AVE Declaration

Concerning A Code of Conduct for the Procurement of Goods to Ensure Protection of Welfare Standards.

1.  The Foreign Trade Association of the German Retail Trade (AVE, Cologne) whose members are   retailing companies and associations represents the foreign trade interests of its members.

2.  Ensuring respect for human life and dignity, improving social standards, and protecting the environment are among humanityˇs most important tasks. Sustainable development of the economy and attendant social progress can be realized only if the natural foundations of prosperity are respected.

3.  Desirous of participating in this process,  the retailing companies of the FTA have adopted   a Code of Conduct for the procurement of goods.

The aim is to exercise a positive influence on the procurement markets without engaging in   protectionist behavior, helping to protect basic   human rights and safeguard the environment.

4.  In accordance with the Conventions of the   ILO, the Code of Conduct aims at attaining certain minimum standards. The following requirements are of special importance:

A. Prohibition of forced labor and prisoner labor that violates basic human rights.

B. Establishment of and compliance with a regulatory framework for冘 occupational health   and safety.

C. Prohibition of child labor, especially the  exploitation of children under conditions    resembling slavery or harmful to their health.

D. Prohibition of workplace practices, conditions and working hours冘 which violate   human rights and labor law.

E. Assurance of fair remuneration adequate to   local conditions and the level of development, allowing a minimum level of satisfaction of   basic material needs.

F.  Prohibition of冘 discrimination on the basis   of race, skin color, sex, religion, political convictions or social background.

G. The right to form associations and to  conduct collective negotiations for a minimum   democratic consensus.

5.  Aware that existing problems are very complex and that some influence can be   exercised, within a framework of appropriate   measures, AVE members undertake to promote   observance of the above requirements by fixing   and implementing appropriate rules and   monitoring their trade partners as well as their   subcontractors for compliance.

6.  Observance of the Code of Conduct will rely   on dialogue, cooperation and a consensual   approach that respects the trading partners   responsibility.

When a violation of the Code of Conduct is    determined, member companies will immediately enter into negotiations with the affected suppliers and search for ways to resolve the    problem, taking into consideration the interests  of the employees and avoiding the effect of a   boycott. If suitable solutions cannot be found   within a reasonable period of time, this is a   reason to terminate further business relations.

7.  Any action taken by the members of the AVE in no way prejudices the responsibilities of   governments of industrialized countries and the   EU in their pursuit of cooperation with developing countries and a trade policy of open    markets governments of developing countries and   the sovereign competence of countries in establishing regulations for the improvement of their circumstances, in particular local social and environmental conditions.

8.  The AVE is prepared, within its legitimation   for action, to submit the substance of this declaration to public discussion and political   decision-making processes.Cologne, 22 November 1999.