Church & Dwight products have been a standard of quality and environmental responsibility since 1846. We are committed to conducting our operations in a responsible manner and expect the same commitment from our suppliers. California Transparency in Supply Chains Act of 2010 requires manufacturers and retailers doing business in California to disclose their efforts to eradicate slavery and human trafficking from their direct supply chains. Church & Dwight’s efforts include the following:
- Church & Dwight utilizes risk-based assessments when selecting new suppliers. In addition, all of our suppliers are expected to abide by the Church & Dwight Co., Inc. Global Operations Guiding Principles (“Guiding Principles”) which set out minimum standards for working conditions that are safe and afford workers respect and dignity. The Employment Standards within the Guiding Principles provide that “employees must be employed of their own free will,” suppliers are not permitted to utilize “forced labor in any form,” may not utilize corporal punishment as a form of discipline, and must pay employees wages required by law. Our Guiding Principles are posted on www.churchdwight.com.
- Our supplier contracts require suppliers to conduct their operations in accordance with all applicable laws. In addition, consistent with the Guiding Principles, our supplier contracts include a Child Labor and Forced Labor warranty which requires suppliers to warrant that they do not “employ children, prison labor, indentured labor, bonded labor or use corporal or other forms of mental and physical coercion as a form of discipline” and that they “will not conduct business with vendors employing children, prison labor, indentured labor, bonded labor or who use corporal punishment or other forms of mental and physical coercion as a form of discipline.”
- In our supply contracts, Church & Dwight reserves the right to audit suppliers’ premises for compliance with the Child Labor and Forced Labor warranty. Church & Dwight’s standard quality audit protocols, applicable to scheduled audits by Church & Dwight personnel, include suppliers’ compliance with the Child Labor and Forced Labor warranty and our Guiding Principles as one of the audit items. Any supplier found to be in violation is subject to corrective action including termination of business.
- Church & Dwight requires all of its employees and management to abide by our Code of Conduct. Our Code of Conduct requires that we maintain the highest ethical standards and never take unfair advantage of anyone. It was designed to encourage a culture of honesty, accountability and mutual respect; to provide guidance to help personnel recognize and deal with ethical issues; and to provide a reporting mechanism for company personnel to report unethical conduct.
- Any violation of the applicable laws, our Code of Conduct or the Guiding Principles by a Church & Dwight employee may result in disciplinary action, including termination of the employee.
Church & Dwight will continue to review its policies and procedures to make sure we have appropriate safeguards in place to protect persons employed in bringing out products to our consumers.
Global Operations Guiding Principles
CHURCH & DWIGHT CO., INC
GLOBAL OPERATIONS GUIDING PRINCIPLES
Church & Dwight products have been a standard of quality and environmental responsibility since 1846. We are committed to conducting our operations within our influence in a responsible manner. These guiding principles are the minimum standards to ensure that working conditions are safe, that workers are treated with respect and dignity and that manufacturing processes are environmentally responsible. We expect your commitment as a vendor for Church & Dwight to adhere to the following guiding principles.
Church & Dwight expects its vendors to adopt or establish a management system that covers the scope of these guiding principles. Training shall be provided by the vendor for managers and workers to implement policies, and procedures related to these guiding principles.
- Ethical Standards
Church & Dwight expects its vendors to conduct all business to a set of ethical standards compatible with the Church & Dwight Ethical Standards (a copy of which is attached as Exhibit A).
- Legal Requirements
Church & Dwight expects its vendors to be law abiding and to comply with all legal requirements relevant to the conduct of all their businesses.
- Employment Standards
Child Labor: Church & Dwight expects its vendors to employ individuals of the legal working age as specified by country requirements or at least age of 16 if not specified.
Prison Labor/Forced Labor: Employees must be employed of their own free will. The vendor can not use forced labor in any form -- prison, indentured, bonded or otherwise.
Disciplinary Practices: We will not utilize vendors who use corporal punishment or other forms of mental or physical coercion.
- Wages, Working Hours and Benefits
- Church & Dwight expects its vendors to pay their employees the wage required by law and shall provide legally mandated benefits.
- Employees must be paid for all hours worked. Wages for regular and overtime work must be compensated at the legally mandated rates.
- Wages must be paid in legal tender and at least monthly.
- Working hours must be in compliance with country specific requirements.
- Regular and overtime working hours must be documented, verifiable and accurately reflect all hours worked by employees.
- Employees must be provided with rest days in compliance with specific country requirements.
- Payroll deductions must comply with specific country requirements.
- Freedom of Expression and Association
Church & Dwight expects its vendors to respect the right of workers to join and organize associations of their own choosing.
- Living Conditions
Dormitories and canteens must be safe, sanitary and meet all local government standards.
Church & Dwight expects that workers shall be employed on the basis of their ability to do the job and not on the basis of personal characteristics, cultural differences or beliefs.
- Environmental Management
Church & Dwight expects its vendors to share our commitment to the protection of the environment. A vendor must have programs in place to minimize their impact on the environment and make efforts to contribute to improving conditions in the countries and communities in which they operate.
- Health & Safety Management
Church & Dwight expects its vendors to provide workers with a safe and healthy work environment. Programs must be in place to minimize the risk of accidents, injury, and exposure to health risks.
Church & Dwight expects its vendors to maintain on file all documentation needed to demonstrate compliance with these Global Operations Guiding Principles. The vendor agrees to make these documents available for monitoring by Church & Dwight.
CHURCH & DWIGHT CO., INC
GLOBAL OPERATIONS GUIDING PRINCIPLES
The reputation and integrity of Church & Dwight Co., Inc. are valuable corporate assets, vital to the Company’s success. Each Company employee, including each of the Company’s officers and general managers and each Company director, is responsible for conducting the Company’s business in a manner that demonstrates a commitment to the highest standards of integrity. Specifically, we encourage among Company personnel a culture of honesty, accountability and mutual respect. Additionally, we provide guidance to help Company personnel recognize and deal with ethical issues. Finally, we have provided mechanisms for Company personnel to report unethical conduct.
Dishonest or unethical conduct or conduct that is illegal will constitute a violation of these Standards and are grounds for disciplinary action.
Church & Dwight products have been a standard of quality and environmental responsibility since 1846. We are committed to conducting our operations, and the operations within our influence, in a responsible manner. We have implemented an environmental and safety management system which supports our policies and provides a framework to maintain regulatory compliance and ultimately operate beyond compliance.
Global Operations Guiding Principles
Our global operations guiding principles (the “Guiding Principles”), accessible via the tab on this webpage, are our minimum standards to ensure that working conditions are safe, that workers are treated with respect and dignity, and that manufacturing processes are environmentally responsible. In addition, Church & Dwight publicly discloses on our website our supply chain transparency efforts to eradicate slavery and human trafficking from our direct supply chains.
At Church & Dwight, we require all of our suppliers to abide by our Guiding Principles. In addition, our supplier contracts require suppliers to conduct their operations in accordance with all applicable laws. Also, consistent with the Guiding Principles, our supplier contracts include a Child Labor and Forced Labor warranty, which requires suppliers to warrant that they do not charge fees for employment or employ children, prison labor, indentured labor, bonded labor or use corporal or other forms of mental and physical coercion as a form of discipline, and that they will not conduct business with vendors who do so.
In our supply contracts, Church & Dwight reserves the right to audit suppliers’ premises for compliance with the Child Labor and Forced Labor warranty. Church & Dwight’s standard quality audit protocols, applicable to scheduled audits by Church & Dwight personnel, include suppliers’ compliance with the Child Labor and Forced Labor warranty and our Guiding Principles as audit items. Any supplier found to be in violation is subject to corrective action including termination of business.
At Church & Dwight, we are committed to conducting our operations in an environmentally responsible and sustainable manner while striving to achieve our business goals. Our focus is on the lifecycle impacts of our operations and products so that we can identify and reduce our areas of highest impact on the environment. As part of this effort, we are a member of The Sustainability Consortium, an independent organization of diverse global participants working collaboratively to build a scientific foundation to drive innovation and improve consumer product sustainability. We believe that products that have been responsibly designed and manufactured contribute to strong financial performance, reduced environmental impact and benefits to the communities in which we operate. Consequently, strong financial performance enables us to continue our innovative product development and product improvement efforts, and provide support for community projects.
We have developed a sustainability strategy that embodies a proactive approach to continued success based on preparedness, action and a manageable approach to sustainability issues and opportunities based on their relevance to our business objectives, corporate social responsibility, and customer and regulatory requirements. Our Sustainability Department guides the integration of many aspects of sustainability into our day-to-day business, aligned with our Guiding Principles. This group also facilitates dialogue with stakeholders, including customers, neighbors, investors and employees, and will help ensure that senior management is aware of significant issues and concerns raised by stakeholders. Personnel throughout the organization continue to evaluate and implement new programs to design safer products, increase product yields, reduce waste, increase recycling efforts, and reduce air emissions, water and energy usage.
We have been issuing annual reports to share information on our sustainability efforts and progress since the year 2008 (for first reporting year 2007). You can access these reports on our website. Our goals are to continue to improve upon these efforts year over year as we develop and refine our programs, and to enhance our transparency with more detailed reporting of our global product, supply chain and overall sustainability programs.
Church & Dwight Co., Inc. Palm Oil Sustainable Sourcing Commitment
While Church & Dwight Co., Inc. does not directly buy or use palm oil or palm kernel oil in our products, we strive to responsibly source palm oil derivatives in a manner which does not contribute to deforestation of high conservation value and high carbon stock forest and peatlands or exploitation of people and local communities. We do this because we recognize the palm oil industry has a significant impact on biodiversity, climate change, people and communities.
Some of our products, including animal feed, liquid laundry detergents, gummy vitamins, oral care and feminine care products, include palm oil derivatives such as glycerin, palm fatty acid distillate (PFAD) and palm kernel fatty acid (PKFA), among others. In 2015, Church & Dwight purchased virtually all of our approximately 60,000 tons of palm oil derived materials from one supplier, who is a member of the Roundtable on Sustainable Palm Oil (RSPO). For more information on our primary supplier’s sustainability program and "No Deforestation, No Peat, No Exploitation Policy" click here.
Church & Dwight’s palm oil derivative ingredient volume represents less than 0.1 percent of palm oil produced globally each year. Given that our palm oil use, and likewise influence, is relatively small on a global scale, we believe our greatest opportunity to impact the supply chain is in partnership with suppliers who are committed to responsibly source palm oil derivatives. We are working with our suppliers towards the goal of ensuring that the ingredients used in our products are from responsible sources.
As of December 31, 2015, an estimated 96% of our palm oil derivative volume received from our primary supplier was independently verified as traceable back to the mills according to our primary supplier’s supply chain mapping. That supplier has also represented to us that all such palm oil derivatives have been produced in conformance with its "No Deforestation, No Peat, No Exploitation Policy". Based on our primary supplier’s representations, we expect to trace all of that supplier’s palm oil derivative volume purchased by us to the mills by 2020. In addition, we have expanded our Palm Oil Sustainable Sourcing Commitment to more thoroughly address issues relating to deforestation, peatland protection and exploitation of workers in palm oil production. Our new and more comprehensive commitment expands the scope of our sourcing of palm oil derivatives commitment to address those areas. That commitment demonstrates our compliance with the following specific sourcing practices:
- Do not contribute to deforestation by conserving and protecting primary and secondary forests, High Carbon Stock1 and High Conservation Value2 forests across all of their landholdings;
- Commit to no new development on peatlands, regardless of depth;
- Use best management practices3 for existing palm oil plantations on peat soils;
- Prohibit the use of fire for preparation or clearing of land areas;
- Reduce greenhouse gas emissions from deforestation and existing operations;
- Comply with existing RSPO Principles and Criteria or other equivalent standards; and
- No exploitation of rights of indigenous peoples and local communities.
We require our primary supplier to meet or exceed the standards set forth in its No Deforestation, No Peat, No Exploitation Policy, provide quarterly reports regarding its supply chain mapping and progress reports against the commitments set forth in its policy and meet or exceed RSPO standards for RSPO certification. From time to time we may also further investigate various other approaches and tools that may be available to help us assess our supply chain. Due to the complexity of the palm oil derivative supply chain, the process of achieving traceability involves a number of companies at many tiers. Because our greatest opportunity to influence the supply chain is through our partnerships with our suppliers, our objective of achieving traceability to the mills by 2020 is subject to change based on the progress of our suppliers. In addition to full traceability to mills, we support and encourage suppliers to achieve as much traceability to the plantations as possible and to comply with RSPO standards as they evolve.
Church & Dwight also has a strong commitment to ethical and legal business practices and treating people in our operations and supply chain with dignity, respect and equal opportunity. We expect the same commitment from our suppliers who are required to comply with our Global Operations Guiding Principles, which reflect our commitment to internationally recognized standards and our support and respect for internationally proclaimed human rights and working conditions in our operations and supply chain. In addition, we publicly disclose on our website our supply chain transparency efforts to eradicate slavery and human trafficking from our direct supply chains. We will continue to assess, monitor and verify our direct suppliers’ sourcing practices and identify areas for improvement on an ongoing basis. In the event of non-compliance with our requirements, we reserve the flexibility and right to work with vendors to create corrective action plans with time-bound commitments or terminate business relationships.
Although Church & Dwight’s use of palm oil derivatives is small, we are committed to responsibly sourcing palm oil ingredients. We look forward to driving positive change through our vendors with the ultimate goal to safeguard biodiversity and local communities.
We will update this source and commitment annually.
- High Carbon Stock (HCS) forests as defined at http://highcarbonstock.org by the HCS Steering Group. ←
- High Conservation Value (HCV) as defined by the HCV network: https://www.hcvnetwork.org/about-hcvf/the-six-high-conservation-values. ←
- Best management practices covered by the “RSPO Manual on Best Management Practices (BMPs) for existing oil palm cultivation on peat.” ←
Church & Dwight products have been a standard of quality since 1846, and we are committed to conducting our operations, and the operations within our influence, in a responsible manner while striving to achieve our business goals. We believe that products that have been responsibly designed and manufactured contribute to strong financial performance, reduced environmental impact and benefits to the communities in which we operate. Consequently, strong financial performance enables us to continue our innovative product development and product improvement efforts, and provide support for community projects.
We are committed to ensuring that we are not sourcing minerals of the type classified as "conflict minerals" (as defined in Section 1502(e)(4) of the Securities and Exchange Act of 1934, as amended) that fund armed groups in the Democratic Republic of the Congo or an adjoining country (collectively, the "Covered Countries"). Accordingly, we are taking steps across our entire supply chain to support conflict free sourcing of conflict minerals. For example, our form purchasing terms and conditions to include a representation and warranty that the products supplied do not contain any conflict minerals and a requirement that we be alerted should such representation change. Church & Dwight expects all our suppliers to respect internationally recognized human rights, comply with all applicable laws and conduct their business ethically and responsibly. Any supplier found to be in violation is subject to corrective action potentially including termination of business.
Church & Dwight has determined that certain "conflict minerals" are necessary to the functionality and/or production of certain products manufactured or contracted to be manufactured by Church & Dwight in 2015 ("Covered Products"). Consequently, we conducted in good faith a reasonable country of origin inquiry regarding the conflict minerals. This country of origin inquiry was designed to determine whether any of the conflict minerals used in the Covered Products may have originated in the Covered Countries and/or whether any of such conflict minerals may be from recycled or scrap sources. We determined that certain of the conflict minerals used in the Covered Products may have originated in the Covered Countries, and, accordingly, we also performed due diligence on the source and chain of custody of such Conflict Minerals.
Copies of our Form SD and our Conflict Minerals Report filed as an exhibit thereto are available on our website at: http://investor.churchdwight.com/phoenix.zhtml?c=110737&p=irol-sec.