Does Your Organization Comply with Amazon’s Supplier Code of Conduct?

What is Amazon’s Supplier Code of Conduct?

Amazon is a household name in every home nowadays, Amazon is one of the leading online retail websites dealing in an array of products ranging from consumer products to electrical & electronic products and many more. It is safe to say that everything which we use or need to carry out day-to-day activities in our life is made available on Amazon. So how does Amazon offer so many products? Does Amazon have a production unit of its own?

The Answer to the above questions is a NO. Amazon does not manufacture & does not have any production units, but Amazon does have a supply chain system in which there are many suppliers and vendors supplying products or services to Amazon.

So it is mandatory for the suppliers of Amazon who produce manufactures products for Amazon to comply with the requirements defined by Amazon in the Amazon Supply Chain Standards Manual. So if you are thinking to become an approved supplier for Amazon then you are at the right place.

Amazon has a set of core principles which are customer obsession, passion for invention, commitment to operational excellence, and long-term thinking, along with this principle Amazon engages with suppliers who comply with Amazon’s Code of Conduct.

This requirement of Amazon’s Code of Conduct is applicable to the suppliers & facilities which are involved in the production and manufacturing of the Amazon products, products components, or physical materials carrying Amazon’s brand, Intellectual property, or designed to Amazon’s specifications.

Anyone with their own branded product with their own name and logo for them it is not mandatory.

Amazon’s Supplier Code of Conduct is based on the United Nations Guiding Principles on Business and Human Rights, and the Core Conventions of the International Labor Organization (ILO), including the ILO Declaration on Fundamental Principles and Rights at Work and the UN Universal Declaration of Human Rights. As an Amazon’s Supplier you are expected to show commitment to the same principles mentioned above.

REQUIREMENTS OF AMAZON’S SUPPLIER CODE OF CONDUCT

Amazon at minimum requires the facilities to meet and maintain a basic set of requirements to qualify for the initial and continued production of Amazon products. These requirements are known as Qualification Requirements.

The Amazon suppliers must comply with all applicable laws, as well as the requirements & principles outlined in the Supplier Code of Conduct, even if it exceeding legal requirements.

Below are listed a few of Amazon’s Supplier Code of Conduct qualification requirements:

• All workers are of appropriate legal age.
• The work must be voluntary.
• All workers must be treated equally with respect & dignity.
• There should be freedom of association.
• Transparency within the system.
• Responsible towards protection of environment.
• Safe operational & working condition.
• Amazon’s country specific requirements.

Amazon also expects its suppliers to cascade its Amazon’s Supplier Code of Conduct to their own suppliers and subcontractors.

AMAZON’S SUPPLIER CODE OF CONDUCT AUDIT REQUIREMENTS

It is mandatory for all Amazon suppliers to submit Amazon approved audit of the facilities prior to beginning with the production of the Amazon-branded products. There are basically two types of Audits that are recognized by the Amazon

1. An Audit report of the approved industry association.
2. Audit report of the Amazon Managed Audit.

Industry association audits are third-party social compliance initiatives & multi-stakeholder programs that are widely accepted by many brands across many industries.

The Audits from the following industry associations are accepted by Amazon:

1. Amfori BSCI.
2. Better Work (BW).
3. Responsible Business Alliance (RBA).
4. Sedex Members Ethical Trade Audit (SMETA).
5. SA 8000 Standard.

The Amazon-managed audits are the audits that are performed by the third-party organizations on behalf of Amazon. These types of Audits can be announced, unannounced, semi-announced, or even without any prior notification.

So basically and Amazon audits are focused on improving the working conditions of the workers throughout the supply chain. So if you are thinking about becoming an Amazon supplier you have to comply to Amazon’s requirements and get audited.

About PQSmitra. Who are we and How can we help?

PQSmitra has been providing Social Compliance Consultation to various organizations of various industries for the past 20 years. “Mitra” in Marathi means a friend, and likewise we work more on a partnership than just being mere consultants.
You can expect the following things from us
1. Handholding throughout the Implementation, Audit, and even after the audit.
2. Support for Documentation & Training
3. Full responsibility for the completion and genuineness of the Certification

Our team at PQSmitra is ready to help your business build meaningful Ethical Business and achieve its goals. Looking forward to forming relations and simultaneously work for your smooth Operations.