Sustainability Performance: At a glance (31 March 2012) - Safaricom

Supplier ethics and performance
Stakeholders with whom we engage
Stakeholder groups What we engage them on:
Safaricom’s business partners,
including suppliers, contractors
and agents
Safaricom continuously engages with its business partners through
supplier forums, meetings and regular communication throughout the
year.
A supplier forum was held in October 2011, for instance, where issues
such as bribery and corruption, fraud and compliance were discussed.
Business continuity
Thirty suppliers were identified for business continuity assessments
(based on the importance of their role in ensuring that our business
continuity is assured). The aim of the assessments was to help
suppliers formulate and adopt robust business continuity management
programmes.
The suppliers carried out risk assessments of their local operating
environments, performing business impact assessments and forming
crisis management committees in order to plan for, and be able to
respond proactively, to a crisis.
Based on the assessments, 19 of the 30 suppliers were compliant.
The results of the assessments were communicated to the suppliers in
March 2011 and individual reports provided to help them identify and
address areas needing improvement.
How we performed
The Procurement and Supply Chain
Department recently carried out a supplier
sustainability self-assessment exercise. A
comprehensive sustainability questionnaire
was sent out to 80 key suppliers, along with the
company’s updated Code of Ethics.
The sustainability questionnaire covered the
following aspects: fraud and ethics, human
resources, health and safety, environment,
community and corporate giving, and regulatory
compliance.
Only 12 responses have been received to date,
but we are following up with the other suppliers
to ensure full compliance. Based on the current
feedback, the highest score is 93.6%, the
average score is 84.33% and the lowest score
is 76%.
We are currently considering carrying
out on-site audits to corroborate the selfassessments.
Should unethical practices or
Supplier ethics and performance
human rights concerns be identified during
site audits (or come to light generally), we
will proactively engage with the suppliers in
question, assessing these concerns with the
management team and formulating appropriate
action plans. Should no improvement be
made after this engagement, we will consider
terminating contracts and relationships.
We also recognise the need to work closely
with our suppliers and to provide the relevant
reference and benchmark information they need
to ensure they are able to comply.
Buying locally
Where we can, we buy from local
organisations in areas in which we
operate. On the whole, this pertains to our
OPEX purchases as most of our CAPEX
purchases are quite specific and technical
in nature. We remain committed to
supporting and building local companies
that match our needs and expectations in
terms of quality and efficiency.
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Safaricom Sustainability Report 2012 81