Local dairy farmers supply Prolacto with fresh milk on a daily basis. This high-quality raw material is then processed to customer-specific dry products and butter using state-of-the-art machinery. In this segment, the company is a market leader in the archipelago for milk ingredient applications.
The company is working along with dairy farmers to assure the maximum quality for the raw material with high-end guidelines of Animal Welfare, quality, sustainability…
Code of Conduct for Suppliers
Prolacto's Supplier Code of Conduct defines the minimum standards to be respected and complied with by suppliers in the exercise of their commercial connection with Prolacto. This document reinforces the commitment to international standards, such as the UN Guiding Principles on Business and Human Rights, the fundamental conventions of the International Labour Organization (ILO) and the 10 principles of the UN Global Compact, extending them to all players in our supply chain. The Code is an extension of Prolacto's own Corporate Principles and is the basis of our Responsible Sourcing program described in the Compliance section.
The Code's standards create expectations for the Supplier with whom Prolacto does business, including its parent, subsidiaries and affiliates, as well as all others with whom they have a business relationship, all employees regardless of type of employment relationship, upstream suppliers and other third parties. It is the Supplier's responsibility to disclose, teach and diligently verify compliance with this Code in practice.
Prolacto relies on the Supplier to comply with all current laws and regulations, and with international and industry standards and best practices. In addition, Prolacto reserves the right to verify compliance with the Code through internal and external evaluation mechanisms and to require the implementation of the progress made towards compliance with the audited requirements.
4. Continuous Improvement
Prolacto recognizes that compliance with the standards set out in this Code is a dynamic process and encourages suppliers to continuously improve their operation. In the event that there is a need to implement improvements, or to use direct contracting of smallholders, or farmers, Prolacto will assist in setting up targets and systems to ensure that practices are constantly improved. Failure to do so will have direct repercussions on the Supplier's ability to work for Prolacto.
Acceptance of the Code is a prerequisite for all supply contracts entered into with Prolacto. By accepting a Purchase Order, alluding to the Code, the Supplier affirms its commitment that its entire operation is subject to the provisions present in this Code. This Code, or evidence of its compliance, does not grant the Supplier any third party beneficiary rights of any kind. The standards of the Code are an addition to, and not a replacement for, the provisions contained in any legal agreement or contract between Suppliers and Prolacto.
1. Human Rights
Prolacto wholeheartedly supports the United Nations Framework and Guiding Principles on Business and Human Rights and expects the Supplier to respect all human rights, including labor rights, throughout its business structure and activity. At least as to:
- Feedom of Association and Collective Bargaining
The Supplier shall guarantee its employees the right to Freedom of Association and Collective Bargaining in accordance with all applicable laws and regulations.
- Forced Labor
The Supplier shall not under any circumstances use or benefit in any way from forced labour under ILO Conventions No 29 on Forced or Compulsory Labour and No 105 on Abolition of Forced Labour. The term forced or compulsory labor refers to all slave labor exacted from an individual under the threat of any form of physical punishment, confinement or violence used as a method of discipline or control. Whenever the Supplier uses migrant workers or workers serving time under a legal framework, Prolacto must be informed in order to review their documentation.
- Recruitment Practices
Supplier shall hire only legally authorized workers and is responsible for validating the eligibility of its employees for work through appropriate documentation. All work must be voluntary and workers must be free to leave the service or terminate the contract after timely notice. Work must be performed as far as possible on the basis of a formalized employment relationship based on current national law and practice. Under labor or social security laws and regulations, you may not evade your obligations to employees arising from the regular employment relationship under the guise of employment-only contracting, subcontracting, or work-at-home arrangements, or through apprenticeship schemes where there is no real intention to impart skills or offer regular employment, nor may you evade these obligations under the guise of an excessive number of fixed-term employees. In cases of recruitment through external employment agencies, the Supplier shall respect existing agreements and Conventions in this regard.
- Minimum Age for Employment Admission
In line with ILO Convention 138 concerning Minimum Age for Admission to Employment and Convention 182 concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, the use of child labour by the Supplier is expressly prohibited. No child under the age of 15 (or 14 in certain developing countries) is authorized to work, subject to exceptions as provided by the ILO or national law. If the Supplier employs children, he/she must prove that they are not exposed to unnecessary risks that could affect their physical, mental or emotional development.
- Fair and Equitable Treatment
The Supplier shall conduct its business with dignity, respect and integrity towards its employees:
- Working Hours and Rest Days
The Supplier requires its employees to work in compliance with all applicable laws and mandatory industry standards regarding instituted working hours and overtime, including breaks, rest periods, vacations and parental leave. In the absence of legislation, the Supplier shall not require a weekly working time of more than 60 hours, employees shall be entitled to at least one day off after six consecutive working days, and overtime shall be paid in accordance with applicable law.
- Wages and Benefits
The Supplier's employees must be paid wages and benefits that, at a minimum, comply with national laws or industry standards and/or are governed by binding collective agreements. The Supplier shall not apply any form of deduction in remuneration for disciplinary or other reasons, or discriminate in employment and remuneration practices.
2. Health and Safety
Prolacto expects the Supplier's operational and management systems, as well as its employees, to work to prevent occupational injuries and illnesses.
- Work Environment
The Supplier must provide its employees with a healthy and safe working environment. As a minimum, drinking water, adequate lighting, temperature, ventilation, sanitation and personal protective equipment must be provided along with workstations properly equipped for their activities. In addition, the facilities must be built and maintained according to the standards set forth in applicable laws and regulations.
- Habitability Conditions and Respect for the Right to Privacy
Dormitories, whenever and wherever provided by the Supplier, must be constructed and maintained in compliance with all applicable laws and regulations and must be clearly separated from production facilities. All dormitory buildings must be clean and secure, and workers must be able to enter and leave freely at all times. Clean and sanitary conditions, adequate heating and ventilation, and rooms that allow privacy must be provided.
- Capacity to Respond to Emergency Situations
The Supplier must be prepared for emergency situations. This includes worker warning and evacuation procedures, emergency training and drills, appropriate first aid supplies, dedicated fire detection and firefighting equipment, and adequate means of egress. The Supplier shall provide regular training to its employees on emergency planning, preparedness and medical care.
- Product Quality and Safety
All products supplied and services provided by the Supplier must meet the quality and safety standards required by law. Whenever doing business with or on behalf of Prolacto, the Supplier must comply with the quality requirements established by Prolacto.
3. Environmental Sustainability
Prolacto requires its Supplier to comply with all legally applicable environmental requirements and proof of continuous improvement of its environmental performance.
- Environmental License and Reports
The Supplier shall make every effort to obtain, keep up to date and closely follow the guidelines regarding the reporting of all required environmental permits and that records are always in compliance with legal requirements.
- Environmental Management System
The Supplier shall document and implement an appropriate environmental management system (based on international standards such as ISO 14001:2004) designed to identify, control and mitigate significant environmental impacts.
- Hazardous Materials and Product Safety
The Supplier shall identify hazardous materials, chemicals and substances and ensure their proper use, movement, storage, recycling, reuse and disposal. All laws and regulations in force relating to hazardous materials, chemicals and substances must be strictly followed. The Supplier shall comply with requirements on material restrictions and product safety set forth in applicable laws and regulations. Suppliers shall ensure that their key employees are trained and aware of practices used for product safety.
- Resource Consumption, Pollution Prevention and Waste Minimization
The Supplier shall optimize the consumption of natural resources by implementing and proving viable measures to prevent pollution and minimize the generation of solid waste, wastewater and air emissions. Before discharging or disposing of waste, it shall characterize and treat water and waste appropriately and in accordance with current legislation
4. Business Integrity
A Prolacto exige que o Fornecedor cumpra toda a legislação e regulamentação de comércio ético aplicável nos países de onde as matérias-primas são originárias, produzidas e incorporadas no produto Prolacto. No que se refere aos serviços, deverá prevalecer o local onde o serviço é prestado.
The Supplier must never offer or promise, directly or through intermediaries, improper personal benefits for the purpose of winning or keeping a business or other advantages from third parties, whether in the public or private sector. The Supplier may not pay or accept bribes, arrange or accept kickbacks, or act in a manner that violates, or causes its business partners to violate, any applicable anti-corruption law or regulation.
- Grievance Mechanisms
The Supplier shall have systems in place to enable complaints and operational suggestions to be made, if possible anonymously. The complaint mechanism must be monitored and records kept for necessary action to be taken.
The Supplier shall preserve transparent and up-to-date file folders, books and records to provide evidence of compliance with applicable industry standards and regulations.
The Supplier must be able to disclose all potential sources of primary origin (country of origin) associated with deliveries made. Prolacto reserves the right to request the supplier to make, at some point, a complete map of the supply chain to origin to facilitate the assessment of upstream chain compliance.
- Intellectual Property
The Supplier shall take the necessary measures to safeguard and preserve confidential and protected information of its business partners and use this information only for the purposes authorized in the contractual agreement. In case of subcontracting, the sharing of confidential information must always be done with Prolacto's consent.
- Conflict of Interest
The Supplier shall report to Prolacto any situation that may give rise to a conflict of interest and inform Prolacto if any of its employees or professional under a contract concluded with Prolacto has any kind of participation in the supplier's activity or any economic connection with it.
Prolacto - Lacticínios de São Miguel, S.A.
Lagoa, 22 february 2021
(Oscar Criado del Rey) General Manager