The Supplier Code of Conduct outlines Eaton’s expectations regarding workplace standards and business practices. We require our suppliers to adhere to this Code. Please make your employees aware of our Supplier Code of Conduct. The Supplier Code of Conduct has been translated into multiple languages and may be downloaded from this website to share with your organization as appropriate.
Eaton’s Supplier Code of Conduct helps us to select business partners who follow workplace standards and business practices that are consistent with our company’s values. These requirements are applicable to suppliers of Eaton Corporation globally.
A) Code of Conduct
1. General Principle: Suppliers’ plants shall operate in full compliance with the laws of their respective countries and with all other applicable laws, rules, and regulations.
2. Environment: Suppliers’ plants must comply with all applicable environmental laws and regulations.
3. Child Labor: Suppliers shall employ only workers who meet the applicable minimum legal age requirement. Suppliers must also comply with all other applicable child labor laws.
4. Forced Labor: Suppliers shall not use any indentured or forced labor, slavery or servitude.
5. Wages and Hours: Suppliers’ plants shall set working hours, wages and over-time pay in compliance with all applicable laws. Workers shall be paid at least the minimum legal wage or a wage that meets local industry standards, whichever is greater.
6. Discrimination: Suppliers shall employ workers on the basis of their ability to do the job, not on the basis of their personal characteristics or beliefs (including race, color, gender, nationality, religion, age, maternity or marital status).
7. Freedom of Association: Suppliers’ workers are free to join associations of their own choosing, and have the freedom of collective bargaining where the local law confers such rights.
8. Gift and Gratuity Policy: The offering or acceptance of kickbacks, bribes and other illegal payments subverts the very essence of competition and erodes the moral fiber of those involved. These include gratuities (i.e., anything of value) offered to governmental officials or employees. Such activities are not condoned and will not be tolerated. Also, Eaton prohibits the offer or acceptance of gifts or gratuities that the recipient likely would consider to be of substantial value. Any supplier that violates this item A (8) Gift and Gratuity Policy risks immediate loss of all existing and future Eaton business.
B) Compliance Monitoring
The supplier will allow Eaton Corporation and/or any of its representatives or agent’s access to its facilities and all relevant records associated with the products and services provided to Eaton. The supplier and Eaton will establish a mutually agreeable date and time for access. However, risks to Eaton’s business may require immediate access to the products, services and associated records and supplier will accommodate Eaton’s access as required.
C) Application to Sub-Contractors
This Code also applies to any sub-contractor(s) to the supplier, providing goods or services to the supplier. The supplier is fully responsible for ensuring compliance by any such sub-contractor(s) as if it were the supplier itself. Eaton reserves the right to audit the supplier’s sub-contractors for compliance to Eaton’s Supplier Code of Conduct and supplier will accommodate Eaton’s audit as required.
D) Event of Violation
If the supplier does not comply with this Eaton Corporation Global Sourcing Code of Supplier Conduct, Eaton requires that the supplier implement a corrective action plan to cure the non-compliance within a specified time period (furnished to Eaton in writing). If the supplier fails to meet the corrective action plan commitment, Eaton may terminate the business relationship, including suspending placement of future orders and potentially terminating current production. Eaton reserves the right to hold supplier responsible for reasonable costs of investigating non-compliance. Any exception to the application of this item D is a violation of item A) section 8 Gift and Gratuity Policy where the penalty is as stated.
Revised March 17, 2009