AB „Kauno grūdai“ defines in its Supplier Code of Conduct the behavior, processes, and procedures that we expect from our suppliers. All suppliers must comply with this Supplier Code of Conduct, as well as with all other applicable laws and regulations. In selecting suppliers, the Company and its subsidiaries will consider, among other commercial aspects, compliance with these requirements. We expect our suppliers to always strive to maintain social responsibility and environmental accountability in all business relationships in all countries where they operate. The Supplier Code of Conduct is considered a contractual document and is an integral part of any contract made between AB „Kauno grūdai“ and the supplier.
1. Law Regulation
1.1. AB „Kauno grūdai“ is committed to competing honorably and fairly worldwide, fully complying with all applicable laws and regulations. The Company prohibits any form of corruption, extortion, and embezzlement, and does not cooperate with suppliers engaged in such practices.
2. Conflict of Interest
2.1. AB „Kauno grūdai“ and its shareholders expect that the Company’s employees interact with third parties or make decisions on behalf of the Company in a manner that does not jeopardize the Company's reputation. Business transactions must be conducted in the best interests of the Company. Employees and their close family members (relatives of the employee and the employee's spouse who are not further than first cousins) should avoid situations that could lead to a conflict between the employee's duty to the Company and personal interests. Neither the employee nor their close family members may receive any illegal benefits from activities related to the Company.
2.2. The supplier makes business decisions independently and ensures that business interests are strictly separated from private interests.
3. Fight against corruption
3.1. The Company adheres to a zero-tolerance policy towards corruption, including but not limited to bribery, extortion, and fraud. Furthermore, suppliers are required to adhere to the highest ethical standards while conducting their activities.
4. Fair competition
4.1. The Company may not, under any circumstances, violate general or specific competition regulations and laws, such as illegal collaboration in pricing or illegal market sharing. Unjustified trade restrictions are prohibited within the Company. The Company sincerely values every business wishing to become our suppliers and partners, providing each with an impartial and fair opportunity to do so, regardless of nationality, region, or size. For anyone who does not become our partner for certain reasons, the reason will be communicated.
5. Financial Records, Money Laundering and Insider Trading, Bribery
5.1. No bribes or any other illegal or inappropriate remuneration may be given to any individuals or officials of governmental bodies.
5.2. The Company adheres to a policy aimed at not participating in legislative and political activities such as lobbying, offering gifts to state officials, and making political contributions
5.3. The Company expects all suppliers to be committed to preventing fraud, to strive to detect and report such cases (including the preparation of falsified financial statements), and to be committed to maintaining a controlled environment that reduces the risk of such incidents.
6. Gifts and donations
6.1. The Company expects that all business gifts, entertainment, or hospitality will not be of an unreasonable value and will be given only to maintain good business relationships, not to influence decisions in any way.
7. Confidential and exclusive information
7.1. The supplier must treat commercial and business secrets, as well as all other confidential information, as strictly confidential. Such information must be adequately protected against disclosure to third parties. Additionally, third parties must not have any access to such information.
8. Human rights
8.1. The Company supports internationally recognized human rights. We will comply with all applicable laws defining the treatment of our employees and other stakeholders. We strongly require our suppliers to adhere to these principles as well and are committed to assisting all our suppliers and other partners in undertaking similar evaluations of their operations and developing their approach to respecting human rights:
8.1.1. respect the dignity, privacy, and rights of every individual;
8.1.2. refrain from using any individual's labor against their will;
8.1.3. prohibit behavior of a sexual, coercive, threatening, abusive, or exploitative nature, including gestures, language, or physical contact.
9. Labor standards
9.1. Working Hours. All suppliers are expected to comply with all laws regulating working hours applicable in the countries where they operate. Any overtime work must be voluntary.
9.2. All employees are of an appropriate age. Suppliers take appropriate measures to ensure that child labor is not used in their production or operations or in those of their subcontractors.
9.3. Voluntary Employment. Work is performed based on freely negotiated and documented employment conditions. Suppliers may not use any form of forced labor, labor for debt, slavery, or human trafficking.
9.4. Respect for employees rights. Suppliers are expected to treat all their employees with respect and dignity. There shall be no discrimination in hiring, wage payment, training opportunities, promotions, or termination of employment based on ethnicity, race, skin color, religion, caste, age, disability, gender, marital status, pregnancy, sexual orientation, union membership, or political beliefs.
9.5. Fair wage. Suppliers must pay a fair wage that, at a minimum, meets legal standards or applicable national norms.
10. Safety and health
10.1. The supplier complies with all applicable health and safety laws and regulations. The supplier takes active measures to ensure and continuously improve working conditions for their employees, contractors, and visitors regarding their safety and health.
10.2. The Company seeks to collaborate with all suppliers to fulfill its commitment to ensuring the safety and well-being of its employees.
11. Quality requirements
11.1. Suppliers shall always provide AB „Kauno grūdai“ with products and services that meet all applicable quality standards for the relevant products and services as stipulated in local laws, as well as the quality requirements of AB „Kauno grūdai“.
11.2. Product Quality and Safety. Fair dealings with customers and business partners mean that we take pride in our work, and we prioritize the quality and safety of our products. We create and produce high-quality, nutritious, and safe food and feed products, as well as high-quality industrial products that meet the agreed expectations. To ensure that our products comply with or even exceed the requirements outlined in laws and regulations, we must work together. Only then can we maintain exceptional standards of quality and safety.
11.3. Suppliers must demonstrate that they have implemented quality management systems. Suppliers in the food value chain must have reliable food safety systems. Any doubts regarding product safety must be immediately reported to AB „Kauno grūdai“.
12. Animal welfare
12.1. When animals or their parts are used as raw materials in the production of AB „Kauno grūdai“ goods, they must be treated well and ethically during their lifetime.
12.2. When producing animal-derived products, animal welfare must be ensured throughout the supply chain. Animals must be treated at least according to applicable national animal welfare laws.
12.3. All animals must be healthy, and they must be stunned before slaughter. Sick animals must be treated. Antibiotics intended for treatment must be used appropriately, and their use must be limited.
13. Environmental responsibility
13.1. Suppliers comply with applicable environmental laws, regulations, and standards and strive to minimize the impact of their operations and products on the environment. They are encouraged to take measures to prevent pollution and to conserve and utilize natural resources needed for their operations as efficiently as possible.
13.2. Suppliers recognize that environmental responsibility is integral to product manufacturing. We expect our suppliers to:
13.2.1. Comply with all applicable environmental laws;
13.2.2. Prevent pollution and reduce resource consumption. Emissions and discharges of pollutants and waste generation from sources or operations are minimized or eliminated;
13.2.3. Identify, label, and manage hazardous chemicals and other materials that pose risks to people and the environment to ensure their safe handling, transportation, storage, use, recycling, or disposal;
13.2.4. Solid waste management service providers apply a systematic approach to the identification, management, reduction, and responsible disposal or recycling of solid waste (both hazardous and non-hazardous);
13.2.5. Handle hazardous materials in accordance with applicable laws, regulations, and standards, as well as internal rules and procedures, including labeling of such materials for recycling and disposal. Suppliers must take all possible measures to prevent the release of hazardous materials, fire, explosion, and other major accidents that could cause significant harm to their own employees, facilities, local communities, and the environment;
13.2.6. Wastewater service providers implement a water management program that documents, characterizes, and monitors water sources, water usage, and discharge, and seeks opportunities to conserve water while controlling pollution sources. All wastewater must be characterized, monitored, controlled, and treated according to applicable requirements before discharge or disposal. The supplier continuously monitors the operation of wastewater treatment and containment systems to ensure optimal performance and compliance with regulations;
13.2.7. Air emissions, noise levels, and wastewater discharges comply with applicable local laws;
13.2.8. Energy is used efficiently, and greenhouse gas emissions are minimized. Suppliers must seek cost-effective ways to improve energy efficiency and reduce their energy consumption and greenhouse gas emissions;
13.2.9. Educate their employees and provide necessary resources to familiarize them with their personal responsibilities for environmental protection;
13.2.10. Apply the same standards to their suppliers, contractors, and subcontractors, and, if requested, be able to demonstrate this.
14. Sustainability
14.1. This is one of the core principles of our operations. Operations, supply, production, product distribution, and service provision must be carried out to contribute to environmental protection and preservation. AB „Kauno grūdai“ supports and promotes sustainable practices in operations, farming, and agricultural production systems. This is part of AB „Kauno grūdai“ supply strategy and supplier selection. AB „Kauno grūdai“ expects the supplier to continuously strive to improve their operational efficiency and sustainability.
15. Supporting Local Businesses
15.1. We are a Lithuanian corporate group, and our philosophy is tied to nurturing traditions related to socially responsible activities: we are close to Lithuanian celebrations, the people, and the issues our fellow citizens face. We concentrate our efforts, contributing financially and ideologically to improving the welfare of our compatriots. When making purchases, with equal offers, we will prioritize local businesses and manufacturers.
16. Supplier management systems
16.1. The supplier takes positive actions to comply with the requirements of this code and to incorporate the principles outlined in this code into their operations. Furthermore, the supplier must take steps to ensure that these requirements are also met by their suppliers and the suppliers' suppliers.
16.2. The supplier must maintain relevant records proving compliance with the requirements of this code and can provide supporting information upon request from AB „Kauno grūdai“. Upon request, access to records and other information must be granted to the auditor designated by AB „Kauno grūdai“ to verify compliance with these requirements.
17. Verification
17.1. The procurement department of AB „Kauno grūdai“ regularly conducts fair, transparent, objective, and reasoned evaluations of suppliers, aiming to maintain stable relationships with the best suppliers regarding technology, quality, price, supply capabilities, management, and social responsibility stability aspects.
18. Audit
18.1. The company reserves the right to periodically inspect the premises of any supplier. All results of such audits will be presented to the supplier, clearly indicating areas for improvement. The company expects the supplier to promptly address the issues identified during the audit and, upon request, provide documentation confirming the resolution of those issues.
19. Supplier responsibility
19.1. If a supplier encounters difficulties in rectifying non-compliance with the Supplier Code of Ethics, we encourage the supplier to contact the company's representatives and seek possible solutions to eliminate them (the supplier can fill out a link on the company's (website).
19.2. A fair report of possible non-compliances will not affect the supplier's relationship with the company if the supplier takes action to remedy the non-compliance and eliminates it.
19.3. If the supplier provides incorrect information, avoids correcting identified non-compliances, or it becomes clear that violations or identified non-compliances cannot be rectified, the company reserves the right to evaluate the consequences of such supplier behavior concerning the agreements between the company and the supplier. This may influence decisions regarding further cooperation.
19.4. The Supplier Code of Ethics is published on the website https://kaunogrudai.lt .