P RESUPUESTO DE M ARKETING

Definitions of ethical procurement often appear synonymous or interchangeable with responsible sourcing. Internal guidance by Carillion to their supply chain team suggested that ‘ethical sourcing’ was synonymous with

‘responsible sourcing; also referred to as supply chain responsibility. It is a voluntary commitment by companies to take into account social and environmental considerations when managing their relationships with suppliers’ (Carillion plc, 2014b). They also closely associated it with a code of ethics or Ethical Business Practices, highlighted in internal training as ‘Ethics is about doing the right thing, complying with the law and our values, acting honestly and following the rules’ (Carillion plc, 2014b). The most comprehensive definition provided by the stakeholders reviewed was that of CIPS. Their guidance suggested that

‘Ethics involves distinguishing between what is right and wrong behaviour by an individual or organisation. Typical principles are that staff must perform their duties impartially, personal interest should not affect professional decisions, information should not be used to gain financial advantage for themselves and staff should maintain the highest standard of integrity in all business relationships’ (CIPS, 2015d).

They also provide members with a Code of Ethics, an extensive document, that focused specifically on guidance to those in procurement (Alder, Gooch, 2013). It has a very strong bias towards social ethics and there is only a minor mention of any ethical consideration for environmental issues. The UN takes similar approach with its guidance to procurement teams (United Nations, 2017) whilst the ETI Base Code (ETI, 2014) and the UK government in their Ethical Procurement Policy Statement focus solely on social considerations (DEFRA, 2011) (see Table 3).

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Table 3: Analysis of the ethical principles of the Global Compact, ETI Base Code and the Manifesto for Ethical Sourcing in Construction (Sisco et al., 2015), (ETI, 2014), (McClelland et al., 2015)

Global Compact - The Ten Principles

Relationship to Supply Chain ETI Base Code

Manifesto for Ethical Sourcing in Construction

Human Rights

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses.

Labour

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective

2. Freedom of association and the right to collective bargaining are respected

Principle 4: the elimination of all forms of

forced and compulsory labour 1. Employment is freely chosen

Principle 5: the effective abolition of child

labour and 4. Child labour shall not be used

Principle 6: the elimination of discrimination in

respect of employment and occupation 7. No discrimination is practised 3. Working conditions are safe and hygienic

5. Living wages are paid

6. Working hours are not excessive 8. Regular employment is provided 9. No harsh or inhumane treatment is allowed

Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges

Principle 8: undertake initiatives to promote greater environmental responsibility Principle 9: encourage the development and diffusion of environmentally friendly

Anti-Corruption

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery

Procure Labour materials products and services only form orgnaisations demonstrating and implmemntoing zero tolerance to bribery and corruption General Principles

Adopt the Ethical Trading Initiative Base Code and work collaboratively with all supply chain organisations on its implmentation Evaluate and address together the economic social and environal sustainablitiy challenges and impacts of sourcing labour materials products and services

Demonstrate a traceable and transparent supply chain for labour materials, products and services

Benefit the health safety and wellbeing of all stakeholders including the natural environment

Demonstrate materials are of legal origin Optimise social, environmental, and economic impacts and opportunties of comples/manufactured products over their entrie lifecycle.

Design, specify and procure materials products and services with the greatests circular economy benefits

Design, specify and procure using credible and recognised resopnsbile sourcing and certification schemes where available Foster and communicate a business cultrue of openess, collaboration and accountability in order to achieve and demonstrate the principles of this manifesto

59 Additional to these three terms there are two further descriptions, most frequently found in public organisations, green public procurement and the less common, socially responsible public procurement. The former is defined by EU-DG Environment as

‘means that public authorities seek to procure goods, services and works with a reduced environmental impact throughout their life-cycle compared to goods, services and works with the same primary function that would otherwise be procured’ (EU-DG Environment, 2015).

Socially Responsible procurement places much greater emphasis on the social element of Sustainable Procurement and

‘is about setting an example and influencing the market-place. By promoting SRPP, public authorities can give companies real incentives to develop socially responsible management. By purchasing wisely, public authorities can promote employment opportunities, decent work, social inclusion, accessibility, design for all, ethical trade, and seek to achieve wider compliance with social standards. For some products, works and services, the impact can be particularly significant, as public purchasers command a large share of the market (e.g. in construction, business services, IT and so on)’ (EU Commission, 2010a).

For the purposes of this research the definition of ethical procurement that has been utilised was that of the Chartered Institute of Procurement and Supply. Assessing the definitions currently adopted by key stakeholders has highlighted considerable overlap between the different terms and variation in the approaches adopted by professional bodies and client organisations. This complexity would suggest a basis for confusion and frustration amongst procurement teams

2.4 UK construction supply networks for large scale, built assets and infrastructure