If a supplier cannot meet the sustainability requirements anchored in our Supplier Code of Conduct to our satisfaction or there are specific transgressions, we initiate our risk escalation process.
Our procurement organization is primarily responsible for this process – with support and advice from Group Corporate Responsibility, Compliance, and Legal Affairs. We hold discussions with the supplier to make our requirements clear to them. If the discussions held on various levels do not lead to the desired outcome, the responsible decision-makers consult with each other to reach agreement about how to proceed with the supplier. In the worst case, this could lead to the business relationship with the supplier being terminated.
Everyone who identifies irregularities in our supply chain regarding compliance with laws, internal guidelines, and standards of conduct, can report these – and can do so anonymously if they wish – using our TellMe portal.
Reporting of critical CSR issue Incidents in which a supplier fails to comply satisfactorily with provisions of the Supplier Code of Conduct – or even engages in out-and-out misconduct – can amount to critical CSR issues. We work together with suppliers (and services providers), and carry out special on-site audits, in the interest of identifying any critical issues.
Analyze the risk event, and put together a risk team Every time a critical issue is identified, a risk manager is assigned to the issue. The risk manager’s task is to analyze the risk event and put together a risk team.
Are any measures required? In each case, the risk manager must determine whether measures, oriented to the critical CSR issue, need to be defined with regard to the relevant supplier. If measures do not need to be defined, the process up to that point must be duly documented, and the process is then stopped.
Define measures and prepare a risk plan If measures are deemed to be necessary, they have to be defined, and a risk plan has to be prepared. In the process, the risk manager is supported by the company’s procurement and sustainability areas.
Approve the risk plan The risk plan has to be approved by the company’s procurement department.
Has the plan been approved? If the risk plan is approved by the company’s procurement department, the risk manager can proceed with the next steps in the process. If the risk plan is not approved, the process starts over, from the beginning.
Communication and implementation of the risk plan – Review and documentation If the risk plan has been approved, it is communicated and implemented by the risk manager. The success of the risk plan is reviewed, and duly documented.
Has the risk been reduced? If the risk has been successfully reduced, the process is stopped. If the risk has not been adequately reduced, the process starts over, from the beginning.
If a supplier cannot meet the sustainability requirements anchored in our Supplier Code of Conduct to our satisfaction or there are specific transgressions, we initiate our risk escalation process.
Our procurement organization is primarily responsible for this process – with support and advice from Group Corporate Responsibility, Compliance, and Legal Affairs. We hold discussions with the supplier to make our requirements clear to them. If the discussions held on various levels do not lead to the desired outcome, the responsible decision-makers consult with each other to reach agreement about how to proceed with the supplier. In the worst case, this could lead to the business relationship with the supplier being terminated.
Everyone who identifies irregularities in our supply chain regarding compliance with laws, internal guidelines, and standards of conduct, can report these – and can do so anonymously if they wish – using our TellMe portal.
Incidents in which a supplier fails to comply satisfactorily with provisions of the Supplier Code of Conduct – or even engages in out-and-out misconduct – can amount to critical CSR issues. We work together with suppliers (and services providers), and carry out special on-site audits, in the interest of identifying any critical issues.
Every time a critical issue is identified, a risk manager is assigned to the issue. The risk manager’s task is to analyze the risk event and put together a risk team.
In each case, the risk manager must determine whether measures, oriented to the critical CSR issue, need to be defined with regard to the relevant supplier. If measures do not need to be defined, the process up to that point must be duly documented, and the process is then stopped.
If measures are deemed to be necessary, they have to be defined, and a risk plan has to be prepared. In the process, the risk manager is supported by the company’s procurement and sustainability areas.
The risk plan has to be approved by the company’s procurement department.
If the risk plan is approved by the company’s procurement department, the risk manager can proceed with the next steps in the process. If the risk plan is not approved, the process starts over, from the beginning.
If the risk plan has been approved, it is communicated and implemented by the risk manager. The success of the risk plan is reviewed, and duly documented.
If the risk has been successfully reduced, the process is stopped. If the risk has not been adequately reduced, the process starts over, from the beginning.