Starbucks Document list for COC audit

1. Factory profile

2. Organization Chart 

3. Factory’s plane figure – factory floor plans

4. Subcontractor / supplier evaluation program & the records 

5. Business license 

6. Employee manual / handbook 

7. Disciplinary practices & program 

8. Dormitory regulations 

9. Personal records/ employment registration (all employees) 

10. Labor contracts (all employees)

11. Entrance & Annual health examination reports

12. Young worker registration approval from local labor bureau / shifts arrangement for young workers 

13. Consolidated working hours permit by local labor bureau 

14. Social security insurance (injury/retirement/medical/unemployment etc.) payment evidence / approval from local government

15. Leave request notification

16. Resignation records 

17. Warning notification letters

18. Time cards/attendance records 

19. Production records of piece rate workers

20. Legal/local official minimum wage document

21. Payroll record (past half year’s payroll journals) 

22. Pay slips with employees’ signatures 

23. Wage deduction/fine records 

24. Building structure safety certificate/legal real estate certificate 

25. Building fire safety certificate

26. Health and safety policy 

27. Health and safety training program & record

28. Safety officer certificate 

29. Fire officer Certificate/trained first aider certificate 

30. Fire drill program & records and fire evacuation plan & procedure /first aid training records 

31. Register of elevator & lift and annual inspection certificate

32. Specialized safety training certificate (valid safety operation certificate of elevator/lift/forklift vehicle /qualified electrician/electric welding operator certificate) 

33. Qualified mechanics certificate 

34. Register of pressure vessels & boilers and annual inspection certificate

35. Operator / attendant certificate of pressure vessels & boilers

36. Approval certificate of Chemical warehouse/ register &storage records/ MSDS of dangerous materials

37. Qualified certificate for the keeper of dangerous Chemical warehouse

38. Environment protection quality monitoring & testing report

39. Noise monitoring & test report of power generator

40. Environment assessment report on factory projects /permit certificate of waste emission /waste monitoring & test records

41. Legal hygiene certificate of canteen & health certificate of canteen workers

42. Qualified certificate of doctor or nurse

43. Accident, injury report & records / recurrence avoiding measures

44. Security guard regulation & job description /security guard certificate

45. Meeting minutes of union /selection program and responsibility of workers’ Rep 

Definition of Starbucks Factory Dispute: 

Suppliers and third-party auditors disagree on everything related to the assessment, such as legal interpretation of legal regulations/standards, evaluation procedures, sampling, and record requirements.

Participants: Suppliers and third party auditors

After reviewing the report, if the error is found and/or the supplier feels that the key part of the evidence presented at the time of the assessment is ignored, please contact the third-party audit company directly to try to solve the problem informally. It is particularly noteworthy that after the end of the meeting with the third-party auditor who entered into the contract, it is possible that no evidence will be submitted that was not presented or obtained during the evaluation period.

Any situation where evidence is not provided during the assessment period may result in additional work hours and an increase in the cost of the assessment.

If the dispute involves a legal interpretation of the point of discovery of the violation in the initial step, the company should cooperate with the third-party auditing company to review and resolve the relevant issues within 5 working days to verify whether the auditor has obtained the evidence obtained during the audit. Correct interpretation of local laws and regulations. After the evaluation is completed, the violation discovery point should be modified only if an error is found during the quality assurance process. Third-party audit companies and suppliers should agree on the following processes.

If the initial violation discovery is valid and the supplier accepts the result, the supplier should resolve the issue according to the agreed deadline and accept a follow-up assessment or desk review based on the type of violation found.

If the violation discovery point is invalid and you need to correct the report, you should update the results and notify the supplier through a third-party audit company.

As a friend of a factory which has just become a Starbucks supplier said, it may not be known,  there is still a pre-qualification check before the Starbucks factory audit.

The Starbucks factory audit program is launched by Starbucks. A standard for its suppliers guarantees the source of raw materials, traces the raw materials, and allows us to use them more confidently. 

Now let's take a look at some of the common questions of Starbucks factory audit:

Q: What is the zero tolerance standard in Starbucks factory inspection?

A: The Zero Tolerance (ZT) standard is part of the standard for manufactured goods and services. Production sites must meet these minimum requirements before Starbucks may consider doing business with them or maintaining existing business contacts.

Q: What does “opaqueness” mean? How does the auditor know that the factory operation is opaque?

A: The auditor will review the samples of the payroll, attendance, time card and production records to ensure that all working hours are accurately recorded. If there are inconsistencies in the records, it means that the factory has not established a complete system to collect all working hours and salary information. There may also be situations where the auditor is not provided with a true record. These will make it impossible for auditors to assess wages and working hours.

Q: What is the basis of the Starbucks Ethical Sourcing (ES) standard?

A: Ethical procurement standards are based on the International Labor Organization (ILO) Convention and refer to current practices and industry best practices, including provisions that protect employees to the greatest possible extent.

Q: If local laws and regulations are different from Starbucks' expectations, which party should be subject to it?

A: Usually the requirements of local laws and regulations are prevailing; however, in some cases, Starbucks' standards are more stringent, and factory performance will be measured against this standard.

Q: Why does the factory fail to pass the audit because it does not provide an accurate record?

A: In order to verify that the factory does meet our zero tolerance standards, the auditor should be able to calculate the minimum wage. If the factory does not have an effective system to capture the time employees enter and leave the factory, it is impossible to verify the hourly wage. Based on this, it is possible to infer that there is a zero-tolerance violation discovery point in the factory that does not pay wages.

Q: Does Starbucks not let the factory pay wages on a piece-rate basis?

A: Starbucks does not prevent factories from calculating wages on a piece-rate basis; however, the piece-rate system is used in conjunction with an effective attendance and time recording system. To accurately record the time employees enter and leave the factory, calculate the legal minimum hourly wage.

Q: How long does the assessment take?

A: The assessment and reporting process can take up to 8 weeks. During this period, the supplier will arrange an assessment for the payment of the assessment; the assessment will be completed within 4 weeks of the payment confirmation. Draft the report within 7 to 10 business days of completing the assessment and submit it to the supplier for review and approval. The supplier has 5 working days to review and accept the report. After that, complete the report and submit it to the supplier.

Q: How long does Starbucks give the factory an improvement?

A: After the assessment, the factory will first submit the first draft of the Corrective Action Plan (CAP) within 14 days to indicate what project milestones and deadlines are suitable for the factory. After that, our service provider will review the rectification plan, and the rectification plan should be completed by the third party and the supplier within 30 days; we expect the factory to explain every step of its progress to achieve sustainable improvement within the recommended time limit. Once progress is made, a verification assessment can be carried out to confirm progress. Ideally, all improvements will be completed in 12 months.

Q: If a supplier has two sites, the first factory has received an ethical procurement assessment, and the second one does not, can the second factory handle Starbucks orders?

A: No. The two plants will be evaluated before production is approved. The assessment will take place between factories with the same business license.

What are the environmental protection requirements of the Starbucks supplier's social responsibility standards?

Starbucks acknowledges that one of the important components of our environmental mission is to buy, sell and use environmentally friendly products. Starbucks suppliers must comply with all local environmental laws and regulations and must operate in a manner that preserves natural resources. All waste materials and production by-products must be disposed of in an environmentally responsible manner. Suppliers must establish and demonstrate safety practices and standards for identifying and handling hazardous waste.

1. Environmental permit and report. 

All necessary environmental permits (such as emissions regulation) and registration must be obtained, maintained and updated to comply with operational and reporting requirements.

2. Waste water and solid waste. 

Wastewater and solid waste generated in operations and industrial processes must be monitored, controlled and treated as required prior to discharge and disposal. There must be a wastewater monitoring record to compare with the permitted emission levels. A written plan to reduce water use that must be performed in all operations.

3. Prevent pollution and reduce resources. 

All types of waste, including water and energy, must be reduced or removed at the source, or reduced or removed by changing production, maintenance and facility procedures, material replacement, retention, recycling, and reuse of materials. There must be written waste prevention, waste reduction, recycling, energy conservation, and greenhouse gas reduction policies, as well as evidence of the performance that can be demonstrated. Records must be provided that illustrate the use of post-consumer recycled content materials. Must be implemented on all paper products: items using virgin fiber and post-consumer fiber. Unless it is impossible due to regulatory restrictions or operational restrictions, the paper product must contain no less than 30% post-consumer fiber.

4. Product content restrictions. 

Participants must comply with all applicable laws and regulations regarding the prohibition and restriction of specific substances, including trademark laws (of countries of origin and countries of sale) and regulations for recycling and disposal.

5. Dangerous goods. 

Chemicals and other materials that are hazardous to the environment must be identified and managed to ensure safe handling, movement, storage, recycling or reuse, and emissions. Records of hazardous material handling must be maintained. A written policy that minimizes hazardous materials must be implemented.

6. Gas emissions. 

Prior to discharge, volatile organic chemicals, aerosols, corrosive substances, particulates, chemicals that deplete the aerobic layer, and after-products of combustion must be identified, monitored, controlled, and disposed of as required. There must be a gas emission monitoring record to compare with the allowed emission levels.

7. Wood products. 

There must be a written plan to maximize the use of wood from forest management committee (FSC) certified, sustainably managed forests, with evidence of execution that can be demonstrated. All solid wood used for flooring, furniture, cabinets, etc. must be certified by the Forest Stewardship Council (FSC).

The above seven points are the major content of environmental protection of the social responsibility standards of the Starbucks suppliers.

There are many regulations in the Wal-Mart SCS audit. Today we only talk about the two regulations for chemical leaks and machine protection devices.

Wal-Mart SCS inspection of chemical spills:

1. The responsible persons and workers at all levels of the production department and production line should master the correct use of the eye wash device and be familiar with the installation position of the eye wash device.

2. Eyewashers should be installed in areas where chemicals are used (eg silk screen shops, chemical warehouses).

3. Develop procedures for dealing with chemical spills and identify how to deal with accidents.

4. The two faucets of the eye wash should be discharged normally. The water source of the eye wash should be in accordance with the sanitary conditions.

5. Eyewasher installation location should be within 30m of the chemical warehouse or chemical use point or 15s when needed.

6. When the worker's face, eyes, arms or neck are exposed to chemicals, they should be rinsed with an eye wash.

Wal-Mart SCS Audit Machine Protection Device Regulations:

1. The factory shall conduct pre-job training for machinery and equipment operators, and shall have a job training record and a signature of the training personnel.

2. The rotating parts of the machine should have personnel close to the self-stop protection device and protective cover.

3. The protective platform should be added to the walking platform and lifting platform of the machinery and equipment, and the height of the protective fence should not be less than 1 meter.

4. The protection device of the machine should be in an effective protection state.

5. The operation instructions should be posted on the machine and equipment. The above operating methods and precautions should be detailed.

6. For jobs with occupational injury factors, the factory should be equipped with protective glasses, masks, masks, earplugs, safety helmets and other labor insurance products.

The Zero Tolerance Standard of Starbucks factory audit:

1. Attempted bribery

2. Commitment to continuous improvement

3. Child labor

4. Forced laborers

5. No pay

6. Physical / sexual abuse and sexual harassment

7. Refusal to Assessment Starbucks requires suppliers to provide their business, policies, procedures and other relevant records to Starbucks and its designated third parties.

The supplier must announce the name, address and ownership of all the plants that will be used to produce for Starbucks, including subcontractors.

The importance of transparency is determined primarily by the transparency of the factory. Improvement of performance requirements procedures and termination of business cooperation The decision to continue to cooperate with existing suppliers is only a violation of a transparency principle, and all efforts to implement other codes of conduct will be ruined.

Commitment to continually improve Starbucks' desire for suppliers to demonstrate continuous improvement and participate in the process of improvement Child labor Suppliers cannot hire any worker under the age of 15 If local compulsory education is over 15 years of age, follow local regulations.

Forced Labor Starbucks does not tolerate the use of any forced or involuntary labor by our suppliers, contractors or subcontractors.

What is forced labor?Forced labor is imposed by imposing penalties on workers for involuntary labor. Easily identifiable forms: prisoner labor, mentoring labor, slave labor, forced overtime, other forms that are difficult to identify:

Contract laborers who have to pay too much for prepaid expenses have to borrow. They cannot leave before paying off their debts. All workers, including trainees, must be paid cash no less than the statutory low wage. Workers must be paid regularly on a regular basis. Physical/Sexual Abuse and Sexual Harassment Suppliers must not use or allow corporal punishment or any other form of physical or mental coercion, including abusive and sexual harassment.

Refusal assessment

Suppliers must allow third parties approved by Starbucks or Starbucks to check their records, facilities and conduct employee interviews without prior notice.

For non-compliant factories: Choose new suppliers, non-compliant suppliers will not get any Starbucks Starbucks business. Buyers can choose to use the CAR program to correct non-compliance. The business will only be granted after the second on-site assessment confirms that the corrective action requires successful CAR implementation.

Do not implement social responsibility: Existing suppliers must accept behavioral correction requirements without performing social responsibility.

Starbucks expects suppliers to build their own ethical procurement processes and drive them forward in their own business practices and in the factories they choose to produce Starbucks products.

Starbucks' expectations for suppliers:

1. Can understand the situation of all production plants to establish the standard of the selected factory.

2. Investing in resource procurement activities to support social and environmental responsibility supports the implementation of ethical procurement standards.

3. Establish social and environmental standards.

4. Communicate standards and expectations with supply chain partners.

5. Sign the supervision agreement to summarize the gap between factory performance and standards.

6. Invest resources to support the continuous improvement of the factory.

Before introducing a new plant for Starbucks production, ensure that the following steps are fully implemented:

1. Ensure that the facility receives and understands Starbucks' finished goods and services standards, (emphasis on transparency) Starbucks zero tolerance standards, and ensures that the factory understands the assessment process.

2. Arrange to communicate with the factory by phone or arrange to visit the factory.

Make sure the following points are prepared for a successful assessment:

1) Determine the time span of the plant operation (ideally, the factory must operate for a minimum of 12 months); for the new plant, the operating time must be at least 3 months, and provide a complete record of workplace policies and processes, attendance records, payroll records, production records, and more.

2) If the production site has received social and environmental assessments in the past 12 months, review the results with the factory and find out what ongoing improvements are being made.

3) Ensure that the factory makes a commitment to act transparently.

4) Review the evaluation process to verify access to all areas of the facility and conduct confidential interviews with employees to establish an effective system for recording all working hours.

Starbucks has a seven-point zero tolerance standard: transparency, commitment to continuous improvement, child labor, forced labor, unpaid, physical/sexual abuse and sexual harassment, refusal to assess, which must be observed. 

Details are as follows:

1. Transparency

Suppliers must publish the names, addresses, and ownership of all factories that will be used to manufacture Starbucks, including subcontractors.

The importance of transparency is that the procurement decisions are based primarily on factory transparency. Even if the supplier only violated a transparency principle, all efforts to implement other codes of conduct will be destroyed.

2. Commit to continuous improvement. 

Starbucks hopes that suppliers will demonstrate the determination to continuous improvement and participate in the process of improvement.

4. Forced labor

Starbucks does not tolerate the use of any forced or involuntary labor by our suppliers, contractors or subcontractors. So what is forced labor? It is the use of punishment and other means to force workers to work involuntarily as forced labor. The forms that are easily identifiable are: mentoring labor, slave labor, prisoner labor, forced overtime; other forms that are more difficult to identify: contract labor, over-paying workers who have to borrow and cannot leave before paying off debts.

5. No pay

All workers, including trainees, must be paid no less than the statutory low wage standard. Suppliers must pay wages to workers on a regular basis.

6. Physical, sexual abuse, sexual harassment

Suppliers must not use, allow corporal punishment, or any other form of physical or mental coercion, including abusive and sexual harassment.

7. Refuse to evaluate

Suppliers must allow third parties approved by Starbucks or Starbucks itself to check their records, facilities and conduct employee interviews without prior notice. Starbucks requires suppliers to provide their business, policies, procedures and other relevant records to Starbucks and its designated third parties.

There are several options for Starbucks in case of non-compliance:

1. Choose a new supplier, and non-compliant suppliers will not get any Starbucks Starbucks business.

2. Buyers may choose to use the CAR procedure to correct non-compliance. The business will only be granted after the second on-site assessment confirms that the corrective action required has been successfully implemented.

For non-execution of social responsibility: existing suppliers do not perform social responsibility and must accept behavioral correction requirements.