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Responsible Relationships

What responsible relationships means to us

We build honest, respectful and transparent relationships with customers, partners and suppliers who share our ethical standards and who follow regulatory compliance.





Our policy and commitment

Our commitment is defined within our Business Conduct and Ethics and Procurement Policy Statements, supporting standards and related operating procedures.

In summary, we strive to:

  • only work with customers, partners and suppliers who respect our Values and meet our standards of business conduct and ethics;

  • complete legal, ethical and human rights due diligence on proposed key third parties, relating to any aspect of our Business Lifecycle, and conduct ongoing monitoring throughout the lifetime of the relationship;

  • complete robust needs analysis and establish a clear management structure, aligned to the Serco Management System and overall strategies for each business opportunity, for all third party arrangements considered necessary to meet contract requirements, including joint ventures, strategic partnerships or consortium arrangements; and

  • apply robust supplier sourcing and selection criteria, and monitor supplier performance, to inform relationship management and identify opportunities for improvement.

Key components in our governance

  • Our Investment Committee provides formal oversight and approval of any partner/strategic relationship contractual structures and arrangements, whilst Divisional Executive Management Teams are responsible for managing these relationships, including regular strategy and performance review meetings with partners, supported by members of the Executive Committee and plc Board as appropriate.

  • Divisional Legal Representatives manage all contractual arrangements with customers, partners and suppliers.

  • Our Procurement and Supply Chain Function delivers consistent procurement processes in the selection and management of suppliers, ensuring compliance with laws and regulations, our ethical standards, Code of Conduct and human rights throughout our supply chain.

  • Our Supplier Code of Conduct clarifies our requirements and expectations regarding our suppliers and their facilities, wherever they are located.

For our business ethics governance, which covers any items relating to responsible relationships, see also: Behaving with integrity and treating people with respect

Our progress and performance in 2017

We have:

  • continued embedding our newly enhanced third party due diligence processes and commenced ongoing monitoring;

  • refreshed our Supplier Code of Conduct and updated components in our supplier governance to meet modern slavery and human trafficking requirements, including the strengthening of contract terms;

  • engaged Anti-Slavery International to help us better understand the risks of human trafficking and slavery in our supply chain, and provide training to the procurement team;

  • worked to improve management of risk across our supply chain in our UK & Europe, Middle East and Asia Pacific Divisions by implementing enhanced supplier onboarding (incorporating latest anti-bribery and corruption and ethical due diligence requirements), improving search capability and clause visibility/standardisation in our supplier contract databases, and developing a best practice toolkit to enhance strategic supplier sourcing; and

  • piloted a new supplier relationship management (SRM) programme in the UK, developed to deliver ongoing performance and innovation improvements with key suppliers.

Key performance indicators

For additional data and performance commentary, see all our corporate responsibility key performance indicators.

  Key performance indicators:




Third party due diligence screening




Third parties validated




Third parties pending review




Third parties disqualified




Our next steps

We will:

  • improve guidance on ethical and human rights due diligence for new geography/market entry and selection and appointment of partners;

  • deploy our new SRM solution whilst applying our enhanced onboarding to existing suppliers; and

  • continue working with all third parties to help ensure slavery and human trafficking are not within their own supply chains, whilst exploring opportunities to address tier 2 suppliers in high risk areas.