How do you know that your suppliers are managing CR issues in their Businesses?
We expect our suppliers to comply with local legislation and meet the same or equivalent standards as BAE Systems on issues such as ethical conduct, health and safety, product safety, the environment, civil liberties and human rights.
We assess compliance during the supplier selection process and at regular project reviews for high risk suppliers. If we identify any issues or gaps in their approach, we try to work with them to improve their standards. In the unlikely event that a supplier is unable or unwilling to improve their performance in a timely manner, we have the option of terminating the contract and preventing them from participating in future tenders.
We focus most attention on suppliers who could pose the highest potential risk to our projects. We have guidelines to help our procurement teams identify potential reputational and financial risks associated with suppliers and to manage these during each stage of a project’s life cycle. See more on our approach to managing CR issues in the supply chain.