1 Exploration of the opportunities to include social and ethical aspects in University procurement activity - legal issues, risks, benefits, development/use of an ethical code of conduct for suppliers, implementation of an ethical supply chain The Only Way is Ethics - Implementing an ethical approach to procurement and supply

2 Workshop SPCE – Introduction and Legal Issues APUC - Implementation of Code of Conduct NUSSL – achieving an ethical supply chain

3 EU Regulations Subject Matter of the Contract Fairness, Transparency, Equal Treatment Non-Discriminatory No Unrestricted Choice General requirements re Supplier Behaviour

4 Specific Topics Living Wage Fair Trade

5 What You Can Do! Stages of the Purchasing Cycle Selection Specification/Award Contract Management Updated interpretation of Subject Matter New EU Directive Defra-commissioned Guidance

6 If you don’t do anything else… Your ‘aha’ moment Include ethical requirements about supply chain in contract performance conditions

7 7 Emma Nicholson, Special Projects Manager APUC Max Crema, Vice President (Services), Edinburgh University Students' Association The Only Way is Ethics – Developing Sustainable Procurement Beyond Tendering

8 8 Outline APUC Beyond tendering A collaborative approach Code of Conduct Benefits ‘Aha’ moments

9 9 APUC Established in 2005 as one of 6 Centres of Procurement Expertise in Scotland * Collaborative Contracting * Shared Services * College Procurement Services * eSolutions * Guidance * Processes * Tools * Training Represents the sector as sector ‘voice’ as required £350M

10 Beyond Tendering RiskReputation StakeholdersOpportunity

11 A Collaborative Approach  Stakeholder working group  Policy  Code of Conduct  Strategy Early involvement process support stakeholder buy-in successful implementation

12 Code of Conduct o Applies to APUC and its suppliers..... and their suppliers o Can be used by institutions for their supply chains too APUC Code of ConductAPUC Code of Conduct ( Social Compliance Labour * Working conditions * Equality Ethical Compliance & Economic Diversity Laws, regulations, taxations * Contract Terms * Training * Community benefit * whistleblowing Environmental Compliance Regulations * Impact * Plans * Technologies

13 Code of Conduct - Implementation o Pre-tender o Strategy Development o Tender o Pre Qualification questions o Tender questions o Post Tender o Contract Management o Supply Chain Sustainability Compliance Assessment

14 Benefits Increased Sector Influence* Supplier Development Common / shared platform of supplier sustainability compliance Earlier realisation/integration of improved technologies Better communication with supplier Improved understanding and scoping of future agreements More effective risk mitigation Increased risk awareness Understanding of SC

15 If you don’t do anything else… Your ‘aha’ moment Push traditional boundaries Collaborate – use your interested parties Collaborate – for change

16 Sophie Sharp Ethical Supply Chain Coordinator NUS Services Ltd. Ethical Supply Chain Management in Practice

17 Our objectives What drives ‘sustainable procurement’ or ‘ethical trading’ for you? Minimise risks Maximise opportunities Duty Stakeholder concerns ?

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19 NUS Ethical Supply Chain Sound Sourcing Guide Ethical & Environmental Accreditation Product Evaluation Ethical Screening Contract Clauses Audits Constructive Engagement Sound Ethical Choice

20 Key issues Priority issues may vary from institution to institution. Key areas for the NUS include: Labour standards Animal welfare Corruption & bribery Business ethics Environmental management

21 A question of responsibility… Buyers? Contract Managers? Estates? Sustainability staff? Collaboration is critical Consistent messages are crucial

22 Setting out the basics Codes of conduct Setting expectations A framework against which to measure performance

23 Being realistic When is a document more than a document? We can’t see everything - how suppliers are managed is where we succeed or fail

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25 The small matter of trust… “The best way to find out if you can trust somebody is to trust them.” Ernest Hemingway “Anyone who doesn't take truth seriously in small matters cannot be trusted in large ones either.” Albert Einstein

26 Prioritising suppliers Ensuring the best use of resources: Everyone’s different Risk vs opportunity Priority issues Inherent risk Opportunity

27 Determining a course of action Considering the tools available Audits Product evaluation Contract clauses Supplier management

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29 Constructive engagement “ A meaningful two-way dialogue in which both parties listen to each others’ viewpoints and share a genuine commitment to resolving issues of contention ” A working example from NUS: Engaged with Coca-Cola over four years Consulted with stakeholders and developed a list of recommendations A number of positive developments were made including: Created new post of ‘Head of Labour Relations’ Launched pilot workplace standards assessment for bottlers Join statement signed with IUF Developed a Global Human Rights Policy

30 Addressing the big challenges There are often no ‘answers’ or ‘quick fixes’ for addressing some of the bigger, more common ethical procurement issues On some issues, we are all learning together Partnership working and shared learning is essential Photograph: Christopher Pillitz/Alamy Photograph: The Hindu Business Line

31 Clothing – beyond audits Objectives to improve the ethical sourcing of clothing and develop a living wage offering were set at NUS Conference Problems are wide-spread, inherent and growing Key issues include poor wages, forced labour, health & safety and toxic chemicals Supply chain visibility is a real challenge

32 The importance of partnerships Impossible to go straight to market for a solution We now ask more of our suppliers than ever before The project proved more challenging than initially anticipated, with issues more complex than realised Remaining part of on-going dialogue with a key supplier and potential new factories has been critical

33 Conclusions Some fundamentals… Gain internal buy-in Build mutual trust Ask more of your suppliers