This document outlines steps for implementing a corporate social responsibility program within a company's supply chain. It discusses establishing a supplier code of conduct, prioritizing suppliers based on their relationship and empowerment level, communicating expectations, conducting self-assessments, monitoring performance through audits and measures, and taking corrective actions with suppliers that do not meet standards. The goal is to encourage suppliers to voluntarily adopt more ethical practices over time through cooperation rather than immediate termination.

1. Dr. Sherif Tehemar
BDS/DDS, MSC, PhD, FACOMS, CSSGB
CSR Committee Chairman/ Dental Consultant & Director

2. Ethical Business
Environment
Community
Rights
Customers
Employee

3.  Equitable and practicable balance between the commercial
imperative of continuing doing business and the ethical
demands.
 Focus on sustainability and CSR, and the company needs to
decide where its efforts are best employed.

4.  Supplies are the second leading cost to
hospitals after labor in providing
patient care.
 35% - 45% of a hospital’s total
operating expenses are for supplies,
drugs, and consumables (McKoneSweet, et al., 2005).

5.  The healthcare supply chain is composed of two major players
at various stages:
 Producers
 Pharmaceutical companies, medical/surgical products companies,
device manufacturing/ IT products
 Purchasers
 Pharmaceutical wholesalers, medical/surgical distributors,
independent contracted distributors, and product representatives
from manufacturers

6. 



Quality
Price
Delivery time
Healthcare Standards

7. 1.
2.
3.
4.
5.
6.
Preparation of a Supplier Code of Conduct
Overview and priority of suppliers
Communicate and educate
Rank
Measures towards suppliers
Act

8.  It is your company’s response to and recognition of
your responsibility in the supply chain, and a
guideline to your suppliers on what is expected of
them.
 Zero-Tolerance Policy
 Slave/child labor
 Unsafe working condition
 Inhumane treatment
 Gross environmental pollution
 CSR in Contracts/Policies/Manuals/Tender

9. A way of starting the priority process is to divide the
suppliers into groups based on two criteria:
 The company’s relationship with the supplier, and
 The degree to which the supplier is empowered by the
company
 Local Suppliers

10.  Communicate and engage with them to ensure that
they are well informed about the consequences of
not adopting CSR best practices within their
companies.
 Communication
 Group meeting
 One-on-One
 Supplier committee.

11.  Self-Assessment
 Quality
 Environment, Health & Safety
 Transparency & Accountability
 Labor Management & ethical conduct
 Contribution to local economy & Community Investment

12.  Depending on the supplier’s strategic importance,
different measures can be applied.
 The level of cooperation,
 Audits,
 Reporting,
 Questionnaires

13.  Violates one of the zero-tolerance issues
 Is unwilling to engage either through refusing to
respond or by denying access.
 Is not inclined or able to improve its performance
even after being helped.

14. Policies/Laws & Regulations
Assistance & information
Empowerment

15. Sector Group
Network
Chamber of Commerce

16.  Immediate Termination is not
a solution
 A better CSR effort would be
to encourage and persuade by
maintaining
contact
and
thereby
raising
the
performance of the supplier.

17. Will it be a voluntary act in the future?

18. We live by ethics & we grow by
knowledge