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California Transparency in Supply Chains Act of ... - Reckitt Benckiser

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Global Manufactur<strong>in</strong>g Standards<br />

Anti Slavery and Human Traffick<strong>in</strong>g<br />

Date: December 22, 2011<br />

The <strong>California</strong> <strong>Transparency</strong> <strong>in</strong> <strong>Supply</strong> Cha<strong>in</strong>s <strong>Act</strong> <strong>of</strong> 2010 (SB 657) will go <strong>in</strong>to effect on January 1, 2012. This act<br />

requires manufacturers to disclose their efforts to eradicate slavery and human traffick<strong>in</strong>g from their supply cha<strong>in</strong>s.<br />

<strong>Reckitt</strong> <strong>Benckiser</strong> mandates that all <strong>of</strong> our suppliers adhere to our Global Manufactur<strong>in</strong>g Standard and adopt practices<br />

that are consistent with it. This document discloses the efforts <strong>of</strong> <strong>Reckitt</strong> <strong>Benckiser</strong> to ensure the elim<strong>in</strong>ation <strong>of</strong><br />

slavery and human traffick<strong>in</strong>g from our supply cha<strong>in</strong>s.<br />

Manag<strong>in</strong>g our supply cha<strong>in</strong><br />

Our Global Manufactur<strong>in</strong>g Standard (GMS) mandates m<strong>in</strong>imum requirements for employment conditions, labor<br />

standards, health, safety and environmental management for both RB and our suppliers.<br />

We have cont<strong>in</strong>ued to assess suppliers (and ourselves) aga<strong>in</strong>st our Global Manufactur<strong>in</strong>g Standard (GMS), while also<br />

work<strong>in</strong>g with other <strong>in</strong>ternational companies to create a common approach to supplier assessment under the AIM-<br />

PROGRESS <strong>in</strong>itiative.<br />

Global Manufactur<strong>in</strong>g Standard (GMS)<br />

Our Global Manufactur<strong>in</strong>g Standard (GMS) is the basis for self-certification and audit aga<strong>in</strong>st <strong>in</strong>ternational standards<br />

for human rights, work<strong>in</strong>g conditions, health and safety and environmental protection.<br />

It is a standard part <strong>of</strong> our contracts with suppliers and covers seven specific, fundamental pr<strong>in</strong>ciples:<br />

• No child labor – limitation <strong>of</strong> work by young workers.<br />

• No forced labor.<br />

• A safe and healthy work<strong>in</strong>g environment.<br />

• Freedom <strong>of</strong> association.<br />

• No discrim<strong>in</strong>ation – equal opportunities and rights.<br />

• Reasonable terms and conditions <strong>of</strong> employment.<br />

• Protection <strong>of</strong> the environment.<br />

The GMS def<strong>in</strong>es the m<strong>in</strong>imum requirements that must be met by all facilities that manufacture, assemble or distribute<br />

products on behalf <strong>of</strong> <strong>Reckitt</strong> <strong>Benckiser</strong> Group plc companies, <strong>in</strong>clud<strong>in</strong>g both our own and our third party suppliers’<br />

facilities.<br />

<strong>Reckitt</strong> <strong>Benckiser</strong> LLC<br />

Morris Corporate Center IV<br />

399 Interpace Parkway<br />

Parsippany, NJ 07054-0225<br />

T +1 973 404 2600<br />

F +1 973 404 5700


We ensure that suppliers:<br />

• Are frequently visited and audited (announced and un-announced) by senior and middle managers <strong>in</strong> our<br />

R&D and <strong>Supply</strong> functions. They provide additional ‘eyes and ears’ and report potential issues they come<br />

across. <strong>Reckitt</strong> <strong>Benckiser</strong> relies on <strong>in</strong>ternal visits and audits to verify compliance with our various<br />

requirements and specifications. Currently, no third party or external auditors are utilized.<br />

• Are required to comply with our GMS through the terms <strong>of</strong> our contract.<br />

• May be subject to separate environmental and health and safety (EHS) <strong>in</strong>spections and audits where we<br />

believe these are necessary.<br />

Our GMS <strong>in</strong>ternal guidel<strong>in</strong>es are communicated <strong>in</strong> the local bus<strong>in</strong>ess language, to ALL facilities / companies <strong>in</strong>volved<br />

<strong>in</strong> the manufacture, assembly and distribution <strong>of</strong> products on behalf <strong>of</strong> <strong>Reckitt</strong> <strong>Benckiser</strong> Group companies. We<br />

require mandatory compliance by all <strong>Reckitt</strong> <strong>Benckiser</strong> manufactur<strong>in</strong>g / distribution facilities; and all third-party product<br />

manufactur<strong>in</strong>g / assembly facilities.<br />

<strong>Reckitt</strong> <strong>Benckiser</strong> provides tra<strong>in</strong><strong>in</strong>g and ma<strong>in</strong>ta<strong>in</strong>s and enforces <strong>in</strong>ternal procedures for accountability for our<br />

employees and contractors regard<strong>in</strong>g company standards <strong>in</strong> slavery and human traffick<strong>in</strong>g. Where there is noncompliance,<br />

we will exam<strong>in</strong>e the specific situation and develop the best possible strategy for resolution.<br />

Mandatory compliance requirements regard<strong>in</strong>g human traffick<strong>in</strong>g and<br />

slavery:<br />

• No child labor: the facility / company shall not engage <strong>in</strong> or support the use <strong>of</strong> child labor.<br />

• If young workers are employed who are subject to local compulsory education laws or are attend<strong>in</strong>g school, the<br />

facility / company shall facilitate educational provision, by:<br />

- establish<strong>in</strong>g, document<strong>in</strong>g, ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g and effectively communicat<strong>in</strong>g to personnel procedures for<br />

facilitat<strong>in</strong>g young workers education;<br />

- implement<strong>in</strong>g means to ensure that no such young worker is employed dur<strong>in</strong>g school hours (except as<br />

permitted under apprenticeships or other programs <strong>in</strong> which they are lawfully participat<strong>in</strong>g) and that<br />

comb<strong>in</strong>ed hours <strong>of</strong> work and school do not exceed 10 hours a day.<br />

- ensur<strong>in</strong>g a safe work<strong>in</strong>g environment: the facility / company shall not expose young workers to situations<br />

that are deemed to be particularly hazardous or at a high risk <strong>of</strong> be<strong>in</strong>g unsafe or unhealthy.<br />

• No forced / bonded / <strong>in</strong>voluntary labor: the facility / company shall not engage <strong>in</strong>, use or support the use <strong>of</strong> forced,<br />

bonded or <strong>in</strong>voluntary prison labor;<br />

• The facility / company shall not require (or allow any providers <strong>of</strong> temporary / contracted labor to require)<br />

personnel to lodge ‘deposits’ or identity papers <strong>in</strong> connection with their employment.<br />

• Workers shall be free to leave their employer after reasonable notice.<br />

Page 2 <strong>of</strong> 3


Bus<strong>in</strong>ess Conduct<br />

Our Code <strong>of</strong> Conduct sets out the pr<strong>in</strong>ciples and ethical values we want to uphold. It is available at: www.rb.com.<br />

Senior managers across the company are required by Internal Audit to report and sign-<strong>of</strong>f on compliance with the<br />

Code every year. The Board Audit Committee monitors the f<strong>in</strong>d<strong>in</strong>gs <strong>of</strong> this certification process.<br />

Human and labor rights<br />

We believe human rights at work are an absolute and universal requirement. In countries where we operate we aim to<br />

support progress on human rights issues <strong>in</strong> accordance with what can reasonably be expected from a commercial<br />

organization.<br />

We subscribe to the pr<strong>in</strong>cipal <strong>in</strong>ternational standards and guidel<strong>in</strong>es for human rights and work<strong>in</strong>g conditions. Our<br />

Code <strong>of</strong> Conduct and Global Manufactur<strong>in</strong>g Standard enshr<strong>in</strong>e our approach to protect<strong>in</strong>g human and labor rights at<br />

work.<br />

International standards and guidel<strong>in</strong>es<br />

We subscribe to a range <strong>of</strong> International standards and guidel<strong>in</strong>es relat<strong>in</strong>g to susta<strong>in</strong>ability and corporate<br />

responsibility, <strong>in</strong>clud<strong>in</strong>g:<br />

• the United Nations (UN) Declaration <strong>of</strong> Human Rights: www.un.org<br />

• the International Labour Organisation (ILO) Fundamental Conventions: www.ilo.org.<br />

The <strong>in</strong>tent <strong>of</strong> these standards and guidel<strong>in</strong>es, along with others such as the social accountability standard SA8000:<br />

www.sa-<strong>in</strong>tl.org , are <strong>in</strong>corporated <strong>in</strong> the Company’s Code <strong>of</strong> Conduct and other elements <strong>of</strong> our Corporate<br />

Responsibility Framework, such as our Global Manufactur<strong>in</strong>g Standard.<br />

Page 3 <strong>of</strong> 3

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