Wal-Mart Stores, Inc.
Standards for Vendor Partners
Wal-Mart Stores, Inc. ('Wal-Mart") has enjoyed success by adhering to
three basic principles since its founding in 1962. The first
principle is the concept of providing value and service to our
customers by offering quality merchandise at low prices every day.
Wal-Mart has built the relationship with its customers on this basis,
and we believe it is a fundamental reason for the Company's rapid growth
and success. The second principle is corporate dedication to a
partnership between the Company's associates (employees), ownership and
management. This concept is extended to Wal-Mart's Vendor Partners who
have increased their business as Wal-Mart has grown. The third
principle is a commitment by Wal-Mart to the United States and the
communities in which stores and distribution centers are located.
Wal-Mart strives to conduct its business in a manner that reflects
these three basic principles and the resultant fundamental values. Each
of our Vendor Partners, including our Vendor Partners outside the United
States, are expected to conform to those principles and values and to
assure compliance in all contracting, subcontracting or other
relationships.
Since Wal-Mart believes that the conduct of its Vendor Partners can
be transferred to Wal-Mart and affect its reputation, Wal-Mart requires
that its Vendor Partners conform to standards of business practices
which are consistent with the three principles described above. More
specifically, Wal-Mart requires conformity from its Vendor Partners with
the following standards, and hereby reserves the right to make peri odic,
unannounced inspections of Vendor Partner's facilities to satisfy itself
of Vendor Partner's compliance with these standards:
1. COMPLIANCE WITH APPLICABLE LAWS
- All Vendor Partners shall comply with the legal requirements and
standards of their industry under the national laws of the countries
in which the Vendor Partners are doing business. Should the legal
requirements and standards of the industry conflict, Vendor Partners
must, at a minimum, be in compliance with the legal requirements of
the country in which the products are manu factured. If, however, the
industry standards exceed the country's legal re quirements, Wal-Mart
will favor Vendor Partners who meet such industry standards. Vendor
Partners shall comply with all import requirements of the U.S. Customs
Service and all U.S. Government agencies. Necessary invoices and
required documentation must be provided in compliance with U.S. law.
Vendor Partners shall warrant to Wal-Mart that no merchandise sold to
Wal -Mart infringes the patents, trademarks or copyrights of others
and shall pro vide to Wal-Mart all necessary licenses for selling
merchandise sold to Wal -Mart which is under license from a third
party to protect intellectual property rights in the United States or
elsewhere. All merchandise shall be accurately marked or labeled with
its country of origin in compliance with the laws of the United States
and those of the country of manufacture. All shipments of merchandise
will be accompanied by the requisite documentation issued by the
proper governmental authorities, including but not limited to Form
A's, import licenses, quota allocations and visas and shall comply
with orderly marketing agreements, voluntary restraint agreements and
other such agree ments in accordance with U.S. law. The commercial
invoice shall, in English, accurately describe all the merchandise
contained in the shipment, identify the country of origin of each
article contained in the shipment, and shall list all payments,
whether direct or indirect, to be made for the merchandise, including,
but not limited to any assists, selling commissions or royalty payments. Backup documentation, and any Wal-Mart required changes to any
documentation, will be provided by Vendor Partners promptly.
2. EMPLOYMENT
Wal-Mart is a success because its associates are considered partners
and a strong level of teamwork has developed within the Company.
Wal-Mart expects the spirit of its commitment to be reflected by its
Vendor Partners with respect to their employees. At a minimum, Wal-Mart
expects its Vendor Partners to meet the following terms and conditions
of employment:
- Compensation
Vendor Partners shall fairly compensate their employees by providing
wages and benefits which are in compliance with the national laws of
the countries in which the Vendor Partners are doing business and
which are consistent with the prevailing local standards in the
countries in which the Vendor Partners are doing business, if the
prevailing local standards are higher.
- Hours of Labor
Vendor Partners shall maintain reasonable employee work hours in
compliance with local standards and applicable national laws of the
countries in which the Vendor Partners are doing business. Employees
shall not work more hours in one week than allowable under applicable
law, and shall be compensated as appropriate for overtime work. We
favor Vendor Partners who utilize less than sixty-hour work weeks, and
we will not use suppliers who, on a regularly scheduled basis, require
employees to work in excess of a sixty-hour week. Employees should be
permitted reasonable days off (which we define as meaning at least one
day off for every seven-day period in other words, the employee would
work six days and have at least one day off during a seven day period)
and leave privileges.
- Forced Labor/prison Labor
Vendor Partners shall maintain employment on a voluntary basis. Forced
or prison labor will not be tolerated by Wal-Mart. Wal-Mart will not
accept products from Vendor Partners who utilize in any manner forced
labor or prison labor in the manufacture or in their contracting,
subcontracting or other relationships for the manufacture of their
products.
- Child Labor
Wal-Mart will not tolerate the use of child labor in the manufacture
of prod ucts it sells. We will not accept products from Vendor
Partners that utilize in any manner child labor in their contracting,
subcontracting or other relation ships for the manufacture of their
products. For a definition of "Child", we will look first to the
national laws of the country in which the Vendor Partner is doing
business. If, however, the laws of that country do not provide such a
definition or if the definition includes individuals below the age of
15, Wal -Mart will define "Child", for purposes of determining use of
illegal child labor, as any one who is:
a. less than 15 years of age; or
b. younger than the compulsory age to be in school in the country in
which the Vendor Partner is doing business, if that age is higher than
15.
Wal-Mart supports legitimate workplace apprenticeship education
programs for younger persons.
- Discrimination /
Human Rights
Wal-Mart recognizes that cultural differences exist and different
standards apply in various countries, however, we believe that all
terms and conditions of employment should be based on an individual's
ability to do the job, not on the basis of personal characteristics or
beliefs. Wal-Mart expects its Vendor Partners to have a social and
political commitment to basic principles of human rights and to not
discriminate against their employees in hiring practices or any other
terms or conditions of work, on the basis of race, color, national
origin, gender, religion, disability, sexual orientation or political
opinion.
3. WORKPLACE ENVIRONMENT
- Wal-Mart maintains a safe, clean, healthy and productive
environment for its associates and expects the same from its Vendor
Partners. Vendor Partners shall furnish employees with safe and
healthy working conditions. Factories working on Wal -Mart merchandise
shall provide adequate medical facilities, fire exits and safety
equipment, well fit and comfortable workstations, clean restrooms, and
adequate living quarters where necessary. Wal-Mart will not do
business with any Vendor Partner which provides an unhealthy or
hazardous work environment or which utilizes mental or physical
disciplinary practices.
4. CONCERN FOR THE ENVIRONMENT
- We believe it is our role to be a leader in protecting our
environment. We encourage our customers and associates to always
Reduce, Reuse, and Recycle. We also en courage our Vendor Partners to
reduce excess packaging and to use recycled and non-toxic materials
whenever possible. We will favor Vendor Partners who share our
commitment to the environment.
5. BUY AMERICAN COMMITMENT
- Wal-Mart has a strong commitment to buy as much merchandise made
in the United States as feasible. Vendor Partners are encouraged to
buy as many materials and components from United States sources as
possible and communicate this information to Wal-Mart. Further, Vendor
Partners are encouraged to establish U.S. manufacturing operations.
6. REGULAR INSPECTION AND CERTIFICATION BY VENDOR PARTNER
- Vendor Partner shall designate, on a copy of the Wal-Mart Vendor
Partner Inspection and Certification Form, one or more of its officers
to inspect each of its facilities which produces merchandise sold to
Wal-Mart. Such inspections shall be done on at least a quarterly basis
to insure compliance with the standards, terms and conditions set
forth herein. The Vendor Partner Officer designated to perform such
inspections shall certify to Wal-Mart following each inspection that
he or she performed such inspection and that the results reflected on
such compliance inspection form are true and correct.
7. RIGHT OF INSPECTION
- To further assure proper implementation of and compliance with the
standards set forth in this Memorandum of Understanding, Wal-Mart or a
third party designated by Wal-Mart will undertake affirmative
measures, such as on-site inspection of production facilities, to
implement and monitor said standards. Any Vendor Partner which fails
or refuses to comply with these standards is subject to immediate
cancellation by Wal-Mart of all its outstanding orders with that
Vendor Partner as well as refusal by Wal-Mart to continue to do
business in any manner with that Vendor Partner.
As an officer of _______________________, a Vendor Partner of
Wal-Mart, I have read the principles and terms described in this
document and understand my company's business relationship with
Wal-Mart is based upon said company being in full compliance with
these principles and terms. I further understand that failure by a
Vendor Partner to abide by any of the terms and conditions stated
herein may result in the immediate cancellation by Wal-Mart of all
outstanding orders with that Vendor Partner and refusal by Wal-Mart to
continue to do business in any manner with said Vendor Partner. I am
signing this statement, as a corporate representative of
_____________________, to acknowledge, accept and agree to abide by
the standards, terms and conditions set forth in this Memorandum of
Understanding between my company and Wal-Mart. I hereby affirm that
all actions, legal and corporate, to make this Agreement binding and
enforceable against ___________________ have been completed.
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