Supply chain This section covers activities related to the sourcing of raw materials that AAK uses in its production plants. Sustainable sourcing of raw materials is the backbone of AAK’s business and a key element of the AAKtion program. The combination of the right raw materials and value-adding functionality is key to the wide range of solutions offered. Just as it is vital for AAK to obtain the right raw materials, AAK places equal emphasis on sustainable growing and procurement. For this reason AAK has implemented a Supplier Code of Conduct that, among others, applies to AAK’s direct raw material suppliers worldwide. Continued enforcement of AAK Supplier Code of Conduct Introduced in late 2009, the AAK Supplier Code of Conduct is an integral part of the approval system for suppliers. During 2014, compliance was 98.5 percent of direct raw material suppliers, who were required to approve and sign the Code or demonstrate their compliance in some other way. The Supplier Code of Conduct is now an integral part of the approval system of new raw material suppliers and compliance of the Code is a prerequisite for final approval. However, changing supplier base makes it challenging to achieve 100 percent. In West Africa, the Code has been implemented in a different way due to various linguistic and cultural challenges. Because ethical requirements in business relations are not a widespread tradition in the region, more meetings and explanations are required to achieve the necessary understanding. In 2014, an all-time high recognition level of 98 percent was achieved. The AAK Supplier Code of Conduct stipulates requirements with regard to the following: Human rights Child labour Working hours Working environment Environment Forced labour Discrimination Housing Young workers Remuneration Freedom of association Corruption Notification Workplace violence
AAK - Sustainability Report 2014/2015
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