Ethical sourcing

Top down view of big clothing factory without workers.

We rely on our suppliers to help us achieve our purpose to help Canadians Live Life Well®. Delivering on this purpose requires that we build trust by conducting our business ethically, honestly and with the utmost integrity. That is why sourcing with integrity is a key component of the way we do business.

What do we expect?

To preserve the trust our stakeholders have in us, we count on our network of suppliers to commit to and uphold our high standards of integrity, values and operating principles. This means they must follow strong social and safety standards in all aspects of their operations. Our Supplier Code of Conduct (the “Supplier Code”) sets out minimum standards for responsible sourcing, including our commitments to human rights, the environment, health and safety, regulatory compliance, business ethics and the development of a diverse and sustainable supply chain. We expect our suppliers, agents, brokers and other third-parties to adhere to the Supplier Code and communicate these expectations to their contractors, agents, sub-contractors, sub-agents and labour agencies. Suppliers and related parties should diligently comply with the Supplier Code or local law, whichever provides the greater level of protection for their workers.

Spools of colourful thread.

Integrity Action Line

As a part of our culture of integrity, it is important that non-compliant and unethical matters are reported. We encourage anyone that has knowledge of or suspects suspicious activity, unethical practices, non-compliance and suspected non-compliance with laws and regulations, Governing Terms, the Supplier Code or Company policies and procedures shared with Suppliers to speak up by reporting any violations or potential violations through the following channels:

  • Call the Integrity Action Line: 1-800-525-7868 (available in English, French, Mandarin, Cantonese, Punjabi, Spanish and Korean languages); or

  • Use the following link: www.integrityactionline.com (available in English, French and Spanish languages).

We respect confidentiality and protection against retaliation

Loblaw prohibits retaliation or reprisal against suppliers and their workers who speak up in good faith, is committed to fair and appropriate treatment, and respects confidentiality for all parties involved. Reports to the Integrity Action Line may be made anonymously. The privacy of the reporter will be respected and confidential information will be shared only on a “need to know” basis or if required by law.

Monitoring

Monitoring labour and safety practices and conditions is of critical importance to us. Loblaw may wish to verify supplier compliance with the Supplier Code through a variety of tools:

  • Suppliers’ self-evaluation

  • Ongoing improvement programs

  • Audits by Loblaw or a supplier designated by Loblaw.

Suppliers are required to submit to such audits and be transparent about their operations. A key component of audits is effective interviews with workers and we expect suppliers to facilitate this communication. Loblaw personnel also visit supplier facilities to monitor progress of improvement programs. We continue to monitor and evaluate all offshore factories from which we are importer of record using the internationally recognized Workplace Conditions Assessment (WCA) standard and our own Supplier Code. The WCA audits assess labour conditions, wages, hours of work, health and safety, and the conditions of workplace environment

Consequences for non-compliance

For suppliers that do not comply with the WCA and/or the Supplier Code, Loblaw may immediately cancel orders and suspend or terminate, in whole or in part, its relationship with the supplier.

Working with our suppliers

Loblaw's supply chain has a team of audit compliance on-the-ground personnel in six nations including China, Bangladesh, Thailand, Cambodia, Vietnam and India. This team is responsible to ensure ongoing working condition audits and fire and building safety assessments are occurring in each of their regions. While proper labour and safety practices and conditions are the sole responsibility of the supplier, where necessary and appropriate, we work with them to support remedial improvement of their operations. This includes implementation of training for employees and management on key safety issues.

People in white lab coats wearing masks working in a factory.

Loblaw apparel supply chain disclosure

We have taken significant steps to improve safety and transparency within our international supply chain, specifically as it relates to apparel manufacturing and materials procurement. We work with leading international apparel brands, non-governmental agencies and labour groups to improve working conditions for the millions of garment workers globally.

Twice annually, we disclose the list of factories that we source our apparel and footwear products from. We believe that by providing this information to consumers and our stakeholder partners, we can better coordinate our efforts and support a more sustainable apparel industry.

Have responsibility questions?

Contact us

csr@loblaw.ca

As a part of our culture of integrity, it is important that non-compliant and unethical matters are reported.

Call the Integrity Action Line: 1-800-525-7868 (available in English, French, Mandarin, Cantonese, Punjabi, Spanish and Korean languages); or visit www.integrityactionline.com (available in English, French and Spanish languages).

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