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The supplier's commitments

Here we explain the supplier's commitments, i.e. what is meant by human rights, workers' rights, the environment and business ethics. We also explain the concept "connection to what is being purchased ".  

Here you will find the sections about: 

  • Human Rights

  • Workers' rights

  • The environment

  • Business ethics 

  • Connection to what is being purchsed

Introduction

 

The commitments in Annex 1: Code of conduct for suppliers covers human rights, workers' rights, the environment and business ethics. The commitments are based on the UN's Global Compact and contain a general commitment to respect human rights, in line with principle 11 of the UN's Guiding Principles on Business and Human Rights. 

Business enterprises should respect human rights. This means that they should avoid infringing on the human rights of others and should address adverse human rights impacts with which they are involved.

Excerpt from the contract terms

This appendix belongs to the contract terms on due diligence for sustainable supply chains. The commitments apply to all operations connected to what is purchased.

Human Rights

The responsibility to respect human rights is a global standard for expected business conduct, regardless of where companies operate. It exists independently of states' ability and/or willingness to fulfil their own human rights obligations, and does not diminish those obligations. The responsibility therefore exists over and above compliance with national laws and regulations that protect human rights.

Human rights are inherent in all human beings, whatever their nationality, place of residence, gender, national or ethnic origin, colour, religion, language or any other status.

Every individual is entitled to enjoy human rights without discrimination.

The rights are interrelated, interdependent and indivisible.

The Universal Declaration of Human Rights is the cornerstone of modern human rights law. It has been codified by the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural rights. Together they constitute the International Bill of Human Rights.

International Bill of Human Rights and The ILO's Declaration on Fundamental Principles and Rights at Work are the reference point for the supplier's commitment to human rights. The ILO's Declaration on Fundamental Principles and Rights at Work is explained under Workers' rights. 

(Video only in Swedish)

  • How to carry out a risk analysis
    Step 1: Mapping the supply chain The first step in a risk analysis consists of mapping the supply chain to find out its structure. This includes identifying in which countries the work is carried out, and if possible also in which regions. This is particularly relevant if the work is carried out in any region known to have high risks. Within certain industries such as food, textiles and IT there is a lot of information. For other industries such as pharmaceuticals, however, transparency is low. To obtain this information, you can ask the category manager, the category councils, ask questions of suppliers, find out import data, read audit reports and market analyzes for specific industries. It is also important to identify what type of work is carried out and what type of actors in the supply chain that performs it. Is it, for example, an industry characterized by low wages and health-hazardous processes? Does the workforce consist of migrant workers or seasonal workers? Is the supply chain complex with many subcontractors and a lack of transparency? This type of information is important as both geographical risks, industry risks and product risks need to be taken into account. Step 2: Gather information from credible and independent sources Once you have mapped the origin and the supply chain, the next step is to gather information about the situation of human rights, workers' rights, the environment and business ethics in the relevant countries where the work is carried out, that is, both for final manufacturing, component manufacturing and raw materials. For this you need to turn to credible and independent sources such as international organizations, authorities, voluntary and civil society organizations and global trade unions. Sources Step 3: Identify and assess negative impacts The last step involves assessing the actual and potential negative impact the supply chain is associated with, based on the information that has been compiled in steps 1 and 2. This is to be able to determine which concrete measures need to be taken to manage the risks. Often several risks have been identified and to prioritize them you need to make a seriousness assessment. The most significant risks are prioritized based on probability and seriousness ( read more under point d in process requirement 2 )

Workers' rights

The commitment to workers' rights is based on the ILO Declaration on Fundamental Principles and Rights at Work. The ILO is the UN's expert body for employment and working life issues.

The declaration commits Member States to respect and promote fundamental principles and rights, regardless of whether they have ratified the fundamental conventions.

The core conventions are ten in number and concern five different areas:

  • freedom of association and collective bargaining (ILO 87 and 98)

  • forced labor (ILO 29 and 105)

  • child labor (ILO 138 and 182)

  • discrimination in employment (ILO 100 and 111)

  • safe and healthy working environment (ILO 155 and ILO 187).

 

The commitment to workers' rights also includes the promotion of a living wage, reasonable working hours and regular employment. This section of the code of conduct for suppliers has been developed in close dialogue with the ILO and builds on Ethical Trading Initiatives Base Code. 

(Video only in Swedish)

The environment

The environmental commitment is divided into two parts.

The commitment to climate and environmental impact is about:

  • compliance with national environmental legislation

  • promotion of climate measures that contribute to achieving national and international climate goals

  • reduction in the use of virgin raw materials

  • no use of raw materials from species listed in CITES

  • control or evaluation of chemical use including, if applicable, substitution and/or implementation of alternative processes

  • storing, handling, transporting and disposing of waste in a manner that protects the health of workers, people in surrounding communities and the environment

  • promoting strategies for efficient water use where applicable

  • reduction or elimination of emissions that pose a danger to health and the environment.

 

The commitment to environmental rights begins with people's right to self-determination and to freely dispose of natural wealth and natural resources. A people must in no case be deprived of their means of livelihood. The commitment then includes a written statement that illegal eviction or taking over of land, forest or water must not occur. There is also a special provision stating that indigenous peoples' right to land, territories and natural resources must be respected, including the right to free and informed prior consent. Finally, the right to a safe, clean, healthy and sustainable environment must be respected. This right has recently been added to the international human rights framework, through resolutions of the UN Human Rights Council and the UN General Assembly.

(Video only in Swedish)

Business ethics

The commitment to business ethics covers corruption, anti-competitive behavior and taxation. The scope is wider than in the UN's Global Compact, which only covers corruption, which is the commitment found in the regions' current code of conduct for suppliers.

Countering anti-competitive behavior is essential for a well-functioning domestic and international market. The commitment is based on OECD Guidance for Multinational Enterprises (read more on p.32) which emphasizes the importance of no agreements being entered into that aim to distort competition or abuse a dominant position.

In terms of taxation, this means preventing abuse of welfare systems, ensuring that everyone pays the right tax in the right country and promoting competition on equal terms. The commitment is based on The Swedish Tax Agency who have also provided comments on this section of the Code of Conduct.

(Video only in Swedish)

Connection to what is acquired 

In public procurement, contract terms must relate to the subject of the contract. This means that the conditions must be related to what is being acquired. This can be deduced from chapter 17 section 1 paragraph 2 of the Public Procurement Act with reference to chapter 16 section 2, paragraph 2 LOU:

- An award criterion shall be considered to be related to the good, service or construction contract to be procured if the criterion in any respect relates to this good or service or to the construction work during any stage of the life cycle.

This means that procuring organizations can set requirements that take into account the entire supply chain. However, the responsibility for actual and potential negative impact depends on whether you cause, contribute to or are connected to the negative impact.

 

Guidance process requirements 3 

Guidance process requirements 4 

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