The 1th of April Pernod Ricard released the yearly report on progress in the fields of integrating the ten principles as per UN’s The Global Compact corporate citizenship. The report are based on “The United Nations Global Compact Ten Principles”.
Pernod Ricard Nordics evaluation process of suppliers’ Corporate Responsibility was choosen as best practice nr 4, out of 8, in this report. Pernod Ricard Nordics contribution is mentioned under the principles human rights: To ensure that business is not complicit in human rights abuses and anti-corruption: To work against corruption in all its forms, including extortion and bribery.
“We see our methodology as an important mean to clarify our responsibility and secure our supply-chain”, says Mikael Sundström, CSR & Sustainability Manager of Pernod Ricard Nordic. “We have already come along way but the aim is to continuously develop our approach and tools. Our ambition is to have 90% of Pernod Ricard Nordic Operations supplier contracts approved from a Corporate Responsibility perspective by July 2010”, continues Ulrika Strömberg, Director Purchasing Operations, Pernod Ricard Nordic.
From the report
As an example, Pernod Ricard Nordic has established a Corporate Responsibility Suppliers Evaluation Process in order to marry professionalism with responsibility.
Pernod Ricard’s suppliers are asked to reply to the “Involvement in the respect of Sustainable Development” questionnaire in order to assess their impact on the environment and their commitment with regard to social responsibility.
Pernod Ricard has undertaken various initiatives to ensure that the Group’s Purchasing Department complies with ethical codes. 246 of the 280 suppliers contacted in 2006-2007 completed the questionnaire.
The Groups commits itself to integrating these values into its strategy and corporate culture, and to ensuring that these principles are clearly understood and also acted upon by its main suppliers and subcontractors.
Pernod Ricard Nordic methodology
The aim is to make it easier to choose suppliers serious with Corporate Responsibility issues, to help our suppliers improve and to phase out suppliers that neglect these issues.
All suppliers have to fill out a questionnaire addressing Corporate Responsibility issues such as human rights, environment, health & safety, gender equality, diversity and corruption. The supplier’s approach and systematics are then analysed. The questionnaire is often supplemented with meetings and sometimes visits on site. If certain criteria are met the supplier will be approved and Pernod Ricard can start to put orders. In case of non-compliance with set crieteria the supplier will get information on what needs to be addressed and if supplier is deemed unique it will get a number of months to correct identified weaknesses, before a new review will take place. On top of suppliers having to pass the compulsory questionnaire, the contracts also include a clause on Corporate Responsibility.
The United Nations Global Compact Ten Principles
Human rights
1.Businesses should support and respect the protection of internationally proclaimed human rights; and
2. Make sure that they are not complicit in human rights abuses.
Labour Standards
3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
4. The elimination of all forms of forced and compulsory labour;
5. The effective abolition of child labour; and
6. The elimination of discrimination in respect of employment and occupation.
Environment
7. Businesses should support a precautionary approach to environmental challenges;
8. Undertake initiatives to promote greater environmental responsibility;
9. Encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
10. Businesses should work against corruption in all its forms, including extortion and bribery.