This content was subject to assurance by SGS Italia S.p.A. (14 March 2014).

Supply chain standards

We are committed to ensure impartiality and equal opportunities for all parties involved in the supplier selection process. Suppliers are selected based on the quality and competitiveness of their products and services, and on their respect of social, ethical and environmental principles.

This commitment is a prerequisite to becoming a Group supplier and developing a lasting business relationship with the Group. For this reason, and in order to address, prevent, and mitigate any potential impacts, contractual clauses have been progressively introduced since 2009, and the new agreements require suppliers to comply with both the Group’s code of conduct and specific Sustainability Guidelines.

Suppliers must duly carry out business activities according to the ethical standards and procedures in force in the country/countries in which they operate, and as set forth by the code of conduct and Sustainability Guidelines.

Should a supplier fail to follow these principles, the Group reserves the right to terminate the business relationship or require the supplier to implement a corrective action plan, to be verified by audit. Compliance with environmental, social and governance clauses is required in 100% of new agreements (General Terms and Conditions). For the sake of clarity, the above clauses are also included in new agreements (in addition to the General Terms and Conditions) regarding each specific project.

Supplier Sustainability Guidelines are available on the Supplier Portal and on the Group corporate website. They focus on the following principles:

  • Human rights and working conditions
    • rejection of the use of forced or child labor in any form
    • recognition of the right to freedom of association in accordance with applicable laws
    • freedom from harassment and discrimination
    • safeguarding of employee health and safety
    • guarantee of equal opportunities, fair working conditions, appropriate working time, equal compensation, and the right to training for employees
  • Respect for the environment
    • optimization of the use of resources
    • responsible waste management
    • elimination of potentially hazardous substances from the manufacturing process
    • development of low environmental impact products
    • use of an environmentally sustainable logistics system
  • Business ethics
    • high standards of integrity, honesty and fairness
    • prohibition of corruption and money laundering

 

Group Purchasing monitors supplier compliance with the Guidelines through a Sustainability Committee (“the Committee”). The Committee’s role is to review performance and to identify the appropriate actions for non-compliant suppliers in order to prevent and mitigate actual and potential adverse impacts. The Committee consists of the Processes Compliance manager, the Head of the Group Supplier Engineering Unit, and the General Counsel. The Group is committed to ensuring that all new Fiat and Chrysler purchase agreements regularly incorporate contractual clauses on adherence to Sustainability Guidelines.