Tokmanni Group's human rights impact – Foreword
Every company must respect human rights regardless for example of its size, sector or location. Tokmanni Group is a discount store chain. Low prices are often considered to be synonymous with irresponsibility, including inadequate wages, excessive overtime and the use of child labour within the supply chain. However, it is entirely possible for companies to offer low prices while also operating responsibly. Sourcing from several suppliers enables relatively lower prices and increased flexibility for global buyers. Direct purchases without middlemen and large batches reduce costs and make it possible to sell inexpensively. Direct purchases factories also enable the more careful selection and monitoring of suppliers.
Tokmanni Group and human rights
Tokmanni Group is committed to the United Nation’s International Bill of Human Rights, the International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work, and the UN Global Compact, among others. Regarding human rights, our operations are more specifically guided by the UN Guiding Principles on Business and Human Rights.
The Guiding Principles emphasise that companies have an ongoing responsibility to respect human rights, even where government actions and regulatory frameworks are inadequate. Compliance with these principles requires companies to conduct human rights due diligence procedures to identify, prevent, mitigate and account for how they address impacts on human rights in their operations, products, and services.
Tokmanni Group respects human rights and requires its business partners to do the same.
We seek to advance in this area, yet we recognise that many of the human rights challenges we face are deeply rooted in local society and can only be effectively addressed through a long-term commitment and close cooperation with global and local stakeholders. A higher degree of freedom of association and collective bargaining would assist in preventing or minimizing a number of significant human rights impacts in risk countries. They are ways to ensure adequate wages and appropriate working hours, for example. Existence of trade unions at suppliers’ factories is currently monitored through audits.
Internally Tokmanni Group’s operations are guided by the Code of Conduct and its supplementary principles, which also includes the Human Rights Policy. Tokmanni Group’s Human Rights Policy was updated in 2023 in order to meet the upcoming regulatory requirements and stakeholder expectations, as well as to create one policy that covers the Tokmanni Group as a whole.
Tokmanni Group requires its suppliers and other business partners to commit to its Code of Conduct as part of their contracts. Suppliers of goods must also commit to the Business Social Compliance Initiative (BSCI) Code of Conduct.
Human rights risks also affect decisions on sourcing countries or regions. For example, products are not sourced from areas where there is a high risk of forced labour.
Human rights due diligence report summary from 2016
A due diligence assessment was carried out during 2016 in Tokmanni.
Tokmanni received guidance from Anna Triponel, a business and human rights expert with extensive experience in the UN Guiding Principles and their application to companies.
In 2017, Tokmanni has verified these findings with potentially impacted stakeholders, including off site interviews in selected factories.
Assessment of salient human rights issues
Tokmanni’s potential negative human rights impacts were assessed by the lead of Head of Corporate Responsibility. A core working group – with representatives from the purchasing, HR, security, marketing and sales departments – participated in the assessment.
In addition to these inputs from our employees, risk suppliers (risk country, major suppliers) were provided with a questionnaire and were also requested to carry out a self-assessment developed by the Danish Institute for Human Rights that also work group carried out for Tokmanni.
In general, the biggest human rights risk in Tokmanni related to:
- risk countries that have not ratified international agreements or where legislation and its implementation and monitoring are at a poor level;
- countries with a large number of domestic or foreign immigrant workers, who are often hired through unregulated recruitment agencies;
- industries, such as agriculture and light industry that use low-skilled workers;
- suppliers who are not yet complying with the BSCI or are not operating in an ethically sound manner;
- high-risk raw materials;
- lengthy and/or opaque supply chains.
Results of the assessment
The salient potential human rights impanct in Tokmanni's operations are:
- health and safety;
- safety of buildings;
- excessive overtime;
- lack of living wage;
- child labour;
- forced labour.
The negative impacts identified can impact upon a range of human rights, including the the right to work; the right to health; the right to life and the right to a family life.
In 2016, the most significant development needs we have identified are related to further increasing the monitoring of the supply chain and training, as well as strengthening our approach to stakeholder engagement, particularly with non-governmental organisations and trade unions, and cooperation with other operators in the field of trade and government representatives.
External review on human rights in risk countries
Tokmanni regularly carries out separate human rights assessments at our suppliers’ factories in high-risk countries, which includes interviews with employees outside of the factories. These audits are carried out by third parties, and the goal is to ensure the accuracy of the potential human rights impacts we had recognised based on BSCI audits and additional information. The assessments also include so-called off-site interviews, which means that the auditor has also interviewed employees at their home.
Additional interviews are important, as supervisors are often taking part in the audits and there may therefore be a risk that employees will not dare to express their true opinion on working conditions. These off-site interviews also provide an opportunity to verify what has been said in factory audits.
Grievance and remedy
If violations are discovered or reported to the company, via whistleblowing channels for example, the company must have a procedure in place to process them and provide remedy.
Employees are asked to immediately notify Tokmanni’s Compliance unit of any suspected violations of the Code of Conduct. Such notifications are submitted by email to the whistleblowing channel ilmoituskanava(at)tokmanni.fi, by telephone to a member of the Compliance unit or by letter to Tokmanni Oy / Compliance, Isolammintie 1, 04600 Mäntsälä. The channel can also be used by Tokmanni’s external shareholders.
Tokmanni has also a second whistleblowing channel (notification of irresponsible products or operations) with regard to human rights responsibility and product safety. This channel is targeted primarily to Tokmanni’s customers but is open to all stakeholders.
For Dollarstore, notifications are submitted to the whistleblowing channel through wb.2secure.se, or by telephone 0771-77 99 77. The channel can also be used by external shareholders.
The commitment to amfori BSCI and its Code of Conduct includes built-in processes to remediate negative impacts, and channels for the factory workers to raise concerns. As a member of amfori BSCI, Tokmanni Group supports the development of factory specific grievance mechanisms. This is critical, as Tokmanni Group does not own any factories itself. More specifically, amfori BSCI’s Speak for Change is a supply chain grievance mechanism program that supports businesses in their efforts to provide efficient and immediate remediation to affected workers and stakeholders. The challenge is to get the complaints. Due to organisational and national cultures it can be difficult for workers to report the grievances.
Continuous improvement
Tokmanni monitors human rights based on the results of BSCI audits and its own audits, as well as complaints and feedback filed via various channels. The goal is to continuously reduce potential human rights impacts. Tokmanni has zero-tolerance on some human rights violations, such as child and forced labour.
Other issues that might arise, such as those related to occupational safety, will be addressed. In doing so, we work with our partner to ensure that such effects no longer occur.