We rely on a global supply chain to conduct business. It is important that our suppliers maintain high standards of quality and ethical business practices. In 2012, we systematically audited our contract manufacturers to ensure they provide a safe and healthy work environment and treat employees fairly. As our business grows, so will our global supply chain. To proactively ensure our values are upheld, we plan to survey our primary suppliers in 2013.
Hunter takes global citizenship seriously as it is one of our guiding values. Eighteen years ago during the selection process of our first contract manufacture, Hunter family members traveled to Asia for a first-hand look at the facilities and work conditions. The family’s selection criteria set the tone for future contract manufacturing partnerships. We require a highly skilled labor force that can produce quality finished goods through the use of high tech capabilities and proper equipment. Considering this standard, poor working and manufacturing conditions are unacceptable.
Human Rights Audit
Our top 40 suppliers make up 88% of our supply chain by dollars of direct materials. The road to becoming a better corporate citizen requires that we take responsibility for the impacts of our upstream processes. As a start we need an annual measure of our suppliers' human rights performance. In 2012, our priority was to gain an understanding of the conditions at our contract manufacturers that provide a portion of our finished goods.
We began with an audit of our largest contract manufacturers. The audit was developed using the Universal Declaration of Human Rights and the United Nations Bill of Human rights as guidelines. We concentrated on issues directly impacting the worker such as safety and sanitation. Environmental performance will be included in subsequent audits.
|Human Rights Audit of Largest Contract Manufacturers|
|Main Audit Categories||Subject|
|Living Conditions||Dormitory, Canteen, Sanitation|
|Human Rights and Labor||Forced Labor, Wages and benefits, Working hours, Child Labor, Formal Contracts|
|Occupational Health and Safety||Machine guarding, Occupational Safety|
Our baseline audit was completed by our manufacturing team during one of their trips to our contract manufacturers. To rate our contract manufacturers' performance we created the scale below.
- Green items are all acceptable.
- Yellow items will be followed up on during next year’s audit
- Red item require immediate action
The contract manufacturers were very cooperative with the audit process and some had the benefit of being audited by other customers. We were pleased not to find any items rated in the red zone. Our team determined that for 17% of their questions, there was either not sufficient information to draw a conclusion or they were borderline acceptable, so those answers fell into the yellow zone. The yellow items will be followed up during next year’s audit with more detailed questions and advanced notice.
Items Ranked Yellow
- Equipment safety
- Number of occupational diseases
- Knowledge of conflict minerals
To date we don’t include Human Rights clauses in our contracts. Our agreement between our long standing contract manufacturers and suppliers are done on a purchase order basis. There is potential for developing contracts with human rights clauses when new agreements are created. Our road to becoming better corporate citizens includes surveying our top forty suppliers during 2013 through an email questionnaire.
|Human rights audit - Topics covered|
|Topic||Covered 2012||Add in 2013 Audit|
|General work environment|
|Personal Protective Equipment|
|Injury/illness system management|
Back to Top
- Add Human Rights clauses in our contracts
- Survey top 40 suppliers on Human Rights
- More detailed audits of our contract manufacturers
- Research into conflict minerals