Sysco's Supplier Code of Conduct contains the legal, moral and ethical standards we expect of suppliers, including the protection of human rights.
All Sysco suppliers must operate in full compliance with the Code and with all applicable U.S., International, Country and Local laws and regulations.
Suppliers in all markets must complete an initial self-assessment against the Code as part of the Sysco Brand approval process.
We conduct third-party assessments for suppliers in high-risk Latin American and Asian countries to identify potential risks relating to wages, working hours, discrimination, worker safety, living conditions, and child and forced labor. These assessments include interviews with management and employees, as well as site visits. We score facilities on a four-point scale from green (highest) through yellow, orange and red (lowest). Unless a supplier receives a perfect score, assessments are repeated every 12 months. A red rating does not necessarily mean a supplier has committed a critical violation; it can reflect a number of minor assessment criteria infringements.
To help suppliers improve their performance, we work with those who do not achieve perfect scores to develop improvement plans, then conduct follow-up assessments to ensure that plans have been implemented. In the unlikely event that a supplier is unable or unwilling to introduce improvements, or if has supplier has committed a critical violation of our standards, we terminate the relationship.
During 113 assessments conducted in FY2014, 10 suppliers achieved green ratings, 54 achieved intermediate yellow and orange ratings, and 49 achieved red ratings. Facilities involved in follow-up assessments achieved a 1.5 percent increase in green ratings; and the number of facilities receiving red ratings decreased by 2 percent compared to FY2013.
By the end of FY2014, there were 184 suppliers enrolled in our supplier assessment program with operations in Bangladesh, Chile, China, Costa Rica, Ecuador, Guatemala, Honduras, Hong Kong, India, Indonesia, Japan, Malaysia, Maldives, Mexico, Nicaragua, Panama, Peru, the Philippines, Singapore, Taiwan, Thailand and Vietnam.
As part of the assessment process, we work with Underwriters' Laboratory - Responsible Sourcing (UL-RS), an international provider of responsible sourcing certification systems, to review our assessment data and identify trends and opportunities to generate feedback for our suppliers. As part of our goal of continuous improvement, Sysco and UL-RS provide training for existing suppliers and those seeking Sysco Brand approval. Supplier training is designed to improve understanding of and compliance with Sysco's Supplier Code of Conduct and local, national and international law, including facilitating the process of identifying root causes, developing management systems solutions and managing implementation to achieve compliance. The Supplier Code of Conduct training covers the Core Conventions of the International Labour Organization including basic human rights, restrictions on child labor, freedom of association and discrimination on the basis of race, gender, religion, ethnicity, nationality or political beliefs.