In KMD, we are a signatory to the UN Global Compact, we are subject to the UN Declaration of Human Rights, and we commit to the OECD Guidelines for Multinational Enterprises, which set out requirements for us and our supply chain. We have highly capable suppliers in our industry, and many recognize that sustainable products and services will enable them to stay relevant and competitive in the future.
Before onboarding a new supplier, we perform risk based due diligence and we continue to monitor our suppliers throughout the course of the cooperation. Our Supplier Code of Conduct contains the requirements that we expect our suppliers to operate in accordance with. The code represents an important element of our procurement agreements.
We expect our suppliers to meet our requirements within:
The KMD Group believes that dialogue is paramount to achieving the standards set out in the Code. If the supplier acts in noncompliance with one or more of the principles of this Code, the KMD Group will cooperate with the supplier to draw up a remedial plan. Only when we assess that a supplier is not capable nor showing any intention of remedying the issue, or when repeated violations of the Code are made by the supplier, will we consider it a material breach, and the result may be a termination of the cooperation.
At KMD Group, we drive our business with transparency and comply with applicable laws and regulations as well as with our own policies. Our Code of Conduct is based on high ethical standards, and in our Anti-Corruption Policy we have zero tolerance for corruption and bribery, including facilitation payments. Additionally, we carry out educational programs and send awareness messages to ensure that we are reminded of what good business conduct means to KMD. Concerns and suspicions of misconduct can be reported to management or confidentially through the Whistleblower Agreement in accordance with the principle of 'non-retaliation'.
We focus on the following seven areas: Anti-corruption, IT security, competition law, property rights, contractual risk management, authority plan and document management and storage.
We recognize that KMD cannot be seen in isolation from a compliance and business conduct perspective, and therefore we need the same from our suppliers as we require from ourselves. We conduct supplier screenings through our procurement program and require our suppliers to adhere to our Supplier Code of Conduct. We expect our suppliers to comply with our guidelines within Human and Labor Rights, Health and Safety, Environmental Protection and Business Integrity
At KMD, we believe that dialogue is of crucial importance in order to achieve the standards our code establishes. If a supplier does not meet - or behaves in violation of - one or more principles from our code, KMD will work with the supplier to draw up a remedial plan. Only when we judge that a supplier is unable - or shows no intention - to remedy the problem, or when the supplier repeatedly violates the Code, will we consider it a material breach, and the result may be termination of cooperation.