ETHICAL SOURCING POLICY
BREVILLE USA, INC
The Breville family of companies (collectively “Breville”) is committed to conducting business in a socially responsible manner and managing its business in a manner that reflects high ethical and moral values. Breville expects its vendors to respect and adhere to the same philosophy in the operation and management of their businesses. Breville reserves the right not to do business with vendors that do not share and demonstrate Breville’s commitment.
Breville’s Ethical Sourcing Requirements (“Code”) is set forth below. This Code comprises the minimum requirements and expectations with which all Breville vendors, including each of their employees, contractors, other personnel, and sub-contractors (including factories) (collectively, “Personnel/Subcontractors”) (“Vendor”), must comply in order to do business with Breville. Vendor ensures the knowledge of and compliance with this Code by its Personnel/Subcontractors.
1.1 Child Labor
Vendor will comply with the minimum employment age defined by national law, or by the International Labor Organization (“ILO”) Convention 138, whichever is higher. The ILO Convention minimum employment age is the last age, locally determined, of mandatory schooling, but not less than 15 years of age, subject to exceptions allowed by the ILO and national law.
1.2 Wages, Benefits, Working Hours and Transparent Record Keeping
Vendor shall engage only workers who are legally authorized to work in or in connection with Vendor facilities. Vendor is responsible for validating Personnel/Subcontractors’ eligibility to work through appropriate documentation. All direct employment shall be voluntary; workers shall be free to leave work or terminate their employment upon reasonable notice. To every extent possible, work performed must be on the basis of a recognized employment relationship established through national law and practice. Obligations to Personnel/Subcontractors under labor or social security laws and regulations arising from a regular employment relationship shall not be avoided through the use of labor-only contracting, subcontracting, or home-working arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment, nor shall any such obligations be avoided through the excessive use of fixed-term contracts of employment. In the case of employment through third party labor agencies, Vendor shall comply with Convention No. 181 of the International Labor Organization on Private Employment Agencies. Vendor's employees must be provided with wages and benefits that, at a minimum, comply with national laws or industry standards whichever is higher, as well as binding collective agreements, including those pertaining to overtime work and other premium pay arrangements. In any event, wages shall always be enough to meet basic needs for employees, and their entitled official dependents, and to provide some discretionary income. Vendor must not apply disciplinary or any other forms of deductions from pay, nor apply any form of discrimination in employment and remuneration practices. Vendor must ensure that Personnel/Subcontractors work in compliance with all applicable laws and mandatory industry standards pertaining to regular working hours, and overtime hours, including those applicable to breaks, rest periods, holidays, and maternity and paternity leaves. In absence of applicable law, Vendor shall not require a regular work week over 60 hours, employees shall be allowed at least one day off after six consecutive days of work, and any overtime worked shall be voluntary and compensated at premium rate.
At all times under this Code, Vendor shall maintain accurate and transparent records.
1.3 Forced/Bonded Labor
Under no circumstances shall Vendor use, or in any other way benefit, from forced labor. “Forced Labor” means any work or service performed involuntarily under threat of physical or other penalty, such as prison, indentured or bonded labor. Further, Vendor shall respect the freedom of movement of its workers and not restrict their movement by controlling identity papers, holding money deposits, or taking any other action to prevent workers from terminating their employment.
Vendor shall not discriminate in hiring and employment practices on the grounds of criteria such as of race, color, religion, gender, age, physical ability, national origin, sexual orientation, political affiliation, union membership, medical tests, or marital status. All conditions of employment must be based on an individual's ability to do the job, not on the basis of personal characteristics, such as gender, ethnic origin, religion, or personal beliefs. Vendor must ensure that it provides an environment where its Personnel/Subcontractors can work without distress or interference caused by harassment, discrimination or any other inappropriate workplace behavior. Vendor shall respect the privacy rights of its Personnel/Subcontractors whenever it gathers private information or implements employee monitoring practices. When Vendor retains direct or contracted workers to provide security to safeguard its personnel and property, Vendor will make sure that such security personnel apply the same standards on fair and equal treatment.
1.5 Harassment and Abuse
Workers shall be treated with dignity and respect. In particular, Vendor will provide a workplace free from harassment, including, without limitation, physical, sexual, verbal or visual behavior that creates an offensive, hostile, or intimidating environment.
1.6 Freedom of Association
Vendor shall respect the rights of its employees to lawfully associate (including for collective bargaining purposes), or not to associate with groups of their choosing, in accordance with all applicable laws and regulations. Vendor shall not interfere with, obstruct or prevent legitimate related activities.
1.7 Health and Safety
To the extent provided by Vendor, Vendor shall provide its Personnel/Subcontractors with a safe and healthy working environment. At a minimum, potable drinking water, adequate lighting, temperature, ventilation, sanitation, and personal protective equipment must be provided, on-site, together with equipped workstations. In addition, facilities must be constructed and maintained in accordance with the standards set by applicable laws and regulations. When provided by Vendor, dormitory facilities shall be constructed and maintained in accordance with all applicable laws and regulations. Such dormitories shall be clearly segregated from any factory, production or other work area. All dormitory buildings and grounds shall be clean and safe, and workers shall be able to enter and leave the dormitory buildings and grounds freely at any hour. Dormitories shall include clean toilet facilities, access to potable water, and sanitary food preparation and storage facilities. All dormitory facilities shall also provide workers with reasonable personal space, adequate heat and ventilation and clean showers and bathrooms.
Vendor shall be prepared for emergency situations. This includes worker notification and evacuation procedures, emergency training and drills, appropriate first-aid supplies, appropriate fire detection and suppression equipment, and adequate exit facilities. Vendor shall regularly train direct Personnel/Subcontractors on emergency planning, responsiveness as well as medical care. All products and services delivered by Vendor must meet the quality and safety standards required by applicable law. When conducting business with or on behalf of Breville, Vendor must comply with the Breville quality requirements. Conditions in all production and residential facilities must be safe, clean and consistent with all applicable laws and regulations or industry best practices, whichever is higher, in order to avoid preventable work related accidents and injuries.
Vendor shall comply with all applicable legal environmental requirements, and demonstrate continual improvement of its environmental performance. At a minimum, Vendor will meet all relevant local and national environmental protection laws, and will strive to comply with international environment protection standards. Vendor shall obtain, keep current, and follow the reporting guidelines of all required environmental permits and registrations. Vendor shall document and implement a relevant environmental management system (based on international standards such as ISO 14001:2004), designed to identify, control and mitigate significant environmental impacts. Vendor shall identify hazardous materials, chemicals and substances, and ensure their safe and legal handling, movement, storage, recycling, reuse and disposal. All applicable laws and regulations related to hazardous materials, chemicals and substances will be strictly followed. Vendor shall comply with material restrictions and product safety requirements set by applicable laws and regulations. Vendor shall ensure that key employees are aware of and trained in product safety practices. Vendor shall optimize its consumption of natural resources, including energy and water. Vendor shall implement and demonstrate sound measures to prevent pollution and minimize generation of solid waste, wastewater and air emissions. Prior to discharge or disposal, Vendor shall characterize and treat wastewater and solid waste appropriately and according to applicable laws and regulations.
3. Business Integrity
Vendor shall comply with all applicable ethical trade laws and regulations in the countries where materials are sourced, produced and incorporated into Breville product (country of use). In case of services, the location of service delivery shall prevail. Vendor must never, directly or through intermediaries, offer or promise any personal or improper advantage in order to obtain or retain a business or other advantage from a third Party, whether public or private. Vendor will not pay or accept bribes, arrange or accept kickbacks and shall not take any actions to violate, or cause its business partners to violate, any applicable anti-bribery laws and regulations including the U.S. Foreign Corrupt Practices and the UK Bribery Acts.
Vendor shall have systems in place enabling anonymous grievances, reporting and management. A designated officer shall continuously monitor the grievance mechanism, keep records on the issues raised and take appropriate actions in a confidential manner.
Vendor shall maintain transparent and up to date books and records to demonstrate compliance with applicable materials, services, governmental and industry regulations. Vendor shall be able to promptly disclose all the potential sources of primary origins (country of origin) associated with deliveries made. Breville reserves the right to ask Vendor to create, at a point in time, full supply chain mapping back to origin, to facilitate assessment of upstream supply chain compliance. Vendor shall take appropriate steps to safeguard and maintain confidential and proprietary information of its business partners, and use such information only for the purposes authorized for use by an applicable contractual agreement. In cases of sub-contracting, sharing of confidential information shall be made only with the consent of Breville. Vendor is expected to report to Breville any situation that may appear as a conflict of interest, and disclose to Breville any Breville personnel or representative who may have an interest of any kind in Vendor’s business, or any kind of economic ties with Vendor.
4. Compliance with Law
Vendor must fully comply with the legal requirements of the countries in it operates. All requirements under this Code are in addition to compliance with applicable local laws. Vendor affirms that it is aware of all relevant laws and regulations of the countries in which it operates.
5. Management System
With a scope related to the content of this Code, Vendor shall adopt or establish a management system for all its factories, vendors and other contractors providing materials or labor in the manufacture of goods ordered by Breville. This management system shall be designed to ensure (a) compliance with applicable laws and regulations; (b) conformance with this Code; and (c) identification and mitigation of operational risks related to this Code. Vendor shall facilitate continual improvement with its management system in achieving and surpassing these ends.
6. Compliance with our Ethical Sourcing Code
Breville will monitor Vendor’s compliance with this Code. Breville, or its representatives, may visit Vendor’s facilities (including its factories) to ensure compliance with this Code. Any violations of this Code will be reported to Vendor for follow up and corrective action, including further unannounced monitoring. Vendor is required to cooperate with the entire monitoring process. Vendor hereby authorizes Breville, or any organizations acting on behalf of Breville, to carry out audits with or without notice, at Vendor’s premises and the business premises of Vendor’s subcontractors, at any time to verify compliance with this Code.
This Code includes a zero tolerance for violations/non-compliance. Where Vendor does not demonstrate a willingness to comply, Breville reserves the right to discontinue doing business with Vendor without liability on the part of Breville. Without limiting the foregoing, Breville has zero tolerance for the use of child labor or forced labor in the manufacture of its products.
7. Reporting Violations
Vendor shall report to Breville any suspected violations of regulations, laws and this Code. Violations shall be reported to the Vendor’s Breville contact person, Breville legal or can be reported confidentially using one of the available channels:
Web URL: [email protected]
Hotline: +1 866.273.8455
This Code is herby made a part of any agreement between Breville and Vendor. Breville reserves the right to procure an additional written acknowledgement by Vendor of its compliance with this Code.
IF VENDOR DISAGREES OR CANNOT COMPLY WITH THIS CODE, VENDOR SHALL INFORM BREVILLE ACCORDINGLY, WITH SPECIFICITY, AND VENDOR SHALL NOT TRANSACT BUSINESS WITH BREVILLE, UNLESS BREVILLE AUTHORIZES EXPRESSLY VENDOR OTHERWISE, IN WRITING, WHICH WRITING SHALL ACKNOWLEDGE VENDOR’S INABILITY AND EXTENT OF VENDOR’S NON-COMPLIANCE.
Breville does not currently systematically engage in verification or conduct audits of all of its suppliers and vendors. Nevertheless, Breville is working to create and implement a formal program which may include verification of its supply chains, an audit system including timeframes and expectations, additional supplier certification, an employee training program on human trafficking and slavery and/or a combination of these tools. Breville anticipates that its plan will prescribe consequences for failure to comply with its social responsibility and ethical conduct expectations.
As Breville’s compliance program evolves, Breville will update its disclosure as appropriate.