Supply Chain Social Responsibility global supply chain. Vision: A global electronics industry supply...
Transcript of Supply Chain Social Responsibility global supply chain. Vision: A global electronics industry supply...
Supply Chain Social Responsibility
IBM Finance & Operations
IBM stakeholders and business environment
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IBM & Supplier
Compliance
Government
Customers
NGO’s
InvestorsMedia
Industry Groups
Society Supply Continuity
Legal and Regulatory
Cybersecurity
Reputation
IBM Global Procurement
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Compliance Program
In relationships with approximately 13,000 suppliers worldwide, IBM requires a commitment to social and environmental responsibility — just as IBM’s own clients expect of us. We establish requirements for suppliers and assess compliance, collaborate with industry groups to drive broader improvements, and work to expand the diversity of our supply chain.
Supply Chain Social Responsibility (SCSR)
• SCSR is integral to IBM’s Corporate Citizenship activity
• SCSR is a requirement for all IBM suppliers
• Compliance to the RBA code of conduct is the baseline
• Confirmed by completing an RBA validated audit (or demonstrated equivalent)
– Requirements supported by the Chief Procurement Officer and procurement managers/staff
Responsible Business Alliance (RBA)formerly the Electronic Industry Citizenship Coalition
The RBA is a coalition of the world’s leading electronics companies working together to improve efficiency and social, ethical, and environmental responsibility in the global supply chain.
Vision: A global electronics industry supply chain that consistently operates with social, environmental and economic responsibility.
Mission: To enable and encourage our members to progress towards the RBA vision through a common code of conduct, collaborative efforts and shared tools and practices.
RBA Code of Conduct & VAP
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RBA Code of Conduct provides requirement for performance and compliance with critical CSR policies and provides companies a structure to deploy Corporate Social Responsibility into their extended supply chain
The Code of Conduct addresses five areas:
LaborHealth and SafetyEnvironmentEthicsManagement Systems
The RBA Code of Conduct is updated every three years
RBA has a Self Assessment Questionnaire (SAQ) to help companies determine potential risk of noncompliance to the Code; and an audit protocol to assess compliance with the Code
The RBA audit protocol is called the Validated Audit Process (VAP)
Validated Audit Process (VAP)
All audits are conducted by RBA approved audit firms with auditors who are either RBA IRCA certified or RBA VAP qualified
All auditors are approved and auditor performance is monitored
Consistent methodology and tools are used
Audit reports can be shared with multiple customers
The VAP provides a full facility evaluation to the RBA Code of Conduct
VAP quick facts
IBM is a founding member of RBA (formerly EICC)
IBM started using VAP with hardware
suppliers in 2008
In 2011 IBM started using VAP with
software and services suppliers
Since then > 1000 supplier audits have been conducted using the VAP process
Data shown in this deck covers 2012-2018
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IBM Supply Chain Social Responsibility
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IBM Corporate Policies
RBACode of Conduct
Supplier Assessment
Supplier Audit (RBAVAP Protocol)
Corrective Actions and Re-audits
Capability Building and Continuous Improvement
RBA Code of Conduct
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Treat employees with dignity and respect
Protect the environmentEvaluate and control exposure to hazards
Uphold the highest standards Management Systems
A1) Freely Chosen Employment
A2) Young Workers
A3) Working Hours
A4) Wages and Benefits
A5) Humane Treatment
A6) Non-Discrimination
A7) Freedom of Association
B1) Occupational Safety
B2) Emergency Preparedness
B3) Occupational Injury and Illness
B4) Industrial Hygiene
B5) Physically Demanding Work
B6) Machine Safeguarding
B7) Sanitation, Food, and Housing
B8) Health and Safety Communication
C1) Environmental Permits and Reporting
C2) Pollution Prevention and Resource Reduction
C3) Hazardous Substances
C4) Solid Waste
C5) Air Emissions
C6) Materials Restrictions
C7Water Management
C8) Energy Consumption and Greenhouse Gas Emissions
D1) Business Integrity
D2) No Improper Advantage
D3) Disclosure of Information
D4) Intellectual Property
D5) Fair Business, Advertising and Competition
D6) Protection of Identity and Non-Retaliation
D7) Responsible Sourcing of Minerals
D8) Privacy
E1) Company Commitment
E2) Management Accountability and Responsibility
E3) Legal and Customer Requirements
E4) Risk Assessment and Risk Management
E5) Improvement Objectives
E6) Training
E7) Communication
E8) Worker Feedback, Participation and grievance
E9) Audits and Assessments
10) Corrective Action Process
E11) Documentation and Records
E12) Supplier Responsibility
Labor EnvironmentalHealth and
SafetyEthics
Management Systems
Code of Conduct V6Code Interpretation Guidance
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Step 1 RBA-OnlineSelf Assessment Questionnaire
Step 2 Audit request & scheduling
Step 3 On site audit
Step 4 Audit report
Step 5Follow up
Register on RBA-Online and conduct a Self
Assessment of your facility (SAQ)
RBA schedules and coordinates the audit with your
company
On site audit is conducted under the oversight of
the RBA APM
Audit report review & release on RBA-
Online
Corrective Actions Plan review and
approval
2 – 5 days process(varies per facility)
Request access to RBA learning academy (free for
IBM suppliers)
Register on RBA-Onlinecomplete and release the SAQ for your facility and provide access to IBM in
RBA-Online
Request VAP Audit through RBA-Online
RBA contracting and VAP Audit Scope
VAP audit cost approval
audit scheduling
Draft report is released
Review draft report
Final report released on RBA-Online
If score < 200/200 a corrective action plan will
be requested
Corrective action plan is reviewed and approved
Non-compliance closure audit verification required
Validated Audit Process Overview
VAP audit observations/results
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• High frequency noncompliant findings in full audits:
❖ Health & Safety
❖ Working Hours
❖ Wages & Benefits
❖ Management systems are not fully developed relating to social responsibility and laws/regulatory compliance
• Substantial reductions in noncompliance have been shown through rigorous completion of the CAP process and re-audit
• Over 80% of suppliers resolve all major non-compliance issues after completion of one Audit -> CAP -> Re-audit cycle
IBM team
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Manager, SCSR and Chair emeritus RBA
John [email protected]
Asia Pacific Program Manager – SCSR/CM
Natalie LC Mulicenmu@cn ibm com
Europe-Middle East-Africa Program Manager SCSR/CM
Ilona Bartfaiilona bartfai@hu ibm com
Latin America Program Manager - SCSR
Juan Carlos Martinezjcmartin@mx1 ibm com
India & SE Asia Program Manager – SCSR/CM
Rituraj Mukhiarituraj mukhia@in ibm com
Asia Pacific Program Manager - SCSR
Yuki Luyukiyu@cn ibm com
Conflict Minerals Supply Chain Lead
Lily [email protected]
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