Code of Conduct for Suppliers

Lammhults Design Group strives for sustainable production and strong business ethics in everything we do. Our suppliers play a vital role in this commitment, and our Code of Conduct sets out the values and requirements we expect them to follow. It provides clear guidance to ensure that every part of our supply chain supports sustainability, quality, and responsible business practices.

Our Code of Conduct for Suppliers

Lammhults Design Group designs products with a long lifespan and high quality, with a tradition of responsible and sustainable production. We strive to be pioneers and to continuously improve our sustainability work. The values that characterize our actions are business ethics, morality, and integrity.

Our suppliers are an extension of our own business, and we expect everyone to act in accordance with our values. This Code of Conduct is a tool to ensure that all suppliers uphold our values and contribute to our work to integrate sustainability into the group’s operations and development. Our suppliers must comply with the code and work to ensure compliance in their own supply chains. Clear communication is a prerequisite for successful sustainability work and continuous improvement. The Code of Conduct sets out the minimum requirements and ambitions of the group, but we encourage our suppliers to take even greater responsibility for people and the environment.

Compliance requirements – international regulations and standards

Compliance with Lammhults Design Group’s Code of Conduct for Suppliers means that suppliers implement and document procedures, working methods, and governing documents to ensure that the production of the goods supplied takes place under conditions that are consistent with the following regulations:

  • The UN Universal Declaration of Human Rights (1948)
  • UN Convention on the Rights of the Child, Article 32
  • UN Declaration Against Corruption
  • ILO core conventions on forced labor, child labor, discrimination, and freedom of association and the right to organize (No. 29, 87, 98, 100, 105, 111, 138, and 182)
  • Occupational health and safety legislation in accordance with ILO 170 (on safety in the use of chemical products), ILO 155 (on occupational safety and health), other labor legislation, and environmental protection legislation applicable in the production country
  • Labor law, including legislation on minimum wage and social security protection applicable in the production country
  • The UN Global Compact’s ten principles on the environment, labor law, human rights, and anti-corruption
  • Agenda 2030 – the UN’s Global Sustainability Goals for local and global development with regard to people and the environment
  • The OECD Guidelines for Multinational Enterprises

The supplier must also comply with applicable laws, regulations, and standards in the countries where the supplier operates and holds all permits, licenses, and registrations necessary for the business. The business must be conducted in accordance with applicable permits and statutory conditions in its own operations and with requirements and follow-up to ensure that subcontractors also comply with the same.

Your obligations as a supplier under the regulations

The supplier shall support and respect human rights

The supplier shall ensure that it does not contribute, directly or indirectly, to violations of human rights as defined in the UN Universal Declaration of Human Rights (1948). This also means that the supplier must not fail to ask questions about human rights violations or take advantage of violations committed by others.

The supplier shall have procedures in place to regularly assess the risk that the supplier, through its activities, contributes to human rights violations and to address any risks. This work requires that the person responsible for compliance with the Code of Conduct has knowledge of the human rights. If there is any uncertainty about what this entails, LDG should be contacted for clarification.

No form of child labor may occur

Child labor refers to any economic activity performed by a person of school age or younger. No employee may be under the age of 15 (or 14 if permitted by national law), or younger than the minimum age for employment, if this age exceeds 15. Young people between the ages of 15 and 18 may only perform non-hazardous work, provided that they have reached the legal working age and have completed their national compulsory education. If work is performed by young people between the ages of 15 and 18, the permitted (non-hazardous) work tasks must be clearly documented in a policy.

If child labor is discovered, the supplier must act in the best interests of the child and find appropriate and long-term solutions in consultation with the child and the child’s family, with the aim of enabling the child to continue participating in school education.

No form of forced labor may occur

Forced labor refers to work or services performed under threat of punishment or similar and which are not performed on a voluntary basis. No form of forced labor, such as any form of slave labor or other human trafficking, is permitted.  Nor may there be any requirement to confiscate passports, other identity documents, or money as a condition for employment. All work must be voluntary, and employees must have the right to terminate their employment after a reasonable period of notice in accordance with national legislation.

No form of discrimination or harassment may occur

The supplier shall promote diversity and equal opportunities in its operations and ensure that all employees are treated with respect and enjoy a safe working environment. No form of discrimination or harassment may occur in the business.

Discrimination refers to the differentiation of employees that is not based on merit or qualities, but involves unequal treatment on unreasonable grounds. Discrimination on the basis of ethnicity, gender, marital status, pregnancy, religion, social or ethnic origin, nationality, disability, political views, trade union membership, sexual orientation, or other grounds for discrimination in accordance with applicable law is not permitted.

Harassment refers to verbal or non-verbal treatment that is unwanted and violates someone’s dignity, including sexual harassment or any other form of psychological or physical punishment. Harassment must not occur in the business.

To ensure that discrimination and harassment do not occur in the business, the supplier should regularly conduct risk analyses of the business. The risk analysis should be followed up regularly, for example by checking for any shortcomings in relation to the requirements set out in this code.

Ensure freedom of association and collective bargaining

The supplier shall recognize and respect the right of employees to freely organize themselves into trade unions and participate in collective bargaining without risk of retaliation, threats, or harassment. The supplier shall ensure that union representatives can perform their duties in the workplace and shall not allow any form of punishment or discrimination against employees who are union members. In countries where freedom of association is limited or developing, the supplier shall contribute to employees being able to meet with company management to discuss salary and working conditions without negative consequences.

Offer legal wages and working hours

We follow the UN Global Compact’s recommendations regarding wages and working hours.

The supplier’s employees shall have:

  • Written employment contracts in a language they understand, containing a description of their duties, working hours, wages, and leave.
  • Right to statutory leave, including sick leave and parental leave, in accordance with national legislation.
  • Right to at least one day off per week. Weekly working hours may not exceed the statutory limit or 60 hours per week, including overtime.
  • Right to breaks during the working day.
  • Right to statutory overtime pay. This must be clearly specified in the payslip.

Wages shall be paid regularly, directly to the employee, on time and in full. Wage deductions as a disciplinary measure are not permitted. The above principles also apply to those who work for the supplier under employment-like conditions, such as temporary agency workers and consultants. However, the supplier shall endeavor to ensure that workers are employed under customary forms of employment in accordance with applicable legislation. The supplier shall endeavor to ensure that reasonable living wages are paid to employees and shall in no case pay less than the nationally/locally statutory minimum wage.

Ensure a safe and hygienic working environment

The supplier shall ensure that employees work in a safe and hygienic working environment, which means that employees are guaranteed protection against conditions that may pose a risk to their physical and/or mental health. Risk analyses and preventive measures to minimize injuries and health risks shall be taken, with a particular focus on risk factors, dangerous machinery, and equipment. Injuries shall be reported and documented. Employees shall receive training on the potential health risks associated with their work, including fire safety, hazardous work tasks, and first aid. The employer shall provide relevant protective equipment and ensure that written information on health and safety is accessible at the workplace, at no cost to the employee.

When using chemicals, these must be handled safely, and information about the chemicals and their handling must be available to all relevant personnel in a language they understand. All containers containing chemicals must be correctly labeled with the necessary information. There must also be contingency plans in place for any leaks. The supplier must ensure that written procedures regarding chemical risks are in place and continuously evaluate and follow up on such risks. When risks cannot be eliminated, the supplier must provide workers and/or the workplace with appropriate protective equipment.

The supplier shall ensure that the workplace is equipped with the necessary fire protection equipment, such as emergency exits, smoke detectors, fire extinguishers, and fire blankets. Emergency exits shall be clearly marked and illuminated and must not be blocked. Evacuation drills and fire alarm tests shall be carried out regularly.

No form of physical punishment is permitted for disciplinary purposes.

Employees and their trade unions shall be consulted on matters relating to health and safety at work.

In cases where employees are offered accommodation, this must provide opportunities for privacy, quiet, and personal hygiene.

Work to reduce environmental impact

The supplier shall conduct its operations with consideration for the environment and comply with local and national environmental legislation. The supplier shall ensure that the business holds and complies with applicable environmental permits. By having written procedures for identifying, measuring, and following up on its environmental impact, the supplier shall work to continuously improve its environmental performance and minimize its energy and resource consumption as well as emissions (to land, water, and air). Consideration shall also be given to the environmental impact, as well as the impact on people, when choosing materials. The precautionary principle shall be applied throughout the business. The supplier shall also have a chemical management system and work proactively to minimize and phase out hazardous substances in products and production.

The supplier shall strive for a life cycle perspective with regard to the environmental impact of products and services, and shall impose environmental requirements on subcontractors. This means that the supplier shall consciously strive to use as much recycled material as possible in products and packaging. The waste generated shall be disposed of in a systematic and environmentally sound manner that enables maximum recycling and reuse.

The supplier shall ensure that it or its subcontractors do not contribute to illegal eviction or illegal takeover of land, forests, or water, that people are not deprived of their livelihoods or their right to freely use their natural resources, or any other serious negative environmental impact that may affect, for example, people’s access to drinking water, food production, and other basic facilities.

Ensure good business ethics and combat all forms of corruption

The supplier’s operations shall be conducted in accordance with good business practice, promote free competition, and maintain high ethical standards. No form of corruption, abuse of power, bribery, or money laundering is permitted. The supplier shall not directly or indirectly offer or give improper payments or other compensation to any person or organization for the purpose of obtaining, retaining, or directing business or gaining any other improper advantage within the scope of its operations. The supplier shall not directly or indirectly request or accept any form of improper payment or other compensation from third parties that could affect the objectivity of business decisions.

The supplier shall have written procedures for dealing with any corruption.

Confidential information relating to Lammhults Design Group or Lammhults Design Group’s customers’ operations may only be used for the purpose for which it is intended. The supplier shall have clear procedures for handling confidential information relating to Lammhults Design Group and shall ensure that such information does not fall into the hands of unauthorized persons. All information shall be handled with care and restraint in day-to-day operations. If there is any suspicion that information about Lammhults Design Group has fallen into the hands of unauthorized persons, the supplier is obliged to contact Lammhults Design Group immediately and take measures to limit the damage.

Ensuring compliance with this code

By accepting the code, the supplier undertakes to meet the requirements of the code within its own operations and to work proactively to ensure compliance with the code’s requirements in the supply chain. The supplier undertakes to carry out risk analyses for the risk of violating the requirements of the code, and to design working methods and procedures to ensure compliance throughout the business, i.e. all employees and any subcontractors. In the event of any deviations or violations of the code, the supplier shall take the necessary measures to remedy these.

If the supplier deviates from the requirements of the code of conduct, and if correction is not made within a reasonable time specified by Lammhults Design Group, Lammhults Design Group reserves the right to terminate the parties’ agreement.

Enabling monitoring of the code of conduct

In order to effectively improve Lammhults Design Group’s impact on people and the environment in the value chain, good traceability and dialogue with suppliers are required.

Transparency on the part of the supplier and its own subcontractors is a prerequisite for verifying compliance with the code and remedying any deficiencies.

Lammhults Design Group follows up on compliance with the code in accordance with agreements. Suppliers must therefore submit requested documentation on demand and allow audits, both office audits and factory audits, by Lammhults Design Group or a third party, even during unannounced visits. In the event of any deviations, suppliers must present action plans and their implementation.

The supplier is responsible for taking appropriate measures to ensure that the content of this Code of Conduct is implemented in its own operations as well as in the supply chain.

Reporting violations

In the event of any violations of the Code of Conduct, in the own business or at a subcontractor, the supplier’s designated contact person must notify their contact person at Lammhults Design Group without delay. Alternatively, violations can be reported via Lammhults Design Group’s whistleblower function, where violations can be reported anonymously. Lammhults Design Group’s whistleblower function can be found here: Digital reporting via Trust & Heart