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Corporate Responsibility Report 2008

Choosing suppliers

We conduct a detailed assessment of critical suppliers before they are selected.

Critical suppliers include contract manufacturers and suppliers that present the greatest risk to GSK on one or more key risk areas. We use questionnaires, on-site reviews and EHS audits to assess their performance on health and safety, environmental and human rights issues.

We assess potential new critical suppliers against our EHS standards. They must achieve a minimum audit score of 50 per cent against the standards if they are to join our supply chain. Following an audit, many suppliers who have not met our requirements implement plans to improve their EHS performance. We monitor their progress and in some cases provide opportunities for training and technical support to enable the supplier to achieve the required standards. We also expect suppliers who have established supply arrangements with us to make improvements and we monitor their progress through reviews and follow-up visits.

The audits also include questions which help us identify potential breaches of the human rights clauses included in supplier contracts. Suppliers are asked for information on policies and practices relating to:

• Age limits for employees
• Discrimination against employees and the local population
• Prevention of abuse of individuals
• Wages, benefits and working hours (whether they meet the legal minimum)
• Rights for workers to organise and recognition of worker organisations

These questions do not contribute to the EHS audit score, but may be a reason not to progress business with a supplier.

Read about our audit programme which ensures compliance with quality standards

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