Walmart compliance training osv

Compliance Training for Supplier Walmart Business Ethics & Standards

byTam Do – OneStep Viet Co. Ltd.

What Every Supplier Needs to Know to Stay Out of Trouble

EXPECTED OUTCOME

The participants become aware about the Walmart Standards, its purpose and philosophy

The participants understand the »Walmart Business Ethics, Ethical and Environmental Standards for Suppliers« system

The participants learn about the »Walmart Business Ethics, Ethical and Environmental Standards for Suppliers« implementation

The participants learn the case study of challenges and constraints with respect to Walmart Standards Implementation, discuss possible solutions

AGENDA

Session 1: Overview of Walmart Standards & Benefits for Suppliers

Session 2: International context, need for social compliance & response of

Walmart and its suppliers

Session 3: Elements of Walmart Business Ethics Compliance system

Session 4: Elements of Walmart Ethical and Environmental Standards –

Implementation guidelines

Session 5: Casestudy, challenges for the implmention of Walmart Standards

Overview of Walmart Standards &

Benefits for Suppliers

"Walmart started out with a single discount store in Northwest Arkansas

and in less than 50 years grew to become the world’s largest retailer,

with thousands of stores and clubs and millions of associates. Our culture of

ethics and integrity has been a constant throughout that

transformation. From the beginning, it has defined who we are as a company,

and how we as associates treat each other, our suppliers and our

customers.“

Mission Statement

Walmart’s Standards

Standards for Suppliers or Ethical & Environmental Standards

Statement of Ethics or Business Ethics Standards

Insurance Requirements

Standards and Guidelines for Food Safety Audits

Entry-to-market tool, operational business ambient driving-force

been being used by focal players in the supply chain

A performance measurement tool that comprehensive in scope - covers areas of ethics, social, environment, integrity, quality and safety of business activities with continuous improvement

Addresses applicable part of the legislative requirements

Fosters legal compliance

Build trust and transparency

Increases consumer confidence

Increases brand equity and corporate reputation

A principle basis for management

Easy integration with other management systems

Prepares for inspection by regulatory authorities and other stakeholders

Simple audit, validation and monitoring processes

Ensure factories follow good management practices

Reduces costs and time for both suppliers and retailers

Improves new market and customer prospects, and

Ongoing business & living life enhancement, not just Walmart’s

International context, need for ethical compliance

& response of Walmart and its suppliers

Ho Chi Minh City, May 2013

Business Ethics in the News

Deloitte Survey /White Paper Highlight the Growing Role of the Board in CSR and Climate Change, 2009

220 directors at U.S. companies with $1 billion or more in revenue 76% have a strong or moderate understanding of the business

opportunities associated with CSR and climate change

50% think their companies’ response to CR&S is integrated into business strategy and risk management

41 % report no such integration

Pedigree: Enhances Brand?

CUSTOMERS EMPLOYEES SHAREHOLDERS DISTRIBUTORS

GOVERNMENT SOCIETY INVESTORS SUPPLIERS

Business Ethics respects Nature

http://www.apple.com/environment

Business Ethics & Consumers

Hartman, 2009

Doing the right thingfor the Greater Good.

Purchases, non-purchases,voting & volunteerism.

Journey that begins with attitude change, then behavioral changes.

Consumers be concerned that something they value (conditions of environment, economy, ethical treatment of others) is at risk

More recently, sense of hope for the future and a desire to do and feel good more inspiring

Insiders 88%

HOURS, WAGE& BENEFITSS WORKING CONDITIONS

HEALTH, SOCIAL & other INSURANCES

Business Ethics & Workforces

Child labor violations Use of illegal workers

Freedom of Association Gender orientation

Overtime Penalties 2011, Walmart Corp. fined for OT infractions Ordered to pay $3.9 mil in OT, waiting time penalties, and

interest rate 50,000 former and current employees Upside: infractions found by Walmart internal audit and the

company notified California Department of Labor

Elements of Walmart Statement of Ethics Compliance system

Three (03) Basic Beliefs: Respect for the Individual Service to our Customers Striving for Excellence

11 Guiding Principles to help Walmart associates make the right decisions, and to act with integrity

• Always act with integrity

• Lead with integrity, and expect others to work with integrity

• Follow the law at all times

• Be honest and fair

• Reveal and report all information truthfully, without manipulation or misrepresentation

• Work, actions, and relationships outside of your position with the company should be free of any conflicts of interest (discussed later)

11 Guiding Principles to help Walmart associates make the right decisions, and to act with integrity

• Respect, encourage diversity; never discriminate against anyone

• Ask your manager or the Global Ethics Office if you have questions or an ethical problem

• Promptly report suspected violations of the Statement of Ethics

• Cooperate with and maintain the private nature of investigation of an ethics violation, and

• When involved in that: reveal and report all information truthfully, present all the facts you are aware of without personal opinion, bias, or judgment.

Global Policies and Local Laws:

- Having a complete set of policies providing guidance to associates on the job- Understanding Walmart-published “global policies,” which are designed to give

associates a set of rules that are the same for all locations worldwide- Local policy or law must always be followed if going higher than SOE- If local laws, practices, or even local customs are more relaxed than Walmart’s,

relying on Walmart’s SOE- Local contact: Walmart in Vietnam Legal Department

Using this Statement of Business Ethics

• Walmart itself, worldwide suppliers, and the people

• Better Walmart business as keep engaging SOE

• Attitudes and conduct that create an honest, fair, and legal workplace

• To recognize potential situations that could be a violation

• What to do when having questions or concerns about an ethical conduct

• Qualification, Walmart and outsiders

Organizing SOE:

- Guiding Principles - a set of guidelines for ethical behavior

- Introduction - your responsibility to comply with SOE and to report what you feel might be any violation of policy or law

- Raising Concerns & Speaking Up - request an opinion before you take action; report what you think; way to make a report in private

- Overview of Walmart policies/standards

Alcohol & Drug Abuse

- The possession, solicitation, or use of illegal drugs, or being under the influence of such drugs on company time, while on company property, or at any Walmart-sponsored event, is prohibited and will not be tolerated

- All associates should ensure their performance and judgment are unimpaired by alcohol consumption during working hours

- Approved event with superior monitoring at place: questioning

I was asked to take a drug test before accepting a promotion into management. Is this standard?

Is there somewhere I can go for help if I have a drug or alcohol problem?

I’m attending a Walmart-sponsored group/supplier meeting. Alcohol will be served. May I have alcohol while there?

I was asked to take a drug test before accepting a promotion into management. Is this standard?Where permitted by law, job applicants may be drug screened as part of the post-offer hiring process, or prior to accepting a promotion into management. Any applicant who tests positive for illegal drug use will not be hired or promoted, and may be terminated. In addition, Walmart may require you to submit to drug testing following certain on-the-job injuries or if there’s a reasonable basis to suspect you’re under the influence of drugs (also only where permitted by law).

Is there somewhere I can go for help if I have a drug or alcohol problem?Walmart operations in some countries provide Helpline-counseling services. Please contact your Human Resources manager or local substance-abuse counseling center for help.

I’m attending a Walmart-sponsored group/supplier meeting. Alcohol will be served. May I have alcohol while there?With executive vice president approval, Walmart sponsored events may provide alcohol. Associates of legal age may consume alcohol at these events as long as they do not allow it to impair their judgment.

Harassment

Harassment: Any conduct which inappropriately or unreasonably interferes with work performance, diminishes the dignity of any person, or creates an intimidating, hostile, or otherwise offensive work environment.

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Verbal, visual, or physical conduct of a sexual nature is not acceptable in the workplace and may be determined to be sexual harassment. Examples:

• Sexual advances, requests for sexual favors, sexually explicit language, off-color jokes, remarks about a person’s body or sexual activities

• Displaying sexually suggestive pictures or objects, suggestive looks or leering, or suggestive communication in any form

• Inappropriate touching, both welcome and unwelcome

A department manager comments regularly about my body. What should I do?

Is my desk calendar with occasional sexual jokes appropriate in the workplace?

A department manager comments regularly about my body. What should I do? We encourage you to first tell the person to stop. If you’re not comfortable with this, or the activity does not stop, contact your manager through the Open Door process, your Human Resources manager, or the Global Ethics Office immediately.

Is my desk calendar with occasional sexual jokes appropriate in the workplace? It could be offensive to someone else in the workplace. If you’re in doubt, remove the item from the workplace.

Inappropriate Conduct

We believe in maintaining a working environment free of violence or threats of violence.

- Inappropriate language, gestures, threats of violence, and physical violence will not be tolerated

- The above kind of behavior creates hostile working conditions, and violates the first of the 3 Basic Beliefs: respect for the individual.

An associate used a word in a meeting that is “offensive” to my girlfriend. What should I do?

An associate used a word in a meeting that is offensive to my girlfriend. What should I do? Speak up and tell the person. Some words are universally offensive but some are not. They might not know the word could be seen as offensive to someone. You can also exercise the Open Door process, contact someone in Human Resources or the Global Ethics Office.

Non-Retaliation

• We create a working environment where everyone can raise concerns of ethics issues without fear of retaliation

• Associate’s concerns are maintaining a healthy, respectful, and productive workplace, protecting stakeholders, help company address problems early

• Retaliation against associates who did in "good faith" will not be tolerated. Good faith means that you have made a genuine attempt to provide honest and accurate information, even if you are later proven to have been mistaken.

Non-Retaliation

• A voluntarily self-reporting may be considered when determining the appropriate disciplinary action

• Not terminate, demote, or otherwise discriminate against associates for raising concerns. Not to isolate those associates. Any change in treatment toward the supposed associate: informal retaliation.

• Follow Walmart process to deal with retaliation issues. The helpline can also be used to discuss a retaliation issue.

I reported an allegation six months ago. Ever since, my manager stopped including me in several meetings. Is this retaliation?

Is protection from retaliation only provided if I report my concerns through the Helpline?

After an associate reported an ethics violation concerning their assistant manager to the Human Resources manager, their assistant manager began tracking all their mistakes. Is this retaliation?

I reported an allegation six months ago. Ever since, my manager stopped including me in several meetings. Is this retaliation? Significant changes in how you’re treated can be viewed as retaliation. If your manager treats you differently since you reported an allegation, you should raise your concern to management through the Open Door process or to the Global Ethics Office.

Is protection from retaliation only provided if I report my concerns through the Helpline? Retaliation is unacceptable no matter which source you used to raise your concern (through management, Human Resources, or Global Ethics). If you believe you have been retaliated against, please contact one of those sources immediately.

After an associate reported an ethics violation concerning their assistant manager to the Human Resources manager, their assistant manager began tracking all their mistakes. Is this retaliation? Any variations from how the assistant manager previously treated the associate, and variations from how they treat other associates could be perceived as retaliation.

Non-Discrimination

• We create a culture of trust and respect that promotes a positive work environment - treating one another with fairness and courtesy

• We are committed to maintaining a diverse workforce and an inclusive work environment to our associates, customers, members, and suppliers

• Will not tolerate discrimination in employment, employment-related decisions, or in business dealings on the basis of race, color, ancestry, age, sex, sexual orientation, religion, disability, ethnicity, national origin, veteran status, marital status, pregnancy, or any other legally protected status.

In the break room, another associate called me a disrespectful name associated with my nationality. What should I do?

Is protection from retaliation only provided if I report my concerns through the helpline?

A customer continues to call me bad names while in my checkout line. What should I do?

In the break room, another associate called me a disrespectful name associated with my nationality. What should I do? Immediately contact your manager through the Open Door process or contact the Global Ethics Office.

Is protection from retaliation only provided if I report my concerns through the helpline? Retaliation is unacceptable no matter which source you used to raise your concern (through management, Human Resources, or Global Ethics). If you believe you have been retaliated against, please contact one of those sources immediately.

A customer continues to call me bad names while in my checkout line. What should I do? Contact a member of management or the Asset Protection department in your store.

Wage and Hour

• Complying fully with all applicable laws and regulations, all corporate policies and procedures dealing with wage-and-hour issues, including off-the-clock work, meal and rest breaks, overtime pay, termination pay, minimum-wage requirements, wages and hours of minors, and other subjects related to wage-and-hour practices

• Report any violations of wage-and-hour laws/policies to management

• Never perform any work for Walmart without compensation.

I had lunch with my manager yesterday. I had clocked out but he spent the entire lunch asking me work related questions. What should I do?

My manager has reduced my hours recently because she says we need to cut expenses. Is this a violation?

My manager asks me to pick up some carts each evening on my way to my car. What should I do?

I had lunch with my manager yesterday. I had clocked out but he spent the entire lunch asking me work related questions. What should I do?Managers should use good judgment and not spend Associate lunch times for business purposes. However, if this happens, tell your manager you need to do a time adjustment and be paid for your time, since the lunch was spent discussing business matters.

My manager has reduced my hours recently because she says we need to cut expenses. Is this a violation?If you want to raise concerns about your hours being reduced, you should exercise the Open Door process by contacting your store, market, or Human Resources manager.

My manager asks me to pick up some carts each evening on my way to my car. What should I do?You should tell your manager you have already clocked out, and it is a violation of company policy for them to ask you to work off the clock.

Conflict of Interest

• We have a responsibility to make decisions strictly on the basis of Walmart’s interests, without regard to personal gain

• A COI arise when our judgment could be influenced, or might appear as being influenced, by the possibility of personal benefit

• The appearance of a conflict may be just as damaging to your reputation, and Walmart’s reputation, as an actual conflict always be on the lookout for situations that may create a COI, and do everything to avoid

• Tell your immediate manager about any potential COI situation

COI - Financial Investments

A financial COI can arise when a Walmart associate’s judgment could be influenced, or might appear as being influenced, by the possibility of personal financial gain.

Examples:

• Financial interest in a vendor of Walmart, if you have direct or indirect involvement in our business with that vendor.

• Substantial financial interest in a competitor.

• Receiving personal compensation from a vendor, if you have direct or indirect involvement with our business concerning that vendor.

I’m a Vision Center regional manager. I’ve recently invested $10,000 in an investment fund that may invest some of the money in the optical industry. Would this be a violation?

Someone told me I could not own stock in a vendor. Is this correct?

My wife recently joined Walmart and we own more than $20,000 of stock in a key competitor. Must she sell this stock?

I’m a Vision Center regional manager. I’ve recently invested $10,000 in an investment fund that may invest some of the money in the optical industry. Would this be a violation?Since you don’t have direct control over the investment strategy, it’s not a violation.

Someone told me I could not own stock in a vendor. Is this correct?No. The restriction is you may not have any direct financial interest in a vendor whose business you have direct or indirect influence over within your position at Walmart. There are no restrictions to financial interests in vendors you do not have business influence over.

My wife recently joined Walmart and we own more than $20,000 of stock in a key competitor. Must she sell this stock?You should disclose the information to your manager and the Global Ethics Office. The Global Ethics Office will issue you an opinion with any instructions regarding any potential conflicts of interest.

COI - Personal Relationships with

Suppliers

• Walmart makes relationships with suppliers on efficient, fair and lawful business practices. Walmart treats suppliers with respect, fairness, and honesty, not take undue advantage of a supplier by using Walmart’s business influence. Suppliers have to follow all applicable legal requirements in their business practices

• When a former associate takes a position with, or on behalf of, a supplier, Walmart will not do business with that associate for three (3) years following separation from Walmart if a COI, as defined above, is determined to exist

• When a former Walmart officer takes a position with, or on behalf of, a supplier, Walmart will not do business with that officer for one (1) year following separation, regardless of the area in which the former officer was involved

• Walmart encourages associates not to have social or other relationships with suppliers that a business influence is being exerted.

There’s a contracting company I do business with as part of my position with Walmart. They’ve asked me if I know of an engineer they could hire. My son is qualified and would like to work for this company. May I refer my son for the position?

My neighbor is one of my suppliers. She invited my family and me to a party. Would it be a violation if we went to the party?

There’s a contracting company I do business with as part of my position with Walmart. They’ve asked me if I know of an engineer they could hire. My son is qualified and would like to work for this company. May I refer my son for the position?No. Even though the contracting company sought your recommendation, it could be interpreted that you are using your position with Walmart to get your son a job. That would be a conflict of interest that could compromise your reputation as a representative of Walmart.

My neighbor is one of my suppliers. She invited my family and me to a party. Would it be a violation if we went to the party?It would be OK to attend as long as the party is open to the entire neighborhood and you’re invited because you’re a neighbor, not because of your position with Walmart. Remember to ask yourself, if another supplier or other associates knew of this situation, would it appear you are giving preferential treatment to your neighbor as a supplier?

COI - Gifts and Entertainment

• This Walmart policy stems from its value of maintaining Every Day Low Costs. We help suppliers to give buyers low costs on products by not expecting the expense they may have to spend on other customers.

• When establishing a new business relationship, make sure all parties are aware of Walmart gifts and entertainment policy. Be aware of what policies your suppliers or other business partners may have in place about this issue and take them into consideration.

I’m attending a business training session sponsored by a professional organization. Following the first day of training, the suppliers sponsoring the event are going to provide snacks and drinks at a reception for all attendees at the session. Can I go and have snacks and a drink?

A supplier I co-work with has offered my son a summer school to Singapore if I pay face value for them on Walmart bid. Can I buy the trip?

I’m attending a business training session sponsored by a professional organization. Following the first day of training, the suppliers sponsoring the event are going to provide snacks and drinks at a reception for all attendees at the session. Can I go and have snacks and a drink?Yes. Since the reception is open to all attendees, you’re not being singled out as a representative of Walmart.

A supplier I co-work with has offered my son a summer school to Singapore if I pay face value for them on next fall Walmart bid. Can I buy the trip?You should decline the offer. Although you may be paying face value for the trip, it may not necessarily reflect the market value of the item. Some schools allow you to resell trips, and you might be able to make a profit if you sold them. Also, there could be a gift of prestige in receiving the ability to attend a desirable event, such as this.

Personal Relationships with Other Associates

• Walmart strives to eliminate personal relationships that interfere with work performance or which may constitute harassment.

• Ask for guidance and advice whenever an issue comes up regarding a personal relationship. Your manager or HR manager can discuss options with you, such as a possible transfer to remove the conflict.

I’m an assistant manager of a store. Recently, I started dating another assistant manager in my store. She is also daughter of a new furniture supplier. Is this OK?

I’m an assistant manager of a store. Recently, I started dating another assistant manager in my store. She is also daughter of a new furniture supplier. Is this OK?Since you do not have influence over the other assistant manager’s terms of employment, it would not be a violation. We recommend you tell your store manager about the relationship so they would be cautious not to place either of you in a potential conflict situation, such as a temporary assignment of store management duties.

Walmart Assets

• We have a responsibility to our shareholders to use Walmart property and assets for Walmart business, not personal gain

• Once supplier is keeping Walmart assests, it is supplier’s responsible for maintaining Walmart property under their control and should take reasonable steps to protect it from theft, misuse, loss, damage, or sabotage.

My manager and I flight to Dalat for an event. She told me when I travel with my laptop I should carry it on the plane with me. Is this really necessary?

Walmart audit team comes to our farms, is it our responsible to protect their laptop and vehicle?

I bring home a toy sample and my wife damages it. What should I do?

My manager and I flight to Dalat for an event. She told me when I travel with my laptop I should carry it on the plane with me. Is this really necessary?Yes. When traveling with a company-issued laptop, you must carry it on the plane with you. It may not be checked with your baggage. This is necessary to protect the laptop and the information contained on it from theft, loss, misuse, or damage.

Walmart audit team comes to our farms, is it our responsible to protect their laptop and vehicle?Firstly it is the responsible of the team. However, as long as the works goes, it will be better as suppliers keep an eye on visitor’s safety.

I bring home a toy sample and my wife damages it. What should I do?Immediately report to your manager. You should not bring any Walmart assets out of workplace for personal aim

Fair Competition

• Fair Competition laws protect free enterprise by ensuring vigorous competition and prohibiting activities restrain trade

• Commonly prohibit or regulate business practices that would be expected to cause prices of goods or services to be higher, or availability or choices to be less, than would be the case in a competitive market. For example:- price fixing

• Walmart and its suppliers are committed to comply fair competition laws

The fishery trade association has contacted me about participating in a benchmarking study for members of their association. This seems like a good way to obtain information about our competitors. Should I participate?

The fishery trade association has contacted me about participating in a benchmarking study for members of their association. This seems like a good way to obtain information about our competitors. Should I participate?There is nothing wrong with participating in industry benchmarking activities; however, this should not be used as a means to uncover confidential information on competitors.

Intentional Dishonesty

• Striving for excellence means operating business with high integrity, avoiding deceptive, dishonest, or fraudulent activities which not only unethical, but may also be a violation

• Manage business with as much transparency as possible

• Encourage a supportive environment for contributions

• Dishonesty are more likely to occur with insufficient controls and unrealistic expectations

• To maintain excellence in our operations, you encourage transparency, honesty, and realistic expectations.

My manager told me to markdown several items to zero but leave them onto the packaging process to sell because it will, “help our inventory.” Is this ok?

My manager told me to markdown several items to zero but leave them onto the packaging process to sell because it will, “help our inventory.” Is this ok?Not only is this dishonest, but it could also affect the store’s profitability. If you’re being instructed to do this, contact management through the Open Door process, Human Resources, or the Global Ethics Office.

Financial Integrity

• Walmart requires honest and accurate recording and reporting of financial information in order to make responsible business decisions

• All financial books, records, and accounts must accurately reflect financial transactions and events

• No Walmart document or record may be falsified for any reason

• No undisclosed or unrecorded accounts of Walmart’s funds or assets may be established for any purpose.

An associate near me says she asks the factory finance team under her control making some adjustments to their financial information so their “good months” will help out our “good months.” Could this be an issue?

An associate near me says she asks the factory finance team under her control making some adjustments to their financial information so their “good months” will help out our “good months.” Could this be an issue? The practice of incorrectly recording financial data can have serious consequences both personally and as a company. You should report this immediately to the Global Ethics Office or Internal Audit.

Insider Trading

In general, fair competition laws do not allow trading on:

• News of a significant merger, acquisition, or tender offer, sale of assets, or the disposition of a subsidiary

• Changes in dividend policy, the declaration of a stock split, or the offering of securities

• Significant new products or discoveries. Significant lawsuits or legal settlements

• The gain or loss of a significant supplier or customer.

• The possible awarding/cancellation of a significant contract to Walmart/supplier

It is also illegal to communicate inside information to others. If you are aware of inside information about Walmart, Walmart’s suppliers or business partners, you are prohibited from trading (directly or indirectly) that stocks.

I have inside information about a product that will be released by another public company. Can I buy that public company’s stock? Any stock sale or purchase based on inside information is considered insider trading. Could I encourage a friend to buy it?

I have inside information about a product that will be released by another public company. Can I buy that public company’s stock? Any stock sale or purchase based on inside information is considered insider trading. Could I encourage a friend to buy it?Encouraging others to purchase would still be considered insider trading and also commonly referred to or known as “tipping”. The friend would be liable for insider trading, if he or she purchased shares as a “tippee,” and you would be liable for insider trading as a “tipper,” even though you did not buy any shares of the public company’s stock.

Restrictive Trade Practices

• Walmart will not participate in any activity intended to restrain trade, or promote a refusal to conduct business with customers, members, or suppliers, if it violates the local law.

• Agents representing Walmart must comply with this policy as well.

I was told I should boycott one of my suppliers because they conduct business in a certain country. Should I not do business with that supplier?

I was told I should boycott one of my suppliers because they conduct business in a certain country. Should I not do business with that supplier?Although restrictions are sometimes placed on certain countries and individuals, it’s always best to speak to the Legal Department when you’re instructed to boycott a supplier or country.

Anti-Corruption

• We do not tolerate, permit, or engage in bribery, corruption, or unethical practices of any kind. Bribery of public officials is illegal.

• Specifically, no paying, promising, offering, or authorizing a payment, directly, indirectly, or through a third party, money or anything of value to a government official or political party for the purpose of influencing an official act or decision in order to obtain/retain business or secure an improper advantage.

This policy goes beyond legal requirements and prohibits corrupt payments in all circumstances!

Local police officers have recently stopped trucks and threatened to delay deliveries unless the driver pays $50 U.S. in cash to the officer. My manager said we should carry $50 gift cards with us. Is it permissible?

A processor is seeking a permit from the local Department of Natural Resources and Environment. The fty usually gives holiday baskets to various local officials. This year, the store manager suggested including a $200 gift card in the basket for the head of the DONRE. Is this acceptable?

Local police officers have recently stopped trucks and threatened to delay deliveries unless the driver pays $50 U.S. in cash to the officer. My manager said we should carry $50 gift cards with us. Is it permissible? Walmart policy prohibits even small unofficial payments to government officials to influence government action. This prohibition applies to cash, gifts, or other things of value. Immediately report this matter to the Legal Department or the Global Ethics Office.

A processor is seeking a permit from the local Department of Natural Resources and Environment. The fty usually gives holiday baskets to various local officials. This year, the store manager suggested including a $200 gift card in the basket for the head of the DONRE. Is this acceptable?The policy does not allow the gift because it's something of value and is apparently intended to influence the Transport Authority. The policy does permit certain customary gifts, such as holiday baskets that are of relatively low value and are not intended to influence anyone.

Anti-Money Laundering

We’re committed to complying fully with all applicable money-laundering laws throughout the world.

Be alert to, for examples:

• A customer/3p who is reluctant to provide complete/false or suspicious information, or is anxious to avoid reporting or record-keeping requirements.

• Unusually favorable payment terms or unusual fund transfers to/from abroad unrelated to the transaction.

• You must follow Walmart rules concerning acceptable forms of payment.

A customer asked me if I could split a $5000 transaction into two transactions of $2500 so they did not have to bother with the paperwork that may otherwise be involved. Should I process the transaction this way?

A customer refuses to provide their address for a $3,000 money transfer to another country. Should I report this as a “suspicious person”?

A customer asked me if I could split a $5000 transaction into two transactions of $2500 so they did not have to bother with the paperwork that may otherwise be involved. Should I process the transaction this way?No. If it’s truly the same transaction, it should be processed as one transaction and the proper paperwork should be completely filled out and turned in to the Home Office for reporting to the government. If the customer refuses to comply, contact a member of management to assist you.

A customer refuses to provide their address for a $3,000 money transfer to another country. Should I report this as a “suspicious person”?Any customer reluctant to provide requested information should be reported as a “suspicious person” when processing financial transactions.

Authority to Work

• Not hire, recruit, or refer for a fee, anyone not legally authorized to work. It is our responsibility to inspect, verify, and document the identity and employment authorization of employee

• Responsible for re-verifying the continuing employment eligibility by requesting documentation when the initial authorization has expired

• Follow Walmart policy against employment discrimination on the basis of national origin or possible citizenship status

• All employment agencies, contractors and others doing business with Walmart have to fully comply with all immigration laws.

What should I do if an associate arrives ready to begin working and they cannot show evidence of work authorization?

Should I report suspected non-authorized workers if they’re technically employed by a farm and not Walmart?

What should I do if an associate arrives ready to begin working and they cannot show evidence of work authorization?Follow Vietnam’s policies regarding employment authorization. This includes verification for new associates as well as visiting associates on an expatriate or transition assignment.

Should I report suspected non-authorized workers if they’re technically employed by a farm and not Walmart?Yes. We require our contractors to use only work-authorized employees at our facilities. If you suspect there are unauthorized workers at our work sites, please contact the Global Ethics Office.

Environmental

Responsibility

• We’re committed to environmental protection & preservation of our natural resources

• We’re also responsible for complying with all applicable environmental laws and regulations

This responsibility is one of the core foundations for Walmart environmental sustainability commitment.

An Associate spilled a liquid chemical cleaner, wiped up the spill with a towel and threw the towel into the toilet and the remaining cleaner down the drain. How should this be handled?

An Associate spilled a liquid chemical cleaner, wiped up the spill with a towel and threw the towel in the toilet and the remaining cleaner down the drain. How should this be handled?Once the cleaner was spilled it became a waste as well as all materials to clean up the spill. Therefore, the towel must be disposed of as a hazardous waste in the appropriate hazardous waste management bucket. All remaining liquid should be managed as a waste in the bucket as well. Since this behavior is a violation, you should report it to a member of management, Human Resources, or the Global Ethics Office

Health and Safety Responsibility

• We’re committed to the health and safety of our customers, members, and associates.

• Conducting business in compliance with all health and safety laws is crucial to protecting each other from harm

• Always comply with all relevant health and safety laws and policies

We can create and maintain a safe shopping and working environment for all.

The Produce Manager always leaves the forklift parked in front of the Emergency Exit. Is this a problem?

The Produce Manager always leaves the forklift parked in front of the Emergency Exit. Is this a problem? Walmart faces fines and liabilities for safety hazards such as blocking or locking fire exits. It is crucial the fire exits be accessible during emergencies.

Protecting Personal & Business Information

Protect the personal and business information about customer, supplier, & Walmart in accordance with applicable law, industry best practices.

Examples:

• If there is no business need, or a hold for legal purposes, for keeping the data, dispose of it by placing it in a shredder or confidential bin

• It’s Walmart policy to respect the trade secrets of others. No associate may reveal those of the Walmart’s suppliers or their former employers

• Specific departments within Walmart may have special privacy rules or procedures. Read, understand, and stay current on information that applies to your specific business and job function.

A friend of mine told me he could give me information regarding a competitor’s upcoming advertising strategy. Should I get the information?

An invoice associate is married to a supplier who works with the buyers at the Home Office. I’ve seen her call her husband and tell him the cost of products we're buying from his competitors. Is this a violation?

My Sale Manager recently given her resignation. Since then, she’s been e-mailing buyer contact information to her home computer so she can start her own business. Is this a violation?

A friend of mine told me he could give me information regarding a competitor’s upcoming advertising strategy. Should I get the information?No. We have no desire, or need to know the trade secrets of other companies.

An invoice associate is married to a supplier who works with the buyers at the Home Office. I’ve seen her call her husband and tell him the cost of products we're buying from his competitors. Is this a violation?Yes. Although she does not have influence over the business he works with at Walmart, she has access to confidential information that may be giving her husband’s company an advantage over other suppliers.

My Sale Manager recently given her resignation. Since then, she’s been e-mailing buyer contact information to her home computer so she can start her own business. Is this a violation?Yes. The buyer information she obtained through her position at Walmart’s supplier is considered confidential company information. She should not be using it for her personal business.

Governmental Contracts and

Inquiries

• Walmart not enter into any contract with any governmental entity involving the sale of products or services without written approval from the Legal Department

• We will immediately report all inquiries from governmental entities or investigators to the appropriate level of management. All inquiries from government entities and investigators must be answered accurately and completely.

We have a representative from the government here to inspect our food products. What should I do?Contact your manager immediately.

For a new production to Walmart, my team is interested in purchasing raw materials from some government-owned business. What should I do?Contact Walmart in-country Legal Department or the Global Ethics Office for opinions and instructions.

Political Involvement

• Participation in the political process outside of work and during non-work time is admirable

• Walmart will not reimburse its employee and suppliers for those activities unless required by law

• Political contributions, direct or indirect, of company funds or use of company property, services, or other assets for political purposes may not be made without the prior approval of the Government Relations Department.

I own three factories where produces plastic bags and electronics for Walmart. Now I have a chance to sit on the Education Board for my city. Am I allowed to do this?Yes. Make sure your position in businesses with Walmart, and any influence related to it, is kept separate from your newly appointed position on the Education Board.

International Trade

• Check all regulatory requirements before attempting to import/export merchandise

• Documentation must be complete and accurate

• Establish internal controls to ensure compliance with all requirements

• Transactions with certain designated individual and organizations (terrorist, narcotics traffickers and weapons proliferators) are prohibited.

Severe civil and/or criminal penalties may be levied against companies or individuals that violate export controls.

Walmart send to us a Taiwan-original container for re-packaging. I believe one of our “imported” items was incorrectly classified on the paperwork. What should I do?Contact your manager and the Legal Department immediately. There are fines and additional tariffs in many countries for misclassifying import information on products.

Media Statements

To ensure the accuracy of information that we provide to the public, don’t make any statement (written or verbal) on behalf of Walmart to media, news publications, trade publications, or any other source without prior approval from the in-country or global Corporate Affairs Department (and, concerning statements about financial matters, the Finance Department).

Walmart just ordered our processor factory a significant contract for tuna fillet. I think there is something wrong with that because it is not the time of tuna in Vietnam. Can I call the local media to tell them about that?You should contact the Corporate Affairs Department prior to contacting the media. They will direct you with official information and suggested statements to share with your community. For technically concerns, ask your manager first.

Report an ethics concern. Concerns are always confidential, and if you choose, you may report your concern anonymously. https://walmartethics.com/home.aspx?LangType=1048619

Elements of

Walmart Ethical and Environmental Standards

& its Implementation

Ho Chi Minh, May 2013

Newest updated on January 2012, signed by CEO Mike Duke

Encourages suppliers to develop, maintain and apply ethically acceptable practices in the workplace

The most globally accepted independent workplace standard

Applicable to any supplier, of any size, anywhere in the world

Addresses: forced and child labour, health, safety and environmental, freedom of association and collective bargaining, discrimination, disciplinary practices, working hours, compensation and management systems

Embraces international agreements, conventions from the ILO, the Universal Declaration on HR, the UN Convention on the Rights of the Child.

Why Walmart Ethical & Environmental Standards? Compulsory to all manufacturing, subcontracting and packaging facilities

for Walmart Full factory disclosure for all direct import, private label and non-branded

suppliers Walmart Ethical Standards compliance proves the commitment to social

accountability and to treating the employees ethically and in compliance with global standards

Ensuring most of Walmart volume comes from top-T factories; Reducing energy consumption; Ensuring compliance with environmental and social laws; and Virtually eliminating our defective return rate

Why Walmart Ethical & Environmental Standards?

Improves the management and performance of the supply chain Ensures compliance with global standards and reduces the risk of

negligence, public exposure and possible litigation Supports corporate & supplier’s vision and build and reinforce the loyalty

of the employees, customers and stakeholders, which in turn impacts the bottom line

Helps to develop and improve social accountability everywhere Demonstrates proper social accountability when bidding for international

contracts or expanding locally to accommodate new business.

Then, made significant progress on these goals and committed to achieve each within our timeline.

What is Walmart Ethical & Environmental Standards?

Fundamental expectations from suppliers on the treatment of factory workers and the suppliers’ impact on the environment;

Social, environmental & ethical sourcing requirement; A number of tools and requirements/standards/guidelines; Basis for supplier agreements/compliance monitoring (specifically laws

related to environmental protection, worker safety and labor conditions); Basis for supplier identifying in audit programmes;

Then, we are creating a framework that ensures a minimum threshold is achieved.

You are not alone!

It is your‘s obligation as you‘re a Walmart‘s supplier, to:

(a) Supplier and its subcontractors agrees to comply with all laws and regulations of the jurisdictions in which they produce Merchandise for sale. The compliance shall be validated by Walmart’s audits and visits.

(b) Supplier and its subcontractors agrees to comply with all of the obligations as outlined in »the Walmart ethical and environmental Standards for Suppliers« including the Standards and technical Standard for Suppliers.

(c) Suppliers supplying Merchandise may be subject to announced and unannounced audits and/or verification audits by Walmart and its third party service providers. Supplier shall cooperate with such audits

Walmart Supplier‘s Obligation

Visibly posted at workplace, in English and in the shared language(s) of its employees.

1. Compliance with Laws:

Suppliers and their designated manufacturing facilities (“Suppliers”) 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, intellectual property rights, labeling, documentation, and certifications

How? Compliance with Laws

1. Having a channel to update laws & regulations.

2. Record keeping for all available laws, regulations, requirements

3. Internal and external communication on legal issues

4. Bring to supplier‘s policy on business support/operation

5. etc.

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.

1. Not employing candidate under the age of 15; No children at workplace2. Maintaining necessary records identifying all workers under the age of 183. No person under the age of 18 shall undertake hazardous work and works

over 7 hours/day. 4. Having effective age-verification procedures (for example: birth certificates

and national ID cards)5. Implementing »procedures to manage the materials, including all labor

related process« 6. Never physically prevent or delay workers from leaving the facility, unless

for safety reason7. No monetary deposits or keep any original personal documents8. Never require employees to incur debt through recruitment fees or financial

guarantees to secure employment

How?How?

3. Labor Hours

• Suppliers must provide workers with rest days and must ensure that working hours are consistent with the law and not excessive.

• Suppliers shall comply with all working hour laws and regulations, public holidays and leave.

1.Overtime should be voluntary. Ensure physical health of worker due to OT works

2.Working hours should not exceed 60/week consisting of a maximum of 48 regular hrs and 12 hrs of OT

3.A minimum one day off in seven; at least one day off in every two weeks

4.Ensure worked time fully documented accurately and reliably: time cards, electronic swipe cards,... include all regular and OT hours and breaks.

How?How? Hours of work

1.Time records for all workers must be available for review

2.Provide reasonable meal (lunch, night meal) and rest breaks (between shifts, pregnant worker, hard and hazardous works, break prior to OT)

3.Provide workers with all official public holidays, paid annual leave as required by law

4.Having »work hour policies and procedures« in place to ensure compliance with the law

5.Written approval from local government parties permitting tolerance of excessive overtime contrary to legal regulations will not be accepted.

How?How? Hours of works

Off the Clock Work

OT Applicable Decree

109/2002& Circular

15/2003/TT-BLDTBXH

2013 Brand(comp.)

Day 4hrs Day: 50% normal day HoWWeek: 12hrs (normal + OT)/ day

4 con. days 14hrs N/A N/A

Week 16 hrs N/A 12hrs

Month N/A 30hrs N/A

Year 200 – 300hrs 200 – 300hrs N/A

Breaks

Type Applicable Requirement

Breaks 8 conc. Hrs/shift. 30 min (count on HoW).

More than 2 OT hrs/day 30 min (count on OT).

Night shift 45 min (count on HoW)

Shift switching

Works by Shift. 12 hrs before switching

Day-off 24 concs. hrs => min. 4 days/month.

Breaks

Annual leave: (Art 111 – VLL 2012)

Type of works Requirement

Normal 12 days

heavy, dangerous, or toxic jobs, or in places with harsh living conditions, the employee under the age or the disabled employee

14 days

extremely heavy, dangerous, or toxic jobs, or to the persons working in places with extremely harsh living conditions

16 days

Off the Clock Work

• It is the supplier’s duty to exercise its control and ensure that work is not being performed if the factories does not want to pay for the work being done

• Simply put, factories cannot sit back and accept work without compensating workers for their work

Off the Clock Work (cont.)

• What is not a defense to off the clock work…– Arguing that employees acted voluntarily

– Arguing that employees agreed not to seek proper compensation

• Implement and enforce a policy prohibiting off the clock work

• Caused by misconceptions about what constitutes compensable working time;

• Improper recordkeeping practices;

• Supervisory misconduct;

• Payroll cost pressures

• Must be compensated for…– Unauthorized overtime

– Work before clock in and after clock out

– Work done off site (another story)

– Changing into uniform/safety equipment before/after shift begins/ends

– Work done while on meal and/or rest periods

Off the clock work - Best Practices

• Adopt and enforce a well-publicized policy

• Eliminate “no overtime” policy

• Establish reporting procedures when employees are asked to work off the clock

• Train managers and employees

• Require employees to certify timesheets for time worked, meal and rest periods, and any inaccuracies

• etc.

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.

1. Employment contract to all employees must be signed and kept2. Not use consecutive short-term contracts/apprenticeship schemes

absent a bona fide intent to impart skills/provide regular employment

3. Not engage in any form of home-working unless prior consent is obtained from Walmart

4. Treat all workers with dignity and respect 5. Not engage in or tolerate bullying, harassment or abuse of any

kind (physical, verbal, sexual, corporal punishment)6. »Registry company’s rules and regulations, written disciplinary

procedures, approved CBA« must be available at workplace

How?How? Hiring and Labor Relationships

California Protected Categories(or perceived to be)

• Race • Color • Creed • Religion • Sex• Gender identity • Pregnancy• Child birth • National origin • Ancestry• Age• Marital/domestic partner

status• Physical disability

• Mental disability• HIV & Aids• Medical condition (cancer

and genetic characteristics))

• Vietnam era veteran status• Sexual orientation • Transgender status• The employee's opposition to

any violations of law, association with others protected by law, or any other consideration made unlawful by federal, state or local laws.

• Denial of Family Leave (PFL)

Contract clauses

1. Instructions 11. Reports

2. Training 12. Payment

3. Integration 13. Expenses

4. Personal Services 14. Tools

5. Assistants 15. Investment

6. Length of Relationship 16. Profit

7. Work Hours 17. Multiple jobs

8. Amount of Work 18. Availability

9. Location 19. Termination

10.Sequence of Work 20. Liability

Contract clauses

Probation salary - Art 28 – Vietnam Labor Code 2012.

The employee’s salary during the probation is agreed by both parties but must be at least 85% of the official salary

What sexual Harassment is about?

• When a person is treated unfairly or badly because of their sex or gender.

• Based on sex that is severe or pervasive, offensive and unwelcome conduct that affects the terms and conditions of the victim’s employment, whether by words, actions, gestures, or physical displays.

• Any unwelcome sexual advance or conduct on the job that creates an intimidating, hostile or offensive working ambient.

• Offering employment benefits in exchange for sexual favors• Actual or threatened retaliation• Making or using derogatory comments, epithets, slurs, jokes or

7. All disciplinary actions must be recorded and kept8. Not use monetary fines and penalties to maintain labor discipline9. Workers should be allowed reasonable movement in the

workplace, unrestricted access to bathrooms and drinking water10. Pregnancy testing of female applicants is prohibited11. Restricting or limiting reproductive rights is prohibited12. Comply with any work environment regulations protecting the

health and safety of all workers including, pregnant, post-partum and lactating women

13. »Women returning from maternity leave must be given an equivalent position and equal pay as required by law«

How?How? Hiring and Labor Relationships (cont.)

Any legal worker under the age of 18 should be supported to continue to attend school.

Employment of Minors

• Always obtain work permits prior to starting work.

• Understand that disabled workers are not allowed to work hard and hazardous job and with machinery that may be unsafe.

5. Compensation

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.

1. Provide details pay slip to worker (regular & OT hours worked, regular and OT rates and wages, bonuses and deductions)

2. Piece rate payment scheme: receive at least legal minimum wage 3. Pay all workers, including those on a piece rate payment scheme, the

applicable OT premium rate for all OT worked (150% on week days, 195% for night shift OT, 200% on weekend days, and 400% on holidays and paid leave.)

4. Pay all workers on probation, undergoing training or participating in an apprenticeship program: at least 85%

5. Provide all legally holidays, leave, benefits and bonuses, severance, compensation payment within days required by laws

6. All leave and bonuses shall be accurately calculated.

How?How?

1. Training workers on theirs benefits and wages calculating.2. »All cash payments of wages and benefits made directly to the

worker must be properly documented«3. Accuracy and receipt of payment must be confirmed by the

relevant workers in writing (signature, thumbprint, etc.)4. Payment of wages should be made no later than 30 days from

beginning of the wage period. No wage-period shall exceed one month. Interest rate compensation must be paid for late payment

5. Deductions from wages: legally, be made with the express and written consent of workers and shall be documented in employee files. » Deductions must not be made as a disciplinary measure «

6. Suppliers must not deduct recruitment agency fees

How?How?

Compensation

Obligations of the employee when illegally unilaterally terminating the labor contract - Art 42 & 48 – VLL 2012

Severance Compensation Extra Com.

employer does not wish to re-employ the employee and the employee agrees

• salary, social insurance, medical insurance for the days the employee is banned from working plus the salary of at least 02 months under the labor contract

Half of monthly salary per each working year.

02 months salary under the LC

no vacancy for the position in the LC is available but the employee still wishes to continue working

• ditto negotiate to amend and supplement the LC

Compensation

Obligations of the employee when illegally unilaterally terminating the labor contract - Art 42 & 48 – VLL 2012

Severance Compensation

Extra severance

violations of the advance notice time

employee must be paid a compensation equivalent to the his/her salary of the unnoticed days

•½ month salary to the employer•Training cost

Compensation

Overtime and working at night salary

Type Work-at-night salary

Night shift allowance

130% Clause 2, Art 97: Employee working at night shall be additionally paid at least 30% of the salary calculated by the salary unit price or the work salary under a normal working day

Night shift OT

130% x 120% x (150% or x 200% or x 300%)

Clause 3: In addition to the normal salary, the employee shall also be paid an additional 20% of salary of work done in the day time

Salary increase

Allowance, subsidy, order and salary increase – Art 102 – VLL 2012:

The regulation on allowance, subsidy, scale and salary increase and incentives for the employee shall be agreed in LC, CBA or the provisions specified by the employer.

The enterprise has to hold a Committee including Board of Director, Trade union, and other members delegated by BoD

The regulations on scale and salary increase have to be concluded in the CBA or LC.

Circular 18/2008/TT-BLĐTBXH amending Clause 1, Sub IV Circular 12/2003/TT- BLĐTBXH based on Point 2, Clause 6, Decree 114/2002/NĐ-CP

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.

1. Respect employee rights to FoA; not impose any punitive actions against workers in supporting a union (threatening, fining, suspending or firing workers exercising those rights)

2. Any action that suppresses FoA is prohibited

3. Managers and supervisors should be trained in FoA compliance, and workers should receive instruction on their rights under Vietnam Trade Union & Labor laws and Walmart standards.

How?How?

How? Freedom of Association

1. Factories must honor the right of workers to bargain collectively

2. Employees should be able to raise issues regarding any collective bargaining agreement compliance by the employer without retaliation

3. In situations where a Trade Union is not recognized as the bargaining agent of some or all of the workers in a factory, it should have the means for defending the occupational interests of its members

How?How? Collective Bargaining

DIALOGUE AT WORKPLACE

Conducting dialogue at the workplace - Art 65 – VLL 2012.

1. Dialogue at workplace is conducted once every 03 months periodically or at the request from one of the parties.

Content of dialogue at the workplace - Art 64 – VLL 2012. 1. The situation of production and business of the employer.2. The implementation of LCs, CBA, internal rules, regulations and commitments and agreements at the workplace.3. Working conditions4. Employee & labor collective’s requirements to the employer & vice versa5. Other issues that both parties are concerned about

COLLECTIVE BARGAINING AGREEMENT

Signing of the CBA - Art 74 – VLL 2012. 1. A CBA is signed between the representative of the labor collective with the employer or the employer’s representative.

2. The CBA is only signed when the parties have reached the agreement at the collective negotiation meeting and: there is over 50% of the labor collective to vote for the content of the collective negotiation agreed

3. When the collective labor agreement has been signed, the employer must announce it to his/her employee.

7. Health and Safety

Suppliers must provide workers with a safe and healthy work environment. Suppliers must take proactive measures to prevent workplace hazards.

1. The work environment must be safe and sanitary to ensure there are no unreasonable risks to the health and safety of all workers

2. Implementing »procedures and safeguards« to prevent accidents and injuries to workers: inspection of buildings, machinery, FEs, etc.

3. Provide regular and recorded health and safety training for all4. Management reps: is responsible for ensuring H&S at the workplace5. »Adequate and appropriate PPE and clothing must be provided to all

workers, particularly those working with hazardous materials«6. Suppliers shall comply with these provisions in accordance with their

specific industry conditions and related hazards.

How?How? H&S management system

1. Aisles, exits, stairwells: clear and unblocked at all times2. Exits are unlocked at all times during working hours and are clearly

marked. Exit doors must open outwards, be unlocked from the inside and require no special operation

3. Conducting fire drills at two per year, notice night-shift scheme 4. Having functional, sufficient & accessible FF equipment5. Establishing an adequate evacuation plan6. Exits are properly marked with illuminated signs in Eng & Vie 7. Evacuation route are marked on the floor and posted in work areas

How?How? Fire Safety

1. Maintaining safe electrical wiring and circuit box conditions 2. Using appropriate protection equipment, including rubber mats3. Available Vietnam laws and regulations:- Law on Electricity, 2004- Decree 105/2005/ND-CP- Law on Fire Prevention and Fighting, 2001- Decree 06/CP Jan, 1995- Circular 37/2005/TT-BLDTBXH- Circular 41/2011/TT-BLĐTBXH- Joint Circular 01/2011/TTLT-BLDTBXH-BYT- Circular 04/2004/TT-BCA- Decree 46/2012/NĐ-CP- TCVN Standards, etc

How?How? Electrical Safety

1. Complete inventory of all chemicals used, separating hazardous and non-hazardous chemicals.

2. MSDS/CSC is available for utilized chemicals in local language, at place3. Safety storing chemicals (proximity of incompatible chemicals, away from

ignition sources, etc.)4. Chemical containers are opened and dated when received and properly

labeled (at least the chemical name, hazard warnings) 5. Providing appropriate PPE and training for worker. PPEs is properly

utilized6. Establishing »spill response programs, Emergency Preparedness &

Response procedure & training«7. Eye wash stations are appropriately located and maintained

How?How? PPE/Chemical Safety

1. Hazardous liquids are stored in appropriate (durable and compatible) storage bulk/drum/container

2. Establishing standard operating procedures (SOP) for handling flammable liquids

3. Maintaining a list of hazardous liquids (flammable and acid base) used and stored

4. Training regarding the proper and safe storage and handling of flammable liquids is provided to workers and recorded

5. Establishing a »preventative maintenance program for flammable liquid systems and equipment installed in hazardous (classified) locations«

6. Available regulations: - Vietnam Law on Chemicals, 2007- Decree 68/2005/ND-CP, TCVN 5507:2002 , etc.

How?How? Hazardous Liquids (e.g. flammable and acid-based liquid)

1. Accessibility of potable drinking water for their workers2. Restrooms, canteens, food preparation areas, dormitories, etc.

are maintained in a safe and clean condition3. Factories possess appropriate hygiene certificates for their

canteen and its workers as mandated by law

How?How? Sanitation

1. Maintaining detailed accident/incident logs2. Maintaining an appropriate First Aid program 3. Maintaining sufficient First Aid boxes that are maintained and

restocked when needed (20 items)4. Maintaining a safe working environment and ensure work areas do

not present any safety hazards5. Factories perform and document risk assessments relating to

occupational health and safety risks

How?How? Accident/First Aid/Risk Assessment

1. Training regarding the proper and safe operation of machinery/equipment is provided to workers and recorded

2. Machines are equipped with appropriate and operational safety devices, which are inspected and serviced on a regular basis

3. Machines with rotating parts are enclosed and interlocked with an automatic shut off mechanism

4. All required safety/protective guards are securely in place, in good operating condition and regularly inspected

5. Machine safety instructions (including pictures/warnings) and machine operational parameters are posted on all machinery

How?How? Machine/Equipment Operation and Maintenance

6. Proper LOTO (Lockout/Tagout) practices and procedures are implemented to safeguard employees from unexpected startup of machinery and equipment during service/maintenance

7. Proper CLTI (Cleaning, Lubrication, Inspection and Tightening) checklist is maintained after each machine maintenance

8. Maintenance records for machinery and equipment are maintained9. All machine breakdowns are recorded on a regular basis10. Risks associated with machine hazards are evaluated (root cause

analysis) and control measures are identified and implemented11. Factories inspect machines/equipment before being used by workers

How?How? Machine/Equipment Operation and Maintenance (cont.)

12. Machines/equipment are being used for their intended purpose 13. Establish a Machine Safety Committee comprised of management,

worker representatives and maintenance team to address concerns related to machine safety

14. Maintain proper machine/equipment certificates and licenses15. Radiation, light source (laser/welding arc) are properly shielded16. Maintain required legal certificate/license/registration for all

pressurized/compressed equipment (boilers, compressors, gas cylinders, etc.)

17. Workers are not disciplined for raising safety concerns

How?How? Machine/Equipment Operation and Maintenance

(cont. & fin.)

Best Practice - Safety Programs

• Safety programs need the support of supplier’s and factory’s top management to be effective

• For a safety program to be effective, all employees, supervisors, and managers must receive adequate safety training

• Employees should never perform a job until they have been authorized to do it and have received adequate job instruction

• Accident statistics indicate that new employees are much more likely than long-term workers to be involved in an accident

Accident Investigation

Whenever an accident occurs, it should be carefully investigated as soon as possible to identify the causes and to assess what steps can be taken to prevent future accidents.• The accident scene should be examined

• Anyone who witnessed the accident should be interviewed

• Accident reports must be completed and available for inspection

»It is prudent and illegal to treat an injured worker on leave as any other employee has been or is treated who needed time off in terms of job reinstatement, healthcare coverage, etc. «

8. Dormitories and Canteen

Suppliers who provide residential and dining facilities for their workers must provide safe, healthy, and sanitary facilities.

1. All areas of the dormitory facilities shall be kept secure, clean and have safety provisions (such as fire extinguishers, first aid kits, unobstructed emergency exits, emergency lighting, etc.)

2. Emergency evacuation drills shall be conducted at least once a year

3. Providing appropriate washroom facilities, including adequate toilets and showers segregated by gender

4. The dormitory facility should also have security measures to protect employees and their property

How?How? Dormitories and Canteen

5. Must be of a permanent nature and comply with legal codes/regulations

6. Must be separate from the production areas, workshops and warehouses

7. Dormitory rooms, common areas, hallways, toilets, bathrooms and shower facilities are maintained in a functional, clean condition and are secure. Hygiene and good housekeeping guidance should be provided to workers

8. Dormitory rules and regulations must be provided to workers: guidance regarding sanitation, good housekeeping and personal hygiene; curfew hours if applicable; visitation hours; security and safety regulations, etc.

How?How? Dormitories and Canteen (cont.)

9. At least one functioning sink with both hot and cold water must be provided for every six occupants

10. At least one functioning shower with both hot and cold water must be provided for every fifteen occupants. Showers should be separated and marked by gender

11. Toilets must be clean, functioning, well-lit, well-ventilated, and stocked with toilet paper and soap. Where legal regulations are not specified, there must be at least one toilet for every fourteen occupants, separated and marked by gender

12. There must be 3.6 square meters of space per occupant and ceilings in the room must be 2.1 meters (7 feet) high

13. A lockable space sufficient for all work and non-work items with at least 0.50 cubic meters storage per worker must be provided

14. Fresh potable drinking water must be available for occupants without restriction

15. Occupants are provided their own individual beds16. Sleeping quarters have adequate lighting17. Dormitory facilities are well ventilated. There are windows to the

outside or fans and/or air conditions and/or heaters in all sleeping areas for adequate circulation, ventilation and temperature control

18. A first aid kit must be provided in a visible, accessible location. Sufficient first aid kits must be maintained and restocked when needed. In addition, trained first aid personnel should be readily available during any 24 hour period

19. Sufficient and functional firefighting equipment must be provided in a visible, accessible location on each floor. In addition, fire drills should be conducted at least once a year so that residents are familiar with the evacuation procedures. In addition, trained fire fighting personnel should be readily available during any 24 hour period

20. Dormitories must have at least 2 unobstructed emergency exits per floor leading to a safe location

21. Exit doors must open outwards, be unlocked from the inside and require no special operation. Exit doors, exit routes, aisles and stairwells are kept clear and unblocked at all times

22. Dormitories must have an audible fire alarm that can be heard in all parts of the building

23. Dormitories must have emergency lighting installed in exits, hallways and stairways

24. All food service areas (i.e. kitchen, canteen, food preparing areas, etc.), floors, surfaces and equipment are kept clean and sanitary. Dormitories should provide a food preparation and serving area for meals

25. Food must be properly stored and handled in a sanitary fashion

26. Food service workers must have current health certificates. 27. Canteen should be equipped with cooking stoves, mechanical

refrigeration, sinks with hot and cold running water, and proper lighting and ventilation.

28. Effective insect, pest and rodent control is required29. Notice Vietnam requirements:

How?How? Dormitories and Canteen (fin.)

9. Environment

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.

Meeting specific laws and regulations (for example: permits, approvals, regular inspections):

- waste disposal, - environmental impact assessment

- air emissions, - land use

- wastewater discharge, - noise pollution

- water use, - wastewater discharging

- energy conservation, - environmental monitoring report

- Greenhouse Gases, - others

- hazardous substances,

Leading in the implementation of measures for reducing air and water pollutants, energy and water usage, and waste

How?How? Environmental Due Diligence

1. Obtain and maintain appropriate permits for onsite waste disposal as required by Vietnam water use & environmental laws

2. Deliver hazardous waste for offsite treatment and disposal only to contractors licensed or permitted by appropriate competent authority, which being verified regularly

3. Handle, store and transport hazardous waste in a safe and environmentally (secondary containment) sound manner to control any risks of environmental contamination

4. Segregate hazardous and non-hazardous waste

How?How? Waste Management

5. Maintain waste containers and labels in an appropriate condition 6. Maintain waste inventory and tracking records, including the

disposal and treatment of both on-site and off-site waste7. Conduct no on-site waste burning or uncontrolled waste land filling8. Employees should be provided appropriate waste management

training, including the handling and segregation of wastes

How?How? Waste Management (cont.)

1. Obtain and maintain appropriate permits for wastewater/effluents treatment and discharge

2. Conduct regular wastewater monitoring (sampling & testing)3. Strictly comply with wastewater/effluents discharge limits established

by competent authorities4. Necessary corrective actions when discharge limits are exceeded5. Have a drainage system in place to convey wastewater to treatment

plant and/or final discharge points. A detailed layout or schematic of the drainage system should be available for review

6. If applicable, maintain wastewater treatment plant in safe operating conditions to avoid risks to environment and human health

How?How? Wastewater & Effluents Management

1. Obtain and maintain appropriate permits for air emissions as required by law.

2. Conduct regular air emissions monitoring (sampling & testing3. Strictly comply with any applicable air emissions limits if applicable4. Take immediate corrective actions in the event emission limits are

exceeded5. Maintain air emission control equipment on a regular basis

How?How? Air Emissions Management

6. Establish an inventory of sources related to air emission points 7. Maintaining an inventory of ODS (ozone depleting substances) 8. If applicable, seeking to expand the inventory of ODS (ozone

depleting substances) containment equipment9. Inspect and maintain ODS (ozone depleting substances)

containment equipment to prevent the accidental release of substances

How?How? Air Emissions Management

1. Obtaining and maintain appropriate permits for water use / extraction as required by Vietnam water use & environmental laws

2. Maintaining data regarding water use consumption (e.g. water consumption data from water bills and meter readings)

How?How? Water Management

1. If applicable, meeting applicable legal requirements in terms of energy use and GHGs emissions

2. Obtain and maintain appropriate permits as required by law. 3. Set up energy use inventory (e.g. energy consumption data from

energy bills and meter readings, fuel bills, gas bills, on-site transport) and conduct regular monitoring.

4. Maintain Greenhouse Gas Emissions (direct and indirect) inventory, when required by law

How?How? Energy use and GHG (greenhouse gases) management

1. Conduct Environmental Impact Assessment and submit the results to local DONRE (Department of Natural resources and environment) for review and approval

2. Obtain and maintain appropriate permits for land use and facilities construction from local governmental authority, DOC and DPI

3. Meet applicable legal regulations regarding protected land

How?How? Land Use and Biodiversity

1. Obtain and maintain an (all) environmental legal register 2. Adopt environmental policy3. Have a mechanism in place to monitor environmental laws and

regulations changes to achieve compliance4. Appoint a member of management team for the coordination of

environmental management activities and ensure he/she is properly trained

How?How? Environmental Management System

5. Develop an emergency protocol to deal with environmental incidents. The emergency protocol should include emergency response plan, trained emergency team and regular drills

6. Emergency Response Plan should be communicated to the local authorities, emergency services, and local communities

7. Provide »regular environmental training to impacted employees«

How?How? Environmental Management System

1. Do not utilize banned chemicals (embedded list) 2. Obtain and maintain appropriate permits for hazardous substances

handling & storage as required by Vietnam chemical law3. Take appropriate measures to prevent & control any risks of

environmental pollution from hazardous substances release, including the contamination of soil and groundwater

4. Verify the existence of sensitive receptors (e.g. rivers, underground water, etc.) close to production facilities and implement special measures to prevent contamination where needed

How?How? Hazardous Substances Management

5. Maintain an inventory of hazardous substances used and stored, which should be maintained together with relevant up-to-date Material Safety Data Sheets (MSDS)

6. Provide employees with appropriate pollution prevention and response training

7. Provide employees with appropriate hazardous substance handling and working training

8. Report any pollution and hazardous substance incidents to the authorities as required by Vietnam chemical & environmental laws

How?How? Hazardous Substances Management

1. Obtain and maintain appropriate permit for noise pollution2. Perform noise pollution assessments as required by law. 3. Conduct regular noise pollution monitoring as required by law 4. Comply with noise pollution limits as required by law5. Take immediate corrective actions in the event the noise pollution

limits are exceeded6. Have an understanding and awareness of nuisance levels from site

activities and associated impacts (including odor, noise, visual and general housekeeping)

How?How? Noise Pollution

1. Suppliers and factories should maintain inventory records and production records to demonstrate origin of incoming materials and place of production

2. Factories must demonstrate through Chain of Custody documents (certifications) that raw materials (cotton, wood, etc.) were obtained from legal harvests consistent with international treaties and protocols in addition to local laws and regulations even if national regulations do not regulate harvests

How?How? Permissible harvests and origin of raw (input) materials

10. Gifts and Entertainment

Suppliers must not offer gifts or entertainment to Walmart associates.

Suppliers and factories: do not offer gifts or entertainment to Walmart associates or those working on behalf of Walmart.

Gifts include: - Meals - Tickets or access to events- Travel expenses - Personal favors- Money or the equivalent - Free goods- others

How?How?

11. Conflicts of Interest

Suppliers must not enter into transactions with Walmart associates that create a conflict of interest.

A COI may exist when personal interests interfere or appear to interfere with business interests. Suppliers must not enter into transactions with a Walmart associate that could create the appearance of impropriety between a Walmart associate and the supplier. Even the appearance of an improper relationship between an associate and a supplier could be detrimental to Walmart’s business interests.

12. Anti-Corruption

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.

Walmart believes in fair, free, and open markets.

1. Suppliers may not promise, offer, or pay anything of value to a government official or political party to obtain or retain business or secure an improper advantage on behalf of Walmart

2. Suppliers may not promise, offer, or pay anything of value to any business or individual in the private sector to obtain/retain business/secure an improper advantage on behalf of Walmart

3. Suppliers must at all times comply with the Foreign Corrupt Practices Act (FCPA) and the UK Bribery Statute

How?How? Anti-Corruption

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).

1. Suppliers must keep accurate financial records (with Walmart)

2. All financial transactions should be maintained using standard accounting practices

3. Financial records must be available for pre-arranged and unannounced audits by Walmart or authorized third party representatives

How?How? Financial Integrity

Questions

Pictorial of best practices from industries

What You Will LearnTo visually aware how to:

1. Build up management system/documentation

2. Preventing unlawful discrimination

3. Understanding wage and hour requirements of Labor code

4. Preventing sexual harassment

5. Documenting contract performance & labor relationship

6. Best hiring practices

7. Avoiding retaliation and unreasonable Trade union activities

8. Preventing discharge from leading to lawsuit

9. Understanding Walmart Ethical & Environmental Standards

10.Understanding employee rights under Walmart’s suppliers

11.Understanding Walmart requirements and reasonable accommodation

Common issues

1. Noncompliance issues – HR Management2. Noncompliance issues – Health, Safety, Environment Management

Health, Safety, Environment (ESH)

Requirements

1. Update and maintain all applicable laws related to HSE2. Update and maintain all standards related to HSE3. Maintain all files related to internal health and safety training,

evacuation…4. Establish HSE policy5. Announce person in-charge for HSE in written6. Maintain labor accident report7. Establish training plan and training procedure for workers in

written8. etc

Evacuation plan

Provide evacuation plan in visible areas, for each working area and content the following information:

1. Location of fire extinguishers2. Location of alarms3. Location of first aid kits4. Location of exit paths5. Location of this evacuation plan (You are

Factory Construction1. Staircase Provide handrails (at least 1 m) for

staircase which has more than 4 steps Step must not be higher than 0.19m Non slippery Acceptable wide There are at least 2 stair cases in one

building has more than 30 persons working

2. Elevators Notification of weight Has door Has locking inside to prevent door open but

no elevator Has warning sign posted outside Notification sign for cargo and passenger

3. Aisle Wide > 1.1m; High > 2m Unobstructed, non slippery Visible from work areas Distant to nearest exit door < 60m Exit doors must be unlocked and looking

outward Exit floor shall be same with floor of

production areas

4. Exit doors Exit sign must be visible and posted in local

language Equip with emergency lighting Number of exit equal to number of workers

(see chart) Gathering area must be outside and

unblocked

Staircase/Stairwell

Aisles

Exit doors

Loái Ra

Vạch sơn

Alarm system/evacuation/Fire fighting equipment

1. Alarm system• Alarm system (light and sound) to be

installed separately with other systems• Alarm system must be checked every 3

months• Maintaining, repair must be recorded

2. Emergency light• Provide appropriate lights to appropriate

exits (>1lux)• Provide inspection monthly with record• Emergency light must be supplied by

separate power system and backup power (battery)

3. Fire extinguishers• Provide appropriate extinguisher for

different fires (see chart)• At least 1 extinguisher (6kg) for100m2• Distant from workers to extinguisher must

not be more than 22.5m• Assessable, visible signs• Ensure functioning, provide monthly

inspection with record• To be checked by professional firm

annually• Instruction must be posted in local

language

Evacuation Illumination

Loái Ra

Emergency Illumination

Fire Fighting Extinguishers

Yellow box Unblocked

Ever seen this simple in VN before?

First aid

1. 1 first aid kit for each 25 workers

2. 1 first aid trained person for each 100 workers

3. Provide CPR next to the kits

4. First aid kits must be checked and equipped everyday

5. See list of medicine in the list

First aids

Good practices – Worker toilet & Eye-washer

Chemical management

Secondary containment

Storing and labeling

Chemical warehouse

Chemical container

Chemical separation

MSDS/CSC

No MSDS or inappropriate MSDS.

Not all chemical has MSDS sheet

1. MSDS should keep in a place for easy access by employees

2. MSDS must be displayed in local language

3. All chemical should have a MSDS sheet

Warning signs

Instruction signs

Workplace lighting standards

Electrical safety

Not good wiring

Broken sockets

High power

Machinery safety

Waste storage areaHazardous wastes

Waste water treatment system

Questions

Walmart Ethics Sourcing Audit Process and

Case Studies of Challenges for

Walmart Standards implmentation

Ethical Sourcing Audit Process:

- A central pillar of Walmart’s ethical sourcing program

- Walmart does not own any of the factories that produce merchandise for its stores

- Regularly conducted to verify that a supplier is complying with Walmart’s Standards for Suppliers and to find ways to strengthen working conditions and labor practices in factories.

The audit process enables auditors to determine if at factory:

Workers are treated with dignity and respect; Workers are paid appropriately and receive the legally and contractually

defined benefits; Working hours comply with local law and Walmart’s standards; Well-defined hiring practices are followed, which include age verification

and confirmation of the individual’s eligibility to work in the country; The working environment is clean, safe and well-maintained; and Open and safe communication between workers and management is

established.

Notes:1. Factory pre-qualification is required for factories of suppliers managed by Walmart Global Sourcing or Direct Sourcing Group where Walmart is the importer of record2. To be approved, a factory must receive one of Walmart’s two highest assessment ratings3. Subcontracting factories must also be audited if they produce part or a component of a product, containing a Walmart private label or proprietary brand logo,or a major component of a finished product that could be sold independently4. After a factory is approved to produce merchandise for Walmart, all subsequent audits are unannounced.

:- Access letter and/or purpose of the visit, auditor’s and fty introduction, re-confirm audit plan

:- Verify the fty’s business license;:- Follow up with fty representatives on any

noncompliance violations identified during previous audits

:- Management interviews on the management of changes among visitsOnce a factory is audited, the findings are reviewed

and a rating is assigned by the Walmart Ethical Sourcing Assessment Team.

Opening meeting:

:- operational conditions and observation (electric, fire prevention, machinery, facility, industrial hygiene, food safety,)

:- occupational HSE conditions and observation:- speak with employees about the fty’s compliance with

Walmart’s Standards, Vietnam laws and/or local authority’s

:- monitoring the working ambient: manager’s attitude toward workers and vice versa

:- notice the significant compliance/non-

Factory tour: fty walk-throughs

:- private, without management present:- select by factors such as fty size, gender,

nationalities, age and skill ratios:- vis a vis, notice the cooperation/skills:- focus to the range of Standards, other else as

previously approved plan:- notice workers about the Walmart Helplines, left a

contact

Employee interviews:

:- HR, HSE management system documentation, if any:- fty CBA, operational policies and procedures for

machinery and human-works:- equipment, personnel documents and records to

check workers’ ages, contracts, compensations and working hours

:- notice production records and legal documents as required by laws

:- Walmart’s assests

Documentation review:

:- discuss identified issues and suggested recommendations to remedy violations observed (Standard-Current Situation-Discrepancy-Extent-Rationale flows)

:- an onsite report containing this information for fty acknowledgment and signing

:- remind timelines, left a contact

Closing meeting and signing of the onsite report:

There are four types of assessment ratings: • Green: minor to no violation; the fty will be audited within 2 yrs• Yellow: medium-risk violations; will be re-audited within 1 yr• Orange: higher-risk violations; the fty will be re-audited within 6

mths; if fty receive three orange ratings in a two-year period, the fty is disapproved and prohibited from Walmart for at least 1 yr

• Red: most serious violations that warrant no future Walmart biz

Walmart uses the audits to help make decisions about suppliers and factories – whether to develop them, make them a preferred

supplier or to stop doing business with them

Integrity of Audits • All are conducted by approved accredited and internationally recognized

third-party audit firms. Approved audit firms be required to complete the equivalence Auditing Competence process by Walmart.

• Walmart approved and registered all auditors : understanding of local laws, requirements & collective bargaining agreements. Language skills, gender & relevant audit experience are considered when assigning teams.

• Walmart takes steps to ensure that all factory audits are conducted with integrity: Walmart implemented an industry best practice to check the accuracy of third-party audits by validation audits, which: are conducted by the Walmart Ethical Sourcing Special Audit Team, within 30 days of the last audit, following the same protocol (choosing the same workers to interview, reviewing the same set of records, etc).

Validation audits are conducted at random or if Walmart has concerns about a particular audit.

QUESTION ON RISKS?

SUGGESTIONS

Chau A Nguyenhttp://www.Onestepvietnam.com

Thank You !!!

Walmart compliance training osv

Documents

Transcript of Walmart compliance training osv

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