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Approved 1997/10/26

MEC Sourcing Policy

The purpose of this MEC Board Policy is to provide the broad framework of Principles and Guidelines which MEC staff will use to select suppliers for MEC. The overriding principle is that all suppliers MEC uses must meet our specific requirements for product quality and overall service to maintain their status as a supplier to MEC. Sourcing refers to the purchase of merchandise and services to be supplied to Members or used in the operation of MEC. All decisions on sourcing will be congruent with the policy framework ( Core Purpose, Values, Mission, Board Policies) of MEC. This includes respect for and adherence to International Relations policy decisions made by the Government of Canada. A concept fundamental to this policy is that MEC undertakes its business dealings with individual firms and factories, not with countries. Priority will be given to Manufacturers and Service Providers who are based in and operate from within Canada. This status does not apply to Agents, Wholesalers, Importers or other types of resellers. Priority will also be given to organizations: (i) whose values and ethics are consistent with those of MEC, (ii) who are proactive in improving the living standards of their employees, (iii) who are socially responsible and/or (iv) who are Co-operatives. We will accept moderately higher cost prices from suppliers who fit into the priority categories provided they are able to meet all our other specifications, standards and guidelines. Where it is in the long term interests of MEC, we will provide additional support (financial, technical, training etc.) to suppliers in priority categories to help them develop their business and assist them in meeting our specifications.

Standards and Guidelines:

In deciding whether to do business with a particular firm or factory, MEC employees will include the following Standards and Guidelines among their criteria.

-There are no unusual risks posed to the safety and well being of MEC employees and none are anticipated.

-Political instability does not threaten to disrupt the ongoing business relationship.

-The supplier adheres to and supports the following:

-does not discriminate on the basis of race, gender or religion in its employment practices,

-provides its employees with a safe and healthy work environment.

-does not exploit its workers, irrespective of their age,

-does not use physical or mental disciplinary tactics or forced labour.,

-does not attempt to circumvent local laws or regulations for wages, benefits or working conditions, or those that would otherwise apply if it were physically located outside a "protected zone",

-complies with all other local legal requirements,

-maintains a high standard of business ethics and

-demonstrates a commitment to enlightened environmental and packaging standards.

Inspection and Compliance;

MEC employees will use their best judgement in applying these standards and guidelines, as well as the more detailed ones prepared by MEC management, to the selection of firms and factories with whom we propose to start or to continue in a business relationship.

An organization which qualifies will be asked to sign a statement agreeing:

i) to continue to meet these standards,

ii) to allow inspection visits at any time including external monitoring,

iii) that MEC may take appropriate action, including the cancellation of existing contracts, if the firm fails to adhere to these standards.