Supply chain due diligence must go beyond self-assessments
So many companies rely on suppliers to self-certify they comply with buyers’ codes of business conduct that the practice is “almost useless,” some experts believe.
Speaking as part of a panel discussion on enhancing supply chain due diligence at Compliance Week’s Europe conference in London, Maria Lancri, partner at French law firm Squair, told attendees self-certification is not the best way to gain assurance suppliers are acting in line with a company’s ethical or legal expectations.
“One of the problems with asking suppliers to self-assess against your terms and conditions is that you rely almost 100 percent on their responses, which makes it look like your job is effectively done once the questionnaire comes back,” she said. “This is not enough.”
Barbara Przedpelska, compliance manager for Europe at building materials company CRH, agreed the practice has limited value.