1 exploration of the opportunities to include social and ethical aspects in university procurement...
TRANSCRIPT
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Exploration of the opportunities to include social and ethical aspects in University procurement activity - legal issues, risks, benefits, development/use of an ethical code of conduct for suppliers, implementation of an ethical supply chain
The Only Way is Ethics -Implementing an ethical approach to
procurement and supply
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Workshop
SPCE – Introduction and Legal Issues
APUC - Implementation of Code of Conduct
NUSSL – achieving an ethical supply chain
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EU Regulations
Subject Matter of the Contract
Fairness, Transparency, Equal Treatment
Non-Discriminatory
No Unrestricted Choice
General requirements re Supplier Behaviour
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Specific Topics
Living Wage
Fair Trade
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What You Can Do!
Stages of the Purchasing Cycle
Selection
Specification/Award
Contract Management
Updated interpretation of Subject Matter
New EU Directive
Defra-commissioned Guidance
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If you don’t do anything else…
Your ‘aha’ moment
Include ethical requirements about supply chain in contract performance conditions
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Emma Nicholson, Special Projects Manager APUC
Max Crema, Vice President (Services), Edinburgh University Students' Association
The Only Way is Ethics –Developing Sustainable Procurement Beyond Tendering
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Outline
APUC
Beyond tendering
A collaborative approach
Code of Conduct
Benefits
‘Aha’ moments
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APUC
Established in 2005 as one of 6 Centres of Procurement Expertise in Scotland
* Collaborative Contracting * Shared Services * College Procurement Services * eSolutions
* Guidance * Processes * Tools * Training
Represents the sector as sector ‘voice’ as required.
700+139 £350M
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Beyond Tendering
Risk Reputation
StakeholdersOpportunity
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A Collaborative Approach
Stakeholder working group
Policy
Code of Conduct
Strategy
Early involvement process support stakeholder buy-in successful implementation
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Code of Conduct
o Applies to APUC and its suppliers..... and their suppliers
o Can be used by institutions for their supply chains too
APUC Code of Conduct (http://www.apuc-scot.ac.uk/code.htm)
Social Compliance
Labour * Working conditions * Equality
Ethical Compliance & Economic Diversity
Laws, regulations, taxations * Contract Terms * Training * Community benefit * whistleblowing
Environmental Compliance
Regulations * Impact * Plans * Technologies
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Code of Conduct - Implementation
o Pre-tender
oStrategy Development
o Tender
oPre Qualification questions
oTender questions
o Post Tender
oContract Management
oSupply Chain Sustainability Compliance Assessment
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Benefits
Increased Sector Influence*
Supplier Development
Common / shared platform of supplier sustainability compliance
Earlier realisation/integration of improved technologies
Better communication with supplier
Improved understanding and scoping of future agreements
More effective risk mitigation
Increased risk awareness
Understanding of SC
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If you don’t do anything else…
Your ‘aha’ moment
• Push traditional boundaries
• Collaborate – use your interested parties
• Collaborate – for change
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Sophie Sharp
Ethical Supply Chain Coordinator
NUS Services Ltd.
Ethical Supply Chain Management in Practice
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Our objectives
What drives ‘sustainable procurement’ or ‘ethical trading’ for you?
Minimise risks
Maximise opportunities
Duty
Stakeholder concerns ?
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NUS Ethical Supply Chain
Sound Sourcing Guide
Ethical & Environmental Accreditation
Product Evaluation
Ethical Screening
Contract Clauses
Audits
Constructive Engagement
Sound Ethical Choice
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Key issues
Priority issues may vary from institution to institution. Key areas for the NUS include:Labour standards
Animal welfare
Corruption & bribery
Business ethics
Environmental management
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A question of responsibility…
Buyers? Contract Managers? Estates? Sustainability staff?
Collaboration is critical
Consistent messages are crucial
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Setting out the basics
Codes of conduct
Setting expectations
A framework against which to measure performance
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Being realistic
When is a document more than a document?We can’t see everything - how suppliers are managed is
where we succeed or fail
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The small matter of trust…
“The best way to find out if you can trust somebody is to trust them.”
Ernest Hemingway
“Anyone who doesn't take truth seriously in small matters cannot be trusted in large ones either.”
Albert Einstein
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Prioritising suppliers
Ensuring the best use of resources:
Everyone’s different
Risk vs opportunity
Priority issues
Inherent riskOpportunity1 5
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Determining a course of action
Considering the tools available
Audits
Product evaluation
Contract clauses
Supplier management
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Constructive engagement
“A meaningful two-way dialogue in which both parties listen to each others’ viewpoints and share a genuine commitment to resolving issues of contention”
A working example from NUS:
Engaged with Coca-Cola over four years
Consulted with stakeholders and developed a list of recommendations
A number of positive developments were made including:
Created new post of ‘Head of Labour Relations’
Launched pilot workplace standards assessment for bottlers
Join statement signed with IUF
Developed a Global Human Rights Policy
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Addressing the big challenges
There are often no ‘answers’ or ‘quick fixes’ for addressing some of the bigger, more common ethical procurement issues
On some issues, we are all learning together
Partnership working and shared learning is essential
Photograph: Christopher Pillitz/AlamyPhotograph: The Hindu Business Line
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Clothing – beyond audits
Objectives to improve the ethical sourcing of clothing and develop a living wage offering were set at NUS Conference
Problems are wide-spread, inherent and growing
Key issues include poor wages, forced labour, health & safety and toxic chemicals
Supply chain visibility is a real challenge
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The importance of partnerships
Impossible to go straight to market for a solution
We now ask more of our suppliers than ever before
The project proved more challenging than initially anticipated, with issues more complex than realised
Remaining part of on-going dialogue with a key supplier and potential new factories has been critical
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Conclusions
Some fundamentals…Gain internal buy-in
Build mutual trust
Ask more of your suppliers