Question

How is the Exxon Mobil supply- chain management in Brazil?

Answer 1

Supply chain policy ExxonMobil statement on labor and the workplace stated that its 'Standards of Business Conduct' provided a worldwide framework for responsible operations and are consistent with the spirit and intent of the Fundamental Principles and Rights at Work of the 1998 International Labour Organisation (ILO) Declaration.

However the standards do not include any key labour standards apart from discrimination. The company’s statement on labor and workplace did list the following rules ->

Freedom of association

Forced labour

Freedom from discrimination

The principle regarding child labour is stated by employees that they must be above the legal employment age in the country of their employment which was not considered adequate as some countries permit children to work under the age of 15. But its still unclear whether this just applied to the organisation or suppliers as well. As a whole Exxon Mobil is considered to have a POOR supply chain policy.

Stakeholder engagement- No information regarding stakeholder engagement from NGO's or NFP's with Exxon MObil into the verification of labour standards within its supply chain. There was no information regarding what suppliers had been assessed on but Exxon Mobil stated that no human rights violations were identified during the pilot. Auditing and reporting Exxon Mobil's Corporate Citizenship Report 2014 contained a section called ‘Community and Social Impact' which defined how the company had completed phase two of its pilot supplier human rights risk assessment programme. No further details were given regarding a schedule of auditing of suppliers or disclosure of what suppliers had been audited. Overall Exxon Mobil received a poor rating for auditing and reporting.

Difficult issues Exxon Mobil's Corporate Citizenship Report 2014 stated that it had been conducting human rights awareness training for who work in high-risk areas for years. The training included information about the Voluntary Principles on Security and Human Rights, the needs of ExxonMobil’s Statement and Framework on Security and Human Rights and expectations regarding the implementation of the Framework in a given country. It stated in 2014, it had finished a pilot of a new computer-based human rights training module aimed at further strengthening human rights awareness among employees and select business partners working in high-risk areas. It had plans to roll out the training module formally in 2015. Ethical Consumer considered this to be a positive policy. No further information could be found relating to audit fraud, illegal freedom of association or other difficult supply chain issues related to the petrochemical industry. Exxon Mobil therefore received a rudimentary rating for difficult issues.Wholly Exxon Mobil received Ethical Consumer's WORST rating for supply chain management. Ethical Consumer considered this to be a positive policy.

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