Vendor Standards
2005 – Costco
Wholesale Corp.
Whereas: Consumers and shareholders are concerned
about whether abusive working conditions and absence of a living wage exist in
facilities where the products they buy are produced or assembled. Reports of worker exploitation in factories
where a company produces its goods can damage its reputation and lead to the
loss of brand value or result in costly litigation.
Our company purchases goods produced in
countries like China where human rights abuses and unfair labor practices have
been well documented. (U.S. State
Department’s “China Country Report on Human Rights Practices – 2003”)
Our company has adopted a “Vendor Code of
Conduct.” We believe its code should be
based on the United Nations’ International Labor Organizations’ (ILO) core
labor standards and the United Nations Draft Norms on the Responsibilities of
Transnational Corporations with Regards to Human Rights that define workplace
human rights.
Although most countries have laws that conform to ILO standards, in
many instances these laws are not fully enforced. Costco should require that ILO standards apply to its vendor
factories wherever they are located.
Costco needs to demonstrate enforcement of
its code by reporting to shareholders on how it implements the code, how it
monitors its suppliers and how it addresses any issues of non-compliance that
are found.
Our company should demonstrate enforcement
of its standards by developing independent monitoring programs with local,
respected and independent religious, human rights and labor groups. To be credible, the process of monitoring
and verification must be transparent, with the contents of compliance reports
made public.
To improve the quality of life of workers
who make its products, our company should encourage its vendors to implement
ongoing wage adjustments, ensuring that workers have a sustainable living wage.
Rather than terminating contracts our
company should establish incentives to encourage its suppliers and vendors to
raise labor standards.
Resolved: Request the Board of Directors to:
1. Amend our
company’s supplier code and standard purchase contracts to reflect implementation of a code of conduct based on the ILO
standards,
2. Establish an
independent monitoring process that assesses adherence to these standards and,
3. Report annually
on adherence to the amended code through an independent and transparent
process, the first such report to be completed by January 2006.
3. There shall be
no discrimination or intimidation in employment. Equality of opportunity and
treatment shall be provided regardless of
race, color, sex, religion, political opinion, age, nationality, social origin
or other distinguishing characteristics.
(ILO Convention 100 and 111)
4. Employment shall
be freely chosen. There shall be no use
of force, including bonded or prison
labor.
(ILO Convention 29 and 105)
5. There shall be
no use of child labor. (ILO Convention
138 and 182)
Sponsors:
Lead:
Aaron Merle Epstein, Aaron Merle Epstein; Catholic Equity Fund; Christus
Health;