Suppliers must meet ethical standards
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- 05 July 2005
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Arla Foods’ suppliers must now confirm in writing that they comply with the Group’s ethical guidelines.
Based on Arla Foods’ ethical programme, “Our Responsibility”, Global Purchasing has drafted a set of regulations for the group’s suppliers. The regulations are currently being discussed in meetings between Global Purchasing and suppliers with the aim of identifying savings opportunities. The suppliers will be given a new “Code of Conduct for Suppliers” at the meetings.
The suppliers will then decide whether they wish to meet the requirements and sign up to the programme. By doing so they will confirm that they respect human rights, that they do not employ child labour and that their production meets current working environment requirements and does not impact negatively on the environment.
In addition, the suppliers are called upon to pass on the regulations to their own suppliers.
“We see the suppliers as an integral part of the group’s image and believe that it is important that they meet the regulations that apply to us all here,” said Jørgen Skaarup, Arla Foods’ Purchasing Director.
Initially the Code of Conduct will be distributed to 300 preferred suppliers who, between them, account for 75% of Arla Foods’ annual purchasing spend of around DKK 8 billion.
Arla Foods is an international dairy company owned by 9,700 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world's largest manufacturer of organic dairy products.