Krones Group Supplier Code
Partners for the future
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Table of Contents
Partners for the future 3
Corporate strategy 4
Health and safety 5
Environmental impact 6
Labour 7
Compliance 9
Commitment and monitoring 10
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Partners for the future
Dear Business Partners,
Within the Corporate Guidelines and KRONES Code of Conduct, the
Krones Group and all its plants have committed themselves to support
and apply the basic principles in the areas of human rights, fair working
conditions, environmental protection and the fight against corruption.
KRONES would like to persuade its business partners to apply these
principles and to share its ethical values. In this Supplier Code, the term
"business partner" is taken to include business partners on the purchase
side, such as suppliers, service providers, licensees and licensors and oth-
er technology partners.
This Supplier Code is an integral part of various KRONES concepts, such
as the sustainable corporate and business development concept and the
KRONES anti-corruption programme.
KRONES expects its business partners to follow the applicable legal
standards such as the OECD Guidelines, the UN Guiding Principles on
Business and Human Rights and the ten principles of the UN Global
Compact and to work towards compliance with the higher standards set
out in this document.
The business partners undertake to monitor and actively promote
compliance with the basic principles at all their sites and in all their
activities.
This is the foundation for collaboration with a common sense of
innovativeness, a willingness to embrace change and a consistent
commitment to achievement.
Christoph Klenk
Chairman of the Board of Krones AG
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Corporate strategy
Innovation and product quality Business partners shall align their value
creation in conformity with the corporate
KRONES' success is founded on the following fundamental strategies: strategy of KRONES.
specialist knowledge in mechanical engineering and buyer sectors, tech-
nical advantage through continually high investment in research and
development, manufacturing with the most up-to-date equipment and in
accordance with high quality standards, around-the-clock global service
and the high professional skills and qualifications of our workforce.
KRONES expects its business partners to align their value creation in con-
formity with these strategies in order to enable collaboration that is based
on a common sense of innovativeness, a willingness to embrace change and
a consistent commitment to achievement.
Intellectual property
Business partners undertake to treat all data provided by KRONES in the
strictest confidence and only to use such data for the purposes of the busi-
ness relationship, unless express approval is given for other purposes. At the
same time, KRONES assures all business partners that it will handle their
sensitive data carefully and in confidence.
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Health and safety
Protection of workers' health and safety Business partners shall guarantee wor-
king conditions that optimally protect
Business partners shall identify risks (especially chemical, physical, mech- workers’ health and safety
anical, and biological risks) and take all necessary measures to ensure the at all sites.
health and safety of employees at work and the integrity of the infrastruc-
ture provided.
Operation and maintenance of equipment
Business partners shall possess all of the processes and means necessary
for ensuring the safe operation and appropriate maintenance of all equip-
ment (production, supply, etc.).
Emergency preparedness
Business partners shall anticipate, identify and assess emergency situations
and take all measures necessary to minimise their impact both on site and
off site by effectively implementing emergency plans and procedures.
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Environmental impact
Wastewater, emissions and solid waste Business partners shall comply with the
environmental laws and regulations of
Wastewater and service water generated from industrial operations and the countries in which they operate.
emissions of hazardous substances shall be measured, monitored and if
necessary treated before being discharged into the environment.
Solid waste shall be recycled or reused wherever possible. Business partners
shall ensure that all solid waste – and hazardous waste in particular – is dis-
posed of in secure, properly permitted facilities in accordance with regula-
tions. The traceability of disposal must be ensured.
Pollution prevention
Business partners shall ensure that all substances that pose a threat to the
environment are properly identified, labelled and stored in order to ensure
proper disposal in the event of leaks or accidental spills. They shall ensure
that they have effective organisational procedures in place and the neces-
sary means available to deal with accidents entailing a risk of land or water
pollution.
Resource management and climate change
Business partners shall endeavour to reduce their consumption of energy,
water and non-renewable resources.
Business partners shall measure their emissions of greenhouse gases and
voluntarily commit to reducing them.
Compliance with laws and regulations
Business partners shall comply with the environmental laws and regul-
ations of the countries in which they operate. Business partners shall
possess all required certificates and/or permits for operating their sites and
meet the requirements of such certificates and permits.
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Labour
Equal opportunity Business partners undertake to com-
ply with the IAO Conventions in respect
Business partners shall not discriminate against any worker on the basis of of equal opportunity, child labour and
race, skin colour, age, gender, sexual orientation, marital status, ethnicity, forced labour.
disability, religion, political affiliation, union membership, etc. in hiring or
employment practices, including access to training and continuing educa-
tion, promotion, remuneration, etc.
Reference:
ILO Convention No. 100 concerning Equal Remuneration
ILO Convention No. 111 concerning Discrimination in Respect of Employment
and Occupation
Child labour
The minimum age for employment shall be based on the laws of the re-
spective country and shall not be less than 14 years age regardless of the
type of work. The minimum age for allowing any type of employment or
work which may harm the health, safety or morals of young people shall
not be under 16 years of age.
Reference:
ILO Convention No. 138 concerning the Minimum Age for Admission to Em-
ployment
ILO Convention No. 182 concerning the Worst Forms of Child Labour
Forced labour
Forced or compulsory labour of any type is prohibited. Workers shall be free
to leave work or terminate employment with reasonable notice as provided
for under the law.
Employers are prohibited from withholding any identity papers, passports,
training or apprenticeship certificates, work permits or other documents.
Employing convicts is permitted. The only condition is that their work must
be voluntary and they must be remunerated for their work.
Reference:
ILO Convention No. 29 concerning Forced Labour
ILO Convention No. 105 concerning the Abolition of Forced Labour
Mistreatment
Inhuman treatment, corporal punishment, insults and threats are prohib-
ited. Any form of physical coercion and physical, sexual or verbal abuse, in-
timidation or harassment is also unacceptable.
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Labour
Working hours Business partners shall follow the require-
ments of the ILO Conventions concern-
Working hours shall be based on national laws. ing working hours, wages and benefits,
freedom of association and freedom of
The working week shall be restricted to a maximum of 60 hours, with at expression.
least one rest day per week.
Reference:
ILO Convention No. 14 and No. 106 concerning Weekly Rest
Wages and benefits
Suppliers shall pay workers at least the minimum wage required by appli-
cable laws and regulations and provide legally mandated benefits. (This al-
so applies to apprentices, interns and employees in their trial period.) In ac-
cordance with national laws on maximum working hours, overtime shall be
paid at a higher rate than normal working hours.
The basis for calculating wages shall be formalised and known to all work-
ers. Wages shall be paid in cash or by cheque or bank transfer. All other
forms of payment shall only be permitted in special cases as provided for
under national laws. Wages shall be paid in regular and reasonable inter-
vals.
Reference:
ILO Convention No. 95 concerning the Protection of Wages
ILO Convention No. 131 and IL Recommendation No. 135 concerning Mini-
mum Wage Fixing
Freedom of expression and freedom of association
Open communication and direct dialogue with workers concerning work-
ing conditions and issues of pay without the fear of reprisal, intimidation or
threats shall be encouraged. Employees shall be entitled to belong to trade
unions as permitted by and in accordance with the applicable laws of the
particular country.
Reference:
ILO Convention No. 87 concerning Freedom of Association and Protection of
the Right to Organise
ILO Convention No. 98 concerning the Right to Organise and Collective Bar-
gaining
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Compliance
Gifts and invitations In the KRONES anti-corruption pro-
gramme Krones commits itself to a
Business partners are prohibited from offering KRONES Group employees zero-tolerance policy – and it expects the
money in any amount, gifts, loans, discounts, or valuables that could incite same of its business partners.
the employees to act in breach of their duties.
Gifts and invitations that fall within the scope of normal business hospital-
ity, custom and courtesy and therefore within the permitted range of gifts
and gratuities at KRONES are excluded from this prohibition.
Fight against corruption
In the KRONES anti-corruption programme KRONES undertakes to drive
business forward solely through quality and integrity. KRONES therefore fol-
lows a zero-tolerance policy in respect of bribery/blackmail, conflicts of in-
terest and all other manifestations of corruption.
We also expect our business partners to prohibit unreservedly, and where
appropriate to sanction, corruption, bribery and other immoral conduct of
this nature.
Conflicts of interest
Business and private interests are strictly separated at KRONES. No individ-
ual may use their own position in the company for their own benefit or the
benefit of their family or friends. All employees are required to inform their
line manager at once of any actual or suspected conflict of interest.
KRONES likewise expects its business partners to reach decisions relating to
their business activities with KRONES solely on the basis of material criteria.
Conduct towards competitors
KRONES supports the principle of fair competition and complies with the
provisions of competition and cartel law.
KRONES also expects its business partners to conduct themselves fairly in
competition and to remain bound by cartel law.
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Commitment and monitoring
Ensuring compliance Business partners shall verify compliance
with the standards defined in this Code
Business partners shall have all necessary and sufficient internal procedures at regular intervals, engage in dialogue
and processes in place to ensure compliance with all of the above principles. with their own business partners and al-
low KRONES to conduct audits in this re-
KRONES recognises that the achievement of the standards set out in this gard. In the event of non-compliance with
Code is a dynamic process and encourages business partners to improve these standards, KRONES reserves the
their processes continuously. Where necessary, KRONES will assist in the right to respond accordingly.
definition of milestones and the establishment of systems to ensure the
continuous improvement of business practices.
Dialogue with business partners
Business partners shall communicate the principles anchored in this Suppli-
er Code to their subcontractors and other business partners. They shall
require their own business partners to apply the same standards to their
activities.
Audits
Business partners shall permit KRONES to monitor compliance with these
principles in the form of audits or to have an independent third party that is
approved by both parties monitor compliance and take appropriate action
in the event of non-compliance.
Consequences of violations
Any breach of the principles and requirements set out in this Supplier Code
will be considered a material impairment of the contractual relationship
on the part of the business partner. If it suspects non-compliance with the
principles and requirements set out in the Supplier Code (e.g. through neg-
ative media reports) KRONES reserves the right to demand disclosure con-
cerning the relevant facts.
KRONES will further have the right to terminate some or all contractual re-
lations with business partners without notice if the business partners de-
monstrably fail to fulfil the Supplier Code or do not instigate and imple-
ment improvement measures having been set a reasonable period of time
by KRONES in which to do so.
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Subject to change · PDF_en · 05/16
krones ag
Böhmerwaldstraße 5
93073 Neutraubling
Germany
Phone +49 9401 70-0
Fax +49 9401 70-2488
E-mail info@[Link]
Internet [Link]
