Magnet-importing companies participating in the FairMagnet initiative are encouraged to establish revolving funds for each of their suppliers. The level of funding provision in such a fond could correspond to the certification level a supplier has reached (starting with 1% for basic certification and 2% or even 3% for higher levels of certification performance) and would depend on sales volume with the respective supplier. Funding can be used for improvement measures and EHS-trainings as deemed necessary in EHS assessments. The revolving fond is voluntary and serves as an incentive system of CSR activities of a committed Chinese raw magnet manufacturer.
After submission of a plausible plan of measures by the supplier company, funding can be used for planned improvement measures. The aim is to deepen and develop the CSR-concept with lasting effects to achieve long-term improvements in the audit categories.
FairMagnet checks if planned action suggested by suppliers will likely improve the subcontractors environment and work safety.
FairMagnet coordinates activities of each member’s fund, administration of such funds rests with the FairMagnet member companies.
If requested, FairMagnet can manage the revolving fund of a member, self-administration is the preferred modus operandi.
