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In the context of trade globalization, in accordance with this Business Ethics Code, AUCHAN Retail expresses an intention to confirm its commitment to generally accepted principles and promote the compliance with these principles together with its suppliers, customers, and partners (hereinafter referred to as the "Partners") by developing fair and transparent business practices. AUCHAN Retail is also committed to fighting against corruption, exercising due diligence, respecting and enforcing the rules of the competition laws. AUCHAN Retail is committed to the principles of the Universal Declaration of Human Rights of 1948, OECD Guidelines, International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work of 1998, and the eight relevant ILO Conventions. The above commitments respected by AUCHAN Retail companies are subject to the ten principles of the United Nations Global Compact, which AUCHAN Retail adheres to. For instance, AUCHAN Retail requests its partners, just as it does itself, to perform the obligations contained in the Ethics Code.

The Code’s Scope of Application

The provisions of this Code apply to all Partners: Regardless of whether they are suppliers, including their subcontractors of the entire production chain, regardless of their rank, manufacturers, trademark holders, agents, and intermediaries, or relations of AUCHAN companies. Signing this code is a prerequisite for establishing commercial relations. A Partner shall comply with all aspects of the existing rules, especially with regard to social laws, labor, quality, product safety, and respect for the environment. The Partner shall observe each item of this code, and, in every instance, apply the strictest standards. AUCHAN Retail is especially focused on the product manufacturing conditions and their origin, which must comply with its values and this code. Under no circumstances the Partner shall be permitted to subcontract without a prior written notice addressed to its customer. Any products manufactured using undeclared subcontractors are prohibited.

Provisions of the Code

Employment Conditions

  • Child labor is prohibited. Employees shall not be younger than the minimum legal age for employment in the relevant country or the age at which compulsory schooling ends in such country, and in all cases shall not be younger than 15 *years. Minors older than the minimum employment age, but under the age of 18, may not be engaged in hazardous jobs that, by their nature or work conditions, may negatively affect their health, safety, moral integrity and/or damage their physical, mental, spiritual, moral or social development.
  • Forced labor is not allowed in any form, regardless of whether it is compulsory, hired or performed through compulsion by prisoners who receive low pay. No behavior like moral pressure or sexual harassment is allowed. Any corporal punishment, psychological abuse, verbal abuse or any form of intimidation are prohibited.
    A Partner shall ensure that any work is voluntary and not forced or enforced by threats, either mental, physical or verbal. Any restriction on freedom of movement or seizure of personal documents to enforce labor is strictly prohibited.
    No measures that could prohibit an employee to legally leave the Partner's job or production site are allowed. Work under a contract that may not be terminated is prohibited. The disciplinary measures shall be known and based on valid, legal rules.
    The work shall be done within the framework of a recognized relationship, established in accordance with national laws.
  • The necessary measures shall be undertaken by the Partner to provide a clean, safe, and healthy working environment. AUCHAN Retail suggests that the Partner avoid any production process affecting health, such as sandblasting.
    The Partner shall take adequate measures to prevent accidents, fight fires, and ensure the reliability, stability, and safety of buildings and equipment.
    Information sessions and risk prevention trainings shall be conducted regularly so that employees could understand and comply with safety procedures.
  • A Partner shall comply with applicable laws and regulations regarding remuneration, profit, and any other form of social benefit. Employees shall be entitled to, at least, the statutory minimum salary, if any, or remuneration in accordance with local standards. Workers shall be entitled to remuneration for the so-called standard hours. Overtime shall be paid for at an overtime rate. Employees shall also receive proof of payment of their salary. The deadline for salary payment shall be one month maximum, without deductions or illegal fines. The Partner shall in no way use financial penalties as a disciplinary practice.
  • Working time shall be in line with local legal standards; overtime shall not exceed legal limits. Employees shall be entitled to paid annual vacations, social allowances, and statutory payments, holidays, as provided for in the national laws.
    The Partner shall acknowledge the right of its employees to establish organizations of their own choice without prior consent, to participate freely and independently in meetings and collective bargaining agreements. It also commits to respect the free exercise of trade union establishment rights in accordance with local regulations. Besides, employees shall be able to use adequate protection against any act of discrimination aimed at obstructing the exercise of trade union freedoms. In countries where these fundamental freedoms will be restricted by laws, a Partner is recommended to encourage any measures aimed at ensuring the freedom of employees' opinion regarding their working conditions and social dialogue.

Absence of Discrimination

AUCHAN Retail prohibits any discrimination and expects its partner to ensure that there will be no discrimination in its companies, whether in the context of hiring, interviewing, compensation, training, working conditions, appointment, discipline, promotion, termination of employment or retirement based on race, descent, caste, social, national or ethnic origin, religion, marital status, pregnancy, age, disability, disease, sex, sexual orientation, trade union or political affiliation, political opinion or any other characteristic or personal beliefs.
Any difference in treatment shall be based solely on skills and work experience.

Fighting Against Corruption

In accordance with the Ethics Code, AUCHAN Retail has zero tolerance to corruption, both active and passive. The company prohibits and strongly condemns any fraudulent practices and any corrupt practices in any form (including extortion, bribery, conflict of interest, trading in influence, money laundering).
Rules of conduct and ethical standards that promote fairness and avoid any conflict of interest are described in the Ethics Daily Guide for the countries of presence of AUCHAN Retail. This principle implies, in particular, that personal gifts and services may not be offered or accepted under any circumstances. The provisions related to fighting against corruption shall be binding on any Partner and all its representatives and proxies. The relationship between AUCHAN Retail and its partners are based on the principle of acting in good faith and fairness in the business.

Environmental Aspects

AUCHAN Retail seeks to protect the environment and preserve natural resources. AUCHAN Retail expects that its Partner should act responsibly in this area. A Partner shall seek to develop alternatives to the existing environmental practices that affect the environment, encouraging the use of products obtained or manufactured using methods that are safe for the environment: Rationalization of energy, water, recycling, a ban on pollution, preservation of biological diversity, etc.
Procedures for treating wastes and chemicals, other hazardous substances, emissions, and wastewater treatment shall comply with legal requirements.
The commitment to improve environmental practices includes regular follow-up actions by the Partner to identify opportunities for improvement.

Cooperation, Transparency, and Monitoring. Close Monitoring of Production Conditions.

The Partner shall train its employees in their rights and obligations as defined by this Code and the applicable local laws. The Partner should allow AUCHAN Retail to conduct scheduled or unscheduled inspections at any time at the production sites, whether by its own teams or by an independent, authorized third-party organization. In this context, the Partner shall provide complete information about its production sites. It shall also keep accurate and comprehensive records to document compliance with the provisions of this Code. It shall demonstrate to its customer all the elements confirming the compliance of its manufacturing practice and the practice of its subcontractors with the provisions of this code. The Partner is expected to cooperate fully during monitoring visits. It shall demonstrate a real desire to improve its social indicators and develop efforts in this direction.
The Partner should not take any disciplinary action, dismiss or otherwise discriminate an employee to prevent or provide information on compliance with this Business Ethics Code. Failure to comply with these obligations shall result in termination of business relations.

Corrective Actions and Sanctions

Since AUCHAN Retail expresses an intention to develop long-term and productive relations with its Partner, each case of monitoring may result in a corrective action plan agreed upon between the supplier and its customer – AUCHAN Retail, with the exception of severe violations (corruption, forced labor, child labor, non-transparent subcontracts, etc.), which cause immediate termination of business relations. In the event of non-compliance with this action plan, AUCHAN Retail may immediately terminate its business relations with the Partner. However, AUCHAN Retail reserves the right to terminate business relations at any time in the event of a serious violation of human rights, violation of children's rights, undeclared subcontracting, deliberate, reprehensible actions from a moral or ethical point of view and/or objectively continuous lack of cooperation, corruption or attempted corruption. If these facts relate to a subcontractor or representative, the same preventive measure shall apply to the Partner, unless the Partner can prove that it has established an effective system to fight against corruption and that fraudulent actions have been carried out by the contractor or its representative only.

Amendment of the Code

This code will be developed in accordance with practical experience, changes in circumstances, requirements of the laws or updating of the Ethics Code of AUCHAN Holding. Therefore, AUCHAN Retail shall continuously seek to ensure that this code is regularly revised, updated, and communicated to all its partners.
By signing this code, the Partner hereby agrees to comply with it, as well as to oblige its subcontractors and Partners to comply with this code.
Signed by ___________, in ___________.
On behalf of AUCHAN Retail.

On behalf of the Partner

"When I doubt, I warn so" I ask myself the question of what to do in a situation that I consider difficult and, possibly, "not perfect" in terms of ethics. If I witness an action or offer that, I suspect, is dishonest, I call the ethics hotline of AUCHAN Retail, which ensures my confidentiality.

*This is applied subject to Article 7 of ILO Convention No. 138 and Russian laws.