Human Rights and Labor Practices Policy
Yum! Brands is committed to maintaining a work environment that respects and supports human rights for all of our employees around the world. Our core values as an organization assist in reinforcing this commitment, specifically our “Believe in All People” and “Go for Breakthrough” principles.
We will not employ underage children or forced laborers and we prohibit physical punishment or abuse. We respect the right of all employees to associate or not to associate with any group, as permitted by applicable laws and regulations. We require compliance with all local labor laws in every market where we operate. We promote, protect and help ensure the equal enjoyment of human rights by all persons, including minorities, women and those with disabilities. We have and will continue to partner with various stakeholders to collect input and help guide our human rights efforts.
Ethics and Compliance
Yum! Brands’ success is built on the integrity and high ethical standards of our employees. Our ethics and compliance program, based on our Worldwide Code of Conduct, demands the highest ethical standards in all of our operations around the globe.
Worldwide Code of Conduct
Our Worldwide Code of Conduct is more than a document – it is the foundation for the way we conduct ourselves and do business throughout the world. It calls for the highest standards of ethical behavior from our Board members, executives and 1.5 million employees. The Worldwide Code of Conduct sets forth the policies and procedures regarding standards of conduct that are required of Yum! Brands directors and employees. The Worldwide Code of Conduct is intended to help employees conform to high ethical standards and to protect Yum! Brands and its employees’ reputations.
The Worldwide Code of Conduct is published in English, Chinese, French, German, Korean, Portuguese, Russian, Spanish, Thai and Turkish. It can be found at www.yum.com/investors/governance/conduct.asp.
Yum! Brands recognizes that one of its greatest strengths lies in the talent and ability of its employees. Employees are expected to hold themselves accountable to the highest professional standards, with mutual respect being the basis of all professional relationships. Human resource goals have been established to guide the Company’s activities in employee relations. It is the Company’s policy to deal fairly with employees, provide equal opportunity for all in recruiting, hiring, developing, promoting and compensating without regard to race, religion, color, age, gender, disability, genetic information, military or veteran status, sexual orientation, gender, gender identity and/or expression, citizenship, national origin, or other legally protected status, maintain a professional, safe and discrimination-free work environment, recognize and compensate employees based on their performance; and provide a competitive array of benefits.
Sexual, racial, ethnic and religious or any other type of harassment has no place in the Yum! Brands work environment. Racial, ethnic and religious harassment includes such conduct as slurs, jokes, intimidation or any other verbal or physical attack upon a person because of race, religion or national origin.
Supplier Code of Conduct
Yum! Brands is committed to conducting its business in an ethical, legal and socially responsible manner that aligns with our organizational values. To encourage legal, social and ethical business practices by our suppliers and subcontractors we established a Supplier Code of Conduct.
The Yum! Brands Supplier Code of Conduct sets forth our expectations and minimum standards for all suppliers and subcontractors. The Supplier Code of Conduct addresses working hours and conditions, non-discrimination, child labor and forced or indentured labor. We require suppliers to conduct audits and inspections to verify compliance with the Supplier Code of Conduct. In addition, we reserve the right to conduct unannounced assessments, audits and inspections of supplier facilities. Violations lead to disciplinary action, including termination of the supplier relationship for repeated violations or noncompliance.
Compliance with Laws and Regulations
Suppliers are required to abide by all applicable laws, codes or regulations including, but not limited to, any local, state or federal laws regarding wages and benefits, worker’s compensation, working hours, equal opportunity, worker and product safety, and conflict minerals policies. Yum! Brands also expects that suppliers will conform their practices to the published standards for their industry.
Working Hours & Conditions: In compliance with applicable laws, regulations, codes and industry standards, suppliers are expected to provide their employees with safe and healthy working conditions and reasonable daily and weekly work schedules.
Non-Discrimination: Suppliers should implement a policy to effectuate all applicable local and federal laws prohibiting discrimination in hiring and employment on the grounds of race, color, religion, sex, age, physical disability, national origin, creed or any other basis prohibited by law.
Child Labor: Suppliers should not use workers under the legal age for employment for the type of work being performed in any facility in which the supplier is doing work for Yum! Brands. In no event should suppliers use employees younger than 14 years of age.
Forced and Indentured Labor: In accordance with applicable law, no supplier should perform work or produce goods for Yum! Brands using labor under any form of indentured servitude, nor should threats of violence, physical punishment, confinement, or other form of physical, sexual, psychological, or verbal harassment or abuse be used as a method of discipline or control.
Notification to Employees: To the extent required by law, suppliers should establish company-wide policies implementing the standards outlined in the Supplier Code of Conduct and post notices of those policies for their employees. The notices should be in all languages necessary to fully communicate the policy to its employees.
Performance Management and Audits
It is our expectation that every supplier in our global system abides by our Supplier Code of Conduct and agreeing to the Supplier Code of Conduct, is a prerequisite to doing business with us. We continuously monitor public conversations and media exposure, and will contact a supplier if an issue is discovered. To manage performance, audits of key suppliers are conducted annually, which includes a review of the supplier’s internal processes and site visits as needed. Feedback is provided to suppliers to support and drive continuous improvement efforts. Further, we expect our suppliers to conduct audits and inspections in compliance with the Supplier Code of Conduct and applicable legal and contractual standards.
In addition to any contractual rights of Yum! Brands or Restaurant Supply Chain Solutions, LLC (RSCS), the supplier’s failure to observe the Supplier Code of Conduct may subject them to disciplinary action, which could include termination of the supplier relationship. The business relationship with Yum! Brands and RSCS is conditioned upon compliance with the Supplier Code of Conduct and the supplier’s agreements with Yum! Brands and RSCS. We continue to evaluate and evolve our supplier assessments to ensure our supply chain operates under the safest and most responsible conditions.
NOTE: Restaurant Supply Chain Solutions, LLC is the supply chain purchasing co-op for company-owned and most franchised KFC, Pizza Hut and Taco Bell restaurants in the U.S.