Supplier Incentive Process Description

Purpose

To encourage suppliers to comply with human rights, labor, and ethical business standards.

Process

1. Supplier Agreements

• Regular reviews of supplier practices are conducted (documentation, audits, or certifications).
• Non-compliant suppliers are flagged for corrective action.

3. Incentives for Compliant Suppliers

• Preference in procurement decisions (priority orders).
• Longer-term business relationships and contract renewals.
• Recognition as "preferred suppliers" in internal records.

4. Continuous Improvement

• Feedback is shared with suppliers to strengthen compliance.
• Suppliers demonstrating strong ethical practices are prioritized in future sourcing.

Evidence

This process is documented in our Human Rights Policy (Paragraph 7) and applied in supplier selection and evaluation.