HKScan is committed to the UN Global Compact, and we have integrated its sustainability principles into our Code of Conduct. In addition, we support the UN Sustainable Development Goals (SDGs) as part of our responsibility programme.
HKScan only deals with reliable suppliers (“Supplier/s”). Supplier is defined as a company or other entity or person that is in a business relationship with HKScan and delivers goods or services to HKScan. HKScan prefers long-term relationships. HKScan expects competence and continuous improvement in quality, cost control, reliability, and sustainability from its Suppliers and their supply chains.
The HKScan Supplier Code of Conduct illustrates our principles we operate in accordance with globally through our value chain. We expect our Suppliers to comply with the requirements of this Code of Conduct throughout their own supply chain when providing goods and services to HKScan.
In case an employee or Supplier of HKScan, or any other stakeholder suspects that a breach of this Code of Conduct has taken place, these must be reported without delay to HKScan’s contact person. Concerns may also be shared anonymously through HKScan Fair Way in case reporting through normal reporting channels is not possible. HKScan Fair Way is accessible through https://report.whistleb.com/en/HKScan.
1. Legal and trade compliance
The Supplier shall comply with all applicable national and international laws and regulations. These include, but are not limited to, laws and regulations related to human rights, labour code, environment, food safety and animal welfare. This Code of Conduct sets up the minimum standard of behaviour to be followed by our Suppliers. However, this do not override any applicable laws and regulations.
The Supplier shall comply with all applicable sanctions and export control laws and regulations, including but not limited to international trade sanctions and embargoes issued by the UN, UK, EU, or US authorities or any other corresponding authority.
2. Business Conduct
2.1. Good governance and business integrity
The Supplier shall in all its operations be committed to high ethical standards in its business practices and shall prohibit any corruption, bribery, extortion, or fraudulent practices including those money laundering, privacy and economic and social trade sanctions.
2.2 Prohibition of Corrupt Practices
The Supplier shall have procedures in place to ensure that it, including its directors, employees and third parties acting on its behalf, does not, directly or indirectly, offer gifts to HKScan’s employees or persons representing HKScan or anyone closely related to these in any situation in which the said gifts, independent of value, might inappropriately influence, or appear to influence, the outcome of the recipient’s business decisions in relation to the Supplier.
2.3 Fair Competition
The Supplier shall compete in a fair manner in compliance with all applicable anti-trust laws and regulations and has standards and procedures in place to ensure that its directors and employees do not engage in any anti-competitive practices. The Supplier shall not cause, and is under no circumstance part of, any breach of general or special competition regulations and laws, such as illegal cooperation on pricing, market sharing, output levels or customer allocations, or sharing competitively sensitive information.
3. Labour and human rights
The Supplier is expected to respect internationally recognized human rights, (such as the International Bill of Human Rights, the UN Guiding Principles of Business and Human Rights, and International Labour Organization’s Declaration of Fundamental Principles and Rights at Work). The Supplier shall identify and address adverse human rights impacts in their supply chain.
The Supplier shall not require employees to deposit identity documents, salaries or other possessions of the employee. The Supplier shall treat all employees with dignity and respect and they should not be threatened with penalties or sanctions. The Supplier must not engage in or tolerate harassment or other forms of intimidation, the use of corporal punishment, mental or physical coercion or abuse.
3.1. Child and Forced labour
The Supplier shall not use workers under the age of 15 or under the local legal minimum age for work. Children under the age of 18 may not engage in tasks that are harmful to their health and safety, including night work.
The Supplier shall under no circumstances use forced labour or contract work to subcontractors or suppliers using child labour or forced labour in its operations or through it supply chain. This includes all forms of slavery, including modern slavery and human trafficking. Employees shall be free to leave the job after a shift and terminate their employment after a reasonable period of notice.
3.2. Terms of Employment
The Supplier shall ensure that compensations paid to its employees (including temporary or part-time employees as well as subcontractors) complies with all applicable wage laws, and mandatory collective agreement (or similar agreements), including those related to the minimum wages in their country of living, working hours, voluntary based overtime hours, paid leave and mandatory benefits. All employees are provided with a written document of employment outlining their terms of employment, wage conditions and method of payments.
3.3 Freedom of association and the right to collective bargaining
All employees have the right to join or form a trade union of their choice and to participate in collective bargaining. Where freedom of association and collective bargaining is restricted by law, the Supplier should not impede the development of similar means for independent and free association and bargaining.
The Supplier shall ensure all employees are treated in a fair and equal manner in all situations, regardless of their employment contract type. There is to be no discrimination in such areas as recruitment, promotion and remuneration based on age, gender and ethnic origin or any similar distinction not based on the inherent requirements of the work.
4. Health and safety
The Supplier must provide its employees with a safe and hygienic work environment, taking into account the industry sector and the potential hazards associated with it. Adequate measures must be taken to prevent accidents and injuries at or in connection with work by minimizing the hazards in the work environment as far as is reasonably practicable.
The Supplier shall have an appropriate, structured, and systematic approach to managing its health and safety responsibilities. The Supplier must undertake to act in accordance with HKScan's Health and Safety and Policy principles.
5. Product safety and quality
The Supplier shall comply with applicable laws and regulations related to product safety and quality. Products and services delivered to HKScan must meet the mutually agreed requirements upon quality and food safety standards. Products and services must be safe and the quality requirements for food ingredients, raw materials, equipment, supplies and services set by HKScan must be met. The Supplier must undertake to act in accordance with HKScan's Food Safety and Quality Policy principles.
The Supplier shall comply with applicable laws and regulations related to the environment. Harmful impacts on the environment and thus on human health must be minimized throughout the value chain. This includes minimizing emissions and preventing leakages, promoting resource efficiency and sustainable use, promoting greenhouse gas emission reduction and minimizing other environmental impacts. The Supplier must undertake to act in accordance with HKScan's Environmental Policy principles.
7. Animal health and welfare
The Supplier shall comply with applicable laws and regulations related to animal welfare. Animal welfare at all stages of production is important to HKScan. We do not accept the improper handling of animals. Animals must be treated in a way that respects their welfare and health. All necessary precautions to prevent animal diseases should be taken at all stages of production. The Supplier must undertake to act in accordance with HKScan’s Animal Welfare Policy principles.
By agreeing to work with HKScan the Supplier confirms that it and its affiliates and their employees, directors, subcontractors or its other subsuppliers comply with this HKScan Group´s Supplier Code of Conduct.
HKScan reserves the right to receive from the Suppliers reports, documentations and proof of evidence to ensure that this Supplier Code of Conduct is complied with and to visit all Suppliers who provide goods and services to HKScan. HKScan also reserves the right to conduct inspections /audits by an independent party of its choice, to ensure that this Supplier Code of Conduct is complied with.
If HKScan becomes aware of any breach of this Supplier Code of Conduct, HKScan reserves the right to demand corrective measures, which the supplier shall implement promptly. If the supplier shows no willingness or ability to correct the identified violations, HKScan reserves the right to terminate any contract between HKScan and the supplier according to the terms of the contract or cease the cooperation for the time being.
Last approval date: 3 May 2023 by the CEO of HKScan Group.