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The world’s most respected company has identified almost 18,000 possible instances of its suppliers failing to comply with its core environmental, health and labour standards since it began assessing their performance in 2002.
General Electric, which has 430 ‘sourcing personnel’ trained in conducting supplier assessment, reviewed the performance of more than 3000 suppliers between 2002 and the end of 2004. It also went back to reassess 766 of those reviewed in a prior year, to ensure there had been sustained improvement.
Of the 18,000 ‘findings’, more than 90 per cent have since been addressed to the company’s satisfaction, and the outstanding ones ‘will be tracked to closure by GE’, whose standards frequently exceed what is required by national law.
The company’s first citizenship report, in which the figures are revealed, says that ‘most suppliers seek to meet GE’s expectations’, and the emphasis has therefore been on ‘corrective action’. However, the company has ‘terminated about 200 suppliers since the inception of the program’.
Most, but not all, GE’s suppliers have to certify their compliance with core standards. Utilities, law firms, financial institutions and hotel chains are among those exempt.
Health and safety accounted for 40 per cent of the findings, ‘emergency preparedness’ 22 per cent, environment 20 per cent, labour 14 per cent and worker accommodation four per cent. The diversified technology, media and financial services company spends $50billion (£27bn) annually on materials, components, goods and services.
General Electric, which has 430 ‘sourcing personnel’ trained in conducting supplier assessment, reviewed the performance of more than 3000 suppliers between 2002 and the end of 2004. It also went back to reassess 766 of those reviewed in a prior year, to ensure there had been sustained improvement.
Of the 18,000 ‘findings’, more than 90 per cent have since been addressed to the company’s satisfaction, and the outstanding ones ‘will be tracked to closure by GE’, whose standards frequently exceed what is required by national law.
The company’s first citizenship report, in which the figures are revealed, says that ‘most suppliers seek to meet GE’s expectations’, and the emphasis has therefore been on ‘corrective action’. However, the company has ‘terminated about 200 suppliers since the inception of the program’.
Most, but not all, GE’s suppliers have to certify their compliance with core standards. Utilities, law firms, financial institutions and hotel chains are among those exempt.
Health and safety accounted for 40 per cent of the findings, ‘emergency preparedness’ 22 per cent, environment 20 per cent, labour 14 per cent and worker accommodation four per cent. The diversified technology, media and financial services company spends $50billion (£27bn) annually on materials, components, goods and services.
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