Skip to main content

Sustainable Value Chain Management

For the Company, the supply chain from upstream to downstream is all important to business operations. Therefore, the Company places importance on creating sustainable value for business partners by paying attention from the selection of partners who have the potential to conduct business ethically, professionally, and are ready to adapt to changes that affect sustainability under risk management plans, creating opportunities that arise together under efficient monitoring and evaluation systems. The Company also places importance on strategic procurement management and supply chain management that focuses on product and service quality by establishing risk management processes that cover environmental, social, and governance aspects to determine management approaches consistent with risk levels, considering the quality, quantity, delivery of goods and services received, including legal requirements and various management systems to prevent and reduce risks that may affect the quality, quantity, delivery of goods and services, as well as stakeholder trust in the organization's various operations. The Company has established a Code of Conduct for Business Partners (TPBI - SUPPLIER SUSTAINABLE CODE OF CONDUCT) for partners and a Code of Conduct for Employee Work Performance (TPBI PURCHASER CODE OF CONDUCT) for employees, so that both partners and employees adhere to and strictly comply with them. The content and scope of practice guidelines under relevant laws, regulations, and rules cover business ethics, human rights, safety, occupational health, and environmental issues according to the following 4 principles:

  • Value for Money: Business partners and Company employees must consider costs, quality, and potential impacts that may arise from current and future procurement, by comparing various alternatives along with other relevant factors such as market, financial, technological, and environmental aspects for consideration. This does not always rely on the lowest price for procurement decisions, but depends on the Value Score of the partner selection process that will be held as important.
  • Integrity & Transparency: Business partners and Company employees must proceed according to procurement procedures openly and must provide opportunities for all partners to compete fairly, primarily considering the qualifications and capabilities of different work groups of partners. Opportunities must be provided for stakeholders, experts, and parties assigned by the Company to receive adequate and equal information about procurement at appropriate times. The selection results must be communicated to management and/or the procurement committee.
  • Efficiency and Effectiveness: Company employees must clearly consider procurement needs by taking into account various market condition directions in the current situation, with analysis and planning to set selection targets for which procurement method is most beneficial and suitable for the situation at that time, including monthly, quarterly, and annual procurement evaluations to use the results for improvement and correction of deficiencies that occur.
  • Accountability: Company employees must adhere to the principle of responsibility for ethical standards or professional codes of conduct, including consideration of correctness, efficient use of authority, quality, and responsibility for the results of performing duties according to their assigned roles and responsibilities, evaluated from the perspective of relevant stakeholder opinions of the department and procurement process.

Supplier Sustainable Code of Conduct

Download

The Company is committed to conducting business with fairness, legal compliance, and good corporate governance principles, alongside caring for, promoting, and supporting society and the environment to achieve balance in all aspects, coexisting and growing together sustainably. The Company also disseminates this policy and supports and encourages business partners to implement these principles to extend the benefits to society at large. Therefore, to ensure common understanding, the Company has prepared these practice guidelines for business partners to follow:

  1. Business Ethics: The Company emphasizes strict compliance with all directly and indirectly related laws and regulations with honesty, integrity, ethics, transparency, and auditability, and will not engage in any form of fraud or corruption, but will proceed to obtain quality goods and services that create maximum benefit for the Company with fairness to all stakeholders, by establishing the following actions:
    • Maintaining mutual confidentiality
    • Refraining from any actions that cause conflicts of interest and/or overlapping interests
    • Refraining from intellectual property rights violations
    • Establishing complaint channels
    • Participating in development and social responsibility
    • Establishing complaint channels
    • Participating in development and social responsibility
  2. Human Rights and Labor Ethics: The Company supports and respects human rights principles at both national and international levels, and vigilantly monitors to ensure the Company's business does not become involved in human rights violations, by accepting practices beneficial to global society, such as the United Nations human rights principles, with the following details:
    • Business partners should respect human rights, consider human dignity, equality, regardless of differences in race, nationality, religion, gender, education, disability, including treating their employees fairly according to international standards and law
    • Business partners must not use forced labor where their employees are unwilling
    • Business partners must not employ child labor under the legal age limit and must provide workers with all legal protections
    • Business partners must pay wages and other benefits that their employees are entitled to receive correctly, fairly, and on time
    • Business partners must not require their employees to work longer than legally specified, and if overtime work is necessary, it must be voluntary
  3. Safety, Occupational Health and Environment: The Company places importance on work practices that consider continuous quality, safety, and occupational health management standards, establishing and reviewing quality, safety, and occupational health policies, including good practices for sustainable development, with the following details:
    • Business partners must prepare safe working environments and provide hygiene for their employees, including providing adequate and appropriate personal protective equipment
    • In emergency situations, business partners must be prepared for emergencies by establishing situation assessments, impact management measures, warning plans, and providing continuous and appropriate employee training
    • Business partners must have clear environmental conservation policies and be committed to using various resources efficiently, with economical and appropriate energy use
    • Business partners must strictly comply with applicable safety, occupational health, and environmental laws
    • Business partners must ensure that in the production process, there are appropriate and safe waste disposal and management systems, pollution discharge control for air, land, and wastewater, with continuous monitoring, control, and quality inspection to ensure that waste and production outputs released to the environment will not cause any pollution in both short and long terms
  4. Ethics and Legal Compliance:
    • Business partners must conduct business with virtue, ethics, and strict legal compliance
    • Business partners must conduct business without bribery in any form
    • Business partners must conduct business with fair competition
    • Business partners must maintain accurate and complete business-related accounting records
    • Business partners must protect confidential customer information

Selection and Evaluation of Business Partners with Sustainable Business Potential

Cost analysis and business risk assessment, coupled with environmental, social, and governance (ESG) aspects, by prioritizing risks that may impact the Company's business operations for both Existing Suppliers and New Suppliers, and using the results to group business partners to determine strategies and develop partnership plans aligned with Company policy. This is evaluated by the Procurement Department alongside business partners' sustainability self-assessment forms.

The Company considers various impacts of business partners through analysis of importance and risk assessment of partners, consisting of 4 steps:

  1. Spend Analysis: Covering all procurement work groups, expenditures of all partners with high spending amounts (Top spenders)
  2. Risk Assessment: Focusing on identifying sustainability risks to the organization in the procurement process, such as the number of available sources of goods and services, impacts on the procurement process, child labor use, Opposition to bribery and anti-corruption impacts on illegal raw material purchases, etc.
  3. Critical Analysis: Which has analytical criteria as follows:
    • Partner (High Risk High Expenditure): High risk and high importance
    • Leverage (Low Risk High Expenditure): Low risk and high importance
    • Risk (High Risk Low Expenditure): High risk and low importance
    • Shop (Low Risk Low Expenditure): Low risk and low importance
  4. Mitigation Measures: Considered from the results of risk assessment and critical analysis of partners to help the Company be prepared to deal with high-risk and high-importance partners, with main measures as follows:
    • Key Partners: Partners with high expenditure amounts and very high or high risk levels, difficult-to-substitute products, and in the group of important parts or equipment. These partners are classified in the High Risk Tier that must be audited annually, with site visits and interviews with management and employees. Such partners must establish plans and operational approaches to reduce risks and severity that may occur, including audit plans to implement sustainable partnership practices to ensure the Company can manage risks at levels that do not impact business, community, and environment.
    • Secondary Partners: Partners with medium or low expenditure amounts and medium or low risk levels, or not in the High Risk Tier group, must pass partner evaluation or audit of work performance according to sustainable partnership practices and pass evaluation from relevant departments.

Sustainable procurement

  • Sustainable procurement is the organization's procurement process that considers social, economic, and environmental factors alongside price, quality, and delivery of goods and services to create benefits for society and economy while reducing environmental impact. (The procurement process of the organization brings environmental (E), social (S), governance and economy (G) to be considered along with price, quality, and delivery of goods and services to benefit society, economy and reduce environmental impact.)

    In the past year, the Company has applied criteria in social, economic, and environmental dimensions as scoring criteria for supplier selection decisions:

    • Environmental: Protection and valuable use of resources, supporting business partners who are environmentally responsible, using resources with minimal environmental impact, protecting biodiversity, and combating climate change, such as ISO 14001
    • Social: Procurement that primarily considers human rights, such as opposing illegal labor use, considering worker welfare, or evaluating through standards that supplier companies have received, such as Thai Labor Standards (TLS), ISO 45001, Sedex, BSCI, etc.
    • Governance: Opposition to bribery and anti-corruption in all cases (Business Ethics & Anti-Corruption), including economic growth, etc.
    • Conduct 100% sustainability criteria evaluation for new suppliers

    sup 1
  • In 2024, the Company conducted onsite audits with 4 suppliers to assess product quality, environmental management, and compliance with social responsibility principles, such as employee safety and fair working conditions. The audits found no significant non-compliance issues, and all suppliers met the Company’s assessment criteria.

Development and Enhancement of Business Partners' Potential Towards Sustainability

The Company aims to continuously promote and develop business partners through partner potential development approaches by establishing joint business planning, which elevates collaboration between the Company and partners to develop new plans and projects. Additionally, the Company provides knowledge transfer to partners through various training activities to enhance capabilities in both competitiveness and sustainable operations together, such as lectures providing partners with knowledge about various standards, promoting knowledge about good corporate governance, business ethics, and sustainable practices for business partners. Simultaneously, the Company implements various projects to develop partner potential for sustainability, such as BRC standard development projects, ISO quality management system improvements, along with establishing annual partner facility visits to review operational performance according to Company requirements, compliance with relevant standards covering all 3 dimensions of sustainable operations: environmental, social, economic and governance, including experience exchange and listening to suggestions that can collaboratively enhance potential and work efficiency.

In the past year, lectures providing partners with knowledge about various standards, promoting knowledge about good corporate governance, business ethics, and sustainable practices for business partners were conducted. Simultaneously, the Company implemented various projects to develop partner potential for sustainability, such as BRC standard development projects, ISO quality management system improvements, along with establishing annual partner facility visits to review operational performance according to Company requirements, compliance with relevant standards covering all 3 dimensions of sustainable operations: environmental, social, economic and governance, including experience exchange and listening to suggestions that can collaboratively enhance potential and work efficiency. There was 1 partner who received guidance and obtained ISO9001:2015 Certificate.

42/174 Moo 5, Raiking Sampran
Nakorn pathom 73210 Thailand

(+66) 02 429 0354 - 7

This email address is being protected from spambots. You need JavaScript enabled to view it.

© Copyright by TPBI Public Company Limited    |    Privacy Policy     |    Brand & Web Design by Toneyes