Suppliers who act illegally or unethically can significantly impact our reputation and potentially expose BHP and our employees to criminal and civil penalties. We only seek to work with suppliers who are willing to adhere to similar values as our own.
We use fair and equitable procurement process which aim to clearly inform potential suppliers of our expectations and standards and the requirements applicable to them. We encourage our suppliers to be transparent on matters important to society, including on their beneficial ownership.
What this means for you
If you are required to source goods or services on behalf of BHP, always be careful when choosing a supplier and encourage them to uphold our standards and contribute positively to our reputation in line with Our Charter.
Only engage suppliers who share our commitment to:
- lawful business practices
- high standards of business conduct
- management practices that respect the rights of all employees and local communities
- minimising impacts on the environment
- providing a safe and healthy workplace
- our Minimum Requirements for Suppliers.
Always source goods or services in accordance with the Our Requirements for Supply and Our Requirements for Legal Services, Contracts and Disputes standards and the relevant Procurement Functional Level Requirements (FLRs).
Conduct a health and safety risk assessment before any sourcing process and ensure commercial decisions do not compromise health and safety. If there is any doubt about the supplier, or potential supplier’s, integrity or ability to perform the contract, address these issues immediately.
Always ensure the supplier (including their beneficial owners): is reputable, competent and qualified to perform the work for which they are being hired; will operate safely and ethically; and that compensation sought is reasonable. Take steps to monitor and assess the supplier’s performance. This will require, at a minimum, carefully checking Service Entry Sheets and invoices and raising queries with the supplier about any unclear or excessive charges. Always inform suppliers where they can access Our Code so they understand our expectations of them.
• Speak up about any activity by a supplier that is inconsistent with Our Code.
• Ensure suppliers are reputable, competent and qualified to perform the work, will operate safely and ethically and compensation sought is reasonable.
• Seek approval to engage high-risk suppliers in accordance with the Our Requirements for Business Conduct standard.
• Ensure a valid purchase order has been received by the supplier before they start work or provide goods or services, and that agreements clearly state the goods or services to be provided, the basis for earning payment and the rate or fee.
• Conduct regular reviews of supplier relationships and performance in line with the Our Requirements Contractor Management standard.
• Verify that Service Entry Sheets or invoices clearly and fairly represent goods and services provided. Raise queries about unclear or excessive charges.
• Make payments only to contractual counterparties that actually provide the goods or services.
• Use suppliers who breach, or do not meet, our Minimum Requirements for Suppliers.
• Ignore warning signs that a supplier may be engaging in inappropriate behaviour.
• Award or influence the award of business to a supplier you have a direct or indirect financial interest in or who is in anyway associated with a close relative or with whom you have a personal relationship.
• Suggest or directly request a personal gift, hospitality or anything of value from a supplier.
• Commit BHP by signing a supplier’s contract or any supplier documentation unless you are authorised as per BHP Powers of Attorney to do so.
• Give one supplier’s confidential business information (for example, proposed rates or winning bid information) directly or indirectly to another supplier.
• Approve a purchase requisition that does not meet BHP requirements or expectations.
• Allow a representative of a supplier to approve a Service Entry Sheet or invoice for that supplier.
• Knowingly enter into any fraudulent or otherwise illegal transactions or fail to report them as soon as you suspect such arrangements may exist.
• Award business to a supplier who would present a corruption risk or who refuses to disclose their beneficial ownership to BHP as required.
Q: I’m sourcing workwear for our people from a reputable supplier but I’m aware they source their products from manufacturers in developing nations. We have asked for details about their manufacturing conditions in order to ensure we are complying with our Minimum Requirements for Suppliers as well as any applicable labour rights legislation. The supplier has refused to provide these details. Can I still source the workwear from them?A: It is important for all our suppliers to comply with our Minimum Requirements for Suppliers. If the supplier refuses to comply, we cannot do business with them unless an exemption has been granted for valid reasons. Consult with Procurement and our Compliance team to review the facts and align on a course of action.
Q: Our operation has engaged a consultant to assist with some environmental permits and approvals. My 2Up leader selected the consultant and works with them regularly. I’ve seen an invoice from the consultant which includes an amount for ‘miscellaneous’ and an item described as a ‘special fee’. Our operation is expecting a significant environmental approval shortly. I’ve spoken with my 2Up leader and he said that this was the wrong time to offend the consultant by asking questions. He said they are doing a great job and we should just leave them to it. What should I do?A: Unexplained or suspicious items on invoices might suggest a supplier is making improper payments. Ignoring these red flags could result in a breach of anti-corruption laws and cause significant damage to our reputation. As you have already spoken with your 2Up leader, you should speak to our Compliance team or contact EthicsPoint.
View more hypothetical scenarios
How to speak up
If you have questions about Our Code, speak to your line leader, 2Up leader, Ethics and Investigations, Compliance, Legal, Employee Relations advisor, HR Business Partner or contact EthicsPoint. Anyone who works with us, on our behalf, or is associated with us, can also access EthicsPoint.
Online: EthicsPoint online
Phone: EthicsPoint Telephone