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CODE OF CONDUCT 

Introduction 

Residus philosophy is based on the company’s value of “The Luxury of Consciousness”. That value apply to all employees and characterise everything we do. From the design phase, the ambience of our look and the way we present the collections, to the way in which we approach our customers, partners and one another. 

Partners 

We at Residus work hard to be a brand that our customers and other stakeholders can trust. We strive to be a fair and reliable business partner in a long-term and rewarding relationship, based on mutual trust. Our trading agents, suppliers and other business partners play an important part in realizing this aspiration. All partners to Residus are expected to operate in compliance with our Code of Conduct. This means that supplier companies, trading agents and other partners must ensure that the Code of Conduct also is respected and fulfilled by subcontractors involved in the production processes carried out on behalf of Residus. 

Residus views on corporate responsibility 

Our model for corporate responsibility is based on four interrelated and equally important areas: environmental responsibility, social responsibility, financial responsibility and ethical responsibility. 

Our environmental responsibility drives us to search for and value partners who strive to do business in an environmentally sustainable way. This partner is characterized by its capacity to continuously reduce their environmental impact. Residus sources leftover fabrics from factories and other fashion labels directly. By doing so we reduce the amount of water it takes to manufacture the fabric. Manufacturing textiles is extremely water intensive, and after the water is used in the manufacturing process, this often-polluted water is then sent back to our rivers, lakes and oceans. The World Bank estimates almost 20% of global industrial water pollution comes from the treatment and dyeing of textiles. Therefore we seek to work with those using eco-friendly manufacturing processes and practice fair and safe labor. Also, we search for partners that are financially responsible and run their business with a long-term focus. In social responsibility we value suppliers that take their responsibility as an employer seriously and therefore continually work to ensure good labour standards. Residus ethical responsibility will always be a factor in everything we do and reflected in the way we act in all situations. We think that business relationships with our partners must be based on honesty, openness and respect. We have the ambition for our employees and partners to be able to grow together with us. And therefore, we value suppliers that are open with their processes and challenges so that we can develop together. 

Willingness to work in accordance with our social, environmental and ethical standards in our Code of Conduct is a crucial factor when Residus evaluates and selects it’s suppliers and trading agents. Before entering a business relationship, Residus and the concerned partner always discuss the correspondence to our Code of Conduct. 

Control of compliance to our Code of Conduct 

Residus goal is to visit each sewing supplier every year to invest in the partner relationship and check compliance to our Code of Conduct. 

Scope of the Code of Conduct 

Residus Code of Conduct consists of two levels of requirements. All partners; trading agents, suppliers and subcontractors are expected to work in line with all requirements on both levels. 

Level one: Must have 

If a partner violates any of these requirements then there will be direct and more drastic actions taken to solve the problem. Residus reserves the right to take necessary measures to ensure future compliance with the Code of Conduct. However, we encourage work in order to find a long-term solution. 

  • • No child labour 
  • • No forced or bonded labour 
  • • No severe safety hazards 
  • • No severe environmental pollution 
  • • No corruption 
  • • Transparency regarding working hours and wages 
  • • Compliance to Residus chemical restriction list 


Level two: Should have 

If a partner violates a level two requirement the partner will be given the opportunity to improve, these improvements must be reported. Thereafter Residus will follow the improvements closely to ensure that this violation is not repeated. 

Social requirements: 

  • • No discrimination 
  • • Freedom of association 
  • • Living wages are paid 
  • • Hours of work are not excessive 
  • • Employment relationship is established 
  • • Decent working conditions 
  • • Employee education 

Environmental requirements: 

  • • Environmental management system

    Level one: Must have 

Social- & environmental requirements 

1. NO CHILD LABOUR 

– There shall be no use of child labour. The age for admission to employment shall not be less than the age of completion of compulsory schooling and, in any case, not less than 15 years. (ILO Convention 138) “There shall be no forms of slavery or practices similar to slavery, such as the sale and trafficking of children, debt bondage and serfdom and forced or compulsory labour. […] Children [in the age of 15-18] shall not perform work which, by its nature or the circumstances in which it is carried out, is likely to harm their health, safety or morals.” (ILO Convention 182) 

2. NO FORCED OR BONDED LABOUR 

– There shall be no use of forced, including bonded or prison, labour (ILO Conventions 29 and 105). Nor shall workers be required to lodge ”deposits” or their identity papers with their employer. 

3. NO SEVERE SAFETY HAZARDS 

– The employees and other people in the partner’s surroundings shall not be exposed to any direct safety risks, which can lead to long or short-term injuries. Toxic chemicals must be handled in a safe way and all employees must have access to proper protective equipment and working tools. There shall be clear emergency routines, with alarms and exit routines. 

4. NO SEVERE ENVIRONMENTAL POLLUTION 

– There shall be no emissions to air, water or ground that can have a direct severe impact on the surrounding environment, society or the public health. All partners must treat and manage their emissions in consistency with legal requirements. 

5. NO CORRUPTION 

– Partners should not, directly or indirectly, offer, promise, give, or demand a bribe or other undue advantage to obtain or retain business or other improper advantage. Nor should enterprises be solicited or expected to render a bribe or other undue advantage (OECD Guidelines 6). 

6. TRANSPARENCY REGARDING WORKING HOURS AND WAGES 

– All partners must be transparent and willing to show Residus documents of employees working hours and wages. 

7. COMPLIANCE TO RESIDUS CHEMICAL INSTRUCTIONS 

– Partners are obligated to follow Residus Chemical Instructions. (Chemical containers must be properly labelled and safely stored. A material safety data sheet (MSDS) must be available (in the local language) and the instructions in the MSDS must be followed (ILO Convention 170). 

We limit and eliminate the use of potentially harmful chemicals in the production of our products. 

We consider potentially harmful chemicals to be the ones that might be carcinogenic, endocrine disrupters, acutely toxic, allergenic or mutagenic. 

We do not want chemicals that are persistent, bio accumulated and ecotoxic. Our objective is to apply the precautionary principle in the chemical management. 

The supplier shall for procured products not use hazardous chemical substances under European Parliament and Council Regulation 1272/2008 (CLP Regulation on classification and labelling of chemical substances), and as defined by European Parliament and Council Regulation 1907/2006 (REACH) Article 57 as follows. 

  1. a) carcinogenic (Category I & II) 
  2. b) mutagenic (Category I & II) 
  3. c) reproduction toxic (Category I & II) 
  4. d) persistent, bio accumulative and toxic * (PBT) 
  5. e) very persistent and very bio accumulative (vPvB) 
  6. f) substances (PB or vPvB) but that are not toxic in the manner specified in d), but that leads to the corresponding concern for which there is scientific evidence of probable serious effects to human health or the environment.

    Level two: Should have Social- & environmental requirements 


8. THERE IS NO DISCRIMINATION IN EMPLOYMENT 

– Equality of opportunity and treatment regardless of race, colour, sex, religion, political opinion, nationality, social origin or other distinguishing characteristic shall be provided (ILO conventions 100 and 111). Discrimination due to gender is a common problem in the textile industry. Residus are strongly against sexual harassment and demand that partners treat their workers as equals and give them the same respect, opportunities and salary based on the workers individual performance. 

9. FREEDOM OF ASSOCIATION AND THE RIGHT TO COLLECTIVE BARGAINING ARE RESPECTED 

– The right of all workers to form and join trade unions and to bargain collectively should be recognised (ILO Convention 87 and 98). Workers representatives shall not be the subject of discrimination and shall have access to all workplaces necessary to enable them to carry out their representation functions (ILO Convention 135 and Recommendation 143). The representatives must be chosen by the employees and cannot be in a managerial position. Employers shall adopt a positive approach towards the activities of trade unions and an open attitude towards their organisational activities. Workers shall own the decision of whether or not to join the union. 

10. LIVING WAGES ARE PAID 

– Wages and benefits paid for a standard working week shall meet at least legal or industry minimum standards and always be sufficient to meet basic needs of workers and their families and to provide some discretionary income. Deductions from wages for disciplinary measures shall not be permitted nor shall any deductions from wages not provided for by national law be permitted without the expressed permission of the worker concerned. All workers shall be provided with written and understandable information about the conditions in respect of wages before they enter employment and of the particulars of their wages for the pay period concerned each time that they are paid. 

11. HOURS OF WORK ARE NOT EXCESSIVE 

– Hours of work shall comply with applicable laws and industry standards. Working hours should be scheduled to provide ample time for rest, meals and sleep. In any event, workers shall not on a regular basis be required to work in excess of 48 hours per week and shall be provided with at least one day off for every 7 day period. Overtime shall be voluntary, shall not exceed 12 hours per week, or 240 hours per year, shall not be demanded on a regular basis and shall always be compensated at a premium rate. 

12. EMPLOYMENT RELATIONSHIP IS ESTABLISHED 

– Obligations to employees under labour or social security laws and regulations arising from the regular employment relationship shall not be avoided through the use of labour-only contracting arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment. Younger workers shall be given the opportunity to participate in education and training programmes. 

13. WORKING CONDITIONS ARE DECENT 

– A safe and hygienic working environment shall be provided, and best occupational health and safety practice shall be promoted, bearing in mind the prevailing knowledge of the industry and of any specific hazards. The working environment should be suitable considering light, noise, climate and ventilation. The working condition shall not lead to any short or long term physical or psychological injuries. 

14. EDUCATE EMPLOYEES 

– Partners shall provide adequate education and training to employees in environmental health and safety matters, including the handling of hazardous materials and the prevention of environmental accidents, as well as more general environmental management areas, such as environmental impact assessment procedures, public relations, and environmental technologies. (OECD Guidelines 5.7) 

15. MANAGING ENVIRONMENTAL ISSUES 

– A management system that addresses environmental issues and drives the business to understand and improve their environmental performance must be established and maintained. This means that suppliers and subcontractors must collect and evaluate information regarding the environmental impacts, and establish measurable objectives and targets for improving their environmental performance. (OECD Guidelines 5.1) The management system shall focus on preventing pollution, minimizing waste and emissions, and optimizing water, energy and raw material consumption. 

All above mentioned ILO Conventions are found on www.ilo.org and all above mentioned OECD guidelines are found on www.oecd.org. For further information contact Residus, [email protected]

 

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