Social Ethic

Our approach :

In its relationship with suppliers of developing countries, Auchan tries to ensure that the products it buys have been manufactured under conditions which respect the rights of employees.

Auchan has adopted since 1997 a "Code of Business Ethics" which its suppliers have committed to follow. This Code is inspired by the principles established by the International Work Organisation and includes 10 main criteria which all suppliers must respect :

- child labour is unacceptable
- forced labour and disciplinary practices will not be tolerated
- suppliers must provide a safe and healthy working environment
- all types of discrimination are unacceptable, etc.

As of 1999, Auchan has carried out regular social audits performed by external qualified inspection companies, aimed in particular at suppliers who manufacture Auchan brand products, textiles, toys, sports items, etc.

After every initial social audit, Auchan and the supplier agree, if necessary, on a plan of corrective actions which is monitored with either an internal evaluation or with an external follow-up audit, in order to evaluate the supplier’s progress in the less acceptable criteria.

Auchan participates, together with 14 other French and Belgian retail companies, in a task force called I.C.S* "Social Clause Initiative" under the arbitration of the FCD organisation (The French Federation of Commercial and Retail Companies). These companies carry out social audits based on a common guideline and share the results through a common website data base (more than 4000 audits).

Auchan is also a member of European social program called : GSCP (Global Social Compliance Program).

* www.ics-asso.org