Through our Supply Chain Responsibility programme, we extend our human rights standards onto our suppliers and monitor the risks of non-compliance. This way, we know that our raw material suppliers are being cautious about their social impact and providing healthy and safe working conditions for their employees.
Screening potential suppliers
For new suppliers, we explain our standards on human rights, labour rights, environmental impact, as well as corruption. This information is also included in the final contract with the supplier. In high-risk countries, all potential raw material suppliers are audited by external partners’ according to local regulations, Coloplast’s code of conduct, the United Nations Global Compact Principles,
If an issue is identified, we work together with the supplier on any necessary improvements, which form the basis for an action plan and provides the means for dialogue. Depending on the level of any non-compliance found, the Decision Board considers whether or not to go ahead and do business with the supplier and help to improve the supplier’s standards.The Decision Board reviews the audit report according to local regulations, Coloplast’s code of conduct, the United Nations Global Compact Principles, and considers factors such as the nature of the relationship with the supplier and history of cooperation.
Through this approval process, we map relevant risks and ensure on-boarding suppliers that are willing to improve local conditions together if necessary. 100% of our raw materials suppliers have been approved through this process. So far, we've made improvement together with more than 25 suppliers.
Monitoring existing suppliers
We monitor existing suppliers for compliance through adverse feedback, i.e. change in ownership or expansion of site, and site visits. This process usually takes place with the Coloplast procurement team in the markets where the supplier operates. If the Coloplast procurement teams identify a supplier that is in non-compliance with Coloplast’s code of conduct or a corrective action plan, the Decision Board is contacted to review whether or not to continue to do business with the supplier and help to improve the supplier’s standards.
Our programme does not include giving out financial support to help suppliers implement changes. We help on a consulting basis where our local teams share cost efficient best practices that comply with local regulations. We do this since it is often the case that suppliers are unaware of how to implement improvements. Usually, the suppliers respond positively and implement the action plan discussed. However, in a few cases we may have to terminate the cooperation.