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.
In 2009, an internal review revealed that internal guidelines and processes could be more robust with respect to auditing and confirming the actions of suppliers. A review of the guidelines and implementation of improvements will be undertaken where required in 2010. SCA will also review its supplier standards and, where necessary, extend or improve these to ensure they reflect both the Group’s expectations and those of external stakeholders.
It is estimated that about 69% of all major suppliers have undergone screening for human rights to date.
Corruption
The SCA Code of Conduct clearly stipulates that corrupt business practices 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, an estimated 84% of employees have been trained in SCA’s anti-corruption policies via Code of Conduct training.
SCA has identified countries with potential risks for corruption corresponding to 11% of net sales. To date, business units corresponding to 5% of net sales have been audited with respect to corruption, through Business Practice Reviews.
In 2009, a total of three incidents of corruption were reported to SCA’s management team. Three incidents involved employees and two of these incidents also involved suppliers. In one incident, both employee and supplier contracts were terminated. In another incident, increased education and training of employees and suppliers with respect to the business practices of SCA was implemented. An initial investigation by the internal audit department into the third of these incidents is ongoing.