ETHICAL SUPPLY CHAIN

Ethics within SCM Activities



Table of Contents

Introduction3

Discussion3

Code of Ethical Purchasing4

Policy Requirements5

Supplier Diversity Program5

Provider Directory6

Supplier Qualification6

Supplier Evaluation6

Participation in Associations8

Global Procurement Services9

Suppliers and Agents9

Roles and Responsibilities10

Purpose of the Code of Ethics for managing the supply chain11

Adoption of the Code of Ethics for managing the supply chain11

Code of Ethics for managing the supply chain12

Personal integrity and professionalism12

Accountability and transparency13

Compliance and continuous improvement13

Recommendation13

Code of Ethics for managing the supply chain

Policies and procedures for procurement15

Principles and standards of ethical behavior in the direction of the supply chain16

Ethics within SCM Activities

Introduction

To attract and retain customers and provide services, it is vital to how each company develops processes and activities to meet and exceed their needs and expectations. In this role, it is increasingly important collaboration between the company and its suppliers.

Unilever, Tesco, GlaxoSmithKline, Marks & Spencer, United Utilities and International Power understand that successful implementation of its requirements and principles of work behaviour, social and environmental by their suppliers, extends not only to its direct suppliers but the rest of the industry's supply chain.

Discussion

The study outlines policy and approach to responsible and ethical supply chain management activities. It covers the areas of the safety, ethics, environment, health, labour and related management systems, as well as diversity. Unilever, Tesco, GlaxoSmithKline, Marks & Spencer, United Utilities and International Power are committed to being a responsible corporate citizen, and aims to work in a way that is environmentally, socially and economically sustainable.

The supply chain of the consumer goods sector, retail sector, pharmaceutical sector and power sector have many levels, from raw material extraction, through processing of materials, component manufacturing, or assembly of finished products. Although Unilever, Tesco, GlaxoSmithKline, Marks & Spencer, United Utilities and International Power maintain their direct business relationships with companies that sell products and finishes, are aware of the influence it can have on the rest of the supply chain (Green and New, 1996).

Therefore, one of the objectives of these companies is to foster in its supply chain to achieve and maintain high ethical standards, employment, social and environmental collaboration with suppliers in this endeavour. This objective realized and developed both through its Code of Ethical Purchasing, and Guide for Suppliers has recently developed with the participation of employees, suppliers, investors and NGOs.

Code of Ethical Purchasing

The business principles of Unilever, International Power, United Utilities, Tesco, GlaxoSmithKline and Marks & Spencer which act as codes of conduct both business and individual levels of company employees; provide a commitment to promote their implementation by its partners and suppliers; and are based on various recommendations organizations, such as the Universal Declaration of Human Rights, the Declaration of the Rights of the Child, or Principles of the International Labour Organization on Labour Rights (Handfield and Nichols, 1999).

These business principles are transferred to suppliers through the Code of Ethical Purchasing, which designed to promote both fair working conditions and safe, as the responsible management of social and environmental aspects in the supply chain of these companies. The Code of Ethical Purchasing sets the standards that these companies wish to be fulfilled by ...