As the largest aviation enterprise in Asia, China Southern Airlines Company Limited (hereinafter referred to as “CSN”) attaches great importance to corporate social responsibility (CSR). We have established a CSR system framework that fits in CSN’s business and that aims to: create profit and returns to the shareholders; create value and returns to society; improve service and returns to the customers; create opportunities and returns to the employees; and care for the environment. As we are integrating CSR into our corporate strategies, we are publishing this Supplier Code of Conduct to standardise our cooperation with our suppliers in operational, social and environmental issues.
CSN would like to take this as an opportunity to further improve the communication with our suppliers and listen to their suggestions for better cooperation and engagement. To support the publication of the CSN Supplier Code of Conduct, we commit to providing assistance and support to help our suppliers better understand and comply with the Code of Conduct. We believe that this will lead to further improvement in our suppliers’ CSR management and performance, which in turn will provide significant business benefits. We look forward to collaborating with our suppliers to improve together as the China Southern Airlines Supplier Code of Conduct is implemented.
1.Compliance
CSN is committed to upholding both local law and international standards in all its business dealings; we expect the same of our suppliers.
1.1 Local laws and regulations
Suppliers should exhibit strict compliance with the laws and regulations of the operating countries or regions.
1.2 International norms
Suppliers should respect and operate in accordance with generally accepted international norms.
2.Ethics
We value integrity, transparency and honesty in all business dealings. We expect that our suppliers will report anti-competitive or unethical behaviour to us if they see or suspect it.
2.1 Integrity
Suppliers should be honest and reliable. They shall not carry out or allow any form of corruption, bribery, extortion or other behaviours involving improper benefits.
2.2 Fair competition
Suppliers should practice fair competition. Cut-throat competition in any form should not be applied under any circumstance.
2.3 Confidentiality
Suppliers shall guarantee the security of the personal information of employees and customers, and the confidential business information of business partners.
2.4 Respect for intellectual property rights
Suppliers shall respect intellectual property rights, and not participate in any form of infringement.
3.Safety and quality
As an airline the safety of our employees, our customers, and everyone who deals with our business is of the utmost importance to us. We do not compromise on safety and we expect the same high standards from our suppliers.
3.1 Safety of products and services
Suppliers should attach great importance to the safety of the products and / or services they provide. Suppliers shall ensure product and/or service safety though policies, implementation and monitoring.
3.2 Quality of products and services
Suppliers should develop and implement policies and management systems to ensure the product and/or service quality is in line with the contract.
3.3 Health and safety policies
Suppliers should develop and implement health and safety protection policies and management systems to ensure that their employees, contractors and the public are not exposed to unnecessary risks.
3.4 Occupational health and safety
Suppliers shall provide a safe and healthy working environment for employees. Positive and effective actions shall be taken to keep employees away from potential accidents and injuries, and eliminate occupational safety and health hazards. For some specific positions, the supplier shall provide employees with the necessary protective equipment and tools, and regularly carry out necessary maintenance and replacement work. The supplier shall offer proper medical insurance and a compensation system for employee injuries.
3.5 Ensuring safe behaviour
Suppliers should not tolerate unsafe behaviour or short cuts which may put anyone’s safety at risk. Suppliers shall ensure that all employees come to work in a fit condition to perform their jobs, which includes being free of the influence of alcohol or illegal drugs.
3.6 Improvements in safety
Suppliers should report any potentially unsafe incidents, and investigate such incidents fully to ensure lessons are learned and future improvements can be made. Suppliers shall make every effort to promote a ‘safety culture’ in the workplace.
3.7 Health and safety training
All employees shall be provided with proper occupational health and safety trainings.
4.Environment Protection
As an airline business we recognise that our environmental impacts are significant. We place particular emphasis on understanding our impacts, and those of our suppliers, and exploring innovative ways to reduce them.
4.1 Compliance
Suppliers should comply with the laws and regulations on environmental issues.
4.2 Environmental protection measures
Suppliers are encouraged to achieve progress in environmental issues by:
purchasing products/materials that are responsibly and ethically sourced
taking measures to improve energy efficiency
measuring and minimising use of water
reducing and ultimately avoiding the disposal of waste to landfill by utilising options for recycling and reuse where appropriate
4.3 Carbon audit and carbon offsets
Suppliers are encouraged to carry out a carbon audit, and to develop and implement plans to reduce carbon emissions. Suppliers are further encouraged to purchase carbon offsets where further emissions reductions are not possible.
4.4 Environmentally sustainable alternatives
Suppliers are encouraged to apply lifecycle analysis to products or services provided. If more sustainable alternatives exist based on this analysis, suppliers are encouraged to submit these to CSN.
5.Labour
We are committed to ensuring that we never exploit anyone in our direct operations or our supply chain. We respect and protect human rights and require that our suppliers do the same.
5.1 Child labour and forced labour
Suppliers shall not employ children at or under the minimum age for employment as specified by the local law, nor use any form of forced labour.
5.2 Working hours
Suppliers’ employee working hours shall not exceed the legal restrictions specified by law. For employees who work overtime of their own accord, suppliers should arrange rest days in substitution or pay reasonable overtime. The employees are legally entitled to paid vacation in accordance with the local law.
5.3 Remuneration
Supplier shall provide salaries of no less than the minimum standards specified by law. Salaries shall be paid on time and in accordance with the labour contract provisions, and shall not be deducted.
5.4 Equal opportunities
Suppliers shall ensure that employees are not subject to discrimination because of their race, colour, national origin, ethnicity, religion, gender, age, marital status, sexual orientation, disability or any other reasons. All employees should have equal access to work and promotion opportunities.
5.5 Communication mechanism
Suppliers shall establish a proper communication mechanism to enable employees to report work problems or potential illegal activities at work.
6.Delivery and improvement on CSR performance& quality
CSN recognises that CSR is an evolving process, and the answers will not all be apparent at one time. It is necessary to regularly evaluate progress and ask what more can be done. Suppliers should value sustainability and are encouraged to strive to continuously improve their corporate social responsibility performance. They should adopt a policy -implementation-records-evaluation process and select appropriate key performance indicators to measure impact.