Supplier Management System
The ethical supplier management system ensures that suppliers are aware of and respect internationally recognized human and labor rights, take environmental protection initiatives and implement anti-corruption mechanisms in their business.
Ethical risk assessment
At Royal Greenland, we look at three publicly available and globally recognized indices when assessing international suppliers:
- Environmental Performance Index (EPI)
- Human Development Index (HDI)
- Corruption Perceptions Index (CPI)
The risk assessment is carried out semi-annually and is the starting point for evaluation and approval of the suppliers in the ethical supplier management system.
The ethical supplier management system - Three phases
At Royal Greenland, we assess the risk of suppliers in our international value chain in relation to the supplier's country of origin.
All suppliers then sign the Royal Greenland Supplier Code of Conduct to confirm that they uphold basic human and labor rights. By signing our agreement, they also commit themselves to not doing irreparable damage to the environment and that they act preventively in relation to e.g. corruption and accidents at the workplace.
Suppliers from medium- and high-risk countries are also asked to fill out a detailed questionnaire and upload policies regarding e.g. work environment and anti-corruption as well as social audit reports for documentation of how the supplier makes a positive footprint on the surroundings.
At Royal Greenland, a customized survey program is used to collect feedback from our suppliers. Suppliers are automatically scored in the program based on the responses and the social audit reports and policies can then be downloaded for Royal Greenland’s internal review. The final supplier score and supplier approval schemes are then put into our ERP system making it possible for all managers across the organization to know which suppliers are CSR approved.