Cummins writes conduct code for suppliers
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Manufacturing News, Source : The Manufacturer US
Published : 03 May 2006 22:19
Cummins Inc., the Columbus, Indiana-based maker of diesel components and engines, has announced its “Code of Conduct” for suppliers.
“It’s a ‘company you keep’ kind of thing,” Cummins Public Relations Director Mark Land told us.
Conduct codes are not brand new, but are more common in banking and finance than in industry.
What is also unusual is the global scope. Cummins’ code allows no “wiggle room” for countries wherein bribery is an acceptable business practice, or sweatshop labor is the norm. “There wasn’t any one [incident] thing that led us to do this," said Land. "We are doing more business around the world than we did five years ago, and we felt it was important we hold suppliers to the same standards” that Cummins holds for itself.”
As Cummins’ 2005 Annual Report describes, “While Cummins recognizes there are different legal and cultural environments in which suppliers operate throughout the world, the proposed code sets forth the basic requirements that suppliers must meet in order to do business with Cummins.” When in doubt, Cummins has created an Ethics Help Line aimed at “improving our global process and adding commonality to the process worldwide.”
As the company details, the code applies to all businesses that produce goods or provide services for Cummins and will focus on –
• equal employment opportunity and treatment of others,
• forced and child labor,
• wages and hours,
• working conditions,
• freedom of association,
• political activity and
• bribery/corruption of government officials.
The company will be training a core group of employees who have frequent contact with suppliers to be responsible for audits to the Supplier Code of Conduct when visiting suppliers. As new contracts are negotiated over time, Cummins will include the key requirements of the Supplier Code of Conduct in its sourcing agreements and purchase orders.
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