For Suppliers

2.6.2014 Hearing: New Code of Conduct

In January 2014 BSCI (Business Social Compliance Initiative) published a new Code of Conduct with enclosures . This new Code requires stronger than before commitment to the ethical principles and active measures from both Participants and from companies belonging to or participating in their supply chains.

The central elements of the new BSCI operations model are the Code of Conduct, Due Diligence (which is more binding than before) and the requirement of strategic planning and practical measures for promoting social responsibility. The model of BSCI responsible purchasing leans on the principle of continuing improvement, open cooperation and empowerment of parties operating in different supply chains.

The practical effects of the Code will be discussed during the autumn 2014 in voluntary workshops arranged for suppliers. You will have more details of these workshops in the supplier meeting to be held in Hanasaari, Helsinki, on 7 October 2014. A supplier training by BSCI is also included in the program of this meeting.

Audits or follow-ups against the principles of the new Code will start in January 2015.

BSCI Code of Conduct and enclosures form a compact document, which must be read and interpreted in its entity.

BSCI Code of Conduct includes the following enclosures:
- Terms of Implementation for Participants (“Alko”)
- Terms of Implementation for Business Partners (“Seller”)
- Terms of Implementation for Business Partners to be involved in the BSCI monitoring process (“Producer”, “Manufacturer”)
- BSCI Glossary
- BSCI Reference

The English version of the document is the legally binding one.

When implementing the new Code of Conduct Alko requires that all sellers approve the new operating principles by either signing the document which will be available on Alko’s website or by giving the approval on Alko’s partner network. Contrary to the earlier practice, signed documents or electric approvals do not need to be product-specific, but seller-specific approvals are sufficient. By signing or giving an electric approval the seller undertakes to observe the Code of Conduct in its entity, although the approval is given on the “Terms of Implementation for Business Partners” document.  More detailed instructions on the signature procedure will be given after this hearing. The deadline for signing the document or giving the electric approval is 31 December 2014.

The effects of the new Code of Conduct to Alko’s listing instructions are explained in the document Changes planned for Listing Instructions 2015

If the seller does not sign the commitment or give an electric approval, Alko may cancel its orders or delist the products without any liability to compensate.

Please send your comments on the implementation of the new Code of Conduct by email to latest on 19 June 2014.