The California Transparency in Supply Chains Act of 2010, California Civil Code § 1714.43 (the “Act”), requires retail and manufacturing companies to disclose the efforts they have taken to ensure their supply chains are free from slavery and human trafficking. Hormel Foods makes the following disclosures in accordance with the act:
Verification of Product Supply Chains: Hormel Foods is committed to providing high-quality, safe products through responsible business practices. To that end, Hormel Foods has developed our Supplier Code of Conduct to outline our expectations for suppliers. We give this document to all key suppliers.
Among other things, our Supplier Code of Conduct requires that our suppliers must be in compliance with all applicable laws and regulations relating to working conditions. Hormel Foods does not tolerate child labor or forced or involuntary labor, including bonded, indentured and involuntary prison labor, and will not work with suppliers who do not adhere to these policies. Verification of suppliers is not conducted by a third party.
Auditing of Suppliers: Hormel Foods reviews its supply chain partners to assess compliance with both applicable laws and our Supplier Code of Conduct. We do not use third parties to conduct such reviews. Hormel Foods does not routinely conduct independent, unannounced audits of our suppliers, but may do so if we have cause to believe they are not in compliance.
Certification by Suppliers: As noted above, we expect all of our suppliers to adhere to our Supplier Code of Conduct. Our Purchase Order Terms and Conditions further require all suppliers to comply with all applicable laws, including those relating to slavery and human trafficking.
Accountability Standards and Procedures: If we determine that a supplier is not in compliance with our standards or any applicable laws, including those relating to slavery and human trafficking, we will give such supplier an opportunity to remedy any potential noncompliance through the implementation of corrective action. Should the supplier continue to fail to meet our standards, we will initiate our supplier discontinuation process.
Training: Our Supplier Code of Conduct is incorporated into all training of employees and managers who have responsibility for supply chain management and procurement.