Sustaining Our World – 2017 Sustainability Report

Operating With the
Highest Level of Ethics

Running our day-to-day operations in alignment with the highest ethical practices and standards is the way we do business at Tyson Foods.

Our ethics are guided by our Core Values, Code of Conduct, Team Behaviors (also known as our 5Cs) and Team Member Promise, which outline team member rights, benefits and responsibilities.

Our policies and practices follow the human rights principles set forth in the United Nation’s Universal Declaration of Human Rights and the International Labor Organization’s Fundamental Principles and Labor Standards. Team member rights are further strengthened through the Ethics Help Line, annual Compliance Training and the Social Compliance auditing program.

Social Compliance Program

Our Social Compliance Program began in 2015 and allows us to be more proactive in our social compliance efforts. Our goal is to provide our customers transparency into our workplace conditions, which include worker treatment, voice, compensation and safety so they have a reasonable assurance of our commitment to social responsibility.

Key Elements of our Social Compliance Program:

  • Maintain a Social Compliance Committee (SCC) to provide oversight
  • Respond to all self-assessment questionnaires from one central department, in consultation with the committee
  • Maintain memberships in Sedex, SAFESUPPLY, and EcoVadis which are external customer-supplier data exchanges dedicated to empowering responsible supply chains
  • Use a reputable third-party firm to provide audit services

Third Party Audits of Social Compliance Program

A third-party firm audits approximately 25-percent of our production facilities per year. The auditors use Workplace Conditions Assessment (WCA) criteria to verify our adherence to the four pillars of social compliance standards in labor, health and safety, environment and business integrity. A representative WCA Report is provided here as an example. We believe our comprehensive audit program is efficient and effective for us and our customers.

In 2017, there were 24 production facilities audited with an average score of 95-percent, and the achievement awards are posted on our website. While we are proud of our overall performance against the WCA criteria, we do recognize there are areas of opportunity for us to improve. The WCA pillars where the remaining 5-percent of audit findings were identified are listed below:

  • Health and Safety: 63%
  • Labor: 29%
  • Environment: 8%
  • Business Integrity: 0%

Labor findings are related to overtime hours worked and consecutive work days. Through our remediation efforts, we found our team members voluntarily chose to work these overtime hours in excess of 60 hours per week and were paid for all hours worked in compliance with laws and regulations; however, management continues to work on the reduction of overtime and consecutive work days. The health and safety findings are related to emergency egress and fire extinguisher location and number. The findings identified were fully remediated, and management systems were reviewed and improved to prevent similar future findings.

Ethics Help Line
Complaint Areas

  • Employee Matters*: 52.3%
  • Management Style: 25.7%
  • Harassment & Discrimination: 17.3%
  • Other (inquiries, theft, etc.): 4.7%

* Examples of Employee Matters include concerns about attendance points, discipline, or fellow team members.

Annual Compliance Training

We require all of our team members and directors to participate in annual compliance training on topics including our Code of Conduct and various laws and key policies. This training ensures our team members and directors understand our policies prohibit any kind of illegal or unethical behavior and their obligation to report real or suspected violations promptly. Internal reporting avenues include our human resources professionals, any member of management and the Ethics Help Line.

Ethics Help Line

At Tyson Foods, team members’ voices are meant to be heard. All team members are actively encouraged to speak with local management and human resources representatives, or to contact the ethics and compliance department or the human resources director regarding any ethics questions, complaints or concerns they may have.

We provide a toll-free number and web-based reporting mechanism (Ethics Help Line) for team members who are obligated to report suspected violations of our Code of Conduct or the law. The Ethics Help Line is operated by an independent third party and allows team members to raise issues anonymously and without fear of retaliation if they don’t feel comfortable reporting it to their local supervisor or human resources, or don’t feel that the issue is being properly addressed. The Ethics Help Line is managed by a team of corporate ethics and compliance professionals and is available 24 hours a day, seven days a week, and services are available in multiple languages by phone or the Internet.

During FY2017, our Ethics Help Line received 4,761 contacts. Of the total reports, 77.4 percent were unsubstantiated following investigation. While the option to report anonymously is always available, 67.1 percent of those making reports in FY2017 chose to provide contact information. In comparison, data provided by a reputable benchmarking report shows that, on average, only 57.6 percent of those who contact a company hotline provide contact information. This volume, combined with callers’ willingness to provide contact information, shows that our team members know how to use the process and are not hesitant to do so. This result is consistent with our dedication to maintaining a workplace where we can all ask questions and raise concerns without fear of retaliation.