Source Beauty Primer: The Supplier Code of Conduct
A Supplier Code of Conduct is more than just a compliance document. It’s your brand’s blueprint for ethical business and responsible supply chains. From human rights and environmental protection to transparency and accountability, a Supplier Code of Conduct helps protect your brand while driving meaningful impact for people, the planet, and communities worldwide.
What is a Supplier Code of Conduct?
A Supplier Code of Conduct is an agreement between parties that creates a clear understanding of the expectations held by the contracting party for its suppliers. By setting clear expectations for suppliers, the Code of Conduct ensures your values are put into practice across every tier of your operations.
What does a Supplier Code of Conduct Do?
A Supplier Code of Conduct serves the following functions:
✨ VALUES ALIGNMENT: It ensures your suppliers embody your brand's ethics and purpose, creating a unified mission across your entire supply chain. Just like building a high-performance team, you want partners who share your commitment to positive impact.
🛡️ RISK MITIGATION: It protects your brand from potential legal, ethical, and reputational risks by establishing clear expectations and consequences. This proactive approach helps you avoid costly disruptions and maintains consumer trust.
⚖️ TRANSPARENCY & ACCOUNTABILITY: It provides measurable benchmarks for supplier performance and creates clear processes for monitoring and evaluation, ensuring your commitments translate into real action.
📈 CONTINUOUS IMPROVEMENT: It creates a framework for ongoing dialogue and development with suppliers, fostering innovation and better practices over time. Think of it as your joint growth strategy for creating a more sustainable beauty industry.
🌍 POSITIVE IMPACT AMPLIFICATION: It extends your social and environmental commitments throughout your supply chain, multiplying your ability to create meaningful change. When your suppliers adopt your standards, your impact reaches far beyond your direct operations.
What Issues Does a Supplier Code of Conduct Address?
What transforms a Supplier Code of Conduct from words on paper into a real driver of impact are its core elements, such as:
Human Rights & Labor Standards (e.g., fair wages, prohibitions on child and forced labor)
Environmental Responsibility (e.g., sustainable sourcing practices, waste reduction and recycling, energy efficiency)
Ethical Business Practices (e.g., anti-corruption and anti-bribery policies, data security requirements)
Quality & Safety Standards (e.g., product quality specifications, testing requirements, regulatory compliance)
Monitoring & Compliance (e.g., regular auditing, correction action plans, reporting mechanisms for violations)
When is a Supplier Code of Conduct Right for a Business?
Companies should conduct a thorough assessment of their operations and supply chain to determine if, and when, a Supplier Code of Conduct is appropriate. These documents can be tailored to meet risk criteria specific to the business and should always be prepared in light of other existing contractual mechanisms.
Remember: a Supplier Code of Conduct isn’t just about compliance—it’s about building a network of partners who share your vision for ethical, sustainable business. When approached with authenticity, transparency, and a commitment to mutual growth, it can not only protect a company but also drive positive change across the entire value chain.
To learn more about how Source Beauty can build out your responsible procurement systems, including a Supplier Code of Conduct, you can contact us here. And to stay updated on the latest in sustainability, supply chains, and everything in between, join the Source Beauty Download for quarterly digests.
