Our Supplier Guiding Principles (SGP) communicate our values and expectations of suppliers and emphasize the importance of responsible workplace practices that respect human rights and comply, at a minimum, with applicable environmental and local labor laws and core international conventions. The Supplier Guiding Principles reflect our commitment to respect human rights across our business system and global supply chain.
Since the inception of our SGP program we have collaborated with our bottling and supplier partners to complete nearly 12,000 workplace assessments. Although our values have stayed the same we have continually evolved our program to drive continuous improvement. In 2012 we are rolling out program updates in light of years of experience, industry trends and expert guidance on business and human rights. These updates build our system’s awareness of human rights and build capacity through assessing management systems and other Good Practices that support a positive and inclusive workplace.
Recognizing that there are differences in laws, customs and economic conditions that affect business practices around the world, we believe that shared values must serve as the foundation for relationships between The Coca-Cola Company and our suppliers. The principles outlined below reflect the values we uphold in our own policies, and we expect our direct suppliers to follow the spirit and intent of these guiding principles:
Freedom of Association and Collective Bargaining - Respect employees’ right to join, form, or not to join a labor union without fear of reprisal, intimidation or harassment. Where employees are represented by a legally recognized union, establish a constructive dialogue with their freely chosen representatives and bargain in good faith with such representatives.
Prohibit Child Labor - Adhere to minimum age provisions of applicable laws and regulations.
Prohibit Forced Labor and Abuse of Labor - Prohibit physical abuse of employees and prohibit the use of all forms of forced labor, including prison labor, indentured labor, bonded labor, military labor, slave labor or any form of human trafficking.
Eliminate Discrimination - Maintain workplaces that are free from discrimination or physical or verbal harassment. The basis for recruitment, hiring, placement, training, compensation, and advancement should be qualifications, performance, skills and experience.
Work Hours and Wages - Compensate employees relative to the industry and local labor market. Operate in full compliance with applicable wage, work hours, overtime and benefits laws, and offer employees opportunities to develop their skills and capabilities, and provide advancement opportunities where possible.
Provide a Safe and Healthy Workplace - Provide a secure, safe and healthy workplace. Maintain a productive workplace by minimizing the risk of accidents, injury, and exposure to health risks.
Protect the Environment - Conduct business in ways which protect and preserve the environment. Meet applicable environmental laws, rules, and regulations.
Business Integrity - Conduct business with integrity, respecting relevant laws and avoiding bribes and fraudulent practices.
Grievance Procedure and Remedy - Provide workers with a mechanism to express grievances without fear of reprisal and ensure concerns are appropriately addressed in a timely manner.
Management Systems - Have appropriate and effective systems in place to control actions ensuring lawful compliance and respect for all human rights.
Compliance with Applicable Law and Standards
Suppliers to The Coca-Cola Company and suppliers authorized by The Coca-Cola Company are required to comply with, at a minimum, local laws including with respect to child labor, forced labor, abuse of labor, freedom of association and collective bargaining, discrimination, wages and benefits, work hours and overtime, health and safety, environment and business integrity. If the eight Core Conventions of the International Labor Organization (ILO) establish higher standards than local law, the ILO standards need to be met by the supplier. Suppliers must be able to demonstrate compliance with the Supplier Guiding Principles at the request and satisfaction of The Coca-Cola Company.
These minimum requirements are a part of all agreements between The Coca-Cola Company and its direct and authorized suppliers. We expect our suppliers to develop and implement appropriate internal business processes to ensure compliance with the Supplier Guiding Principles. The Company routinely utilizes independent third parties to assess suppliers' compliance with the SGP; the assessments generally include confidential interviews with employees and on-site contract workers. If a supplier fails to uphold any aspect of the SGP requirements, the supplier is expected to implement corrective actions. The Company reserves the right to terminate an agreement with any supplier that cannot demonstrate that they are upholding the SGP requirements.