Value supplier relationships

We are committed to responsible and respectful supplier relationships.

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Our suppliers play an important role in our business. BHP uses fair practices to carefully select responsible suppliers that share Our Values and commitment to high standards of safety and conduct.  

Value supplier relationships
What it means for you

We work with responsible and reputable suppliers that share our commitment to lawful business practices, ethical business conduct, human rights (including in relation to labour rights and modern slavery), and health, safety, community, and environmental standards. 

When selecting suppliers, we conduct risk-based due diligence to understand their practices and assess whether they share Our Values and align with our purpose. BHP aims to engage suppliers that have a track record of operating safely and ethically. 

Our suppliers of non-traded goods and services must comply with the Minimum Requirements for Suppliers. We actively monitor our suppliers and conduct regular reviews of supplier relationships and performance, committing to act if we identify any activity that is unlawful, unethical, or breaches Our Code.  

How you make an impact
You work with responsible suppliers that meet Our Requirements, you communicate with our suppliers clearly and honestly, and raise any concerns or potential issues about suppliers immediately.
Resources
Minimum Requirements for Suppliers
Supply Global Standard
Contractor Management Global Standard
Business Conduct Global Standard
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Always

• 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.

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Never

• 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.

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Hypothetical scenarios
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

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