EC calls for supplier cuts

Construction industry companies need to limit the number of subcontractors they use in order to gain more control of their supply chain ethics, according to new European Commission guidelines.

The Commission recommends that businesses follow the example of the Italian company Coop Construzioni, which has fixed an absolute limit to subcontracting and introduced a formal authorization procedure for the ‘subcontracting of subcontracting’ in an effort to control its entire supply chain.

The Guidelines to enhance CSR in the construction sector, which apply to all sizes of firm, say ‘widespread and unstable use of subcontractors’ is hindering progress on ethical supply chain management, and that trimming back their use should reap dividends.
 
The advice is the result of an 18-month project involving ten CSR umbrella bodies and academic institutions from five European countries, including Respact (Austria), RSE Portugal, and Foretica (Spain).