Supplier management

In 2002, we set out to devise policies that would help us engage with our suppliers and take into account their own actions. This sought to meet the demands of our own Business Principles and to develop well-managed supplier relationships.

Our ethical purchasing policy is based on the Ethical Trading Initiative Base Code, the standards of the United Nations Universal Declaration of Human Rights and the International Labour Organisation conventions. We expect our suppliers to keep to our policies and neither to rely on forced labour, nor to use child workers, nor to apply harsh or inhumane practices, but to pay living wages, to offer acceptable working hours, and to provide safe and healthy working conditions.

We want to demonstrate strong environmental performance and a commitment to sustainable development. Sourcing our raw materials and other supplies in line with our environmental procurement policy is required in our registration to the international environmental management standard – ISO 14001.

Negotiation with suppliers has already resulted in two of O2’s handset manufacturers developing ethical procurement policies of their own.

In 2006 we revised and strengthened the implementation of our ethical procurement policy in O2 UK. We now spell out very clearly the conditions under which we will refuse to work with a new supplier or cease business with an existing one. These are if we find them involved in employing workers below the minimum age, forced or bonded labour, life-threatening working conditions or inhumane treatment.

To date, our ethical supplier audits have not identified such practices in our immediate supply chain.

During the year our policies were adopted by Telefónica O2 Czech Republic, where the Group-wide Business Principles are also being communicated, and we will continue to implement our new approach across the Group. This is also being adopted by Telefónica, S.A..

We also completed:

• Training for O2 UK and O2 Ireland purchasing professionals in ethical sourcing.
• A new website area for existing and potential suppliers.
• Self-assessment questionnaires of eight key suppliers.
• Ethical audits (eight in total) in the Far East.
  

Printable version | Accessibility | Glossary | FAQ | Disclaimer