How does Bayer choose its suppliers?
Bayer purchases goods and services worth more than EUR 22 billion from over 100,000 suppliers in around 150 countries (figures for 2015). We regard it as one of our responsibilities to collaborate with suppliers that are as sustainability-minded as we are.
Thus price and quality are not the only selection criteria for our suppliers; we also ensure that their ethical, social and ecological standards meet Bayer’s Supplier Code of Conduct.
We systematically evaluate all major suppliers according to these standards and perform regular audits. If shortcomings emerge, our policy is not to immediately terminate collaboration but rather to offer assistance in achieving sustainable business practices, for example by means of training.
Bayer also monitors suppliers’ sources for the minerals they process, such as tin, tungsten, tantalum and gold, so as to ensure they do not stem from conflict regions. We do this to make sure that these minerals do not find their way into our products via the supply chain.
Bayer strictly rejects child labor. When we were confronted with this practice a few years ago at cotton seed suppliers in India during acquisition proceedings, we launched a multi-part remedial program. Among other measures, it includes bonus payments for suppliers who can prove they do not use child labor, providing education for the affected children and performing regular spot checks in the field. Bayer has since expanded its Child Care Program to a wider range of suppliers, including those in rice and vegetable seed production, and also geographically to Bangladesh, China, the Philippines and Thailand.