Supplier Management

Our trusted supplier network includes vendors from around the world. Maintaining close and effective relationships with local, regional and global suppliers is key to Birla Carbon’s success. Our suppliers’ behavior reflects on us; we have to work with them to ensure they uphold our high ethical standards.

 Code of Ethics

Our supply chain must be reliable and ethical. We have established internal standards and principles to provide guidance for our employees – and our suppliers. Our diverse supplier base includes: vendors; service providers; contractors; distributors; and agents.

In FY2014, we rolled out our Global Code of Business Ethics and Compliance Standards (Code of Ethics), a comprehensive document that each employee has to read and sign against the Code of Ethics annually. Over FY2015, we reached out to our major suppliers, representing over 90% of our total global purchases. Each of these suppliers was contacted with an introductory letter, explaining our expectations on business ethics, and sent a copy of the Code in their own language.

In FY2016, we have taken this process further, by reviewing the contractual Terms and Conditions that we expect our suppliers to agree to. The Terms and Conditions have been revised to include a paragraph on business ethics covering human rights issues, such as child labour, and expected business behaviour; reflecting what is already contained within our Code of Ethics.

“If we discover a business ethics issue with one of our suppliers, we will discuss the matter with them and then consider whether to terminate our commercial relationship.”

Rich Paris, Associate General Counsel.

Feedstock Supplier Sustainability Assessment

We aspire to achieve sustainable procurement for our operations. To achieve our ambition, we recently reviewed all of our global feedstock suppliers and their business practices, using publicly available information from their websites and other sources. Our feedstock suppliers are often subsidiaries of larger companies, which we also evaluated. Suppliers were rated based on the quantity and comprehensiveness of the available information.

Response Planning and Preparedness

To maintain uninterrupted carbon black delivery to our customers, it is important that both our sites and our suppliers have inventories available at all times. Difficult pricing scenarios require us to adapt our approach to inventory management – and the same is true for our suppliers.Our Business Continuity Plans and Crisis Management Response Guidelines provide solutions for these different scenarios. For instance, our contract supplier agreements allow us to source raw materials with minimal risk. A list of approved and certified alternative suppliers is maintained for emergencies, with quality assurance performed on-site by a third party.


Peace, Justice and Strong Institutions

We encourage our suppliers to respect human rights through the Terms and Conditions on our contracts.


Partnerships for the Goals

We engage with our customers to search for more sustainable business approaches.


Share of total costs spent on suppliers who have received our Code of Ethics in their own language.