The Hormel Foods Supplier Code of Conduct is designed to ensure that the quality of products and services we receive from our suppliers follow our commitment to responsible environmental and social performance. In partnership, we deliver quality products and add value to society.
At a minimum, we require our suppliers to act in accordance with all applicable federal, state and local laws and regulations. In addition, international laws and industry standards must be followed where applicable. If there is a conflict between what the law requires and the standards of our Supplier Code of Conduct, we expect you to meet the higher standard.
Our Supplier Code of Conduct outlines our expectations for all suppliers. Hormel Foods expects all suppliers to be able to demonstrate compliance with this code upon our request and to take action to correct any noncompliance. Hormel Foods may suspend or discontinue purchases from a supplier if an audit or other credible source reveals they are violating these requirements. For the purpose of this document, “supplier” means any company, corporation or other entity that sells or seeks to sell goods or services to Hormel Foods, as well as their suppliers and sub-contractors.
- Suppliers are expected to act in accordance with the international principles and guidelines aimed at promoting and protecting human rights, including the International Bill of Human Rights, International Labour Organization Conventions and Declaration on Fundamental Principles and Rights at Work, OECD Guidelines for Multinational Enterprises, UN Declaration of Human Rights, UN Global Compact’s 10 Principles and the UN Guiding Principles on Business and Human Rights.
- We expect suppliers to foster an inclusive and diverse work environment that is free from harassment and discrimination of any kind.
- Suppliers must meet or exceed all legal requirements for compensation, working hours, time off, rest periods, benefits and working conditions.
- Suppliers must provide safe and healthy working conditions and have appropriate controls, procedures and training in place.
- Suppliers must respect the rights of employees to freedom of association and collective bargaining.
- Suppliers must not use or tolerate the use of human trafficking, forced labor or child labor as defined by the International Labour Organization. The term “child” refers to any person employed under the age of 15 (or 14 where the applicable laws permit), or under the age of completing compulsory education, or a minimum age for employment in the country. All employees must be allowed to terminate employment at any time upon reasonable notice.
- Suppliers must ensure that no fees or costs are charged, directly or indirectly, in whole or in part, to job-seekers and employees for the services directly related to recruitment for temporary or permanent job placement, including when using the services of private recruitment, a labor broker or employment agent or performing recruitment activities directly. Employees must receive a written contract in their language stating in a truthful, clear manner their rights and responsibilities. In addition, suppliers must not retain any documents or demand monetary deposits or other collateral as a condition of employment, and employees cannot be subject to the withholding of wages, identification cards, passports or other travel documents, or personal belongings without their consent.
- Suppliers must provide options for employees to report concerns without fear of retaliation.
- In addition to compliance with all applicable laws and regulations relating to the protection of the environment, Hormel Foods expects suppliers to have programs in place to reduce their environmental impacts, set targets for improvement, measure efforts and make a commitment to continuous improvement.
- Suppliers must provide information related to their environmental programs as requested.
- Hormel Foods requires all suppliers to legally acquire land rights and take measures to ensure the protection of high conservation value areas, high carbon stock forests, rainforests and peatlands (regardless of depth).
- In addition to these requirements, suppliers must comply with the Hormel Foods Sustainable Agriculture Policy and any additional applicable sourcing policies (see the Additional Supplier Policies section below).
- Hormel Foods requires that all animals must be raised in a healthy environment and treated properly. All transporters, producers and any other supplier that handles animals must follow all applicable laws, regulations, company and industry guidelines and provide training for employees on proper care and handling.
- Suppliers must adhere to the principles in our Animal Stewardship Policy and must only use antibiotics responsibly when needed under the direction of a veterinarian.
- Suppliers must comply with audit requests to ensure the accountability of the company’s standards and implement any corrective actions identified.
Product Quality and Safety
- Suppliers must ensure high-quality and safe products through appropriate measures of quality control.
- All ingredients and products must be produced following the highest standards of sanitation in compliance with company and governmental requirements and laws.
- Suppliers are encouraged to have a formal process in place that encourages continuous improvement within their organization.
- Suppliers should routinely evaluate the long-term effect of their business decisions and follow generally accepted accounting principles.
- Suppliers must follow all pertinent data privacy laws and regulations and have the appropriate protections in place.
- The company’s Code of Ethical Business Conduct policy stipulates that no gift, loan or favor should be made to or accepted by employees, officers, directors or their immediate families involving any supplier if it is intended to influence a business decision. This does not prohibit casual entertainment, business entertainment consistent with the company’s usual practices or gifts reasonably viewed under the circumstances in which they are given or received to be of nominal value. For this purpose, any gift in kind of less than $100 would be considered of nominal value. Acceptance of cash or cash equivalents is not acceptable under any circumstances. Hormel Foods expects suppliers to implement a similar policy for gifts.
- Directly or indirectly offering or accepting bribes, kickbacks or any other benefits with the objective of influencing behavior, is strictly prohibited by Hormel Foods and its suppliers. Our full Code of Ethical Business Conduct can be found online, covering conflicts of interest, political donations, antitrust compliance and more.
- Hormel Foods understands the value of small and diverse-owned businesses and their role in a healthy economy. Large suppliers must maintain existing or implement small/diverse business plans with goals for continuous improvement. Each supplier will need to establish a baseline of current spend within these areas, and then identify ways to improve each year as part of the company’s Supplier Diversity Program. Large suppliers will receive additional information about this requirement.
Additional Supplier Policies
In addition to our Supplier Code of Conduct, suppliers are required to follow any additional applicable company standards and policies. Links to additional policies can be found below.
Verification of Compliance
Hormel Foods will verify compliance with the Supplier Code of Conduct through the following ways:
- Suppliers must be able to demonstrate compliance with our Supplier Code of Conduct upon our request.
- Through audits following a reasonable request, with the expectation that suppliers will correct any identified deficiencies in a timely manner.
- Through the investigation of any reported concerns.
- If requested, suppliers are required to complete a sustainability assessment survey to demonstrate compliance and develop a baseline of sustainability performance and potential improvements.
In addition, suppliers should self-report to Hormel Foods any significant regulatory noncompliances or significant news events that may negatively impact public or governmental views of our company or jeopardize our legal compliance.
Questions and Reporting a Concern
If you have questions regarding our Supplier Code of Conduct, please email email@example.com. To report a concern, please visit our third-party compliance website or call our hotline (1-833-672-1232), which are available 24 hours a day, seven days a week. Reporters may choose to be anonymous.