At Emerson, our supply chain is essential to allow us to solve customer challenges and stay ahead of their needs. As our supply chain has expanded and broadened, we’ve focused our efforts on picking the right suppliers – those that share our values and principles – to help us deliver the right solutions in the right way.
We hold our suppliers to high standards, and expect them to align with our stances on social responsibility and ethics. To do so, we expect them to stay current with technology to deliver the best solutions to our customers in addition to acting with integrity and treating people and the environment with respect. These expectations help us maintain and build a supplier network that spans the globe, but always stays true to Emerson’s core values.
Emerson is committed to helping our suppliers meet these requirements by investing in our network for continuous improvement. These investments have potential to strengthen our suppliers, accelerate progress and improve quality of life in the regions where they operate throughout the world.
Our supply chain approach enables us to move at the speed of our customers’ needs, while always maintaining the highest levels of quality, backed by unwavering integrity and responsibility. And it ensures a strong and flexible supply chain that is positioned to sustain Emerson and its customers for the long haul.
To enhance our knowledge of suppliers and limit the risk of inadvertently supporting wrongful practices, we use internal, industry and public sources to alert us to improper supply chain behavior. We expect supply chain managers in our businesses to make reasonable assessments of questionable activity and to ensure that all practices conform to Emerson expectations. We encourage our businesses to conduct periodic reviews with large or preferred suppliers, which include discussion of social issues such as safety and environmental compliance.
Training Emerson Employees
Corporate social responsibility efforts address a range of complex issues across differing geographies, cultures and business practices. Acting responsibly requires knowledge of each subject, understanding of laws and practices, and the ability to recognize potential deviations. To deal with these complexities, Emerson trains managers and employees annually to help them engage effectively with suppliers as they communicate Emerson’s priorities. This training also helps improve our ability to recognize, report and support remediation of any compliance issues.
Affirming Supplier Responsibility
We expect all suppliers to operate in a manner that supports Emerson’s commitment to conduct business responsibly. Our form supplier agreement contains a “Standards of Conduct” clause, which states that we expect suppliers to comply with generally accepted principles of social responsibility, referencing the Emerson Supplier Code of Conduct. Currently, almost half of Emerson’s supply chain spend is under contracts containing this clause, and we will continue to build this percentage over time.
We expect suppliers to abide by our ethical behavior guidelines that forbid any Emerson employee or family member from accepting payment from outside parties in connection with supplier transactions. We also prohibit suppliers from offering gifts that could influence Emerson-related purchasing decisions.
We strive to have all principal suppliers affirm their understanding of Emerson values and standards regarding ethical behavior, labor practices, human rights and environmental protection.
Our Supplier Code of Conduct was developed for compliance with important regulations like the UK Modern Slavery Act 2015 and the California Transparency in Supply Chains Act. Emerson fully supports these and all other efforts to eradicate human trafficking across the globe. View our statement on the California Transparency in Supply Chains Act and United Kingdom Modern Slavery Act of 2015.
At Emerson, we strive for a best-in-class supply chain across our businesses and around the world. We are committed to working with suppliers who adhere to the Emerson Supplier Code of Conduct and actively manage and demonstrate materials compliance with pertinent governmental laws and regulations, including REACH, RoHS and Conflict Minerals. View Emerson’s Materials Compliance practices.
Emerson Conflict Minerals Statement
Emerson supports all efforts to end the human suffering and environmental impact that has been associated with mining in the Democratic Republic of Congo and adjoining countries. Emerson is committed to meeting all legislative and regulatory requirements that seek to eradicate this suffering. Together with other major manufacturers, Emerson is a member of the Conflict Free Sourcing Initiative (CFSI) that is working to develop conflict-free supply chains.
To this end, Emerson expects its suppliers and their suppliers to acquire minerals only from responsible sources. View Emerson’s Conflict Minerals Statement and our Form SD filing: Conflict Minerals Report for the Year Ended December 31, 2016.