Partner factories follow a supplier code of conduct when three conditions hold. The code must be written for the factory floor. The brand’s own buying behaviour must make compliance possible. The rules must be verified after signing. In practice, that means you translate the code into the local language, separate zero-tolerance rules from improvement targets, align it with your order timelines, and check it through audits and follow-up visits. Wadhsons has 35+ years of manufacturing and sourcing experience in China and today manages production and compliance at partner factories and mills, with offices in Hong Kong and Guangzhou and teams across key production markets. That experience points to one lesson: compliance succeeds or fails in the gap between the head-office document and the factory floor.
About the Author: This guide comes from the Wadhsons team. Wadhsons is a Hong Kong-based supply chain and sourcing partner founded in 1985 that specialises in denim design and manufacturing and manages compliance across vetted partner factories in Asia.
A supplier code of conduct is a set of guidelines that a business uses to make sure its suppliers meet defined ethical and legal standards [genieai.co]. It sets out how every supplier providing products or services is expected to conduct its business [berwickpartners.co.uk]. Spectris, for example, says its own supplier code outlines a commitment to integrity, transparency and responsibility [spectris.com].
The content is rarely the problem. Most codes fail on delivery:
That last failure deserves its own section, because a factory responds to the incentives a brand creates, and the code is only one of them. Suppose a brand approves samples late or changes a wash spec after fabric is cut. The ship date usually stays fixed. The lost days have to come from somewhere, and they typically come from overtime.
Consider a speed limit for a driver who is paid per delivery. The rule says slow down, but the pay structure says hurry, and the pay structure wins unless someone changes it. Brands that want their working-hours clause respected should commit, in writing, to:
Wadhsons applies this sequencing in practice. Bulk production starts only after the client has fully approved the samples, and the production timeline follows from that approval.
Once your own practices support the code, its content should reflect the real risks in your sourcing countries rather than a generic template.
| Area | What to write | How to verify |
|---|---|---|
| Forced labour | No forced or involuntary labour [systemc.com]; no retention of ID documents; no recruitment fees charged to workers | Worker interviews, agency records |
| Child labour | Minimum age per local law or international standard, whichever is higher | Personnel files, age checks at hiring |
| Health and safety | Hazards identified, risk controls in place, emergency preparedness [the-esg-institute.org] | Exits, drills, chemical storage, PPE |
| Wages | At least the legal minimum for the worker’s location and grade, paid on time | Payroll checked against time records |
| Working hours | Within legal limits; overtime voluntary and paid at a premium | Time cards checked against output |
| Subcontracting | No unauthorised subcontracting; all sites declared | Order traceability, unannounced visits |
| Environment | Wastewater and chemicals managed to local permits | Permits, discharge test reports |
On wages, avoid hard-coding a figure. Minimum wages vary significantly by region and skill level. A September 2025 directive (Prakas 214/25) by Cambodia’s Ministry of Labor and Vocational Training set the garment minimum wage at $210 per month for 2026, and a directive issued in 2026 set it at $212 per month for 2027. India, Indonesia and Vietnam set different minimum wages by state, province or region, and Bangladesh’s national rate remains under intense negotiation. Your code should state the principle and leave audits to check the number.
A code that treats every clause equally gives factories no way to prioritise, so tiering is the next design decision.
Ending a relationship at the first finding often moves the problem to another buyer’s order and removes your influence over the outcome. Remediation usually achieves more. The exception is a Tier 1 issue that the factory refuses to fix.
Denim adds a layer that most generic codes miss: wet processing. Washing, distressing and finishing often happen at separate laundries rather than at the sewing unit. A code that covers only cut-and-sew therefore misses the higher-risk steps. Add clauses that:
Design and compliance meet at this point. When design and sourcing sit with the same partner, as they do with Wadhsons’ in-house denim design team, wash and finish choices can be reviewed for process risk during development. That review happens before any factory is asked to deliver them.
[QUOTE REQUESTED: Dhiraj Wadhwani, Development Director, on how early denim design decisions affect compliance on the factory floor]
A signature starts verification rather than ending it.
This last step is the practical core of ESG supply chain management. A trend across several audits tells you more than any single audit result.
Regulation is turning codes from voluntary statements into evidence. Human rights due diligence means identifying, preventing, mitigating and accounting for adverse impacts in your supply chain. The EU due diligence directive (CSDDD) builds this expectation into law for in-scope companies. Its scope and timelines have been revised since adoption, so confirm your current obligations with counsel. In practice, your code, your responsible sourcing policy and your audit records need to tell one consistent story. A code that factories never received in their own language is weak evidence of due diligence.
How long should a supplier code of conduct be?
A few pages. Put the procedural detail in a separate supplier manual.
Should factories sign the code?
Yes, but a signature should be paired with training for managers and supervisors. A signature alone proves little.
Is a SMETA audit enough on its own?
It is a strong baseline. It still needs follow-up on corrective actions and checks on subcontractors.
What should brands check in garment factories in Vietnam?
Review working hours during peak seasons, subcontracting when capacity is tight, and whether wages meet the minimum for the factory’s specific region.
How often should factories be audited?
Frequency should follow risk. Sites with open major findings warrant more frequent follow-up.
How does a responsible sourcing policy differ from a code?
The policy states the brand’s own commitments and buying practices. The code states what suppliers must do.
Wadhsons is a multinational supply chain and sourcing partner founded in 1985, with 35+ years of experience in China and offices in Hong Kong and Guangzhou. Known first for denim design and manufacturing, it pairs a strong in-house design department and close attention to detail with the ability to source premium fabrics at fair prices. Wadhsons manages design, compliance, quality control and logistics at vetted partner factories, including partners certified to standards such as Oeko-Tex and WRAP. It uses data-driven insights to strengthen ESG performance across supply chains.
If you want a supplier code that your partner factories will actually follow, and a partner who can help put it into practice, get in touch with Wadhsons at https://wadhsons.com/.
