At every stage of its dealings with suppliers – from selection and consultation to payment – SCA is committed to the principles outlined in its Code of Conduct. The global scale of the Group’s supply procurement presents opportunities to influence the social and environmental footprint of its suppliers.
In 2005, SCA began the work of establishing routines in its businesses to manage supply chain risks. Responsibility for choice of suppliers rests with the individual SCA business group. Consequently, practical implementation of supply chain assurance can differ between the groups but the overall direction is common regardless of where in the world the SCA Group conducts its business. All business groups undertake some form of screening of major suppliers using self-assessment questionnaires, as well as on-site audits when the need arises.
Suppliers play a significant role in SCA’s value chain and it is thus important to ensure that they comply with the Code of Conduct. The Code of Conduct contains guidelines for how SCA employees are expected to act in their dealings with the Group’s suppliers, from selection and negotiation to payment. SCA’s status as a major customer to suppliers throughout the world presents opportunities to influence the social and environmental footprint of its suppliers. SCA’s management of it supply chain is also of interest to many of the Group’s customers.
In 2010, a new global supplier standard was developed for SCA’s hygiene business based on the earlier supplier standard. The standard is primarily aimed at suppliers of raw materials and commercial goods and addresses the issues of quality, product safety, environment, chemicals and the Code of Conduct. All new suppliers are screened before being approved.
Compliance with SCA’s values and ethical principals is a key element of the supplier standard. SCA imposes strict requirements on socially responsible working conditions in its own operations and expects the same of its suppliers.
It is estimated that about 79% of contracts with major suppliers include criteria on human rights. No contracts with major suppliers were declined or terminated due to human rights violations during 2010.
Corruption
The Code of Conduct clearly states that corrupt business conduct will not be tolerated. The Code of Conduct is made available to all employees, with face-to-face and online training provided at regular intervals, and to all new employees. To date, about 97% of employees have received education in or received information about SCA’s guidelines to combat corruption through training in the Code of Conduct.
SCA has identified countries that account for about 20% of the Group’s sales as countries with an elevated risk of corruption. The Group’s analyses are based on such information as Transparency International’s corruption index. To date, about two-thirds of SCA’s operations in these countries have been reviewed in terms of how SCA’s units adhere to the Code of Conduct. In 2010, SCA’s operations in Italy and Mexico were reviewed through so called Business Practice Reviews. Further reviews are planned for 2011.