Given the importance to us of an ethical supply chain, we have a Socially Responsible Supplier (SRS) programme comprised of colleagues with production, distribution and procurement expertise, and a dedicated manager in the global procurement team, supported by all RE divisions.
The SRS programme terms of reference stipulate that internal and external audits be performed on a regular basis (suppliers with repeat code violations are subject to annual external audits). In 2008, we carried out eight internal audits and a further 19 independent external audits of high risk suppliers through specialist auditors ITS. We determine high risk suppliers to be those operating in areas where human rights, labour, environmental, or other abuses have been known to occur; and we apply tests for high risk: for example, a scoring below the 50th percentile in the World Bank’s rule of law annual rankings and a US State Department Tier 3 designation in human trafficking.
ITS examines how well the supplier is meeting all aspects of the Supplier Code and produces a Corrective Action Plan Acknowledgement Report summarising audit findings and detailing corrective action plans – agreed by the auditor and the supplier to ensure compliance with the Code and local laws – as necessary. Remediation target dates are agreed and the Report is signed and dated by both parties. Follow-up audits ensure identified issues are resolved. See the SRS audit workflow and process.
As an example of collaborative improvements resulting from supplier remediation, in 2008, we worked with a pre-press company in the Philippines to improve their compliance with national legislation on contractual employees which resulted in the conversion of 17 employees to full-time status. We pursued safer working conditions for employees at an Indian pre-press supplier, in compliance with national legislation, ensuring a secondary staircase was installed as an emergency exit. Review sample 2008 remediation reports.
Our Supplier Code states that, “Failure to comply with any Reed Elsevier term, condition, requirement, policy or procedure...may result in the cancellation of all existing orders and termination of the business relationship between Reed Elsevier and Supplier.”