Compliance guide
Supplier Code of Conduct Template
A supplier code of conduct sets out the standards you expect from the businesses you buy from, covering labour, ethics, safety and the environment. This guide gives you a ready-to-adapt template and shows how to roll it out. Need a full ESG document set instead? See your options.
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Key takeaways
- A supplier (or vendor) code of conduct defines the minimum standards your suppliers must meet to do business with you.
- It typically covers labour rights, modern slavery, health & safety, business ethics and environmental responsibility.
- Having one is increasingly expected during procurement and supplier-portal onboarding, and supports your own modern slavery reporting.
- Use the template below to write your own, or get a tailored ESG/CSR statement from ESG Complete that references your supplier expectations.
What is a supplier code of conduct?
A supplier code of conduct (sometimes called a vendor code of conduct) is a document that sets out the ethical, social and environmental standards you require from your suppliers and subcontractors. It tells the businesses in your supply chain what "good" looks like and what you won't tolerate.
Unlike an internal staff code, this one is directed outward, at the third parties you buy goods and services from. It's a core tool for managing supply-chain risk, including modern slavery.
Why your business needs one
- Procurement & onboarding, larger customers and portals increasingly expect suppliers to have one in place.
- Modern slavery, it's a key control for the Australian Modern Slavery Act and supports your modern slavery statement.
- Risk management, it sets clear expectations and gives you grounds to act if a supplier falls short.
- Reputation, it signals to customers that you take responsible sourcing seriously.
Supplier code of conduct template structure
Adapt this outline. Keep each section concise and written in plain English so suppliers of any size can understand and sign it.
- Introduction & scope, who the code applies to and your expectation that suppliers comply.
- Labour & human rights, no forced labour, no child labour, freedom of association, fair wages.
- Modern slavery, explicit prohibition and an expectation of due diligence down the chain.
- Health & safety, safe working conditions and compliance with WHS laws.
- Business ethics, anti-bribery, anti-corruption, conflicts of interest, fair competition.
- Environment, compliance with environmental laws and responsible resource use.
- Compliance & monitoring, your right to assess compliance and the consequences of breaches.
- Acknowledgement, a sign-off line for the supplier.
How to roll out your supplier code of conduct
Writing the code is only half the job, it has to reach your suppliers to be effective.
- 1
Finalise and approve the code
Adapt the template to your business and have it approved by management.
- 2
Add it to onboarding
Require new suppliers to acknowledge the code before they're approved as vendors.
- 3
Send it to existing suppliers
Distribute it to current suppliers and ask for written acknowledgement.
- 4
Reference it in contracts
Include compliance with the code as a contractual term in purchase agreements.
- 5
Monitor and review
Check compliance for higher-risk suppliers and review the code annually.
Need the full compliance set, not just a code?
ESG Complete produces a portal-ready ESG/CSR statement that ties together your sustainability, social-responsibility and supply-chain commitments, accepted by Felix, Avetta and CM3.
Sustainability Statement (CSR / ESG)
ESG, CSR and anti-slavery in one compliant PDF, built for supplier portals. (AU$499 inc GST)
Get started->Modern Slavery Statement
A standalone, portal-ready Modern Slavery Statement for vendors who only need this one document. (AU$159 inc GST)
Get started->