by SHERI FLIES

While our sustainability practices address protecting the planet’s natural resources, we are equally committed to protecting the rights, safety and dignity of the people involved with our business. Here’s a look at the steps Costco takes in this area.

We established our Supplier Code of Conduct to protect the rights and safety of the people who produce, process, transport or harvest the products we sell. The code applies to all our suppliers and to Costco-owned manufacturing facilities. It prohibits practices such as forced labour, human trafficking, child labour, discrimination and unsafe working conditions. It also addresses minimum wages, rest days and limiting the working hours in a week.

Costco expects our suppliers not only to comply with all local labour, health and safety, and environmental laws, but also to strive for “Above and Beyond Goals” that seek to continually improve working conditions.

Suppliers are subject to independent third-party audits to ensure compliance. We recognize there is always room for continuous improvement and that some suppliers will need assistance to improve management systems to address the root causes of violations and come into full compliance with the code. Depending upon the severity of a violation, or if continuous improvement is not made, Costco may cancel a purchase order or terminate the business relationship.

Costco prefers to work with suppliers and their facilities to correct code violations rather than apply sanctions that may cause further hardship to workers and their families who depend upon the employment.

With the impact of COVID-19 on the safety of workers in our supply chains, we have included a COVID-19 Preparedness Observations Checklist in our on-site audits.

Our human rights work also addresses industry-wide concerns, such as conflict minerals and the unethical recruitment of workers.

The food area of our business is another major focus. Here, broad industry efforts are required to address fair labour practices all the way to the farms and fisheries. Our approach is to work collaboratively with our suppliers, leading organizations and other stakeholders to meet our common goals. Good examples include our work with the Equitable Food Initiative to support farmworkers and the Seafood Task Force to tackle forced labour and illegal fishing.