Brazil's Votorantim demands vendors sign ethical code

15 July 2011

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15 July 2011 | Adam Leach

Brazilian company Votorantim Industrial plans to have all its suppliers signed up to a sustainability code by the end of 2011.

The arm of the conglomerate Votorantim Group, which produces a diverse mix of products including steel and concentrated orange juice, has stated it intends to have all of the companies within its supply chain agree to abide by an ethical code based on the SA8000 ethical regulation.

Formed around the UN declaration of human rights, SA8000 covers a number of ethical policies such as child labour, discrimination and working hours. Currently 80 per cent of the company's suppliers conform to the regulation.

Raul Calfat, managing officer of Votorantim Industrial, which last year had revenues of R$23.3 billion (£9.1bn), said: “In 2010, we underpinned our actions and created a set of commitments to guide our activities in the coming years. For 2011, we will continue our efforts towards the new challenges following our model, which combines growth and financial discipline.”

The business' second annual sustainability report, also outlines a number of other targets for the firm in 2011. It plans to intensify the focus on suppliers by carrying out more frequent audits of them to keep abreast of potential issues and sustainability infringements.

The company also plans to develop a policy to boost the supplies it sources from businesses local to its operations.

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