AM. Management System

Code 7.0

Participants shall adopt or establish a management system with a scope that is related to the content of this Code. The management system shall be designed to ensure: (a) compliance with applicable laws, regulations and customer requirements related to the participant's operations and products; (b) conformance with this Code; and (c) identification and mitigation of operational risks related to this Code. It shall also facilitate continual improvement.

In VAP 7.0.0 this is a single, generic management-system appendix (provisions E2–E11) applied in common across the Labor, Health & Safety, Environment and Ethics components. The requirements below render that generic management system scoped to the Labor component. Where a component holds a valid third-party certification (e.g., ISO 14001 for Environment), that certification is treated as conformance for the component on a given provision; this does not apply to Labor, which is always verified.

Elements to Demonstrate Compliance to RBA Code

1. Policy

Have documented labor policies, aligned with applicable law, customer requirements and the RBA Code of Conduct, supported by a management system whose scope relates to the content of the Code. The management system shall be designed to ensure compliance with applicable laws and regulations and customer requirements, conformance with the Code, and identification and mitigation of operational labor risks, and shall facilitate continual improvement.

• a. A corporate social responsibility / labor policy statement, signed or endorsed by the highest-level facility or company manager, commits to regulatory compliance, other applicable requirements, and continual improvement.
• b. The policy statement is appropriate to the nature and scope of the facility's operations and is visible to all workers in a language each worker understands.

2. Procedures & Practices

Adequate and effective management processes are established for the labor component:

• a. Management accountability and responsibility (E2).
  • i. A senior representative is assigned responsibility for implementing labor programs, to ensure compliance with laws and regulations and the requirements of the RBA, and is authorized to implement programs, procedures and corrective actions as needed for regulatory compliance and RBA conformance.
  • ii. Responsibilities and authority of each organizational level (senior managers to workers) are documented in position plans, job descriptions and/or the facility's management system documentation, for both normal and emergency situations.
  • iii. An adequate and effective annual management review and continuous improvement process for labor performance and the management system is in place, with senior management assessing at least annually.
• b. Legal and customer requirements (E3). An adequate and effective quarterly compliance process maintains a current understanding of and compliance with applicable legal and customer requirements: identify, track, assess, integrate, implement, and record. An accurate and up-to-date compliance register and compliance calendar/reminders are maintained.
• c. Risk assessment and risk management (E4).
  • i. An adequate and effective risk assessment process using the hierarchy of controls (or equivalent) identifies the most significant labor risks (including applicable legal and customer requirements).
  • ii. The risk assessment is updated when there is a Significant Change.
  • iii. Any identified risk has an action plan to minimize the risk, plus procedural controls and/or an improvement objective; effectiveness of controls is evaluated on a regular basis.
  • iv. Scope of the risk assessment covers every site operation/process and physical location.
• d. Improvement objectives (E5). An adequate and effective annual performance management process sets formal, communicated labor indicators, objectives and targets; develops and implements improvement plans; reviews progress regularly; and takes additional action plans where an indicator, objective or target is off track. Scope considers risk-assessment results, legal/regulatory requirements and company standards; objectives are designed to achieve continual improvement, with assigned owners, implementation plans and completion dates communicated to workers as appropriate.
• e. Training (E6). An adequate and effective training process for all managers/workers covers labor policy, procedures, job-related aspects and performance targets, including:
  • i. New employee orientation plan, training needs analysis, training plan, training material, training records, training frequency, and training-effectiveness verification.
  • ii. Minimum labor training topics: freely chosen employment (avoidance of forced, involuntary or exploitative prison, indentured, bonded/debt-bondage, trafficked or slave labor); worker terms and conditions; non-retention of personal documentation; freedom of movement; legal minimum working age; young worker protection; apprentice/intern/student worker employment; working hours including overtime; mandated breaks, holidays and vacation, including time off when ill or for maternity leave; wage statements and wage calculation; disciplinary procedures; non-discrimination and harassment; reasonable accommodation for religious practices; freedom of association/collective bargaining and peaceful assembly; and the grievance and complaints system.
  • iii. Training programs are evaluated on a regular basis not exceeding 3 years, or sooner upon a Significant Change.
• f. Communication (E7). An adequate and effective worker/manager, Supplier and customer communication/reporting process for labor policies, practices and performance is established:
  • i. Suppliers — correspondence to Supplier management; contract terms and conditions requiring Suppliers to conform to the RBA Code.
  • ii. Customers — recruitment practices and performance (including freely chosen employment, e.g., demographics of labor and list of labor agents/contractors with percentage of workforce, costs to workers in total absolute numbers and per contract base, and labor agent/contractor fees). Submitting a SAQ to customers does not qualify as communication to customers.
  • iii. Workers/Managers — the minimum labor communication topics are covered.
  • iv. Communication programs are evaluated on a regular basis not exceeding 3 years, or sooner upon a Significant Change.
• g. Worker feedback, participation and grievance (E8).
  • i. An adequate and effective process allows work-related and Code-related grievances to be reported anonymously and confidentially, without fear of reprisal or intimidation — internal (workers and staff) and external (workers of suppliers, local community, interested actors and whistleblowers).
  • ii. Clear grievance channels are communicated and visible in workers' native language(s) so reporting is encouraged.
  • iii. The Auditee promptly investigates the validity of any grievance, takes prompt remedial action where valid, protects the identity of grievants, and ensures a no-reprisal approach.
  • iv. An adequate and effective process solicits and encourages worker participation, input and feedback for improvement (e.g., worker surveys, suggestion boxes, worker focus groups, joint worker-management committees, worker/union representatives, process-improvement teams), with prompt evaluation and action where input is valid.
• h. Audits and assessments (E9). An adequate and effective self-audit process periodically assesses conformance with applicable regulatory requirements, RBA Code requirements, the facility's own policies/standards/management system, and other requirements to which the facility subscribes. Audit scope covers all areas of the facility; all processes, physical conditions and work practices; review of documents and records; and interviews with individuals responsible. Audit findings are reviewed by senior management.
• i. Corrective action process (E10). An adequate and effective corrective action process rectifies and closes labor non-conformances, including corrective action reports/plans and tracking tables, root-cause analysis, specific corrective actions with owners and due dates, additional actions when a corrective action is off track, a demonstrated link between the CAP and the performance-management objectives/targets, and closure confirmed by a management representative after verification by the appropriate person.
• j. Documentation and records (E11). An adequate and effective documentation and records process applies appropriate retention (on and off site) and appropriate levels of access to ensure privacy, conforming to regulatory (including record-retention) requirements. Documents are securely stored with authorized access only.

3. Controls & Monitoring

• a. Each labor policy requirement has an effective implementation control process.
• b. Mitigating processes are in place for all significant actual and potential labor risks identified in the risk assessment, tracking implementation and the resulting reduction of adverse impact.
• c. Where controls are not yet in place, an implementation plan (with owners and due date) is in place and on track.
• d. Effectiveness of controls is evaluated on a regular basis, and management reviews labor performance and the management system at least annually.

4. Records

Records are maintained including:

• a. Accurate, up-to-date compliance register and compliance calendar; summaries of applicable laws, regulations and key customer requirements.
• b. Formal risk assessment reports and corrective/preventive action plans for identified risks; documented procedural controls.
• c. Formal target, indicator and objective tracking, and regular progress reporting.
• d. Training records (with verification of training effectiveness), training evaluation reports, and educational materials.
• e. Communication records (with verification of communication effectiveness) and presentations to Suppliers/customers.
• f. Grievance/complaint and input/feedback records retained for at least 12 months; written information to workers on how to report grievances and provide feedback.
• g. Self-audit reports and resulting corrective action plans (with off-track follow-up).
• h. Corrective action records: original non-conformance, CAP for each non-conformance, progress reports, closure verification reports (with management confirmation), and copies of any regulatory citations/violation notices received in the past three years.
• i. Management system review minutes and action items, including date, agenda, attendees (including senior manager), progress towards objectives, results of audits, completion of corrective/preventive actions, and risks/issues.
• j. A listing/table of documents and records retained, with retention conforming to requirements. Minimum records include: records of wages paid and hours worked; verification of worker age; contract terms and conditions; self-audit reports; regulatory compliance evaluations; risk assessments; work practices and procedures; performance against objectives and targets; reports of inspections by regulatory agencies; worker complaints; training records; and management system review minutes and action items.

5. Serious conditions that will result in a severe finding

• A confirmed grievance or complaint that is not investigated or that has no corrective action plan in place.
• No anonymous reporting channels available to workers, or no action taken or recorded on a grievance/complaint for 3 months.
• No senior management representative identified and authorized to implement the labor management system.
• No risk process adequate for the scope and nature of operations and no controls in place.
• One or more unaddressed labor regulatory actions or penalties.
• Documentation and records that do not meet applicable regulatory requirements.

1.0.0 (2021-01-01)

Changed

• Initial historical baseline — generic Management System (RBA Code of Conduct 7.0), scoped to labour: Earliest imported version. In VAP 7.0.0 there was a single generic management-system appendix (provisions E2-E11) applied in common across the Labor, Health & Safety, Environment and Ethics components. This version renders that generic system scoped to the labour component: management accountability and responsibility (E2), legal and customer requirements (E3), risk assessment and risk management (E4), improvement objectives (E5), training (E6), communication (E7), worker feedback, participation and grievance (E8), audits and assessments (E9), corrective action process (E10), and documentation and records (E11). From VAP 7.1.2 this generic system was split into four category-specific management criteria (Labor, Health & Safety, Environment, Ethics).