What responsibility means to us...

Our business model is based on out-sourcing a number of our activities, including much of our distribution as well as the manufacturing for Specialty Pharmaceuticals. It has been a very successful model, but we accept that it brings significant extra responsibilities.

No organisation is listed in our systems without approval by our procurement teams. These teams ensure that we deal fairly, responsibly and ethically with all our contractors and suppliers and that they in turn observe our standards, and are committed to our values.

One way we do this is by running regular supplier conferences in North America and Europe where we can share best practice and update suppliers on developments in our strategy and our business. 

We have also developed a Responsible Supplier Management Program to comprehensively manage the risks and enhance good practice across our supply chain, both internally and externally, regarding labor practices, ethics, health, safety and environmental (HSE) performance. This includes training of our procurement teams, assessment of vendors prior to acceptance by Shire, and a risk-based supplier assessment and audit process. We continually review our supply chain to identify high-risk supply points in terms of business criticality and interruption, and assess supplier performance regarding labor, ethical, and HSE practices. 

We have a supplier diversity program in the U.S., which aims to encourage new relationships with small businesses, particularly those owned by ethnic minorities, women, disabled people and service veterans.

• Shire’s ethical procurement policy was rolled-out to all Shire staff, and made available to suppliers on shire.com.
• In 2011 our small business spend target was achieved and approved by the Veteran Affairs Dept (VA). Total spend for both our Speciality Pharma (SP) and Human Genetic Therapies (HGT) was $179.5million. In addition, the HGT diversity spend objective of $19.5million was surpassed with $31.3million achieved. 
• Our 2011 supplier conference held in September in Boston, MA was a success with 200 attendees, representing 80 Shire key suppliers and various Shire business functions. 95% of attendees surveyed found the event valuable.
• We undertook a comprehensive risk ranking of the supplier base and seven supplier HSE/labor audits were conducted. We are collaborating with suppliers on action plans and are tracking closure of audit findings.

• Continue to increase the proportion of our spending with diverse suppliers.
• Continue to actively engage suppliers through communications, meetings and training sessions.
• Continue to roll out and expand the HSE/labor audits with a minimum of eight supplier audits.
• Recruit U.S. based suppliers to participate in the U.S. Environmental Protection Agencies “Green Supplier Network” (GSN).