Cummins Inc. has begun implementation of a code of conduct for its global supply base detailing its expectations of compliance to certain business and ethical standards.
The code is designed to ensure the company's suppliers not only adhere to those standards but also to the laws of their countries and all other applicable laws, rules and regulations, including those related to labor, worker health and safety and the environment.
"Our supplier code of conduct applies Cummins vision, mission, and values to the work in our supply base and is another step in our journey to be the best corporate citizen possible," said Joe Loughrey, president and Chief operating officer. "The code does not hold our suppliers to higher standards than we at Cummins expect of ourselves," continued Loughrey. "There are some absolute minimums that we expect, but we believe our code is in line with what other socially responsible companies have in place."
The code covers 14 main topics including 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. Ultimately, compliance to Cummins Supplier Code of Conduct will be required to do business with Cummins.
Cummins sent the code and compliance letters to its non-U.S. suppliers in the first quarter and will expand its scope to U.S. suppliers starting this month. 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.
The code is designed to ensure the company's suppliers not only adhere to those standards but also to the laws of their countries and all other applicable laws, rules and regulations, including those related to labor, worker health and safety and the environment.
"Our supplier code of conduct applies Cummins vision, mission, and values to the work in our supply base and is another step in our journey to be the best corporate citizen possible," said Joe Loughrey, president and Chief operating officer. "The code does not hold our suppliers to higher standards than we at Cummins expect of ourselves," continued Loughrey. "There are some absolute minimums that we expect, but we believe our code is in line with what other socially responsible companies have in place."
The code covers 14 main topics including 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. Ultimately, compliance to Cummins Supplier Code of Conduct will be required to do business with Cummins.
Cummins sent the code and compliance letters to its non-U.S. suppliers in the first quarter and will expand its scope to U.S. suppliers starting this month. 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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