A finding is identified when a vendor’s policies or operations, or those of their suppliers / sub-contractors do not meet the standards listed in our Supplier Code of Conduct. A finding is categorized according to its severity.

Priority non-conformance is the highest-severity audit assessment finding, requiring escalation by the auditor and immediate attention by the supplier. Priority non-conformance consists of findings that represent a serious non-conformance of the Code or applicable legal requirements, an immediate threat to life or health, or risk of serious and immediate harm to the community or environment.

Identifying any priority non-conformance (such as forced labor) automatically results in a failed audit. Suppliers must take immediate action to remedy all priority non-conformances through the priority non-conformance remediation process. If the factory is unable or unwilling to address the priority non-conformance, we will terminate the relationship.

After we complete a responsible sourcing assessment, we will assign the vendor a risk level from very low to very high. This risk level determines the frequency of future assessments. Vendors can lower their risk rating by strengthening their labor, ethical, and environmental policies and practices, joining industry associations focused on supply chain practices, or by being more transparent about their management of supply chain risks via public reporting.

We conduct overall supply chain risk mapping annually to identify priority due diligence efforts. For example, we understand that forced labor conditions are higher risk in some sourcing regions, especially related to foreign migrants and other vulnerable workers. We then apply increased due diligence to those suppliers accordingly.

We conduct third-party audits at 100% of our potential supplier factories, which include environmental and human rights screening criteria. If we identify any issues that do not conform to our code, we require the supplier to take corrective action. If a priority non-conformance violation is found, it must be addressed immediately. We reject suppliers that are unwilling or unable to address priority violations.

For existing suppliers, Best Buy conducts a full audit at least every other year to identify any gaps between suppliers’ performance and the code. We align our audit protocol with RBA's, which is conducted by firms and auditors trained and approved by the RBA. We also accept other approved third-party audits. Our audits include management and worker interviews, document review, and visits to all structures on the factory premises, including warehouses, dormitories, and canteens. We not only assess their social and environmental performance, but we also review the management systems they have in place.