As part of its Responsible Sourcing Program, Electrolux carries out annual Workplace Code of Conduct audits to check that suppliers are in alignment with the Group's social responsibility standards.
During a regular Code of Conduct audit, Electrolux found in 2010 that an existing Thai supplier was conducting mandatory pregnancy tests on female workers as part of the hiring procedure - a practice banned by Electrolux and several of its customers.
The supplier claimed that the tests, carried out without informing job applicants, were done to protect female workers from harmful work situations. In reality, they were used to identify pregnant women and discriminate against them in the hiring process, to reduce costs.
Such discrimination is illegal in Thailand, although pregnancy tests themselves are lawful. To resolve the problem, Electrolux organized a management meeting with the supplier.
A key issue for the supplier was finding a way to remain financially viable whilst employing pregnant women. Addressing this concern, Electrolux showcased some of its own profitable factories in Thailand where no pregnancy tests are carried out.
Alternative ways of organizing work for pregnant women were suggested and the benefits of complying with Workplace Code of Conduct requirements discussed.
Following the meeting, the supplier made the required changes because the benefits for their business with Electrolux and other customers had become clear. From being out of compliance, the supplier has moved to a beyond compliance position and was recently certified for a national Thai standard for workplace conditions.