Vendor Compliance Policies (2023)

PetSmart Supplier Code of Conduct

Click here to download our Supplier Code of Conduct – Chinese

As the largest pet specialty retailer of services and solutions for the lifetime needs of pets, PetSmart is committed to the highest standard of ethical conduct and business integrity. In each business transaction we make, we strive to improve the products and services we provide, make responsible decisions in how we manage our business, and create a positive impact for our customers, our associates, and the communities where we live and work. We strive to drive excellence in our own business decisions and to support and positively influence ethics and integrity in our supply chain.

This PetSmart Suppler Code of Conduct (“Code”) applies to PetSmart’s vendors/suppliers and their subsidiaries, affiliates, and subcontractors (each a “Supplier”) who provide goods or services to PetSmart or its affiliates and subsidiaries, whether directly or indirectly. PetSmart requires its Suppliers to act in accordance with this Code and in full compliance with all applicable laws and regulations. Suppliers are responsible for ensuring that they and their employees, workers, representatives, agents and subcontractors comply with this Code.

PetSmart has the right at any time to audit its Supplier’s compliance with this Code, and any potential or actual violations may jeopardize the Supplier’s business relationship with PetSmart, up to and including termination.

Responsibilities of PetSmart Suppliers

PetSmart expects its Suppliers to act ethically and with integrity in all business dealings and requires that each Supplier—at a minimum—adhere to the following standards:

Labor and Human Rights

PetSmart believes that all the workers within our supply chain deserve a fair and ethical workplace. PetSmart expects Suppliers to treat their workers with dignity and respect and to uphold the highest standard of human rights.

PetSmart specifically requires the following of each of its Suppliers:

Prevention of Underage Labor. Suppliers will employ workers who are at least 15 years of age or the applicable required minimum age in the relevant jurisdiction, whichever is higher. In this connection, Suppliers will maintain objective procedures for accurately verifying the age of workers and job applicants.

Juvenile Workers Protections. Suppliers will adhere to the principles set out in the ILO Minimum Age Convention No. 138 if it employs workers older than the applicable legal minimum age but younger than 18, including preventing such workers from performing work that might jeopardize their health, safety, or morals.

Voluntary Labor. All labor must be voluntary. Suppliers will not use forced, bonded (including debt bondage), indentured, or prison labor. Suppliers will not engage or support slavery or human trafficking and will comply with all applicable laws on human trafficking and slavery. Workers must be allowed to maintain control over their identity documents and Suppliers shall ensure that no recruitment or other fees are required to be paid by workers. Workers shall have the right to freedom of movement without excess restrictions on entering and exiting facilities and workers must be able to voluntarily end their employment without restrictions e.g. excessive notice periods or fines for termination of their contract.

Working Hours. Suppliers will comply with all applicable laws with respect to working hours and days of rest and in any event shall ensure that working hours do not exceed 60 hours per week, whether or not allowed by local law, except in emergency or other exceptional circumstances. Suppliers must also ensure that workers are allowed at least one day off in every seven-day working period. All overtime must be voluntary and all working hours are required to be documented and monitored accurately.

Compensation. Suppliers’ workers should be paid a fair wage commensurate with prevailing industry standards. Workers’ wages, overtime and benefits should meet or exceed legal standards or collective agreements, whichever are higher.

Freedom of Associations. Suppliers must respect the right of its workers to freely choose whether or not to join associations, organizations and trade unions, and to bargain collectively, as provided by local law or regulation.

Health and Safety. Suppliers must provide its workers a workplace that meets applicable health and safety standards and supports accident prevention for all personnel. Suppliers must identify and manage occupational health and safety hazards through a combination of hazard elimination and engineering and administrative controls.

Antidiscrimination. Suppliers will promote a workplace that is free of discrimination and will not discriminate against any worker based on age, disability, ethnic origin, national origin, gender, marital status, physical appearance, pregnancy, race, religion, sexual orientation, or union association, in hiring and other employment practices.

Anti-harassment. Suppliers will promote a workplace that is free of harassment and will not threaten workers or subject them to harsh or inhumane treatment, including verbal abuse, psychological harassment or sexual harassment.

Business Practices

PetSmart is committed to ethical conduct and integrity in all of its business dealings. PetSmart expects Suppliers to be ethical in every aspect of its business, including its sourcing, relationships, operations and practices.

PetSmart specifically requires the following of each of its Suppliers:

Conflicts of Interest. Suppliers must not enter into transactions with PetSmart, PetSmart employees, or PetSmart employees’ close family members that would create a conflict of interest.

Gifts and Entertainment. Suppliers will not offer gifts or entertainment to PetSmart employees or their representatives.

Anti-corruption. Suppliers will comply with all anti-corruption laws and regulations in the country where it operates in addition to the United States Foreign Corrupt Practices Act (FCPA) and applicable international anti-corruption conventions. Suppliers will not offer bribes, kickbacks, illegal political contributions or other improper payments to any customer, government official or third party, and will not offer or accept anything of value to or from government officials or its business partners that would influence someone’s ability to make objective business decisions.

Competing Fairly. Suppliers will comply with all antitrust and competition laws and regulations. Suppliers will not engage in agreements, whether oral or written, with its business partners that would restrain trade and will not discuss or suggest actions to PetSmart or any third party that would restrain trade (e.g., actions regarding fixing prices, terms and conditions of sale, costs, profit margins, or other aspects of the competition for sales to third parties).

Global Trade and Compliance. Suppliers will comply with all applicable import/export laws in its dealing with PetSmart and will comply with applicable international trade control and customs laws and regulations, including those relating to licensing, shipping and import documentation and reporting, and record retention requirements. Suppliers will also make reasonable efforts to have a security program that is in accordance with the United States Customs-Trade Partnership Against Terrorism’s (C-TPAT) minimum security requirements. Additionally, Suppliers will not act, directly or indirectly, for or on behalf of any individual or entity that: (i) appears on the Specially Designated Nationals and Blocked Person List, as maintained by the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury, or (ii) is otherwise subject to OFAC sanctions.

Boycotts. Suppliers will not request PetSmart to participate in any type of boycott and will not request or require PetSmart to refuse to do business with other people or countries, through contracts, invoices, e-mails, shipping documentation, or any other form.

Environmental Responsibility. Suppliers will maintain environmentally responsible and sustainable business practices and comply with all laws and regulations in the country where it operates. Suppliers should only use lawfully made chemicals and supplies in its goods (if applicable) and should avoid or minimize its use of regulated materials, and only use such materials appropriately.

Product Quality and Compliance. Suppliers, and factories producing products for PetSmart on behalf of Suppliers, agree to comply with PetSmart’s Product Quality and Compliance manual which includes meeting applicable regulations, product testing and manufacturing consistent with current good manufacturing practices (cGMP).

Responsible Sub-contracting. Suppliers will obtain pre-approval from PetSmart prior to engaging in sub-contracting. Suppliers will adhere to PetSmart’s Subcontracting Disclosure Policy and avoid engaging in unauthorized sub-contracting, including homeworking.

Animal Welfare. Suppliers will engage in practices that promote the humane treatment of animals. To the extent applicable, this includes providing an environment that is free from distress, cruelty, abuse, and neglect and that is consistent with all applicable laws.

Confidential Information and Data Security. Suppliers will not improperly use or disclose any confidential information, including trade secrets, of PetSmart or of any third party. Suppliers will use PetSmart confidential information only for the purpose for which it is provided. Suppliers will implement and maintain physical, technical and organizational measures and safeguards across its computer systems, portable electronic devices, laptops, and other storage devices that protect the security and confidentiality of any PetSmart data and information that it stores, accesses or processes. Suppliers will encrypt any PetSmart data that it sends over the Internet using a secure transfer method (e.g., SFTP). Suppliers shall notify PetSmart immediately in the event a data security breach occurs.

Publicity. Without express approval, Suppliers will not use the name “PetSmart” or any other name, mark, logo, design, product designations or other intellectual property of PetSmart or any of its related, affiliated or subsidiary companies in any advertising, publicity or promotion or to express or to imply any endorsement by PetSmart of a Supplier’s products, services or business.

The foregoing standards are subject to modification at the discretion of PetSmart.

How to Raise an Ethics or Integrity Concern

Each PetSmart Supplier is responsible to promptly inform PetSmart of any ethics or integrity concern involving or affecting PetSmart as soon as the Supplier has knowledge of such concern. A PetSmart Supplier will also provide reasonable assistance as requested by PetSmart to assist in the investigation of any concern involving PetSmart or Supplier.

If you have an ethics or integrity concern, or questions in general about this policy, you must take one or more of the following actions:

  • Raise the concern in writing with your PetSmart business contact
  • Call the CareSmart Hotline at 1-800-738-4693 in the United States, 800-96-0217 from mainland China or 4009914422 from Hong Kong
  • Submit a report to the CareSmart web portal at
  • Send an email to

The hotline and web portal are operated by a third-party provider and are available to us 24 hours a day, 7 days a week. PetSmart forbids retaliation against any person reporting an ethics or integrity concern in good faith.

PetSmart’s Code of Ethics & Integrity

PetSmart’s Code of Ethics & Integrity, which may be found at, sets forth PetSmart’s commitment to ethical conduct and integrity. The standards set forth in PetSmart’s Code of Ethics & Integrity govern the conduct of all PetSmart employees and are supplemented by compliance policies and procedures adopted by PetSmart. PetSmart expects its Suppliers to maintain their own code of conduct that is at least as stringent as PetSmart’s Code of Ethics & Integrity


How do you ensure vendor compliance? ›

5 Steps to Secure Vendor Compliance
  1. Conduct Risk Assessments. Companies should perform multiple assessments of potential third-party risks, itemizing benefits, liabilities, costs, and more in a risk-and-reward analysis. ...
  2. Evaluate the Vendor. ...
  3. Create a Vendor Compliance Policy. ...
  4. Solidify a Contract. ...
  5. Vendor Management.
Jun 14, 2022

What is a vendor compliance? ›

Vendor compliance is achieved when a vendor ships a retailer's purchase order in accordance with the retailer's specifications. These standards or business regulations are usually established as a condition of the retailer-vendor relationship and the purchase order that the retailer negotiates.

What is the importance of vendor compliance? ›

With a vendor compliance policy or program in place, your business can avoid problems like wrong purchase order numbers, incorrectly filled purchase orders, late deliveries, damaged goods, and more.

What practices must we comply with when engaging vendors? ›

10 Best Practices for Emerging Vendor Management Programs
  • Right-size your vendor management program for you. ...
  • Set the right tone at the top. ...
  • Establish governance and engage your stakeholders. ...
  • Get visibility into your vendors and contracts. ...
  • Know which risks apply to which vendors. ...
  • Don't skimp on due diligence.

How do you resolve compliance issues? ›

How to Manage Compliance Risk?
  1. Always Start With a Risk Assessment. ...
  2. Managing Compliance Risk is All About Third Parties. ...
  3. Understand the Latest Enforcement Policies. ...
  4. Don't Forget to Build a Culture of Ethics and Compliance. ...
  5. Ensure People Feel Free to Speak Up. ...
  6. Continuously Monitor and Update Your Compliance Efforts.
Mar 14, 2019

What is the main purpose of compliance? ›

The purpose of compliance is to adhere to both internal policies and procedures, along with governmental laws. By implementing compliance procedures protects your company's reputational risk and improves your company's vision and value as well prevent and detect violations of rules.

What is vendor compliance risk? ›

Compliance/Regulatory Risk

Vendors are required to adhere to any laws, regulations, and rules established by regulatory organizations that have an impact on their business and industry, as well as any internal policies of the institution.

What is the purpose of a vendor management policy? ›

The purpose of a vendor management policy is to identify which vendors put your organization at risk and then define controls to minimize third-party and fourth-party risk. It starts with due diligence and assessing whether a third-party vendor should have access to sensitive data.

What are best practices in compliance? ›

Five Best Practices for Prioritizing and Building an Effective Ethics and Compliance Program
  • Be Proactive in Managing Compliance and Ethics. ...
  • Adopt and Communicate an Ethical Profile. ...
  • Train Employees on Compliance Policies. ...
  • Integrate Hotlines with the Compliance Program. ...
  • Adopt a Risk-Based Approach to Compliance Management.

What is a vendor compliance Manual? ›

This compliance document is used to spell out your company's requirements, expectations, and penalties regarding cost of backorders, service standards, delivery dates, product condition upon delivery, product quality according to specifications, product packaging and label marking, supply chain system requirements, ...

What are the four types of compliance? ›

Different types of compliance business owners need to know
  • Regulatory compliance. Regulatory compliance is when a business follows the local and international laws and regulations that are relevant to its operations. ...
  • HR compliance. ...
  • Data compliance. ...
  • Health and safety compliance.
May 18, 2022

What are the three areas of compliance? ›

Know the Three Areas of HIPAA Compliance

HIPAA comprises three areas of compliance: technical, administrative, and physical.

What are examples of compliance requirements? ›

In most states, for example, you are required to file an annual report so the state can monitor the activity of your company. Another external compliance requirement is the franchise tax, which is a state tax you pay for the right to operate your business in that particular state.

What are the 7 elements of compliance? ›

However, 7 key elements exist in virtually all legally effective compliance programs:
  • Policies & Procedures.
  • Chief Compliance Officer/Compliance Committee.
  • Education & Training.
  • Reporting.
  • Monitoring & Auditing.
  • Enforcement.
  • Responding To Issues.

What are the four key compliance issues? ›

The 4 Most Common Compliance Risks and How to Avoid Them
  • Legal & Liability Concerns.
  • Data Security.
  • Business Reputation.
Aug 11, 2022

How do you write a compliance policy? ›

Ensure all the policy statements are short, declarative, and specific to a single issue. Write the document in the active voice.
All policy documents should include:
  1. Header Block.
  2. Background Introduction.
  3. Purpose/Objectives Statement.
  4. Definitions Section.
  5. Scope of the Policy.
  6. Policy Statements.
  7. Procedures.
  8. Related Policies.

What are the biggest challenges in compliance? ›

Biggest challenges faced by compliance in 2023
  • Climate change & ESG.
  • Cost of living & vulnerable customer management.
  • Employment & corporate culture.
  • Third-party risk.
  • Employee mental health & wellbeing.
  • Cybercrime.
  • Sanctions check.
  • Employee-first culture.
Jan 11, 2023

Who is responsible to ensure compliance with the policy? ›

The first step to ensuring compliance begins with involving the leaders of each section of the organization. Policies are often created by someone within an organization that does not have a comprehensive understanding of the daily tasks within each department.

What is a compliance policy? ›

Also called a compliance program, a compliance policy is a set of guidelines and procedures used to maintain organization-wide adherence to laws, regulations, industry standards, and other rules.

What is an example of a compliance issue? ›

Common compliance risks involve illegal practices and include fraud, theft, bribery, money laundering and embezzlement. Privacy breaches. A common compliance risk is the violation of privacy laws. Hacking, viruses and malware are some of the cyber risks that affect organizations.

What is vendor compliance audit? ›

A vendor audit is used by organizations to evaluate a third-party hired by the organization. An audit can look at a number of different issues, such as the organization's quality control, its costs vs. benefits, its cybersecurity protection, or other aspects.

What is the risk of not having vendor management policy? ›

Overall, breaches can result in high financial penalties, a loss in company brand perception, a loss of trust, and potential lawsuits. So, to sum up, crossing your fingers and hoping your third-party vendors have put controls in place to mitigate privacy risk is a gamble that could result in disastrous consequences.

What are the four stages to managing a vendor? ›

This blog discusses four steps for effective vendor management: assess, sterilize, stabilize, and optimize.

What is a vendor risk management policy? ›

Vendor risk management (VRM) is the process of ensuring that the use of service providers and IT suppliers does not create an unacceptable potential for business disruption or a negative impact on business performance.

What are the 2 main areas for compliance in the workplace? ›

The key areas where compliance is required are:

Consumer Law; and. Privacy.

What are the major elements of compliance? ›

Core Elements of an Effective Compliance Program
  • Written policies and procedures.
  • Designated compliance officer and compliance committee.
  • Effective training and education.
  • Effective lines of communication.
  • Internal monitoring and auditing.
  • Enforcement of standards through well-publicized disciplinary guidelines.

How do you resolve a vendor problem? ›

  1. Work on your communication.
  2. Get everything in writing.
  3. Ask them what they need from you.
  4. Escalate in a timely manner.
  5. Evaluate if their service is actually the tool or platform you require.
  6. Don't be afraid to pull out.
Sep 11, 2019

How do you resolve conflict with a vendor? ›

How Do I Resolve a Dispute With My Supplier?
  1. Contact Your Supplier. After reviewing your contract and understanding your position, you should try to resolve the matter directly with your supplier. ...
  2. Issue a Formal Letter of Demand. ...
  3. Contact a Resolution Authority. ...
  4. Take Legal Action.
Jan 8, 2019

What is a regulatory compliance checklist? ›

A compliance checklist is exactly what it sounds like – a detailed cognitive and comprehensive list used to aid in the completion of a procedure or task. It is essentially a guide to make sure that everything is running smoothly.

What are the compliance standard? ›

A compliance standard is Enterprise Manager's representation of a compliance control that must be tested against a set of IT infrastructure to determine if the control is being followed.

What is a vendor checklist? ›

A new vendor checklist is a framework for scanning new vendors who want to join your supply chain. Choosing the right vendor is not an easy-to-do task, and a series of processes must be followed while determining some factors.

What is vendor compliance management? ›

“It refers to managing all aspects of your company's and your suppliers' compliance with statutory, legal, and technical requirements. It ensures that both your business and your suppliers are legally compliant, vetted and verified to access industry-relevant trading opportunities and mitigate trading risks.”

What is the most effective way of monitoring vendor performance? ›

Vendor performance management is usually measured by a series of agreed and contractual Key Performance Indicators (KPI's). Most VPM systems use either dashboards or balanced scorecards to measure a vendor's performance. The former provide a 2-D view and balanced scorecards provide a more 3D view.

What is KPI in vendor management? ›

KPIs, otherwise known as Key Performance Indicators, are the metrics by which vendors are measured. Setting KPIs matters because it outlines expectations for third parties and helps businesses to define the relationship at the negotiation stage. KPIs are mutually agreed upon.

What is KPI for vendor selection? ›

A vendor key performance indicator is a statistic that shows how effectively a vendor is assisting a firm in achieving its strategic business goals. The KPIs should be well-defined if you use service-level agreements (SLAs) in a contract to build a vendor scorecard.


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