NHS Scotland - Ethical Procurement Policy Gordon Beattie Head of Procurement Greater Glasgow and Clyde Chair NHSS Ethical Procurement SLWG WoS Regional Procurement Project Director

Aim NHS Scotland (NHSS) requires that goods and services purchased for the delivery of healthcare to patients are sourced ethically and bought from supply sources which maintain ethical standards through-out their supply chains. Ethical Procurement Policy

Objectives The objectives of this policy is to put in place an operational framework which provides guidance and buyer tools to procurement officers across NHSS to meet the following outputs  Awareness of potential ethical procurement issues.  Awareness of industry sectors at risk of an ethical procurement issue.  Ability to model these risks to identify potential mitigating actions.  Provision of guidance and practical tools to mitigate risks.  Provision of a framework of learning and skills development in respect of ethical procurement aspects. Provision of a database of best practice, reference material and known at risk procurements

Ethical Procurement Policy – Key Elements 1.Procurement Practice 2.Equality and Diversity 3.Fairtrade 4.Serious and Organised Crime (SOC) 5.Ethical Procurement Labour Framework (Child Labour)

Procurement Practice: NHSS will adopt the CIPS code of practice for procurement ethics: Members will always act professionally and selflessly by: (a)maintaining the highest possible standard of integrity in all their business relationships both inside and outside the organisations where they work; (b)rejecting any business practice which might reasonably be deemed improper and never using their authority for personal gain; (c)enhancing the proficiency and stature of the profession by acquiring and maintaining current technical knowledge and the highest standards of ethical behaviour; (d)fostering the highest possible standards of professional competence amongst those for whom they are responsible; (e)optimising the use of resources which they influence and for which they are responsible to provide the maximum benefit to their employing organisation; (f)complying both with the letter and the spirit of: i.the law of the country in which they practise; ii.Institute guidance on professional practice; iii.contractual obligations;

Equality and Diversity: Procurement as an area which can influence and promote best practice in respect of services procured which have a high propensity to impacting on Equality and Diversity issues. Equality is about a fairer society where everyone can participate and has the opportunity to fulfill their potential. Diversity is about the recognition and valuing of difference in its broadest sense. It is about creating a culture and practices that recognise, respect, value and harness difference for the benefit of patients, carers, members of the public and members of staff. Third parties providing goods and service to NHSS must adhere to these principles and the Procurement Officers charged with establishing these arrangements must ensure safe guards are put in place within the agreements to mitigate risks of breaching them

Fairtrade: Fairtrade is about fair terms of trade for farmers and workers in the developing world e.g : Better Prices Decent Working Conditions Local Sustainability Initial focus on fairtrade beverages and snacks as part of the overall catering supplies strategy.

Serious and Organised Crime (SOC): The Scottish Crime and Drugs Enforcement Agency (SCDEA) has identified the risk of SOC groups gaining from public sector contracts through their involvement in companies bidding for such contracts. SCDEA guidance is that organisations engaged in SOC tend to be chaotic in their nature and will find it difficult to maintain consistent systems and processes to the extent expected from bona fide companies. NHSS procurement services have developed a ‘SOC Mitigation Strategy’ which has been endorsed by the SCDEA. The strategy focuses on identifying: At risk procurements (At risk markets) Limiting access to bona fide tenders (Enhanced PQQ) Establishing that candidate companies and bidders have the ability to consistently deliver the required goods or services over the contract duration (Enhanced Specification and Award Assessment).

Ethical Procurement Labour Framework (Child Labour) Key principles: It is unacceptable to NHSS that any goods or services procured use Child Labour in any part of the associated supply chain. It is recognised that the use of child labour continues to be a significant problem across world-wide supply chains particularly in sub-contracted manufacturing within the developing world. Use of child labour can be very difficult to identify in complex world-wide supply chains. NHSS will work with it’s key suppliers to help achieve this aim.. NHSS Ethical Procurement SLWG is charged with developing this framework and today will help enormously in getting it right.

Aim NHS Scotland (NHSS) requires that goods and services purchased for the delivery of healthcare to patients are sourced ethically and bought from supply sources which maintain ethical standards through-out their supply chains. NHS Scotland - Ethical Procurement Policy Do you think we are on the right track ?