Supply Chain Ethics
Handicare has a global network of approximately 1,000 suppliers for both direct and indirect materials. Our purchasing department is striving to build long-term and sustainable relationships with our suppliers. The procurement process complies with our policy on internal control and the Group authorisation policy, which establishes a division between internal roles and areas of responsibility.
All procurement activity is conducted within the framework of Handicare’s purchasing policy, which describes our external policy for suppliers. It includes a Supplier Code of Conduct, Handicare’s supplier quality standard and general terms and conditions. The Code is based on ethical, societal and environmental topics and describes Handicare’s expectations in three general areas: anti-corruption and ethics; labour standards and human rights; and environment.
Handicare has close relations with most of the company’s suppliers and our assessment is that the risk of human rights violations among our suppliers is low, but to ensure that the suppliers understand our Supplier Code of Conduct and the importance of our expectations, all direct material suppliers must sign the Supplier Code of Conduct.
Out of 325 direct material suppliers, 48 percent have committed to comply with Handicare’s Supplier Code of Conduct, 27 percent have received the code of conduct and the remaining 25 percent will be sent the code of conduct in 2018.
We conduct reviews of new suppliers using a thorough and tested model and the results of the reviews are conveyed to the respective supplier for increased transparency. Breaches of Handicare’s Code of Conduct are reported to Group management and we also have an anonymous whistle-blower function. 23 supplier audits were conducted at existing direct material suppliers in 2017.