The reputation and successful operation of Altria Group and each of its companies depend in part on the use of reliable, reputable suppliers that provide high-quality and competitively priced goods and services in a manner that complies with applicable laws and contractual obligations.
As a result, Altria's companies:
- communicate and engage with business partners that promote actions consistent with our Mission;
- monitor and manage supplier performance and verify that the products or services delivered satisfy contractual specifications; and
- utilize a broad, diverse supplier pool to provide goods and services.
Our companies work to develop and maintain business relationships with suppliers who share our commitment to:
- conduct business in an honest manner in compliance with applicable laws;
- respect the rights of workers to a safe working environment;
- comply with environmental laws and regulations and aim to reduce the environmental impact of their activities; and
- implement management and monitoring practices to ensure compliance with contracts and applicable laws.
We outline our expectations for suppliers in Altria’s Supplier Code of Conduct.
Although our operations and sourcing are largely concentrated in the U.S., we understand that our actions may also affect those beyond our borders. Respect for people is fundamental to the way we conduct business.
The 10 principles of the United Nations Global Compact and the International Labour Organization Declaration on Fundamental Principles and Rights at Work inform our principles and policies for employees and our expectations of suppliers. To uphold and promote these principles, Altria and its
companies:
- respect the rights of our employees and establish a culture of respect and compliance as articulated by our Values and the Altria Code of Conduct;
- work with suppliers to promote actions that are consistent with our Values and the Supplier Code of Conduct; and
- collaborate with others in industry and society to address human rights issues where our companies have a role to play. Our tobacco companies have policies addressing forced labor. As a condition of our business relationship, supplier contracts require compliance with all applicable laws, including those addressing forced labor.
We have built monitoring processes for the following purchasing areas:
- Direct materials
- Marketing incentives
- Original Equipment Manufacturers
- Tobacco growers
- Tobacco merchants
As a result, we focus on the following:
- Supplier audits. Based on a range of factors including our evaluation of risk, we conduct periodic supplier reviews, announced on-site and on-farm assessments, and independent third-party audits. These assessments include a review against Altria’s Child & Forced Labor policy and applicable laws. When we learn of non-compliance issues, we communicate them to the suppliers. We then expect suppliers to take corrective actions to address these issues and keep us informed of their actions. In some situations, we require immediate action to achieve compliance, or we halt business with the supplier. In other situations, we take a continuous improvement approach and work with the supplier to improve their practices. Details of those assessment and audit results can be found on altria.com.
- Supplier agreements. Suppliers must comply with all applicable U.S. federal, state and local laws. Domestic direct contracted tobacco growers must certify that all labor used in their operations to produce tobacco will conform to the child and forced labor provisions in their
contracts, which require compliance with applicable laws. Suppliers with operations outside the U.S. must also comply with the applicable laws in the countries in which they operate as provided in their contract; however, they are not presently required to certify that materials incorporated into the product comply with the laws regarding slavery and human trafficking of the country or countries in which they are doing business. - Internal management, training and accountability. All Altria employees are required to comply with the Code of Conduct, which states that Altria does not condone the unlawful employment of
children in the workplace, nor does it condone forced labor. Altria’s Code of Conduct is enforced through internal compliance training and audits and employees are trained on these standards annually. Our companies investigate all allegations of non-compliance. If allegations are substantiated they are addressed as appropriate, including training (or re-training) and employee discipline. Supplier managers do not currently receive specific training on human trafficking and slavery.
For Ste. Michelle Wines Estates’ disclosures, click here.