Feature {corporate
strategic view}
WRITER: Annika Widdowson, Global External Sourcing Finance Manager – Astra Zeneca plc
Responsible Procurement at AstraZeneca When considering corporate social responsibility, the focus is often firstly on a company’s internal operations and the immediate interactions with the external environment. However, in the face of increasing outsourcing and globalisation, recent examples have demonstrated that social responsibility has to reach further than this; it extends to the full supply chain of a business, including suppliers and sub-suppliers. Being a responsible business includes making sure that all suppliers have ethical standards that are consistent with those of the overall company. As a result, more and more businesses are implementing a responsible procurement strategy to ensure that the same ethical standards are observed across the supply chain. AstraZeneca, a global research-based biopharmaceutical company with annual sales of over $33bn, has a four-step approach to Responsible Procurement.
Step One – Assessment Initially, during the assessment phase, all potential and existing suppliers are reviewed against the Responsible Procurement Standard, which covers a range of issues including employment practices, health, safety and the environment, research practices and preventing bribery and corruption. As part of this, the supplier location and type of good or service provided is taken into account and the supplier is categorised as low, medium or high risk.
Step two - Communicate Following this, findings, standards and responsible procurement tools are communicated back to potential and existing suppliers.
Step three - Contract Responsible procurement clauses are firmly embedded in all commercial supply agreements and the tender process.
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Step Four - management Where we need to, AZ Procurement teams work with suppliers to help them improve their ethical performance and achieve the goals set out in their improvement plans. Each year, buyers and supplier managers re-assess the risk level of the suppliers they manage. Where necessary, we will work with and encourage suppliers to improve their standards, rather than automatically exclude them from the supply chain. This positive influencing will benefit the supplier, their employees and the local environment. However, AstraZeneca will not use suppliers who are unable or unwilling to adopt standards of ethical behaviour that are consistent with our own.
http://www.astrazeneca.com/Responsibility