What is a Supplier Code of Conduct?

Companies often use Supplier Codes of Conduct (SCoCs) to set out their sustainability expectations and requirements, which are sometimes passed on further down the supply chain.

(Supplier) Codes of Conduct are usually written at a high level of abstraction and designed to apply to all suppliers.

Moreover, for many companies, (Supplier) codes of conduct have become a tick-the-box exercise, meaning that the company wants to demonstrate compliance with sustainability regulations without actually thinking proactively about how to promote sustainability or operationalise the expectations and requirements set out in the codes.

If a company wants to take supply chain sustainability seriously, it must operationalise the expectations and requirements of SCoCs. This is usually done in other contract appendices, such as GTCs, Supplier Requirements, or technical specifications.

It is also important to understand that the Code does not automatically bind the supplier. Next you’ll learn when the Code (or other sustainability related contract appendices for that matter) becomes binding.