Supply Chain Management Policy
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Statement of Policy
GKN operates to high standards of integrity, honesty and fair dealing through a lean
organisation which produces world class products. Our suppliers are integral to our
continued success and it is essential that they conduct their business in a manner that
supports this commitment to strong ethical standards and a world class performance. To
this end we aim to develop and maintain value-adding relationships with our supply base.
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General Principles
In their dealings with suppliers and potential suppliers, all GKN companies must:
1.
before engaging a supplier, take account of its standards of behaviour and avoid
dealing with any supplier that might damage GKN’s reputation through its
association with suspect or unethical practices. Amongst others, these may include:
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2.
before contracting with a supplier, take appropriate steps in order to eliminate risks
of corruption, including:
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inadequate health and safety standards for their employees
infringing internationally accepted standards of workers’ rights
use of child or forced labour
unsound environmental practices
failure to act ethically
poor standards of social responsibility
failing to comply with relevant laws and regulations;
make suppliers aware of GKN's Ethical Standards Policy
ensure suppliers themselves have anti-corruption policies and procedures in
place, and require the suppliers to ensure their sub-contractors comply with
similar policies and procedures
carrying out due diligence on the supplier proportionate to any identified risks;
employ effective processes for procurement, risk management, supplier
assessment, communicating with suppliers and monitoring their performance, in
order to ensure that:
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we do business with suppliers who meet our standards of technical
competence, innovation, product quality, reliability, delivery performance,
cost, financial soundness, safety, ethics and social responsibility
supply of the product or service does not infringe any third party intellectual
property rights
where suppliers provide contractors or staff to carry out work at GKN
premises, such persons operate in an acceptable and safe manner without
undue risks to themselves, GKN employees or others, and the health, safety
and other essential arrangements pertaining at the site where they are
operating are fully communicated
all hazards and risks associated with the use of the products/services
supplied are properly identified and assessed and adequate safeguards and
working practices are put in place;
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4.
commit to development of the supply chain through:
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5.
developing long-term relationships where it is practical to do so
assisting suppliers in their development by assessing their capabilities and
needs and providing support such as training where appropriate
providing regular feedback from and to suppliers on both their own
contribution and that of GKN to the supply chain
sharing of best practice to build on the strengths of GKN and the supplier to
optimise the whole supply chain;
conduct business in an open and ethical manner by:
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requiring our employees to act with integrity at all times when representing
GKN with suppliers
ensuring that suppliers are paid in accordance with agreed terms
determining through clear contractual arrangements the ownership of any
intellectual property rights arising from the supply of the product/service
avoiding situations that create conflicts of interest for organisations and/or
their employees
not tolerating corrupt practices or the acceptance of bribes, other
unauthorised payments or inducements from suppliers or potential suppliers
safeguarding the ownership and security of the property and confidential
information of the supplier;
6.
balance the economic needs to utilise low cost sources with the desire to support
local commerce. Where low cost sources are used, they will be subject to all of the
requirements set out above; and
7.
use contractual terms and conditions that support the implementation of this Policy
and review supplier performance in order to ensure compliance.
Implementation
For the purposes of implementation of this policy the term “supplier” includes purchasing
agents.
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Guidelines
From time to time the Group may produce guidelines on supplier assessment and
management matters. Although these guidelines will not be mandatory, the arrangements
in a company should ensure that any alternative procedures will achieve equivalent results.
This Policy must be read in conjunction with the GKN Code, any written guidelines, the other GKN
Policies and the requirements regarding their implementation.
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