COSTCO factory inspection

COSTCO is a large membership chain wholesale and retail market, with 327 stores in 7 countries and regions around the world, including the United States, Canada, the United Kingdom, Mexico, Japan, South Korea and other regions. Each branch occupies an average of more than 130,000 square feet. COSTCO adopts the membership shopping method. Members only need to pay 40 US dollars a year to buy the goods they need at a special price 5% to 30% lower than the market price. COSTCO mainly sells large packaged goods in the form of wholesale, including food, home appliances, computers, daily necessities, hardware, tires and even automobiles. In 1998, COSTCO added gas stations to its business projects. Customers with membership cards could buy gasoline at a price 20% lower than the market price at COSTCO's own gas stations.

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Costco will do its best to protect the rights and safety of the employees of its suppliers, and Costco believes in and respects cultural and legal differences around the world. To that end, Costco:

(1) Prohibit the use of illegal child labor, prison labor, or enslavement and abuse of employees.

2. Suppliers are expected to comply with at least the labor laws and environmental regulations of the country where they are located.

3. Encourage suppliers to strive to achieve "goals above or beyond Costco(Supplier Code of Conduct)"

By taking this step, Costco believes it is able to provide feasible and tangible protections and improvements for its employees. Costco's Supplier Code of Conduct applies to all suppliers working for Costco. Costco will cooperate with those suppliers who are committed to implementing this Code of conduct or have taken relevant actions. Costco reserves the right to terminate business relationships with suppliers who fail to comply with this Code of Conduct. Costco may amend, enforce and/or interpret this Supplier Code of Conduct; With the exception of Costco, the code does not create favoritism in favor of any party.

　　definition

The goal of exceeding or exceeding Costco's Supplier Code of Conduct is to adopt programs and policies that exceed current legal requirements and continuously improve employee working conditions and environmental protection. Costco uses suppliers and related production units that strive to achieve this goal and are committed to protecting and improving the rights, safety and working environment of their employees.

Costco refers to Costco's head office, subsidiaries and joint ventures, including Costco Wholesale Canada Co., LTD., Costco Wholesale UK Co., LTD., Costco Wholesale Korea Co., LTD., Costco(Taiwan) Co., LTD., Costco Mexico. SA de C V and Costco Wholesale Japan Co., LTD., all collectively referred to as "Costco".

Production facilities refer to the main production units, processing factories or production factories that produce commodities. The production facility may be owned by the supplier or subcontractor and it is the supplier's responsibility to ensure that the production facility complies with the Supplier Code of Conduct, regardless of the relationship between the supplier or subcontractor.

Merchandise means all product representations on the Costco purchase order and packaging, including pallets, instructions, warranties, and all other materials and services included in the merchandise.

Suppliers are companies that supply Costco with goods, including parent companies, members, subsidiaries, agents, representatives, and family members, and other business, names, or trademarks associated with the sale of Costco's goods.

Suppliers and subcontractors of production facilities

Supplier is responsible for ensuring that all manufacturing facilities comply with Costco's Supplier Code of Conduct and that its subcontractors, material suppliers, processors, or suppliers or subcontractors who sell goods and services to Costco comply with the Supplier Code of Conduct.

　　Related document

All items that can be used to comply with Costco's Supplier Code of Conduct and the laws and regulations of the host country shall be retained at the site where the goods are manufactured. All such relevant documentation must be provided to Costco or its designated third party auditor, if necessary.

　　labourer

Unless permitted by local law, all employees must be at least 14 years of age and the supplier and relevant production unit must ensure that there is an official document verifying the birth date of each employee. In the absence of such documents, the supplier and the relevant production unit shall provide legally binding information to prove the age of the employee.

　　Prison staff or enslavement and abuse of staff

Suppliers and related production units must not use prison staff or enslave, mistreat or physically punish employees.

　　Labor and employment standards

Suppliers and relevant production units must comply with all applicable national, local or other labor and employment regulations, including the prohibition of forced or slave labor and indentured servitude, the allowing of free association, wage and hour regulations, the operation of free association, the use of foreign or immigrant workers, and the prohibition of related laws based on race, color, religion, sex, age and physical strength.

In addition, the following standards may be required by the laws and regulations at the time, and suppliers and relevant production units must fully comply with them. If the time is not required by local laws and regulations, Costco strongly encourages suppliers and relevant production facilities to adopt the following standards to achieve the goal of "exceeding or exceeding Costco's Supplier Code of Conduct". And as part of its management practices:

A Wages and benefits: The wages paid by suppliers and production units must meet the legal minimum wage standard. Benefits must at least meet legal requirements. Salary results must be itemized in writing and provided to the employee, and must comply with legal requirements, including employer contributions and statutory deductions, and wages must be paid to the employee in a convenient manner at least monthly.

B, normal working hours and overtime hours: Suppliers and production units must comply with the legal requirements on working hours and overtime hours, unless specified by law, otherwise mandatory overtime is not allowed. If applicable, a legally enforceable overtime waiver must be obtained, and the employee must be paid more than the normal rate of overtime and meet the legal requirements at the time. In addition, if it is necessary to arrange legal overtime, especially in industries with seasonal needs, employees should be informed before employment.

Employment Contract: At the time of employment, all employees must be clearly informed of the statutory terms of employment and the facility's own rules and regulations. Where possible, and if required by local law, an agreement or contract between the employer and the employee must be written in a language that the employee can understand, stating the relevant terms of employment, signed by both parties and approved by the government. A copy of the signed agreement or contract must be provided to the employee, and unless permitted by law, suppliers and production facilities may not withhold security or any fee as a condition of employment. All detention fees must comply with applicable legal requirements.

Foreign contract workers and migrant workers: If foreign contract workers or migrant workers are to be used, the terms of employment must comply with the labor and immigration law requirements of the host country. Their terms of employment must be written in the employee's native language or a language understood by the employee, and they must receive these terms of employment before they leave their home country or hometown. If engagement fees are to be borne by the supplier or the relevant production unit, they must not be deducted or mortgaged from the wages of subsequent employees, or otherwise transferred to the employee, passport and other identification documents must be kept by the employee and cannot at any time be withheld by the supplier, the relevant production unit or any third party.

Discipline management principles: Suppliers and related production units shall not use corporal punishment, mental or physical abuse, abuse or other forms of punishment. All employees must be treated with respect and dignity.

Labor Agency: If the supplier or related production unit uses a labor agency to recruit employees, the supplier or production facility must bear its costs. Under no circumstances shall the supplier or the relevant production unit deduct such costs from the employee's wages or otherwise pass them on to the employee.

　　Health, safety and accommodation standards

Suppliers and related production units must comply with all national, local and provincial or other applicable laws and regulations relating to employee health and safety in the country in which they are located.

In addition, the following practices may be required by local law, and suppliers and related manufacturing units adopt the following practices to achieve "goals that exceed or exceed Costco's Supplier Code of Conduct" as part of their management practices:

Health and safety management: The supplier and the relevant production unit shall designate a supervisor responsible for the health and safety of employees. The supervisor must conduct regular inspections with the supplier and the employer of the relevant production unit to ensure that the production facility meets the requirements of safety and health laws and factory policies.

Health and safety education: Employees should be regularly educated about health, safety and good hygiene. The supplier and the relevant production unit shall take actions and measures to prevent accidents, personal injuries and the spread of infectious diseases. Easy to understand instructions and signs shall be posted and/or manuals shall be provided for the safe operation of hazardous equipment, handling of hazardous materials, the use of hazardous or susceptible materials, or the operation of hazardous equipment by employees who have been properly educated and trained.

　　Refusal of exchange

1. Definition: There is concrete evidence of illegal employment of child labor, prison staff or enslavement and mistreatment of employees.

2. Processing method:

A) Supplier's relevant manufacturing units will be terminated immediately and Costco or any of Costco's other suppliers will not knowingly engage with such relevant manufacturing units for at least three years.

B) If the Supplier uses the relevant production unit in violation of a) above, (i) the business relationship with the Supplier will be terminated for at least 3 years; (ii)Costco or any other supplier of Costco does not knowingly use these suppliers for at least three years,

C) After the 3-year termination period, if the results of the audit are accepted by Costco, Costco may, in its unilateral judgment, resume the business relationship with the supplier or the relevant production unit.

　　Demand improvement

1. Definition: There is concrete evidence of non-compliance with national and local labor and/or environmental laws and regulations.

2. Processing method:

A) The supplier must provide a complete Improvement Plan (CAP) which includes a schedule for each improvement. Costco will review and approve the improvement plan and set a target and date for the next audit, and the schedule for the improvement or audit may be adjusted depending on Costco's considerations.

B) Within a reasonable period of time, if continuous improvement is not achieved but the final conformity is not achieved, Costco may terminate the business relationship with the supplier or related production unit for at least 3 years in its sole judgment.

C) After the 3-year termination period, if the results of the audit are accepted by Costco, Costco may, in its unilateral judgment, resume the business relationship with the supplier or the relevant production unit.

     Many factories want to receive foreign orders, but the situation of the factory itself does not meet the requirements of foreign customers to suppliers, therefore, if you directly apply for factory inspection, the chance of passing is very small, and will affect the order. Therefore, after receiving the customer's factory inspection requirements, most factories will choose a professional factory inspection agency for guidance, according to the standard requirements of the audit agency, to help the factory improve the situation, in order to meet the customer's factory inspection requirements, and successfully pass the factory inspection. Teng Lian consulting consultant, specializing in factory inspection counseling.

Shenzhen Tenglian Enterprise Management Consulting Co., LTD., established in 2005, is an old institution with independent legal personality in Guangdong Province. Specializing in ISO system certification, product certification, factory inspection counseling, high-tech enterprise identification, intellectual property implementation standards, government subsidy application, qualification agency. Authoritative organization, experienced, full coaching. Senior certification counseling team, 15 years of experience, with exclusive approval channels, the pass rate is guaranteed! Since its establishment 15 years ago, it has served more than 7,000 enterprises and public institutions and government organizations. Any questions and needs about factory inspection counseling can be consulted free of charge through the following ways:

Tel: 0755-2999 1616 199 2533 2787;

Wechat consultation: tliso168