Wednesday, February 3, 2021
Working with supplier relations requires an extensive cultural understanding and insight into political conditions that can impact the working conditions for a supplier and its employees.
In ABENA, we collaborate with amfori BSCI to manage our global supplier partnerships. amfori BSCI is a global organization that has established an international Code of Conduct (CoC) based on guidelines from OECD, ILO, and the UN Global Compact, among others.
“Whenever we partner up with a new supplier, they must join ABENA’s Code of Conduct. This is done to safeguard that the supplier commits to ensuring decent working conditions throughout the supply chain”, says Johannes Hollensberg.
Low-risk or high-risk country
Once a supplier has joined ABENA’s CoC, the country is categorized as either a low-risk or a high-risk country.
A low-risk country is typically a European country where amfori BSCI has assessed that each country's political system, culture, health, and safety network is stable and reliable.
A high-risk country is a country where amfori BSCI has assessed that the country's political system, culture, health, and safety network is unstable and insecure. This can be caused by the country's political system, the balance of power, or government relations.
Suppliers from high-risk countries are audited by amfori BSCI by an impartial third-party auditor who is familiar with local law. The suppliers are graded from A to E. Those who receive an A or a B grade are audited every second year, and those with grades C, D, or E are audited every year.
“Through amfori BSCI, we help our suppliers to develop their working conditions. Among the factors that BSCI focus on are fair pay, gender discrimination, race, and religion, as well as overtime payment, child labor, health and safety, and ethical issues including corruption, falsification of documents, and protection of the local community,” says Johannes Hollensberg.
Should the auditor find critical or problematic conditions, it is reflected in a report and in the collaboration with the supplier, who must rectify the conditions.
A responsible partner