1. Learn more about the service and its products
Create focus and action by clarifying which risk areas you are dealing with. Is it social dumping, or is it mostly about problematic products? A service delivery often includes products that have a high environmental or social risk. This could be detergents used by the cleaning company, but also electronic components for IT equipment or server services.
Advisors and consultants are also part of the risk picture. We often hear that consultancy services are not relevant for follow-up. But think for a moment about everything it takes for the consultant to do their job. Or follow a typical working day here.
Get answers to the following:
- What types of services do I buy or sell?
- Which products are a direct part of the service?
- Are any of them particularly high risk? For example, use Difi's high-risk list
This initial, simple survey gives you a first insight into the service and tells you what you should focus on, both in your own follow-up routines and when making demands on suppliers.
2. Focus on social dumping
Construction, cleaning and transportation are industries where cases of social dumping often arise, with foreign workers working under far worse conditions than Norwegian workers. But did you know that the shipbuilding industry, agriculture, fisheries and accommodation and catering are also exposed to this social problem? Social dumping is not only linked to lower wages, but also to dangerous working conditions and unjustifiable amounts of overtime.
Clarify:
- Is the service directly related to any of the industries mentioned above?
- Is there extensive use of subcontractors? What about foreign labor?
By mapping the services, both in relation to the service itself and in relation to the products, you know where to focus and prioritize the follow-up.
Examples of questions about social dumping:
- Do employees have contracts that comply with local laws and policies?
- How do they check that the resources they hire have this in place?
- Are the companies they hire registered in relevant public registers?
3. Use a code of conduct - and expect the same from your suppliers
Most companies have signed a Code of Conduct in connection with a contract. But there can be a lack of follow-up, both as a customer and supplier. Find out what your customers expect from you and make demands on your own suppliers. Check that the supplier also has their own ethical guidelines, both for how they should work internally and in relation to their own partners. This signals seriousness.
4. Use self-reporting as a systematic evaluation and follow-up
Self-reporting is an implementation of the Code of Conduct and an examination of how suppliers live up to it. Think of self-reporting as a good method of risk management. It points the way to risk areas that you should follow up on, rather than leaving you with the feeling that you should either follow up on all or none.
Self-reporting is not just about how the company itself works, but just as much about how it takes responsibility for monitoring the next link in the chain, for example through its own ethical guidelines and risk assessment procedures. Your supplier may be located in Germany, but buy components from China.
This is important for you as both a buyer and a supplier. The buyer uses self-reporting as a tool in an annual supplier survey or as part of the prequalification of a supplier. As a supplier, you should be able to document your own processes and insight into your supply chain. Self-reporting should include questions about CSR strategy, use of ethical guidelines, routines for monitoring suppliers and risks, as well as insight into which countries the supplier trades with. Your supplier may be located in Germany, but buy components from China.
Make demands on and follow up most suppliers, even those who are not directly involved in the products or services you offer to the market. If you are a buyer, remember not only to make demands on the office chair you buy, but also to ensure that the supplier has suitable procedures for following up their own suppliers.
5. Strong relationships yield the best results in the long run
Let the follow-up on the Code of Conduct become a natural part of the dialog and collaboration with the supplier. The results from self-reporting help you prioritize. Follow-up goes better when the collaboration is good. All parties benefit from a good relationship. There may be money to be saved by shopping around for the best price and changing suppliers frequently, but this rarely outweighs the value of a long-term relationship.
