 125%. (ILO Convention 1 and 30)
All overtime shall be reimbursed at a premium rate as defined by national law. In countries where a premium rate for overtime is not regulated by law or a collective bargaining agreement, personnel shall be compensated for overtime at a premium rate or equal to prevailing industry standards, whichever is more favorable to workers’ interests.
5.3 Hours of Work
Suppliers shall not require workers to work more than the regular and overtime hours allowed by the law of the country where the workers are employed. The regular workweek shall not exceed 48 hours or the maximum allowed by the law of the country of manufacture, whichever is less. Employers shall allow workers at least 24 consecutive hours of rest in every seven-day period. All overtime work shall be consensual. Employers shall not request overtime hours on a regular basis. The sum of regular and overtime hours in a week shall not exceed 60 hours or the maximum allowed by the law of the country of manufacture, whichever is less. (ILO Convention 1).
Exceptions to this rule apply only where both of the following conditions exist:
All overtime work shall be voluntary, except as provided below, shall not exceed 12 hours per week, and shall not exceed 8 weeks of overtime per year. In cases where overtime work is needed in order to meet short-term business demand and the Supplier is party to a collective bargaining agreement freely negotiated with worker organizations representing a significant portion of its workforce, the Supplier may require such overtime work in accordance with such agreements. Any such agreement must comply with the requirements above.
Zero Tolerance Violation
Immediate Action Item
Suppliers shall provide a safe and healthy workplace to prevent accidents and injury to health arising out of, linked with, or occurring in the course of work or as a result of the operation of employers’ facilities. The employer shall take a proactive approach to health and safety by implementing policies, systems and training designed to prevent accidents, injuries and protect worker health. (ILO Convention 155)
Supplier shall undertake to assess all the risks to new and expectant mothers arising out of their work activity and to ensure that all reasonable steps are taken to remove or reduce any risks to their health and safety. Supplier shall provide, for use by all personnel, access to clean toilet facilities, access to potable water, and where applicable, sanitary facilities for food storage. All personnel shall have the right to remove themselves from imminent serious danger without seeking permission from the Supplier.
Zero Tolerance Violation
Factory size Number of Exits Required
Less than 150 workers At least 2 exits
More than 150 workers At least 3 exits
More than 1000 workers At least 4 exits
Immediate Action Item
Recognizing that sustainable businesses should acknowledge the planet’s finite resources, Chabaso expects its suppliers to support sound environmental management principles and reduce their impact on the environment within which they operate. In addition, Chabaso’s suppliers are expected to support the development of sustainable technologies.
Suppliers must ensure that every manufacturing facility complies with environmental laws, including all laws related to waste disposal, air emissions, discharges, toxic substances and hazardous waste disposal.
7.1 Environmental Management System (EMS)
7.2 Energy and GHG Emissions
7.3 Water
7.4 Wastewater
7.5 Hazardous Materials
7.6 Solid Waste
7.7 Hazardous Waste
7.8 Nuisances
7.9 Major Incident Management
7.10 Contaminated Land, Soil and Groundwater Pollution Prevention
7.11 Land Use & Biodiversity
7.12 Disclosure
7.13 Continuous Improvement Effort
Chabaso encourages all suppliers and their employees to get involved in local social and environmental community charity efforts by volunteering time and/or providing other types of support. We seek long-term partnerships with suppliers that share these philanthropic values.
Suppliers are encouraged to monitor subcontractors and sub-suppliers for social and environmental responsibility using standards that meet or exceed those set out in the Code.
Suppliers must respect animal welfare and work progressively towards adopting healthy and humane practices towards animals based on best available technology and standards.
Chabaso and our suppliers are jointly responsible for ensuring social and environmental responsibility and the integrity of our product/service content claims.
Top management is encouraged to see that its code of conduct policy is effectively documented, implemented, maintained, communicated, and made accessible in a comprehensible form to all personnel, including directors, executives, management, supervisors and staff, whether directly employed by, contracted with, or otherwise representing the company.
13.1 Control of Sub-Contractors and Sub-Suppliers
Supplier shall maintain appropriate records of suppliers / subcontractors / sub-suppliers commitments to social accountability, including, but not limited to, contractual agreements and/or the written commitment of those organizations to:
13.2 Failure to Comply
As a condition of doing business with Chabaso, Suppliers must comply with this Code of Conduct. If Chabaso determines that any supplier has violated this Code either by direct inspection or by inspection from any third party, including contracted inspection companies, Chabaso may either terminate its business relationship or require the Supplier to implement a corrective action plan. If corrective action is advised but not taken, Chabaso will suspend placement of future orders and may terminate current production, in which case payment will be withheld by Chabaso. Should Supplier not comply with all of the requirements herein, Chabaso may (without being obliged to), at any time thereafter:
13.3 Reporting
Supplier shall provide a confidential means for all personnel to report non-conformances with this Code of Conduct the company management, and the worker representative. Supplier shall investigate, address, and respond to the concerns of personnel and other interested parties with regard to conformance / non-conformance with the company’s policies and / or the requirements of this standard. Supplier shall refrain from disciplining, dismissing, or otherwise discriminating against any personnel for providing information concerning the observance of the standards.
Supplier shall identify the root cause, promptly implement corrective and preventive action, and allocate adequate resources appropriate to the nature and severity of any identified nonconformance with the company’s policy.
Please bring these issues to our attention by contacting us at wecare@chabaso.com. Please feel free to write in your local language. All information we receive will be kept in strict confidence and your identity protected.
Chabaso requires suppliers to sign this Code, thereby acknowledging the requirements contained within. Chabaso requires suppliers to agree to adhere to these requirements and to be able to demonstrate to Chabaso how these requirements are being met. Chabaso operates a policy of transparency with suppliers and will work collectively with suppliers ensure adherence to the Code and develop improvement programs if required.