Supplier ManagementToday, however, customers, companies, organisations and authorities set high ethical standards when it comes to products being sold on the open market.This is a positive development. 'Corporate Social Responsibility' (CSR), as it is commonly known, is high on today's agenda - both publicly as well as in JYSK's strategic considerations.
At JYSK we have chosen to define CSR as taking responsibility for the production and manufacture of the goods we sell. This is where we can make the biggest difference and is why it makes sense to channel our resources into this area. We have always placed demands on our suppliers but in 2006 this project was fully systematised when we became the first Danish company to join the Business Social Compliance Initiative (BSCI) which supports both the UN's Global Compact and the International Labour Organisation.
BSCI is a common European supplier inspection and training system, which today has more than 700 companies as members. We have the same code of conduct, the same standards and demands for social conditions and it makes sense for the individual supplier, who now has only a single standard to meet. At the same time, BSCI members are able to share information about the individual suppliers with one another.
BSCI's 10 principles for ethical and social corporate responsibility, which match the UN's Global Compact, are framed in a Code of Conduct which suppliers to BSCI members must sign. The Code of Conduct prohibits child labour, forced labour, discrimination and sets out requirements for safety, working hours and environmental protection.
Inolvement is the way forward
We also perform both announced and unannounced inspections of our suppliers' facilities. These inspections are usually performed by an impartial and internationally recognised company, SGS. In addition, the suppliers' management is offered training in our Code of Conduct.
Even the best inspection systems can have holes, which is why it is impossible to guarantee that there will never be conditions at our suppliers facilities that could be improved. However, we can guarantee that we are aware of our responsibility and are working systematically to make a difference. For example, if we discover a problem, we would much rather help suppliers to change their conduct than simply refuse to work with them. We believe that involvement is the way forward, and that the situation will never improve if we simply ignore the problems at hand.
JYSK customers must know that we operate in a responsible manner. We believe that we can influence attitudes and working procedures through a joint effort and top-down training throughout our supplier chain, as well as through long-term, strategic cooperation with our suppliers.
In addition to BSCI, JYSK is a member of:
Danish Initiative for Ethical Trade, which is a multi-stakeholder initiative bringing together business, labour unions and popular organisations to work together for ethical trade and to find constructive solutions to the challenges faced by Danish companies with their suppliers in the developing world and the new emerging economies. Read more in JYSK's staff magazine.
Council for Sustainable Business Developments' objective is to strengthen the Danish business community's competitiveness through sustainable development. JYSK was among the founding members of the Council for Sustainable Business Development in 2006.