Buyer Code of Conduct (COC)

1. What is a Buyer Code of Conduct?

A Buyer Code of Conduct is a set of standards and expectations that a buyer or brand requires its suppliers and business partners to follow. It commonly covers labor rights, working conditions, wages, health and safety, environmental responsibility, human rights, and ethical business practices.

2. What are the main requirements of a Buyer Code of Conduct?

Common requirements include preventing child and forced labor, maintaining safe working conditions, paying workers correctly, controlling working hours, preventing discrimination and harassment, protecting the environment, maintaining ethical business practices, and complying with applicable laws.

3. Why do international buyers require suppliers to follow a Code of Conduct?

Buyers use a Code of Conduct to establish consistent expectations across their supply chain and identify risks related to labor practices, human rights, workplace safety, environmental performance, and business ethics. It also helps buyers assess whether suppliers meet their responsible sourcing requirements.

4. Is a Buyer Code of Conduct the same as a Supplier Code of Conduct?

The terms are sometimes used interchangeably, but they can have slightly different meanings depending on the company. A Buyer Code of Conduct generally describes the standards expected by the buyer, while a Supplier Code of Conduct focuses specifically on the obligations suppliers and their business partners must meet.

5. Does Buyer Code of Conduct compliance require a social compliance audit?

Not necessarily. Some buyers require suppliers to undergo a specific social compliance audit, while others may use self-assessments, buyer assessments, certifications, or independent audits. Suppliers should always check the specific requirements communicated by their buyer.

6. What documents are required for Buyer Code of Conduct compliance?

Documents can vary depending on the buyer and the scope of the assessment. Common evidence includes employee records, employment contracts, attendance records, payroll and overtime records, safety training records, fire drill records, risk assessments, environmental permits, waste disposal records, grievance records, and supplier documentation.

7. What do auditors check during a Buyer Code of Conduct assessment?

Auditors may review documents, inspect the workplace, interview management, and speak with workers. They can examine areas such as working hours, wages, worker age, health and safety, emergency preparedness, labor practices, environmental management, grievance mechanisms, and supply-chain controls.

8. What are common Buyer Code of Conduct violations in factories?

Common findings can include excessive working hours, incorrect overtime payments, incomplete employee records, inadequate fire safety measures, blocked emergency exits, insufficient worker training, poor chemical management, missing environmental records, unauthorized subcontracting, and ineffective grievance mechanisms.

9. How can a factory prepare for a Buyer Code of Conduct audit?

A factory should first understand the buyer’s requirements and then conduct a gap assessment. It should correct critical issues, organize supporting documents, train workers and management, review workplace conditions, and conduct a pre-audit assessment before the buyer’s actual assessment.

10. What happens if a supplier does not comply with a Buyer Code of Conduct?

The consequences depend on the buyer and the severity of the issue. A supplier may receive a corrective action request, undergo a follow-up assessment, or be placed under increased monitoring. Serious or unresolved violations can potentially affect the supplier’s business relationship with the buyer.

11. How often should a factory review its Buyer Code of Conduct compliance?

Factories should not wait until an audit is scheduled. Regular internal reviews help identify problems early and ensure that policies, workplace practices, records, and corrective actions remain up to date. The frequency can depend on the buyer’s requirements and the factory’s risk profile.

12. Can QABS help with Buyer Code of Conduct compliance?

Yes. QABS can support suppliers with buyer compliance assessments, factory gap assessments, social compliance audit preparation, documentation review, corrective action planning, and preparation for standards and audits such as SMETA, amfori BSCI, SA8000, and WRAP, depending on the supplier’s requirements.