Multinational Corporations’ Suppliers Responsibility and Code of Conduct

Multinational Corporations’ Suppliers Responsibility and Code of Conduct

Multinational Corporations (MNCs) in Africa need to be more committed to ethical business practices and to hold their suppliers and agents to the same standards. It is good practice and policy to comply with all applicable laws and regulations of the countries and regions in which they operate and to conduct their business activities in an honest and ethical manner. 

These Standards and Codes of Conduct are expected through their suppliers and agents to uphold the policies of their parent companies concerning compliance with all applicable laws, respect for human rights, environmental conservation and the safety of products and services.

African Multinational Corporations Forum (AMCF) suggests a regional effort to establish a program for Standards and Codes of Conduct that serves as framework for multinational corporations’ suppliers to conduct their businesses in a socially responsible manner and to meet the expectations of their parent companies respectively. 

These Codes may be maintained and updated to reflect MNCs standards and supplier operations. Parent companies may require their suppliers and country agents to comply with these Supplier Codes of Conduct. These standards will ensure that working conditions in the respective business group supply chain are safe, that workers are treated with respect and dignity, and that business operations are environmentally responsible and conducted ethically. 

For the Codes to be successful, suppliers and agents must regard the Code as a total supply chain initiative. At a minimum, suppliers will require their next tier suppliers to acknowledge and implement the codes. Fundamental to adopting the codes is that a business, in all of its activities, must operate in full Compliance with the laws, rules and regulations of the countries in which it operates. The codes will encourage suppliers to go beyond legal compliance, drawing upon internationally recognized standards, in order to advance social and environmental responsibility and business ethics. 

These codes are expected to outline standards for Labor, Health and Safety, Environment, standard business ethics and practices, cultural values, etc.