Walmart's Standards for Suppliers
The safety and well being of workers across our supply chain is the Responsible Sourcing group’s top priority, which is why Walmart suppliers are contractually required to sign our Standards for Suppliers before they’re approved to produce merchandise for sale at Walmart. These Standards for Suppliers make clear our fundamental expectations for suppliers and factories regarding the treatment of workers and impact on the environment. Suppliers are also required to display our Standards for Suppliers in the local language in all factories where products are made for us, so workers know our expectations of suppliers and factory management.
As part of our commitment to worker safety and well being in the supply chain, Walmart updates the Standards for Suppliers regularly. In 2013, we made several important updates, including:
- Combating unauthorized subcontracting: Unauthorized subcontracting continues to be an issue across the global supply chain. Because of this, we implemented policies in 2013 to address unauthorized subcontracting by Walmart suppliers. This includes any undisclosed subcontracting, with or without the supplier’s knowledge.
- Enhanced fire safety standards: In addition to the enhanced fire safety standards we implemented for Bangladesh, we released our enhanced global fire safety standards in December 2013. These reflect an increased focus on achievable actions that drive meaningful and continuous improvements in fire safety. They were developed by Walmart’s fire safety experts and include the input of more than 100 merchants and suppliers who submitted more than 500 comments during the drafting process.
The Standards for Suppliers (“Standards”) are Wal-Mart Stores, Inc.’s fundamental expectations of its suppliers related to social and environmental conditions in all our markets. The Standards are utilized to evaluate employment practices and environmental compliance in facilities producing merchandise for sale by Walmart. Suppliers must also comply with Walmart’s Gift and Gratuity and Conflicts of Interest policies and conduct their business in an ethical manner that is consistent with accepted auditing principles.
The Standards must be visibly posted in English and in the local language(s) in a common area at all facilities that manufacture products for Walmart and its affiliates.
All Suppliers and their manufacturing facilities, including all subcontracting and packaging facilities, will be held to these standards. As a guide to help suppliers understand the expectations and obligations of the Standards for Suppliers, Walmart has prepared the Standards for Suppliers Manual (“Manual”).
1. Compliance with Laws
Suppliers and their designated manufacturing facilities must fully comply with all applicable national and/or local laws and regulations, including, but not limited to, those related to labor, immigration, health and safety, and the environment.
2. Voluntary Labor
All labor must be voluntary. Slave, child, underage, forced, bonded, or indentured labor will not be tolerated. Suppliers shall not engage in or support trafficking in human beings.
Suppliers shall certify that they have implemented procedures to manage the materials, including all labor-related processes, incorporated into their products to ensure they comply with laws on slavery and human trafficking. Workers must be allowed to maintain control over their identity documents.
3. Labor Hours
Suppliers must provide workers with rest days and must ensure that working hours are consistent with the law and not excessive.
4. Hiring and Employment Practices
Suppliers must implement hiring practices that accurately verify workers’ age and legal right to work in the country prior to employment. All terms and conditions of employment including, but not limited to, hiring, pay, training, promotion, termination, and retirement must be based on an individual’s ability and willingness to do the job.
Suppliers must compensate all workers with wages, overtime premiums, and benefits that meet or exceed legal standards or collective agreements, whichever are higher.
Suppliers are encouraged to provide wages that meet local industry standards. Suppliers are encouraged to provide wages and benefits that are sufficient to meet workers’ basic needs and provide some discretionary income for workers and their families.
6. Freedom of Association and Collective Bargaining
Suppliers must respect the right of workers to choose whether to lawfully and peacefully form or join trade unions of their choosing and to bargain collectively.
7. Health and Safety
Suppliers must provide workers with a safe and healthy work environment. Suppliers must take proactive measures to prevent workplace hazards.
8. Dormitories and Canteen
Suppliers who provide residential and dining facilities for their workers must provide safe, healthy and sanitary facilities.
Suppliers should ensure that every manufacturing facility complies with environmental laws, including all laws related to waste disposal, air emissions, discharges, toxic substances and hazardous waste disposal. Suppliers must validate that all input materials and components were obtained from permissible harvests consistent with international treaties and protocols in addition to local laws and regulations.
10. Gifts and Entertainment
Suppliers must not offer gifts or entertainment to Walmart associates or those working on behalf of Walmart.
11. Conflicts of Interest
Suppliers must not enter into transactions with Walmart associates that create a conflict of interest.
Suppliers must not tolerate, permit, or engage in bribery, corruption, or unethical practices whether in dealings with public officials or individuals in the private sector.
13. Financial Integrity
Suppliers must keep accurate records of all matters related to their business with Walmart in accordance with standard accounting practices such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).
We believe worker voice is key to ensuring safety and well-being across the supply chain. That’s why we require factories producing merchandise for sale at Walmart to display, with our Standards for Suppliers, a toll-free phone number, email address and website where workers can anonymously report concerns in their local language. All reports are collected by a third party and directed to our Global Ethics Office for investigation.