In May 2019 Ethical Consumer viewed Perrigo's website and 2018 CSR report for details of the company's supply chain management. The company had a Suppliers Code of Conduct that was also viewed. On the basis of this, the company was rated as follows:
Supply chain policy (rudimentary)
A strong policy would include the following commitments: no use of forced labour, permission of freedom of association, payment of a living wage, the restriction of working hours to 48 hours plus 12 overtime (without exception), no use of a child labour (under 15 or 14 if ILO exempt), no discrimination by race, sex or for any other reason.
Perrigo's policy had adequate clauses on child labour, forced labour, freedom of association and discrimination. The clauses on working hours and wages were not considered adequate as they only required adherence to local laws. Overall the company's policy was rated as rudimentary.
Stakeholder Engagement (poor)
Ethical Consumer deemed it necessary for companies to demonstrate stakeholder engagement, such as through membership of the Ethical Trade Initiative, Fair Labour Association or Social Accountability International. Companies were also expected to engage with Trade Unions, NGOs and/or not-for-profit organisations which could systematically verify the company's supply chain audits, and for workers to have access to an anonymous complaints system, free of charge and in their own language.
There was no evidence that Perrigo had any of these things in place.
Auditing and Reporting (poor)
Ethical Consumer deemed it necessary for companies to have an auditing and reporting system. Results of audits should publicly reported and quantitatively analysed. The company should have a scheduled and transparent audit plan that applies to their whole supply chain, including some second tier suppliers. The company should also have a staged policy for non-compliance. The costs of the audit should be borne by the company.
All that could be found was the following statement: "To ensure our stringent standards are being met, an audit may be conducted of both Perrigo sites and supplier factories to verify compliance...In 2017, over 50 ethical and social compliance audits were conducted at Perrigo and supplier facilities."
Difficult issues (poor)
Ethical Consumer also deemed it necessary for companies to address other difficult issues in their supply chains. This would include ongoing training for agents, or rewards for suppliers, or preference for long term suppliers. It would also include acknowledgement of audit fraud and unannounced audits, and measures taken to address the issue of living wages, particularly among outworkers, and illegal freedom of association.
There was no evidence of engagement with difficult issues.
Overall Perrigo received Ethical Consumer's worst rating for Supply Chain Management.
website (6 May 2019)