Telecoms multinational keeps tabs on the suppliers to its suppliers

Telecommunications firm Telefonica has become the latest company to demand ethical supply chain credentials from its own potential suppliers.

The Spanish multinational, detailing new European sustainability criteria introduced to assess a contract bidder’s approach to its own supply chain, has outlined a system of requirements on codes of conduct, monitoring and action on environmental issues for companies tendering for work.

Part of the firm’s Supply Chain Responsibility Policy, the criteria also requires that potential suppliers provide a ‘map’ of its supply chain for each product, with a list of every country it operates in.

The firm has also launched a similar initiative in South America, “Aliados”, a network of supplier partnerships to drive improvements on working conditions and child labour, as well as the quality of products.

The company sees itself as a sustainability leader. While it topped the Dow Jones Sustainability Index in the telecoms sector for 2009 and 2010, however, it has found itself knocked off the top perch by the South Korean KT Corporation this year.