We use a questionnaire to evaluate our suppliers' performance on social and environmental issues. It is a self-evaluating questionnaire. We prefer a questionnaire approach as opposed to strictly mandating a code of conduct. This approach allows us to initiate a dialogue with our suppliers in the event of unsatisfactory performance and motivate them to improve performance rather than abruptly terminate business.
Our suppliers fill in the questionnaire and send it to our purchasing staff. Purchasing staffs across various business functions are trained to carry out such an evaluation. The training is focused on evaluating the performance of suppliers on social and environmental issues.
We have designed a standard self-assessment questionnaire in Danish and English for our suppliers. Ideally, the contents of the questionnaire are discussed by the purchaser with the supplier prior to sending out the questionnaire. The questionnaire is divided into two sections – an environmental section and a social section.
We expect our suppliers to comply with both national and international laws on social and environmental issues. Specifically, the International Chamber of Commerce's (ICC’s) Business Charter for Sustainable Development, the ILO Conventions and the UN Declaration of Human Rights form the basis for our evaluation questionnaire. Our evaluation therefore includes basic standards that have been set for the following issues:
- wages and benefits - working hours - health and safety - child labour - forced labour - freedom of association and collective bargaining - discrimination/equal opportunities - disciplinary measures - privacy
The performance expectations for each of these issues are clearly described in the questionnaire. Our suppliers assess their own performance against these issues. When completed, the questionnaire is returned to the purchaser.
