April 03, 2024
Building Today for a Better Tomorrow: 2023 Corporate Citizenship Report
A message from Steve Nikolopoulos, Chief Procurement Officer & Senior Vice President of Enterprise Procurement
As a global leader in consumer goods, we recognize our responsibility to ensure that our products are produced in a manner that aligns with our values and ethical standards. We understand the significance of working with suppliers who prioritize social compliance standards, such as fair labor practices, human rights, and supply chain security, to prevent the risk of contraband or unsafe products entering our supply chain.
Our customers and consumers are becoming increasingly conscious of the impact that their purchases have on the world. They want to know that the products they buy are ethically and responsibly sourced and align with their principles and values. By prioritizing responsible sourcing practices, we can meet the demands of our consumers and build a loyal customer base that values our commitment to social and environmental responsibility.
Moreover, responsible sourcing is not only important from a moral standpoint but also from a business perspective. In recent years, supply chain disruptions caused by environmental disasters, geopolitical tensions, and the COVID-19 pandemic have highlighted the need for resilient supply chains.
By working with suppliers who prioritize supply chain resiliency, we can mitigate the risk of disruptions and continue to deliver high-quality products to our customers. We will continue prioritizing responsible sourcing practices, including social compliance and supply chain security for Newell Brands. By doing so, we can not only uphold our values and ethical standards but also meet the demands of our consumers and ensure the resilience of our supply chain.
Sincerely,
Steve Nikolopoulos
![steve-signature.png](/dA/95b1401c10/asset/steve-signature.jpg")
Responsible Sourcing Program
Our responsible sourcing program, which includes Social Compliance and Supply Chain security, aims to increase transparency across our supply chain to ensure our customers and consumers receive high-quality and ethically produced or sourced products.
Our relationship with suppliers ensures that all businesses have a fair and equitable opportunity to participate in any outsourced Newell Brands projects. We are committed to ethical practices that ultimately contribute to our ability to provide innovative, quality products to our consumers and grow our brands.
We invite suppliers to compete for our business; in return, suppliers can expect a level playing field. We have no hidden factors in evaluating suppliers and submitted proposals – all relevant decision criteria will be spelled out before soliciting a proposal.
Vendor Code of Conduct & Responsible Sourcing Manual
Our Responsible Sourcing program is based upon Newell Brands' Code of Conduct, along with the requirements of our customers' Responsible Sourcing standards. We apply various pieces of training focused on root cause analysis and supplier development with our suppliers.
Our Vendor Code of Conduct memorializes the conduct we expect from our suppliers in several areas, including human rights, labor, environmental compliance and management practices. In addition, our Responsible Sourcing Manual ensures our Asia-based sourced finished goods and component suppliers fully understand our Social Compliance and Supply Chain Security requirements, and provides suppliers guidelines for use in their factories producing Newell Brands’ products. It details our escalation, audit, corrective action processes, and Zero Tolerance Policy.
Individuals within supplier factories can report grievances or violations to our 24-hour Ethics Hotline, a retaliation-free outlet that any Newell Brands employee or suppliers’ employees can use to issue a complaint. Audits also ensure that suppliers have established the appropriate grievance mechanisms for their factory employees.
For more details on our Social Compliance and Supply Chain Security programs, including our assessment program, issues, and program requirements, please review our Vendor Code of Conduct:
Select a language below to view our Vendor Code of Conduct.
Zero-tolerance Issues & Human Rights
Newell defines Zero Tolerance as any reported violations in the areas of:
Child labor
Forced or prison labor
Bribery attempts in any form
Discrimination
Harassment
Corporal punishment
Unauthorized subcontracting
Falsified documents
Denial of access
Circumvention of the audit process
Wastewater discharge into the environment without treatment
Contraband container content
Occasionally, we will experience critical issues that we categorize as Zero Tolerance Failures. If a supplier has a confirmed Zero Tolerance Failure – their relationship with Newell is subject to immediate termination.
Human rights due diligence risk assessments are addressed by internal and external third-party social compliance audits against the Vendor Code of Conduct. Our annual supplier training and our quarterly webinars include tracks on zero-tolerance issues.
Audits also ensure suppliers have established the appropriate grievance mechanisms for their factory employees. Newell Brands provides a 24-hour Ethics Hotline that any Newell Brands employee or supplier’s employee can use to report a complaint in good faith without fear of retaliation.
Social Compliance & Supply Chain Security
The objective of our Social compliance work is to responsibly source from suppliers that align with our Vendor Code of Conduct while also enhancing the satisfaction of our customers and consumers. Additional benefits of social compliance include reducing disruptions to our supply chain, improving transparency, protecting our brand reputation and enhancing supplier capabilities.
To ensure Supply Chain health, we conduct Responsible Sourcing audits of all our Asian-based suppliers, including components, raw materials, and second-tier contractors.
We have a membership with the Supplier Ethical Data Exchange (SEDEX), which provides access to shared industry reports completed by approved third-party partners, saving us and our suppliers significant time. The Responsible Sourcing team conducts post-audit verifications to validate and confirm the information that SEDEX provides.
The Responsible Sourcing team also supports our suppliers in most need of corrective action through training, engagement and ongoing interventions when needed, focusing particularly on the bottom five percent of previously approved suppliers through our Management Action Plans (MAPs). MAP is a process that includes a deep dive into the root cause of failures and intensive corrective programs to help vendors improve their operations.
We have established goals to ensure we’re promoting responsible practices across our Supply Chain.
Responsible Sourcing Goals
|
Goals |
2023 Progress |
|---|---|
|
Achieve a 90% Corrective Action Plan completion rate |
99% Corrective Action Plan completion rate |
|
Audit 100% of sourced finished goods vendors on a three-year rolling basis |
In 2023:
|
|
Achieve a 95% or greater Monitoring Plan completion rate |
99% Monitoring Plan completion rate |
|
Reach 100% completion of our Vendor Code of Conduct Attestation |
98% Vendor Code of Conduct Attestation completed |
If you have questions about our Vendor Code of Conduct or Responsible Sourcing Manual, please email our team at responsiblesourcing@newellco.com.
More information about our goals and progress can be found in the 2023 Corporate Citizenship Report.
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