Responsible Business Conduct Policy

DECLARATION OF PRINCIPLES FOR RESPONSIBLE CORPORATE ACTION OF LIVING CRAFTS GMBH

Ecological and social responsibility are of integral importance to LIVING CRAFTS as a natural fashion brand. This policy statement identifies the individual components that provide a code of conduct for employees and suppliers.

As a trading company, we see it as our responsibility to respect human rights, protect the environment and prevent possible dangers.
The basis of human rights and environmental care at LIVING CRAFTS is formed by our commitment to internationally recognised frameworks, including the following:

• Universal Declaration of Human Rights
• UN Convention on the Rights of the Child
• UN Convention on the Rights of Women
• UN Women's Empowerment Principles
• Conventions, core labour standards and recommendations of the International Labour Organisation (ILO) on labour and social standards
• Global Organic Textile Standard

LIVING CRAFTS believes that the following guidelines will provide long-term benefits to its employees, customers and business partners.

Employees:

• Respecting the values of employees, providing good working conditions and equal opportunities, improving employee satisfaction; encouraging their development through individual training to optimise quality of work and life

Suppliers and partners:

• Code of Conduct for the supply chain: Since 2021, this has been a binding part of the contracts with our direct business partners. This is because we share responsibility for our supply chains and their impacts with all our suppliers.
• Our defined sustainable purchasing policy forms the basis for our procurement. It outlines the principles, the processes for measurement and improvement, and an exit strategy. Special circumstances, some of which are only temporary and require increased due diligence, can also be mapped by regularly updating the policy.
• Bribery/corruption: Bribery and deception attempts are not tolerated and will result in termination of the business relationship.

Environmental impact:

• To prevent pollution by implementing processes, practices and techniques to prevent, reduce or control the generation, emission or discharge of any pollutant or waste and to reduce adverse environmental impacts.
• Our defined environmental policy enshrines the principles of how we do business with respect for our environment.

Health and safety:

• Considers the provision of a safe working environment in all activities and processes.

Community involvement:

• Giving to charity and engaging with local communities through sponsorship and internship programmes

Ethos:

• Promote high standards of professionalism throughout the organisation and encourage best practice in ethical behaviour

The basic principles of this policy represent the bare minimum, not the maximum, level of protection and support for the fundamental rights of workers and the environment. Whenever the provisions of national and international laws, specific industry standards, applicable collective agreements and this policy address the same issue, the provision that provides the best protection for workers and the environment shall apply.

The environmental policy

Ecological and social responsibility are of integral importance to LIVING CRAFTS as a natural fashion brand. With a few exceptions, all articles made of natural fibres are GOTS-certified, and membership of the Fair Wear Foundation underlines the commitment to fair working conditions in textile production. 
The quad of sustainability at Living Crafts: 

1. qualitative ––> respect for durable products = sustainability 
2. ecological ––> respect for nature & animals = sustainability 
3. socially compatible ––> respect for fellow human beings = sustainability 
4. climate-neutral ––> respect for the planet = sustainability 

LIVING CRAFTS GmbH is a trading company focussed on natural textiles, which carries out its activities in a way that strives for the following: 
to minimise or eliminate negative impacts and maximise its positive impact on the environment. The company is committed to the responsible use of natural resources and sustainable business practices. 

LIVING CRAFTS GmbH is committed to: 

• Continuously improving its environmental impact through assessments, setting targets and monitoring their fulfilment, and preventing pollution by implementing processes, practices and techniques to prevent, reduce or control the generation, emission or discharge of any pollutant or waste and to reduce adverse environmental impacts 
• Integrating environmental management into management practices throughout the organisation 
• Minimising the use of non-renewable resources and promoting the reduction and recyclinof waste products wherever possible 
• Exercising caution in the use of critical environmental resources, especially when impacts are unknown or uncertain 
• Managing environmental risks in the workplace and the surrounding environment responsibly 
• Ensuring compliance with applicable legal requirements and other requirements to which the organisation subscribes and which relate to environmental aspects 
• Educating and training its employees in matters pertaining to environmental responsibility 
• Interacting constructively and transparently with stakeholders 

Employees and contractors working for LIVING CRAFTS GmbH play a fundamental role in achieving environmental goals through their involvement in environmental management programmes and initiatives as well as the integration of environmental concerns into daily practice. 

Sustainable purchasing policy

Our principles:

• Long-term supplier relationships Continuity brings efficiency
• Respect for delivery times duly adapted internal planning avoiding overtime at suppliers and environmentally harmful air cargo
• Fair prices Knowledge of production salaries/open dialogue with suppliers on the interaction between purchase prices and salary costs/conscious pricing policy
• Consolidation of the supplier base Number of suppliers: as many as necessary, as few as possible. The fewer suppliers, the higher the capacity utilisation for each operation, and the greater our influence.
• Risk analysis of countries of origin In order to fulfil its duty of care in monitoring the supply chain, LIVING CRAFTS relies on a risk-based audit of suppliers and production countries when monitoring production sites
• Transparency internally and externally creates trust among business partners and consumers

The following processes have been implemented to ensure that the requirements are measurable:

• Systematic onboarding process for new suppliers
• Bi-annual evaluation of supplier performance
• Annual gathering of feedback from suppliers on the purchasing conduct of LIVING CRAFTS
• Systematic survey of human rights and environmental risks of procurement with a risk assessment tool

Defined exit strategy:

• If the objective supplier rating is severely below average, and the cause is not force majeure but structural problems at the supplier, a dialogue is initiated with the supplier.
• The supplier should be given the opportunity to remedy the internal problems and improve performance for at least two seasons.
• The supplier is informed about their being "under observation".
• LIVING CRAFTS checks to what extent support (optimisation in communication or similar) can be provided.
• If performance remains poor or deteriorates, the order volume is initially reduced.
• The situation is reassessed after one or two seasons with a reduced order volume.
• If the supplier's performance remains inadequate, communication takes place with regard to withdrawal.

Additional measures due to increased due diligence:

• Turkey: Policy on the employment of Syrian refugees
• 2020+: special due diligence – impact of Covid-19 pandemic