Per reader request, in this series of blog posts, I will provide in English a template (compliments of www.PSSchina.com) for the key terms and conditions that should be in a professional Vendor Code of Conduct for those who buy products in China. In the final installment of this series, I will offer some tips to improve the effectiveness of a Vendor Code of Conduct
Vendors shall comply with all legal requirements applicable to the conduct of their businesses, including those set out above.
Monitoring of Compliance
Vendors authorize Buyer and its principals to conduct scheduled and unscheduled inspections of Vendors’ facilities for the purpose of ensuring compliance with this Code of Conduct. During these inspections, Buyer and its principals shall have the right to review all employee-related books and records maintained by Vendors and to interview workers.
When violations are found, Buyer and the Vendor concerned will agree on a corrective action plan that eliminates the problem in a timely manner. If it is determined that a Vendor is knowingly and/or repeatedly in violation of this Code of Conduct, Buyer and its principals shall take appropriate corrective action, which may include cancellation of orders and/or termination of business with the Vendor in question.
Wishing you successful China sourcing!
About the blogger
Written by Mike Bellamy – author of, “The Essential Reference Guide to China Sourcing” (chinasourcinginfo.org/book) and founder of PassageMaker Sourcing Solutions (www.PSSchina.com)