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IMPLEMENTING A SUPPLIER CODE OF CONDUCT – THE RUG COMPANY
November, 2024
IMPLEMENTING A SUPPLIER CODE OF CONDUCT
PILLARS: Governance
MATERIAL DRIVERS: Sustainable Procurement, Human Rights
THE CHALLENGE
As the largest importer of rugs from Nepal, The Rug Company needed to champion tradition while making a vital contribution to the Nepalese economy and its craftspeople.
APPROACH & ACTIONS The Rug Company worked with Positive Luxury to develop and implement a Supplier Code of Conduct. This included: anti-corruption, human rights, labour conditions, whistleblowing, privacy and confidentiality, and more. Its purpose was to ensure that:
Workers’ employment is freely chosen
Workers are provided living wages
Working conditions are safe and hours not excessive
No discrimination, harsh or inhumane treatment
RESULT
100% of Tier 1 suppliers have formally signed up to its Code of Conduct. All suppliers must now present a formal human rights policy, including a statement of actions to protect against slave labour. These actions are supported by over 75% of all suppliers undergoing an annual on-site ESG audit. Through Positive Luxury’s ESG assessment process, The Rug Company was also able to track measurable improvements in both its Sustainable Procurement and Human Rights performance drivers.
