15 September 2010 | Lindsay Clark

Engineering and construction multi-national Fluor has opted for a flexible approach to improving its suppliers’ approach to ethical practice.

The company has decided to avoid a detailed code of conduct and instead, it has ensured expectations are “formulated as a high-level, values-based document”. According to its sustainability report, out this week, this anti-corruption and ethics “language” is now part of all vendor agreements.

The initiative gives suppliers flexibility to take on procedures and controls that best fit their own business, said Fluor. “We articulated clear standards for our suppliers – and for their suppliers – to adopt working conditions and business conduct and ethics standards as high as our own, including the prohibition of child and forced labour; health, safety and environmental performance; fair competition; and zero-tolerance for bribery and corruption.”

Alan Boeckmann, chairman and CEO said: “This is of great significance. We recognise that as project managers, our suppliers are an extension of our corporate culture. Therefore, we take great care to ensure that our clients can be confident these ethical practices extend throughout all phases of our services and our subcontractors’ procedures, processes and operations.”

Meanwhile, the report also said the company was making efforts to diversify its supply base. “Local suppliers primarily provide support through ancillary businesses for goods and services as major equipment needs are often met through a limited number of specialised producers,” it said.

However, these goods and services still represented $10.2 billion in spending, offering a substantial opportunity to “engage small, woman-owned and diverse suppliers whose goods and services meet our clients’ requirements”.