We partner with principals and suppliers who demonstrate strong values and commit to the ethical principles outlined in the Barloworld Code of Conduct.

Teamwork, one of our core values includes ‘We build outstanding long-term relationships with our principals, suppliers and customers’…. ‘We look for principals and suppliers who demonstrate strong values and commit to the ethical principles outlined in the Barloworld Code of Conduct. We expect suppliers to comply with the sound business practices we embrace, follow the law and conduct activities in a manner that respects human rights. …’.

An internal review has been conducted on our principals and Original Equipment Manufacturers for risks relating to their negative impact on society, in addition to other aspects. These are significant suppliers and accounted for some 68% of our procurement spend in the group for the 2021 financial period. None of these principals have been assessed as high risk.

Selected third party service providers and suppliers (TPSP&S) in all business divisions have been subjected to a risk assessment and due- diligence process in relation to bribery and corruption. This due diligence process involves the integration of a rigorous assessment of TPSP&S into the existing procurement processes and setting clearly defined minimum requirements.

This process is now applied to new TPSP&S and is ongoing for existing TPSP&S, in accordance with the Barloworld due diligence policy.

As part of this process, in excess of 5 900 suppliers (43% of total active suppliers) have signed the Barloworld Supplier Code of Conduct which includes, among other things, the following undertaking from suppliers:

Forced Labour
Suppliers shall not use work that is performed involuntarily under threat of penalty, including forced overtime, human trafficking, debt bondage, forced prison labour, slavery or servitude. Suppliers shall not withhold migrants’ workers’ identification documents without a reasonable and rational legal basis.

Child Labour
Suppliers shall not employ children at an age where education is still compulsory. Children under the age of 15 (in the absence of a legal stipulation) or below the stipulated legal minimum age, shall not be employed.

Non-Discrimination
Employment-related decisions shall be based on relevant and objective criteria. Suppliers shall make no distinctions on grounds including, but not limited to age, disability, gender, sexual orientation, political or other opinion, ethnic or social origin or religion. Employment-related decisions include, but are not limited to hiring, promotion, termination and relocation of employees, training and skills development, health and safety, any policy related to working conditions like working hours and remuneration.

Other aspects covered in the Supplier Code of Conduct include:

Health, Safety and Environment:
The Supplier shall comply with applicable health, safety and environmental laws, regulations and standards and provide a healthy and safe working environment to prevent accidents and injury and promote safety throughout the supply chain. The Supplier recognises its responsibility towards the environment and maintains proper systems to prevent and/or minimise potential hazards. Suppliers shall provide a safe and healthy workplace for their employees and contractors. Suppliers must have documented health and safety policies and/or procedures in place together with appropriate safety infrastructure and equipment.

Fraud, bribery and corruption:
‘We prohibit all forms of bribery and corruption. We will not seek to influence others, or seek to be influenced by others, either directly or indirectly, by paying or receiving bribes or kickbacks, including but not limited to payments to government/public officials by Barloworld employees or agents for the completion of routine governmental administrative actions, or by any other measure that is unethical or that will tarnish our reputation for honesty and integrity. Suppliers shall comply with all applicable anti-corruption laws and regulations (local and as well as international laws and regulations) and, to this effect, have a zero-tolerance policy towards any form of bribery, corruption, fraud, extortion and embezzlement. Suppliers shall not pay or offer to pay bribes or make any other inducement (including kickbacks, facilitation payments, excessive gifts and hospitality, grants, or donations) in relation to their business dealings with customers, public officials, Barloworld employees or any other party. In addition, receiving or giving gifts and hospitality that is excessive, inappropriate, in breach of applicable laws and Barloworld policies, can be damaging to Barloworld’s reputation, create conflicts of interests, and harm our business relationships.   Suppliers shall not use third parties to perform illegal and improper activities, whether directly or indirectly on their behalf like paying bribes or making facilitation payments.’

The reporting organization shall report the following information: a. Percentage of new suppliers that were screened using social criteria.

Integrated Report

No new OEMs were included in the period. The remaining OEMs from prior periods were again assessed during the current period and none were assessed as high risk on labour practices or corporate citizenship criteria. These suppliers accounted for some 68% of our procurement spend in the group for the 2021 financial period.

In excess of 5 900 suppliers (43% of total active suppliers) have signed the supplier and service provider code of conduct that incorporates a voluntary undertaking to uphold labour laws and regulations and adhere to high ethical standards related to health and safety practices as well as human rights. There are ongoing efforts to have more suppliers sign the Supplier Code of Conduct.

The reporting organization shall report the following information: a. Number of suppliers assessed for social impacts. b. Number of suppliers identified as having significant actual and potential negative social impacts. c. Significant actual and potential negative social impacts identified in the supply chain. d. Percentage of suppliers identified as having significant actual and potential negative social impacts with which improvements were agreed upon as a result of assessment. e. Percentage of suppliers identified as having significant actual and potential negative social impacts with which relationships were terminated as a result of assessment, and why.

Integrated Report

An internal review has been conducted on our remaining principals and Original Equipment Manufacturers for risks relating to human rights, corporate citizenship or labour practices, and there were no adverse findings, and none have a high-risk rating.

These suppliers account for some 68% of our procurement spend in the group for the 2021 financial period.

Selected third party service providers and suppliers (TPSP&S) in all business divisions have been subjected to a risk assessment and due diligence process in relation to bribery and corruption. This due diligence process involves the integration a more rigorous assessment of TPSP&S into the existing procurement processes and setting clearly defined minimum requirements.

This process is now applied to new TPSP&S and is ongoing for existing TPSP&S, in accordance with the Barloworld due diligence policy.

As part of this process, in excess of 5 900 suppliers (43% of total active suppliers) have signed the Barloworld Supplier and Service Provider Code of Conduct which includes, among other things, the following voluntary undertaking from suppliers:

"The supplier or service provider understands that it has responsibility for its own supply chain and for managing standards of conduct within its supply chain. It therefore agrees to encourage and promote high ethical standards and adherence to international best practices in human rights, health, safety and environmental standards when undertaking its contractual obligations towards Barloworld."

The supplier and service provider code of conduct also specifically prohibits the use of compulsory or child labour as well as unfair discrimination and requires freedom of association and the right to collective bargaining. It also addresses health and safety aspects in the workplace.

There are ongoing efforts to have more suppliers sign the Supplier Code of Conduct.