Harnessing cost advantages – but not at others’ expense
How Tchibo engages with suppliers in production countries to ensure decent working conditions.
Tchibo would not be able to provide its extensive range of high-quality consumer products without its suppliers and business partners throughout the world. Globalisation offers many advantages both to our company and to our customers. However, it also calls upon us to assume responsibility – especially for the people who manufacture our products. We defined minimum requirements on working conditions in our Social Code of Conduct (SCoC) in 2006, and since then our suppliers have been obliged to meet these basic standards.
Fair working conditions cannot be taken for granted. Workers at production facilities in developing and emerging economies in particular are often denied wages that cover the cost of living, the freedom to join unions and conduct wage negotiations, and reasonable working hours that would secure their future health and productivity. This situation has diverse and complex root causes. For example, applicable laws are not enforced properly because there are no appropriate control mechanisms. Factories often do not have access to know-how or resources. Other key factors are price pressure, delivery terms and other economic requirements.
Various stakeholders are relevant to fighting injustice and ensure that social standards are complied with in the production sites. This is not exclusively the task of legislators in producing countries; suppliers and their customers (brands and retailers), workers’ representatives (especially trade unions) and producers’ organisations (employers’ associations) as well as NGOs have a role to play. Since Tchibo purchases globally, we are also a part of this network and we acknowledge our responsibility: We have defined the Tchibo Social Code of Conduct (SCoC) to set out the foundation of our commitment and require all our business partners (suppliers, their producers and subcontractors) to observe these fundamental principles.
Based on international standards
Our Social Code of Conduct encompasses the globally recognised core labour standards of the International Labour Organization (ILO) and is based on the United Nations’ Universal Declaration of Human Rights. In addition, we observe as guiding standards SA8000, a globally recognised standard for ensuring and certifying decent working conditions, and the ETI Base Code. The ScoC is an integral part of every supplier contract and therefore binding for all suppliers throughout the world.
Ten principles for decent working conditions
In its current version, the ScoC encompasses ten principles which set out:
- the prohibition of forced labour;
- the prohibition of child labour;
- a ban on all forms of discrimination against employees;
- the requirement that disciplinary measures be limited to those in accordance with national laws and internationally recognised human rights;
- the requirement that employees receive written contracts of employment;
- wages that correspond at least to legal or industrial minimum standards; the expectation that employees will be paid a living wage;
- the expectation that laws on working hours will be complied with;
- the requirement to provide employees with a safe, healthy working environment;
- the requirement to respect employees’ freedom of association and the right to bargain collectively;
- the requirement to create management systems to oversee, ensure and document compliance with the standards set out in the SCoC.
These regulations are minimum requirements. If local labour and social laws are stricter than the requirements laid down in the SCoC, the stricter regulations take precedence.
You can download our Social Code of Conduct in six different languages here: