This document provides guidelines for IKEA suppliers regarding IWAY (IKEA Way on Preventing Child Labor) implementation and compliance. It outlines:
1. The 12-step IWAY process that suppliers must follow, including communication, assessments, compliance commitments, implementation, audits, corrective actions, and maintenance.
2. The scope of IWAY, which applies fully to all direct suppliers and critical sub-suppliers, and more limited for non-critical sub-suppliers.
3. Requirements for working with sub-suppliers, including communication of IWAY, registration in IKEA systems, verification of IWAY Must requirements for critical sub-suppliers, and handling any violations.
This document provides guidelines for IKEA suppliers regarding IWAY (IKEA Way on Preventing Child Labor) implementation and compliance. It outlines:
1. The 12-step IWAY process that suppliers must follow, including communication, assessments, compliance commitments, implementation, audits, corrective actions, and maintenance.
2. The scope of IWAY, which applies fully to all direct suppliers and critical sub-suppliers, and more limited for non-critical sub-suppliers.
3. Requirements for working with sub-suppliers, including communication of IWAY, registration in IKEA systems, verification of IWAY Must requirements for critical sub-suppliers, and handling any violations.
This document provides guidelines for IKEA suppliers regarding IWAY (IKEA Way on Preventing Child Labor) implementation and compliance. It outlines:
1. The 12-step IWAY process that suppliers must follow, including communication, assessments, compliance commitments, implementation, audits, corrective actions, and maintenance.
2. The scope of IWAY, which applies fully to all direct suppliers and critical sub-suppliers, and more limited for non-critical sub-suppliers.
3. Requirements for working with sub-suppliers, including communication of IWAY, registration in IKEA systems, verification of IWAY Must requirements for critical sub-suppliers, and handling any violations.
This document provides guidelines for IKEA suppliers regarding IWAY (IKEA Way on Preventing Child Labor) implementation and compliance. It outlines:
1. The 12-step IWAY process that suppliers must follow, including communication, assessments, compliance commitments, implementation, audits, corrective actions, and maintenance.
2. The scope of IWAY, which applies fully to all direct suppliers and critical sub-suppliers, and more limited for non-critical sub-suppliers.
3. Requirements for working with sub-suppliers, including communication of IWAY, registration in IKEA systems, verification of IWAY Must requirements for critical sub-suppliers, and handling any violations.
Edition: 1 Issued by: Katarzyna Iwanek Valid from: 2014-04-01
Replaces: - Approved by: Eva Mal Belusk Applied to: TACE Suppliers
Page 1 of 6
1. Purpose
The purpose of this document is to inform IKEA Home Furnishing Suppliers and subsuppliers which are in the scope of IWAY implementation (see point 3) about the IKEA Working Methods related to IWAY. It is valid for IWAY Standard version 5.1 and next versions until further notice.
2. The IWAY process summary
Steps What? Who? When? 1 Communication of IWAY related documents IKEA Before business contract is signed 2 Initial IWAY assessment IKEA Before business contract is signed 3 Fulfillment of IWAY Must Supplier Before business contract is signed 4 IWAY Compliance Commitment (ICC) signed Supplier Before/at the time business contract is signed 5 Implementation of all IWAY standard requirements Supplier As agreed with IKEA, but not longer than 12 months from the first delivery 6 IWAY approval audit IKEA Latest 9 months after first delivery to secure that corrective action can still be implemented before implementation deadline is reached. 7 IWAY Audit report IKEA Within maximum 5 working days from the audit date 8 Corrective Action Plan Supplier Within maximum 14 calendar days from the date of the audit report is received. 9 Implementation of corrective actions Supplier As agreed with IKEA. Not longer than 60 days from date of Audit 10 Verification of corrective actions IKEA Method of verification is decided by the IKEA Auditor 11 IWAY Maintenance Supplier IKEA Continuously during cooperation with IKEA Monitoring and support 12 Re-audit IKEA As agreed unannounced and announced audits not less frequent than every 24 months (12 months in Asia).
3. Scope of IWAY implementation
The scope of IWAY implementation and verification differs within the IKEA value chain: Full IWAY Scope: All suppliers, with which IKEA has a legal contract/Purchase Agreement (PuA) including all its production units producing for IKEA (including majority owned sub- suppliers) All permanently present on-site sub-suppliers (>18h per week, on sub-supplier level) All on-site contracted Labor directly involved in the production
TACE IWAY Working Method Supplier version
Edition: 1 Issued by: Katarzyna Iwanek Valid from: 2014-04-01 Replaces: - Approved by: Eva Mal Belusk Applied to: TACE Suppliers
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Sub-Suppliers with a general agreement (nominated sub-suppliers) Sub-Suppliers that cover the main part of the production (supplier only covers the very final stages of production, e.g. labeling and packaging). These sub-suppliers shall be registered as Production units connected to the main supplier
Limited IWAY scope: Critical Off-site sub-suppliers (IWAY Must) Non critical off site sub-suppliers (IWAY communication)
4. IWAY at sub-suppliers
4.1 General requirements
The IKEA supplier registers at least all 1st tier sub-suppliers involved in the production of IKEA articles in a system provided by IKEA (Sub-supplier tracking system, SSTS).
IKEA suppliers are responsible to communicate the IWAY requirements including the document The IKEA Way on Preventing Child Labor, to all its 1st tier sub-suppliers involved in providing products, materials or services for IKEA (Recruitment Agencies included).
IKEA supplier registers Recruitment Agencies that provide Agency Workers to supplier in a system provided by IKEA (Sub-supplier Tracking System, SSTS) and communicate the IWAY requirements including the document The IKEA Way on Preventing Child Labor to them as well.
4.2 Critical sub-suppliers
Sub-suppliers are defined as critical, if processes performed are considered to be potentially highly harmful to the environment, health or safety of the workers, or are in an industry or supply setup that is prone to child Labor or forced & bonded Labor. When registering a sub-supplier in SSTS, the system will inform the Supplier whether a sub- supplier is critical or not.
IKEA does not accept any practice of corruption or bribery in relation with IKEA suppliers and IKEA. The requirement 1.3 Business Ethics in the IWAY Standard shall however not be part of the IKEA suppliers IWAY Must verification at critical sub- suppliers.
IKEA suppliers take the responsibility to implement and verify compliance of IWAY Must requirements at all critical sub-suppliers, which are identified by SSTS and confirmed by IKEA. Suppliers shall inform IKEA before starting a verification activity to avoid double work (see below). It is possible to use 3rd party auditing companies approved by IKEA for verification.
IKEA will inform supplier whenever several IKEA suppliers share the same sub- supplier. In such a situation the responsibility for implementation and verification of IWAY Must will be decided by IKEA.
The verification of IWAY Musts at critical sub-suppliers shall be repeated every 24 months (12 months in Asia). New IKEA Suppliers have max. 3 months from first delivery
TACE IWAY Working Method Supplier version
Edition: 1 Issued by: Katarzyna Iwanek Valid from: 2014-04-01 Replaces: - Approved by: Eva Mal Belusk Applied to: TACE Suppliers
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to register sub-suppliers in SSTS and 9 months from first delivery to verify IWAY Must compliance at all critical 1st tier sub-suppliers.
4.3 New sub-supplier
If the Supplier has a new Sub-supplier involved in the production of IKEA articles, Supplier has maximum 2 weeks for registering it in SSTS
If the Supplier starts up a new Sub-Supplier that is defined as critical, IWAY Must compliance shall be verified within 6 months from start of deliveries. The result of the verification shall be registered in SSTS.
4.4 IWAY Must violation
If an IWAY Must violation has been detected at a critical sub-supplier the Supplier shall: - Immediately report it to IKEA (Business Developer) - Register the audit result and follow steps in SSTS - Secure a corrective action plan from sub-supplier within 14 calendar days - Follow up the corrective action and verify compliance within a period of maximum 90 days - If the violation cannot be corrected after maximum 90 days IKEA shall be informed in order to agree on the next steps.
4.5 Nominated sub-suppliers
If a sub-supplier is nominated by IKEA it shall be from an IWAY perspective - regarded as regular IKEA supplier, the full IWAY scope applies and IKEA is responsible for implementation and follow up.
Nominated sub-supplier registers 2 nd tier sub-suppliers involved in the production of IKEA articles in a system defined by IKEA and follows all above points as a regular supplier.
5. Procedure for handling and follow up Child Labour violation. In case Child Labour is found or suspected in the supplier or the sub-supplier production units, the following steps must be followed:
1. Collect facts about the suspected violation and document the finding 2. Inform IKEA (Business Developer)
If Child Labour is confirmed: 3. Agree on Corrective and Preventive Actions 4. Make spot checks 5. Follow up on the progress of children under violation cases
TACE IWAY Working Method Supplier version
Edition: 1 Issued by: Katarzyna Iwanek Valid from: 2014-04-01 Replaces: - Approved by: Eva Mal Belusk Applied to: TACE Suppliers
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5.1 Collect facts about the suspected violation and document the finding. Interview the child Very informally break ice with the child by showing interest in his/her work. There should not be any indication to the child that there is something wrong and child is responsible. Instead try to approach the situation calmly and establish a rapport with the child. The place where conversation should be carried out should be an area where child can feel comfortable and not threatened. Do not let the supervisor be present during your talk with the child and take care not to frighten the child. The initial few minutes should be spent creating a comfortable atmosphere, by asking general questions in a friendly manner like:
1. The name of the Child, 2. Where is she/he from, which part of the city/village 3. Fathers name and family whereabouts, 4. Who taught him the work 5. Has the child ever been to a school/non-formal education 6. Encourage the child to talk about himself and his work, such as by asking about siblings and daily work routines
After a reasonable comfort level is reached ask more specific questions e.g. 7. How long have you been working in the factory? 8. Do you do any other kind of work besides the work being done at that instance? 9. Do you have any relatives working in the same factory? 10. Do you come to work every day? 11. Where do you stay- address? 12. What is your age? 13. How much do you earn?
At this stage, pictures of the child should be taken in a friendly manner preferably along with the interviewer. It would be best not to take down notes in front of the child, however, if necessary do it as discretely as possible.
Please make sure, that all actions shall be in the best interests of the child and make clear that we under no circumstances can accept that the child disappears during the coming investigation. In case that this happens it will automatically lead to probation. Check age proof records, ask for the age proof record of the child. In case there is a reason to doubt the authenticity of the proof, then age of the child can be determined through a medical examination. A reputed medical practitioner should conduct the medical examination.
Document the finding Summarise the findings in a report or similar, and ensure this report is signed by the supplier/sub-supplier management representative. It is important that the views of both parties are reflected in the report. 5.2 Inform relevant parties within IKEA The (suspected) Child Labor case shall be reported to IKEA immediately, and no more than 24 hours after the finding.
TACE IWAY Working Method Supplier version
Edition: 1 Issued by: Katarzyna Iwanek Valid from: 2014-04-01 Replaces: - Approved by: Eva Mal Belusk Applied to: TACE Suppliers
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5.3 Agree on Corrective and Preventive actions As soon as the violation is confirmed, the supplier/sub-supplier must prepare a Corrective and Preventive action plan. The action plan must be presented within 5 working days from the day when the Child Labour case was confirmed.
Corrective Actions - Corrective measures taken by the supplier/sub-supplier should be in the best interests of the child. This shall include that the child receives regular full time schooling, at least till the age of 14/15/16 years, depending on countrys legislation for finishing mandatory schooling. The supplier/sub-supplier must meet the cost of childs education (school fee, uniforms, text and notebooks, meals etc) and any costs for the transport back to the childs home town. If short time (never longer than 1 year) remains until the child reaches legal age for working, the supplier/sub-supplier shall also pay salary to the child for this period. The supplier/sub-supplier must also ensure that the child remains in the school and does not drop out until end of mandatory schooling.
Preventive Actions The supplier/sub-supplier must analyse the circumstances that led to the violation and take preventive actions to ensure that Child Labour violation is not repeated again. Therefore included in the action plan, there must be a programme for education/ training of childrens rights and the importance of eradication of child Labour. UNICEF, Save the Children or other NGO can be of help in this work.
5.4 Make spot checks It is important to ensure that suppliers/sub-suppliers action plan is being implemented. Spot checks or unannounced visits at factories must be carried out to monitor the progress of Action Plan. The main purpose here is to verify that no additional child Labour is occurring.
5.5 Follow up on the progress of children under violation cases The children under violation cases must be followed up to make sure they stay at school or that an alternative is found (such as vocational training).
6. Environmental performance reporting
The Sustainability Information from Suppliers Tool (SISu) is the tool which IKEA uses to collect sustainability data from its suppliers and nominated sub-suppliers. SISu includes the focus areas; energy, water, raw material utilization and waste, and allows IKEA to evaluate the sustainability performance of the suppliers.
In order to meet IWAY Standard requirement concerning environmental performance reporting (4.5), IKEA suppliers are responsible to fill in the SISu tool with data according to instructions enclosed in the tool.
The complete data from suppliers is collected annually and based on the calendar year.
The correctness of data is verified during IWAY audits.
TACE IWAY Working Method Supplier version
Edition: 1 Issued by: Katarzyna Iwanek Valid from: 2014-04-01 Replaces: - Approved by: Eva Mal Belusk Applied to: TACE Suppliers
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7. IKEA Compliance and Monitoring Group (CMG) and 3rd party audits
CMG and 3rd party companies perform unannounced IWAY audits in the IKEA supply chain. The main purpose is to: Monitor the implementation and maintenance of IWAY between the periodic audits Ensure external credibility of the IWAY process Provide feedback to IKEA Group on the implementation of IWAY
Participants at unannounced audits will include a 3rd party auditor/CMG specialist and a representative of the IKEA Business Unit.
8. Non compliance and business consequences
Suppliers failing to meet full IWAY compliance within the agreed timeframe will be phased-out
IWAY Must violations found at any of the suppliers production units will always lead to an immediate delivery stop from the relevant production unit(s)
If a Supplier repeatedly fails to comply with IWAY Must requirements (more than once within a 24 month period), the Supplier will be phased out.