2005 Financial Report - Capgemini

28 ANNUAL
THE GROUP
Capgemini
6.4 The Group and its clients
The OTACE client satisfaction policy
The Group has developed a client relationship management
process for its own use. The key indicator for success in
client relations is known as OTACE reporting (On Time and
Above Client Expectations). Clients are asked to indicate
their main expectations from the Group’s services based on
a set of relevant indicators related to the type of service
provided, the nature of the working relationship, knowledge
sharing and qualitative factors. These indicators are documented
and reviewed with the client then used to produce
a rating on an agreed schedule (at least annual). The teams
in charge of this program report to the Group Production
Director.
Social responsibility within our clients
As issues of corporate social responsibility take on further
prominence, the Group intends to increasingly take into
account the CSR and sustainability impacts of any projects
carried out with clients. Considerations will be embedded
into the process of project assessment.
6.5 Supplier relations
Capgemini’s business of providing intellectual services means
that personnel costs account for almost two thirds of its
expenses, while external purchases are mostly made up of
rent, IT and telecommunications costs, as well as purchases
of outside services (training, legal and auditing fees,
recruitment or IT services).
Following the deployment of a new purchasing management
software package, the Group formalized new procurement
procedures that contain guidelines on the ethics of
purchasing and the selection of suppliers. The Group’s commitment
to ethical procurement has also been strengthened
in the Group policies and procedures manual “The
Bluebook”.
Capgemini is increasingly working with its clients’ and
alliances’ procurement teams on joint approaches. For
example, 2005 saw collaboration with a major UK client
and their other key suppliers to determine how to work
together to ensure corporate responsibility in the supply
chains.
In 2005 Group appointed a Chief Procurement Officer whose
role will include driving the ethics of procurement deeper
into its supply chain operations including increased monitoring.
Key principles of ethical purchasing
By joining the United Nations Global Compact, the Group
has undertaken to uphold 10 key principles of human rights,
the environment, labor rights and anti-corruption. In Procurement
this means Capgemini aims to work only with
suppliers who have appropriate ethical policies in place and
who are committed to respecting human rights. The Group’s
REPORT 2005 Capgemini
suppliers must comply at least with the following principles:
• no use of forced labor or child labor, and no discriminatory
practices;
• freedom of association, and more generally compliance
with applicable laws, including those relating to working
conditions, health and safety, etc.
Capgemini’s approach to procurement also involves:
• treating suppliers fairly, providing all of them with the
same information about the company’s requirements;
• selecting vendors based on value, performance and price
(as a consideration). Selection decisions must be clear and
auditable, justifiable to management and explainable to
vendors;
• ensuring confidentiality of supplier information;
• maintaining an “arms length” relationship with suppliers;
• not taking advantage of mistakes made by suppliers.
In 2006 Capgemini will be looking to further embed the
following principles into the selection of suppliers:
• wherever possible, expectations of Corporate Social Responsibility
should be built into calls for tender and contracts
with suppliers;
• procurement teams should develop appropriate methods
of monitoring local suppliers for adherence to the above
principles and levels of Corporate Social Responsibility;
• where appropriate, the impact on local communities should
be considered when selecting suppliers (employment of
women, ethnic minorities, focus on disability etc).
As far as possible, Capgemini also aims to undertake all procurement
(real estate, equipment, business travel) in line
with its Environmental policies and guidelines.
6.6 The Group and the environment
Environmental policy
Capgemini’s industry is recognized as having a moderate
impact on the environment due to the very nature of its operations.
However, the Group is committed to ensuring that
its services are delivered in a manner that is not detrimental
to the environment nor to the health, safety and welfare
of Capgemini employees, clients, customers and partners,
nor to the general public with whom the company comes
into contact. Environmental protection is a continuous process
and the Group expects its employees, suppliers and
contractors to ensure that the environmental impact of any
activity, building or equipment is taken into consideration.
At the end of 2005 the Group surveyed its subsidiaries on
the nature of environmental policies, programs and indicators
in place in each region plus specific actions taken; and
staff training and awareness. The Group intends to then
consolidate this baseline data and develop a comprehensive
programme of improvements for all countries.
The key features of the current Group environmental policy
are:
• compliance with local and international environmental
legislation;