Responsibility in the supply chains
Sustainability and corporate social responsibility in the supply chain covers suppliers’ relationships with ethical guidelines, human rights, workers’ rights, anti-corruption, the climate and the environment. Systematic and close collaboration on corporate social responsibility in the supply chain is part of our strategy for responsible business operations. This contributes to risk reduction and increased quality in the value chain.
KONGSBERG has 3,680 suppliers all over the world, of which 2,050 are in Norway. This means we help to safeguard jobs and build competence, not only where we have proprietary operations, but also to a large extent where we use suppliers. The suppliers are an important part of our value creation, just as we are important and, in many cases, essential to their value creation. We want to work with suppliers that share our values and requirements regarding responsible business conduct.
This is specified in the - Supplier Conduct Principles - which are included in our supplier agreements. The business areas have established processes and systems for carrying out risk assessments of all critical suppliers and suppliers with purchases above specified limits. The risk assessment covers existing and new suppliers and includes the assessment of environmental conditions, human rights and employee rights, HSE, business ethics and corruption. Based on the result of the initial risk assessment, our dialogue with the supplier is followed up with additional assessment and suggested measures.
We see it as our ethical responsibility to ensure that the entire value chain relating to our products satisfies our requirements for sustainability and corporate social responsibility, although the legal responsibility rests with the individual supplier. We follow up our responsibility through clear requirements in our agreements with suppliers as well as risk-based follow-up and audits. Our suppliers are obliged to require the same standards of their subcontractors.
Making sure that all subcontractors throughout the value chain comply with our requirements is our main challenge.