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World’s automakers agree supplier standards

BRUSSELS: In what is described as an unprecedented degree of cooperation, the world's leading motor manufacturers have agreed a set of standards for suppliers on key responsibility issues including human rights, environment, working conditions and business ethics.

Two leading corporate responsibility business associations, AIAG and CSR Europe said BMW Group, Chrysler Group, Daimler, Fiat, Ford, GM, Honda, Jaguar/Land Rover, PSA Peugeot Citroen, Scania, Toyota, Volkswagen, Volvo Cars and Volvo Group had signed up to principles designed to enhance supply chain sustainability.

Jaguar-Land-RoverAIAG is a not-for-profit organization where OEMs, suppliers, service providers, government entities and academia have worked to remove costs and complexity from the supply chain via harmonized business practices.

CSR Europe is a European business network representing 63 corporate members and 38 national partners to share best practice on corporate social responsibility.

Scot Sharland, executive director at AIAG commented: "Automakers and suppliers of all sizes face heightened compliance & extended responsibility expectations, from materials sourcing, handling, reporting and disposal requirements to improving factory working conditions, so it's imperative that we work together to develop, socialize and deploy industry best practices on a range of issues for our global supply chains."

The guidelines, based on fundamental principles of social and environmental responsibility, were first developed by AIAG in 2009 in collaboration with Ford, GM, Chrysler, Honda and Toyota.

"People and the environment are the automotive industry's most important resources. For this reason, we are working together to attain the highest standard in business integrity and in the social and environmental performance of our supply chain... We expect that suppliers will uphold these standards and cascade them down their supply chain," added Sharland.

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