Code of Conduct

I N T R O D U C T I O N

dōTERRA’s mission is to deliver the highest quality standard in the world of essential oils, and to do so while being a force for good.  dōTERRA has a formal commitment to creating positive impact through its business operations and practices.   These priorities extend throughout  dōTERRA’s global supply chain, where we are committed to working with our supply chain partners to build greater inclusivity and create share value through the production of essential oils.

The dōTERRA Supplier Code of Conduct defines standards for fair, safe and healthy working conditions and environmental responsibility throughout dōTERRA’s global supply chain. The Code’s standards are based  on  International  Labor  Organization  (ILO)  standards  and  internationally  accepted  good  labor practices. All preferred suppliers must commit to adhering to this Code of Conduct and detailed Supplier Scorecard.  Requirements  in  this  Code  apply  to  the  whole  supply  chain,  including  sub-suppliers,  sub- contractors and farms. Standards equally apply to permanent, temporary, and agency workers, as well as piece-rate, salaried, hourly paid, legal young workers (minors), part time, night, and migrant workers. We seek suppliers committed to continuous improvement who are moving forward on their sustainability journey  from  basic  to  leadership  practices.  All  suppliers  must  agree  to  announced  and  unannounced assessments by dōTERRA.

dōTERRA expects all suppliers to quickly make improvements when any of these Code standards are not met, and to develop sustainable management, reporting and tracking systems within their operations, to ensure  ongoing  compliance.  Timelines  for  achieving  compliance  shall  be  reasonable  and  defined. Providing proof of correction to dōTERRA for each non-compliance is also required. dōTERRA pledges to help its suppliers improve labor, health and safety and environmental conditions in the workplace, and to help  suppliers  understand  how  to  move  from  “basic”  to  “leadership”  sustainability  practices.  We recognize that this effort requires listening to our suppliers and their employees’ needs, and requires a collaborative   approach   using   capacity   building   tools   such   as   root-cause   analysis,   training,   and management-system development to drive meaningful change.

dōTERRA seeks at all times to exercise the best possible practices for the respectful and ethical treatment of  workers  and  promote  sustainable  conditions  in  which  workers  earn  fair  wages  in  safe  and  healthy workplaces. For more information on dōTERRA corporate responsibility please visit www.doterra.com.

 

S U P P L I E R   C O D E   O F   C O N D U C T

LAW AND  CODE  COMPLIANCE:  dōTERRA suppliers are expected to comply with (1) all relevant and applicable  laws  and  regulations of  the country  in which  workers are employed including  those  at  the federal,  state/provincial,  and  local  community  levels;  (2)  dōTERRA’s  Supplier  Code  of  Conduct;  (3) dōTERRA’s  Co-Impact  Sourcing  Scorecard  (where  applicable);  (4)  Collective  Bargaining  Agreements (where applicable). When differences or conflicts in standards arise, suppliers are expected to comply with the highest standard that is the most in favor of the employees.

CHILD LABOR: No person shall be employed under the age of 15 or under the age for completion of compulsory education, whichever is higher. Juvenile workers (ages 15-17) shall not perform work which, by its nature or the circumstances in which it is carried out, is likely to compromise their health, safety or morals. (ILO Convention 138 and 182)

III.  FORCED  LABOR: There shall be no use of forced labor, including prison, indentured, bonded, slave or other forms of forced labor. Acts of human trafficking are also prohibited. Suppliers are required to monitor any third party entity which assists them in recruiting or hiring employees, to ensure that people seeking employment at their facility, farm or other operation are not compelled to work through force, deception,  intimidation,  coercion  or  as  a  punishment  for  holding  or  expressing  political  views.  (ILO Conventions 29, 105, 182)

HARASSMENT, ABUSE  AND  DISCIPLINARY  PRACTICES:  Every employee shall be treated with respect  and  dignity.  No  employee  shall  be  subject  to  any  physical,  sexual,  psychological  or  verbal harassment or abuse or to monetary fines or embarrassing acts as a disciplinary measure.

DISCRIMINATION: No person shall be subject to any discrimination in any aspect of the employment, relationship including recruitment, hiring, compensation, benefits, work assignments, access to training, advancement, discipline, termination or retirement, on the basis of race, religious belief, color, gender, pregnancy, childbirth or  related  medical  conditions,  age,  national  origin,  ancestry,  sexual  orientation, gender  identification,  physical  or  mental  disability,  medical  condition,  illness,  genetic  characteristics, family care, marital status, status as a veteran or qualified disabled veteran (in the USA only), caste, socio- economic  situation,  political  opinion,  union  affiliation,  ethnic  group,  illness  any  other  classification protected under applicable law. All employment decisions must be made based on the principle of equal employment  opportunity,  and  shall  include  effective  mechanisms  to  protect  migrant,  temporary  or seasonal workers against any form of discrimination. (ILO Conventions 100 and 111)

FREEDOM OF  ASSOCIATION  AND  COLLECTIVE  BARGAINING:  Workers must be  free  to  join organizations of their own choice. Suppliers shall recognize and respect the right of employees to freedom of  association  and  collective  bargaining.  All  suppliers  must  develop  and  fully  implement  effective grievance  mechanisms  which  resolve  internal  industrial  disputes,  employee  complaints,  and  ensure effective,  respectful  and  transparent  communication  between  employees,  their  representatives  and management. (ILO Conventions 87, 98 and 135)

VII.  EMPLOYMENT  RELATIONSHIP:  Employers  shall  adopt  and  adhere  to  rules  and  conditions  of employment  that  respect  workers  and,  at  a  minimum,  safeguard  their  rights  under  national  and international labor and social security laws and regulations.

VIII.  WAGES  AND  BENEFITS:  We  seek and favor suppliers who  progressively  raise  employee  living standards through improved wage systems, benefits, welfare programs and other services, which exceed legal requirements and enhance quality of life. Every worker has a right to compensation for a regular work  week  that  is  sufficient  to  meet  the  worker’s  and  their  family’s  basic  needs  and  provide  some discretionary  income.  Employers  shall  pay  wages  which  equal  or  exceed  minimum  wage  or  the appropriate  prevailing  wage,  whichever  is  higher,  comply  with  all  legal  requirements  on  wages,  and provide any fringe benefits required by law and/or contract. Where compensation does not meet workers’ basic  needs and  provide  some  discretionary  income,  each employer  shall  work with  dōTERRA to  take appropriate actions that seek to progressively realize a level of compensation that does. (ILO Conventions 26 and 131)

OVERTIME WAGES:  In addition to compensation for regular working hours, employees must  be compensated for overtime hours at the rate legally required in the country of manufacture or, in those countries where such laws do not exist, at a rate exceeding the regular hourly compensation rate by at least 125%. (ILO Convention 1 and 30)

HOURS OF  WORK: Suppliers shall not require workers to work more than the regular and overtime hours allowed by the law of the country where the workers are employed. The regular work week shall not exceed 48 hours or the maximum allowed by the law of the country of manufacture, whichever is less. Employers shall allow workers at least 24 consecutive hours of rest in every seven-day period. All overtime work shall be  consensual. Employers  shall not  request  overtime  hours on  a regular  basis.  The  sum  of regular and overtime hours in a week shall not exceed 60 hours or the maximum allowed by the law of the county of manufacture, whichever is less. (ILO Convention 1)

HEALTH AND  SAFETY:  Suppliers shall provide a safe and healthy workplace to prevent accidents and injury to health arising out of, linked with, or occurring in the course of work or as a result of the operation of employers’ facilities. The employer shall take a proactive approach to health and safety by implementing policies, systems and training designed to prevent accidents, injuries and protect worker health. (ILO Convention 155)

XII.  ENVIRONMENT:  Suppliers shall maintain written environmental policies and standards and must comply with all applicable environmental laws, dōTERRA’s Co-Impact Sourcing Scorecard, and agree to be monitored  for  environmental  responsibility.  Factories  shall  continuously  monitor,  and  disclose  to dōTERRA, their energy and natural resource usage, emissions, discharges, carbon footprint and disposal of wastes and take a progressive approach to minimize negative impacts on the environment.

XIII. COMMUNITY: dōTERRA encourages all suppliers and their employees to get involved in local social and  environmental  community  charity  efforts  by  volunteering  time  and/or  providing  other  types  of support. dōTERRA has a solid history of supporting community  development initiatives and found the dōTERRA  Healing  Hands  Foundation  in  2008  to  carry  out  such  initiatives.  dōTERRA  seeks  long-term partnerships with suppliers that share these same philanthropic values.

XIV.  SUBCONTRACTING:  dōTERRA does not permit subcontracting without prior written approval. All contracted  oil  production  orders  must  be  placed  within  facilities  that  have  been  pre-approved  by dōTERRA,   without   exception.   Direct   suppliers   are   required   to   continuously   monitor   approved subcontractors and sub-suppliers for social and environmental responsibility using standards that meet or exceed this Code and dōTERRA’s Co-Impact Sourcing Scorecard.

ANIMAL WELFARE:   Suppliers  must  respect  animal  welfare  and  work  progressively  towards adopting  healthy  and  humane  practices  towards  animals  based  on  best  available  technology  and standards.

XVI.   TRACEABILITY:   dōTERRA  and  our  suppliers  are  jointly  responsible  for  ensuring  social  and environmental responsibility and the integrity of our product content claims from the farm through the finished  goods  factory  level.  The  only  way  to  work  towards  this  goal  is  to  have  transparency  and traceability  into  all  levels  of  our  supply  chain.  dōTERRA  requires  suppliers  to  continuously  track  and monitor  all  locations  associated  with  their  supply  chain  and  upon  request  provide  transparency information into the owned and/or subcontracted farms, distilleries, and other sites that are involved in the production of our products.

XVII.   CODE   COMMUNICATION:  All  suppliers  are  required  to:  (1)  post  this  Code  of  Conduct  and separate dōTERRA grievance email address document in a conspicuous place frequented by all employees in   the   local   languages   spoken   by   employees,   supervisors   and   managers;   (2)   undertake   annual, documented training efforts to educate current and new employees about the dōTERRA Code standards and use of the dōTERRA grievance email address.

XVIII.   QUALITY:   Quality  is  the  result  of  clarity,  capable  and  well-integrated  systems,  and  good communication. To achieve this, manufacturing facilities must have a clearly documented quality system and quality improvement plan. That system must include reliable “in process” and final finished goods audits  and  procedures  that  meet  dōTERRA’s  quality  standards.  These  audits  must  be  performed  by  a trained QA staff person provided by the factory. The QA staff person must be granted the autonomy and support he/she needs in order to provide an unbiased report on the quality of every shipment of finished goods.  Compliance   with  our   quality   requirements  is   monitored   by   dōTERRA’s   Strategic   Sourcing Department.

CONTACT  US: If you are aware of violations within our supply chain of these Code elements, we would like    to    know    about    it.    Please    bring    these    issues    to    our    attention    by    contacting    us    at socialresponsibility@doterra.com.  Please  feel  free  to  write  in  your  local  language.  All  information  we receive will be kept in strict confidence and your identity protected.

THIS CODE OF CONDUCT AND OUR GRIEVANCE CONTACT INFORMATION MUST BE POSTED WITHIN THE FACTORY IN A CONSPICUOUS, FREELY ACCESSIBLE AREA IN THE LOCAL LANGUAGE(S) OF THE EMPLOYEE.