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Fnatic Group | Ethical Trading

Introduction

Fnatic is committed to trading ethically.  We are working to implement standards based on the Ethical Trading Initiative’s Base Code. The Base Code is itself founded on the conventions of the International Labour Organisation, and is an internationally recognised code of good labour practice. The Base Code is viewed as a global reference standard and is widely used as a benchmark.

Principles

We’re adopting the following principles across our supplier base:

  • Employment is freely chosen.  This means that workers are not bound to their employer and can leave on reasonable notice.  A supplier would break this principle if, for example, it controlled employees’ identity documents.
  • Freedom of association and the right to collective bargaining are respected.  This means that workers (including esports professionals!) have the right to form trade unions and bargain collectively.  If the law in the workers’ country forbids trade unions, our suppliers cannot hinder alternative, legal routes for workers to freely associate and jointly bargain.
  • Working conditions are safe and hygienic.  Suppliers must take steps to prevent accidents.  Workers should receive health and safety training.  Accommodation, if provided, should be clean, safe and meet workers’ basic needs.
  • Child labour shall not be used.
  • Living wages are paid.  A “living wage” is one which meets, at a minimum, national legal standards or industry benchmark standards, whichever is higher.  Wages should always be enough to meet basic needs and to provide some discretionary income.
  • Working hours are not excessive.  Working hours should comply with national laws, and should not exceed 48 hours per week.  Workers should receive at least one day off in every seven day period.  Overtime should be voluntary.
  • There is no discrimination in hiring, compensation, access to training, promotion, termination or retirement based on race, caste, national origin, religion, age, disability, gender, marital status, sexual orientation, union membership or political affiliation.
  • Regular employment is provided.  To every extent possible, work should be performed on the basis of recognised employment relationship - i.e. not a fixed term or zero hours contract.
  • No harsh or inhumane treatment is allowed.  Physical abuse or discipline, the threat of physical abuse, sexual or other harassment and verbal abuse or other forms of intimidation shall be prohibited.

How we implement the principles now

We implement our principles via our contracts with suppliers.  Since 2020, our standard terms have mandated that our suppliers must:

  • not participate in or benefit from any form of child labour, forced labour or slavery.  Our suppliers must terminate their relationships with any company or entity if they  become aware of its involvement in any of these practices.  Based on Fnatic’s current turnover, it is not required to issue a Modern Slavery statement; though we expect to complete this step in the medium term.
  • not participate in or benefit from harassment, exploitation, abuse, discrimination or violence committed against employees, directly or indirectly.
  • fulfil and promote employee labour rights by ensuring that their employees (and by contractually procuring that the employees of their subcontractors) are not subjected to excessive working hours, are paid a living wage according to market standards, and benefit from safe working conditions.
  • carry out their business activities in a sustainable manner, doing everything reasonably and commercially in their power to minimise the environmental impact of their business activities.

Fnatic’s standard terms also give us a contractual right to inspect any facility in which Fnatic-branded products are manufactured or handled. We can also speak directly and privately with any of our supplier’s personnel, without a member of supplier management present.

In addition:

  • regarding discrimination, as our diversity and inclusivity policy states, we are an anti-racism organisation.  We recognise that diversity and inclusion cover gender as well as racial and ethnic diversity. We have established partnerships with leading organisations and advisory bodies in the promotion of diversity and inclusion.
  • all companies we do business with must agree to comply with applicable tax and accounting rules (and not carry out (or permit to be carried out) any action or inaction, the purpose or outcome of which is to avoid the lawful payment of taxes), anti-bribery and anti-corruption legislation (including laws such as the US Foreign Corrupt Practices Act 1977 and the UK Bribery Act 2010) and laws relating to the sharing of personal data.
  • we share details of our Speak Up policy with our suppliers, and encourage suppliers and their employees and contractors to contact us on becoming aware of any ethical breach by Fnatic or its team.
  • regarding child rights, the basic standard for child rights at the global level - the UN Convention on the Rights of the Child - is also a founding text for our Safeguarding Policy.

Our journey

We will continue working towards implementation of our principles - which ultimately will mean adoption of the Ethical Trading Initiative’s Base Code in full. 

Our expectation is not only that all of our suppliers will have agreed to meet the requirements of the Code by the end of 2022; but that we will also have audited supplier compliance by that date, so as to offer our customers certainty that they are buying products that have been ethically sourced. 

We are also carrying out the required diligence ahead of issuing a statement in compliance with section 54 of the Modern Slavery Act 2015, which we also expect to do by the end of 2022.

For more info

For more information regarding ethical sourcing at Fnatic, contact apparel@fnatic.com.