Supply Chain

Why this matters to PwC

The sustainability of every major organisation's supply chain is now under scrutiny as never before. Why? Because purchasing power is one of the most visible ways for companies to influence behaviour beyond their own organisational boundaries. So for a business like ours that wants to be a force for good in society, it is essential that we use our commercial muscle wisely and responsibly, and encourage our suppliers to subscribe to high ethical standards. Just like you, our potential clients and new joiners want to know how we measure up in this area before they decide whether we are the right firm for them.

What we do

There are two underpinning themes to how we manage our supply chain. The first is to treat all our suppliers fairly and responsibly, which means making space both for large-scale and small local suppliers where it makes economic sense, providing fair terms of business, and paying on time. The second is to understand and manage the social and environmental impacts of our procurement, which requires a level of engagement and dialogue beyond just evaluating the price.

Two years ago we published Corporate Responsibility in the Supply Chain which sets out our aim to 'establish relationships with our suppliers under which we do business on a consistent, fair and ethical basis, and expect the same in return.' At the same time, we invited our key major suppliers to engage with us to make our aim a reality. Our Supplier Corporate Responsibility Forum, where we bring together our major suppliers to share our experiences and best practice, has now become a regular event. In 2006 an independent survey of our major suppliers showed that 85% believe PwC is a good organisation to do business with and treats them fairly and with respect.

In February 2007 we were delighted to have our supply chain processes accredited to the prestigious Gold Standard by the Chartered Institute of Purchasing and Supply (CIPS). This hallmark recognises that we work to the highest professional standards with our customers and our suppliers.

         Engaging with our suppliers takes many different forms. This year we participated with Mitie – our UK-wide supplier of document production and distribution services – to provide seven training places in their Real Apprentice Scheme, a programme that offers a first step into paid employment for young previously unemployed people from disadvantaged areas in South London. This proved such a success that we are now planning to replicate this scheme with Mitie in other areas of the country.

Carpet manufacture can have significant environmental consequences, including use of resources and pollution. We partner with InterfaceFLOR, a world leader in environmentally-sensitive manufacture and distribution of carpet products whose founder, Ray Anderson, enjoys a substantial global reputation as a business leader with a passionate environmental conscience. We also participate in their ReEntry® scheme to reclaim used carpet and divert it from landfill.

Our accommodation and buildings management partner, Honeywell, has helped us reduce energy consumption through smart efficiences, with a 1.2 million kwh annualised saving at Embankment Place alone. And with some input from our furniture suppliers we have been able to remanufacture office furniture for reuse. Where we simply can’t make use of older furniture it goes to Green-Works, a charity that trains local school leavers and sells on the recycled products.

Also during 2006, we engaged with our cleaning contractors and the ethical campaign London Citizens to address concerns on providing a living wage and also to provide holiday and sick pay entitlements, still not the norm in this industry.

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