Every day, Shire makes numerous transactions with a range of partners and suppliers. In each of those interactions, we hold these companies to the highest ethical standards.
Across all areas of Shire, we take ethical and responsibility factors into consideration when choosing suppliers. We conduct functional, quality and financial assessments and reviews as well as compliance, quality and HSE audits with our partners and suppliers where appropriate, and expect all our partners and suppliers to commit to and uphold our ethical standards.
Managing Relationships With Partners
We constantly work to improve the policies and procedures, selection processes and assessments we use in our relationships with the companies we interact with. Our key areas of focus are as follows:
- Ethics: Suppliers shall conduct their business in an ethical manner and act with integrity. We expect companies to comply fully with all applicable anti-bribery and corruption laws and regulations.
- Labor: Suppliers shall be committed to uphold the human rights of workers and to treat them with dignity and respect. This includes legislation relating to child labor protection, forced labor prohibition, anti-discrimination and human rights. Shire respects freedom of association and collective bargaining, and we avoid any association with organized crime.
- Animal Welfare: In the event that the Supplier uses animals in its carrying out of services for Shire, animals shall be treated humanely with pain and stress minimized. Animal testing should be performed after consideration to replace animals, to reduce the numbers of animals used, or to refine procedures to minimize distress. Alternatives should be used wherever these are scientifically valid and acceptable to regulators.
- Health and Safety: Suppliers shall provide a safe and healthy working environment, including for any company provided living quarters. For supply chain suppliers, we require organizations to declare that they comply with all applicable HSE and labor laws, regulations and treaties. We include these factors in our HSE audits of suppliers and partners.
- Environment: Suppliers shall operate in an environmentally responsible and efficient manner to minimize adverse impacts on the environment. Suppliers are encouraged to conserve natural resources, to avoid the use of hazardous materials where possible and to engage in activities that reuse and recycle.
- Risk management: We have risk registers to identify and rate any risks associated with our business, and use them to create action plans to mitigate risks as required.
- Contract Compliance: We aim to pay our suppliers on time within the agreed contractual terms and we expect our suppliers to comply with all agreed upon legal and business terms.
- Quality: Key metrics are jointly developed and measured to monitor deliverable quality, timeliness, and return on investment. Service Level Agreements are typically attached to and made a part of the our business contracts.
Supplier Diversity Program
- In addition to the principles outlined above, Shire is committed to promoting diversity among our suppliers. This is achieved by actively seeking and selecting suitable and qualified suppliers from all segments of the business community in all of the markets in which we operate* We believe that working with suitable and qualified suppliers from diverse segments of the business community supports our business objectives and economic development in the diverse communities that we serve.
* This includes business enterprises that are small, disadvantaged, located in historically under-utilized business zones (or their equivalents outside the U.S.) or owned by ethnic minorities, women, veterans, service disabled veterans, and members of the gay, lesbian and bisexual communities.
- In the US, we set targets for spend with diverse businesses. Our Supplier Diversity Program promotes awareness of the program, as well as government requirements in this area.
- Baxalta, now part of Shire, continues to be committed to supplier diversity. We are integrating our organizations and plan to harmonize our supplier diversity programs.
- As the main interface with our suppliers, Global Procurement will actively communicate and promote Shire’s policies in all supplier dealings.
- Environmental and social factors shall be considered in the purchasing process. This includes considering what the product is made from, the product durability, where it is made and by whom, the efficiency of the product during use and the processes and resources involved in its production and distribution, what the disposal requirements are and if it can be reused or recycled.
- Global Procurement will endeavor to add sustainability into the procurement cycle by carrying out the following functions: (i) identifying sustainability needs; (ii) appraising sustainability options; and (iii) taking sustainability into account in designs and specifications, supplier selections, tender evaluations, contract management and supplier development.