High business ethics, consideration for human rights, entrepreneurship, competition, objectivity and equal treatment comprise the fundamental principles.
The Purchasing Department has a leading role in the procurement process and its responsibilities include ensuring a distinctive and transparent procurement function, high service levels and secure implementation. To clarify the company’s position in relation to suppliers, Fabege’s own employees and other stakeholders, Fabege has a procurement policy describing responsibilities and regulations for the procurement process. As a result of membership of the UN Global Compact, suppliers receive a clearer description of Fabege’s values in that Fabege’s viewpoints are now expressed in the procurement process, for example through information about the company’s code of conduct and environmental policy.
Cooperation with suppliers and contractors is regarded as extremely important, as good quality is a critical parameter in Fabege’s efforts to create long-term relations with tenants and suppliers. Because many Fabege tenants have direct contact with Fabege’s suppliers of products and services, it is important to ensure the skills and expertise of suppliers, good service levels and their ability to make tenants feel safe and secure in Fabege’s properties. Fabege regularly conducts customer satisfaction surveys that include questions about how the company’s suppliers and contractors act in their relations with Fabege’s tenants.
Results of the surveys are used in dialogues with suppliers to develop their business activities. Selected suppliers are analysed before contract decisions are made. The analyses include financial stability, credit worthiness, rating, collective bargaining affiliation, valid insurance cover, quality plans or ISO certification and references from the suppliers’ major customers.
Fabege is now formulating procedures and systems to chart the sustainability work and responsibilities of the various suppliers. Fabege purchases various types of contracting services. Since the company is engaged in a very large number of projects, subcontractors are also used to a considerable extent. In order to have clearly defi ned procedures and uniform control of these negotiations, Fabege pursues a deeply rooted and well-documented project process, which encompasses contract templates, framework descriptions, administrative regulations, demarcation lists and general agreements.
The large number of links in the procurement chain makes it diffi cult to control materials in particular and products in general. However, it is easier to monitor actual implementation and conditions at worksites.