JOTUN AND SOCIETY
65
Leading from the front
Jotun protects and supports the human rights of employees, suppliers, contractors, and the societies in which
the Group operates. Responsible purchasing is a cornerstone of our ethical approach to doing business.
Jotun invests in the continual development of a corporate
structure that works to respect and promote the human rights
of all stakeholders. Our human rights policy, clearly aligned
to the United Nations Guiding Principles on Human Rights
(UNGP), ensures that every Jotun company follows the same
standardised, high quality approach.
Employees are protected in accordance with the ILO’s
Declaration on Fundamental Principles and Rights at Work. At
the same time, Jotun strengthens local communities by our
demonstrated commitment to high standards, while demanding
that suppliers follow our example.
Supplier commitment
In 2018, Jotun developed the Jotun Supplier Integrity
Declaration to reinforce the company’s commitment to
improving performance across the value chain.
The Supplier Integrity Declaration is a new tool to support a
procurement policy that aims to impact positively on people,
society and the environment. To be distributed bi-annually from
2019, the declaration sets clear requirements for our global
supplier base.
This ensures suppliers commit to laws, licences and permissions,
and comply with Jotun’s stringent approach to labour standards
and human rights. Effective health, safety and environmental
management is a necessity, as is a supplier’s secure, lawful
and ethical business conduct. The way suppliers procure
their own goods and services should also be compatible to
Jotun standards, while they are also required to agree to
audits, inspections and corrective actions in line with Jotun’s
commitment to the ten guiding principles of the United Nations
Global Compact.
Evolving efficiency
2018 has seen Jotun focus on strengthening category
management to deliver enhanced value, controlling risk and
providing structure insight across all purchasing activities.
New digital tools have been introduced to ensure that individual
category managers have access to relevant information, creating
a uniform approach with increased efficiency, control and the
ability to analyse and continually optimise spend.
Increased emphasis on indirect materials
In 2018, Jotun initiated a drive to streamline, structure and
standardise the procurement of indirect materials.
A globally aligned account structure – with fewer accounts
and increased clarity – will be introduced in 2019 to simplify
purchasing, grouping products and services under clear
categories. Account guidelines and online training material will
support this transition.
During 2019, indirect material purchases will migrate to Jotun’s
ERP system, enabling a uniform method of procurement
and improved data insight. The understanding this delivers
will unlock significant value for Jotun, creating predictability,
controlling risk and leading to value creation. Data driven value
creation projects can realise significant savings, dependent on
the product or service procured.
Additional benefits include better control over supplier
payments, transparency throughout the Group, improved
governance and ongoing cost analysis.
Responsible purchasing