Modern slavery act statement

BSH Home Appliances Limited – anti-slavery and human trafficking statement for the financial year 2018

BSH Home Appliances Limited is committed to improving our practices and driving out acts of modern day slavery and human trafficking from within our business and from within our supply chains. We acknowledge the responsibilities within the Modern Slavery Act 2015 and are committed to ensuring transparency within our organisation and with our suppliers of goods and services.

BSH Home Appliances Limited are part of BSH Hausgeräte GmbH which is the largest manufacturer of home appliances in Europe and one of the leading companies in the sector worldwide. The Group head office is in Munich, Germany. The Group has over 56,500 employees worldwide. BSH has some 41 factories worldwide and produces the entire range of home appliances.

We are committed to ensuring that there is no modern slavery or human trafficking in our supply chains or in any part of our business. Our Business Conduct Guidelines reflects our commitment to acting ethically and with integrity in all our business relationships. We are committed to implementing and enforcing effective systems and controls to ensure slavery and human trafficking is not taking place within our supply chains.

BSH has a clear position: We refuse to engage in any business that infringes applicable law, internal guidelines or the standards to which BSH subscribes – this applies to our entire organisation worldwide. Within our Business Conduct Guidelines we expect that the actions of every employee be compliant with:

  • BSH’s Corporate Principles;
  • the principles of the UN Global Compact;
  • the CECED Code of Conduct;
  • the ZVEI Code of Conduct;
  • the internal rules and work regulations.

Social Compliance Program

In the interests of sustainable value creation, we work with our suppliers on the basis of fair competition. BSH only considers working with companies that also attach great importance to environmental protection, human rights and health and safety at work. These principles governing our relationships with our business partners are enshrined in the BSH Code of Conduct for Suppliers of the BSH group.

BSH launched its social compliance program in 2013 and has been making efforts since then to ensure that all its suppliers adhere to certain minimum standards in terms of working conditions and environmental protection. BSH’s social compliance program requires our suppliers to accept our Code of Conduct for suppliers in writing. In addition, production suppliers must provide evidence of successful completion of a social audit by an external auditor. We began systematically auditing all 3,000 or so of our existing suppliers of production materials in 2013. We have been auditing 200 of these suppliers each year since 2014. They are selected based on the risk ratings of groups and countries of materials. In addition, we audit all prospective BSH production suppliers before awarding any contracts and have been doing this since 2013.

Systematic social audits

The social audits are commissioned directly by the suppliers themselves. BSH receives the results of the audits including details of any action required. Based on a four step ranking system – critical, major divergence, minor divergence, compliant – the cases of suppliers

assessed as “critical” or that diverge from requirements are escalated accordingly. This can lead to another audit or even termination of the business relationship. A specialised team from Global Supply Chain division verifies compliance with these framework requirements and is also responsible for annual auditing.

Communication and training of all involved

The success of the social compliance program hinges on getting the procurement officers responsible on board from the word go and providing them with professional support, as well as making sure that the business partners involved are given clear, comprehensive information. To ensure that all involved are kept up to date on the audit process and the ratings, a manual was produced for BSH procurement officers. Further documents provided for orientation purposes are a list of the most frequently asked questions, an outline of the social criteria and, since 2014, a social compliance newsletter. The information provided on sustainability issues is complemented by both internal and external training.

On a local level, the supply chain is managed by local Purchasing Managers, who are responsible for ensuring the supply chain within the UK business adheres to the standards prescribed by Group Head Office. The local supply chain deals predominantly with the purchasing of services. As a matter of course, the Code of Conduct is sent to all new suppliers and all existing suppliers who have provided goods or services within the last year. Training has also been provided for employees with purchasing responsibilities on the Modern Slavery Act.

This statement is made pursuant to section 54(1) of the Modern Slavery Act 2015 and constitutes BSH Home Appliances Limited’s slavery and human trafficking statement. The Board of Management of BSH Home Appliances Limited shall take responsibility for implementing this policy statement and shall provide adequate resources to ensure that slavery and human trafficking is not taking place within the organisation within its supply chains.

This policy will be reviewed on an annual basis