Social responsibility is a core value of The Hain Celestial Group, Inc. (“Hain Celestial”). As a leading organic and natural products company dedicated to A Healthy Way of Life™, sustainability is woven into the fabric of our business strategy and extends to our consumers, partners, shareholders and employees. Our attention to corporate social responsibility includes increasing our facility and supplier audits and partnering to ensure reliable and traceable sources of supply, and managing and documenting our labor practices across our business. This commitment extends to attempting to ensure that our supply chain does not include or tolerate human trafficking.
The following includes information on how we monitor our suppliers for human trafficking and slavery, and on how we are working to improve our monitoring in this area.
In 2011, Hain Celestial updated its Code of Business Conduct and Ethics (the “Code of Conduct”), to reflect certain principles pertaining to corporate social responsibility long adhered to by Hain Celestial including the express prohibition of practices relating to the exploitation of children, such as child labor; physical punishment; forced or compulsory labor; and unlawful discrimination in employment. The Code of Conduct further expressly states that Hain Celestial will not knowingly do business with any individual or company that participates in such practices. We seek to verify compliance by our co-packers with these principles by requiring new co-packers to undergo an initial audit, which assesses the conditions of the plant, manufacturing processes, and safety and health risks and includes an assessment of such co-packer’s social responsibility policies and practices. Once a co-packer has satisfactorily undergone the initial audit and becomes a Hain Celestial co-packer, such co-packer is re-audited on an annual basis to verify continued compliance. All audits are announced and are conducted by Hain Celestial employees. All third party audits of a co-packer are requested as part of the audit.
In addition, Hain Celestial’s standard terms and conditions require that its suppliers warrant that the products supplied to Hain Celestial on an ongoing basis are manufactured in compliance with all federal, state and local laws, rules and regulations including the Fair Labor Standards Act.
In the event that Hain Celestial becomes aware of any actions or conditions not in compliance with the Code of Conduct, Hain Celestial reserves the right to demand corrective measures or to terminate an agreement with such supplier. We also participate in the Global Food Safety Initiative (GFSI), an initiative for the continuous improvement of food safety management systems which looks to ensure confidence in the delivery of safe food to consumers worldwide and its varying certification programs including Safe Quality Food (SQF), which encompass labor standards for personnel.
We have recently adopted The Hain Celestial Group Supplier Code of Conduct, which embodies our minimum guidelines for all Hain Celestial suppliers in the areas of Labor Standards, Environment and Health and Safety. Hain Celestial also implemented an updated supplier audit form which clearly and directly requires suppliers to certify that all materials incorporated into a product comply with applicable slavery and human trafficking laws in addition to our other stringent standards. We endeavor that in 2012 each supplier will be provided with the Supplier Code of Conduct and each supplier will be required to certify and warrant its compliance with such standards. It is anticipated that each supplier will be required to certify and warrant its continuing compliance with such standards on an annual basis thereafter.
Since our inception, our business practices have been governed by integrity, honesty, fair dealing and full compliance with all applicable laws. Our Code of Conduct embodies these core values and principles and assists with the continued implementation of such core values and principles by establishing certain nonnegotiable minimum standards of behavior in key areas. Employees failing to implement our core values and principles are addressed by our Human Resources team in concert with their supervisors with measured steps taken for correction or termination as appropriate.
At the commencement of employment, Hain Celestial requires that each employee acknowledge that he or she has received and read the Code of Conduct and certify that he or she will comply with its provisions at all times during his or her employment. On an annual basis, Hain Celestial requires that each employee in a management position recertify his or her compliance with the Code of Conduct and to verify that he or she is not aware of any noncompliance. As stated above, Hain Celestial has updated its Code of Conduct, which is being provided to each of our employees globally with learning and training tools.