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As awareness and advocacy efforts around human trafficking and slavery grow among governments, NGOs and investors, so do expectations for businesses to demonstrate what they are doing to address this issue within their supply chains.
The Mondelēz International Statement on Human Rights guides our approach. And, in line with the California Transparency in Supply Chains Act (SB 657) and the UK Modern Slavery Act 2015, our 2018 Human Rights Due Diligence & Modern Slavery Report and the links below provide more detail on our efforts to help make a difference in our operations and those of our suppliers.
INTERNAL ACCOUNTABILITY STANDARDS
We expect each employee to conduct business legally and ethically. Mondelēz International has policies that prohibit child and forced labor as noted in our Code of Conduct. We also audit our manufacturing facilities under the Program for Responsible Sourcing (PROGRESS). Failing to meet company standards on child and forced labor is a breach of corporate policy. As such, violators are subject to disciplinary action, up to and including termination of employment.
Mondelēz International provides specialized training for procurement employees. This training helps them identify and mitigate labor-related sourcing risks and includes a section on human trafficking and slavery.
CERTIFICATION BY DIRECT SUPPLIERS
Our purchasing contracts require direct suppliers to comply with all laws and support Mondelēz International’s policies on child and forced labor. We have various tools to address non-compliance, which may include, but are not limited to, a corrective action plan. If the supplier does not resolve the issues of concern in a timely and satisfactory manner, Mondelēz International reserves the right to take more drastic action, such as termination of the business arrangement.
VERIFICATION AND SUPPLIER COMPLIANCE AUDITS
Using announced third-party audits, we've begun to assess direct suppliers' compliance with our corporate responsibility expectations (including child and forced labor) through PROGRESS.
GOING BEYOND OUR DIRECT SUPPLIERS
In addition to assessing direct suppliers, we've been working with civil society, government and industry to tackle conditions at the farm level. Since its inception in 2002, we've supported the International Cocoa Initiative (ICI) to address child and forced labor issues on cocoa farms.
In October 2013 we published a new approach to tackling child labor in the cocoa supply chain. We have worked with experts in the field, including the world’s leading anti-slavery charity, Anti-Slavery International, to define this approach. More details are available on www.cocoalife.org.
EXPECTATIONS FOR OUR SUPPLIERS
As a founding member of AIM-PROGRESS, we also adhere to the Sedex Member Ethical Trade Audit. This audit evaluates suppliers against a common set of Corporate Social Responsibility standards to drive efficiency on performance improvement for the consumer goods industry. In 2016, 218 of our key suppliers — 99 percent of our 2016 target group of highest priority suppliers — completed the audit, in addition to the 388 suppliers audited in 2014 and 286 audited in 2015. See our 2016 Impact For Growth Progress Report at page 9.
While there are several PROGRESS recognized audit protocols, Mondelēz International along with many in the industry, primarily require an audit to the SMETA (Sedex Member Ethical Trade Audit) protocol. To learn more about SMETA audits visit the SEDEX website. For an overview of PROGRESS and SEDEX, click here.
To help address the need for global social responsibility in the supply chain, we are continuing to leverage supplier self assessments and third party ethical practice audits. To lessen the burden of audits and to align the industry on the key issues, we support mutual recognition of audits. The goal of mutual recognition is to satisfy the needs of many through a common audit framework and sharing network.
LOVING OUR PEOPLE AND OUR ENVIRONMENT
We believe everyone in our operations and supply chain should be treated fairly and with dignity to protect human rights and create a positive work environment. We are driving a comprehensive approach to social sustainability across our business and invest in key commodity programs, like Cocoa Life in cocoa and Harmony in wheat, to ensure our ingredients are sourced sustainably and ethically.
LEARN MORE ABOUT OUR SUPPLY CHAIN EXPECTATIONS