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Enhancing Ethical Sourcing: Wesfarmers Health Implements New Procedures for Supply Chain Visibility and Risk Management
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The
success of an ethical sourcing program hinges on nuanced risk assessment and a
comprehensive understanding of the supply chain, particularly in areas where
specific risks to the business exist.
In
the past year, Wesfarmers Health conducted extensive desktop research and
benchmarking activities against industry peers, leading to the formulation of
five Standard Operating Procedures (SOPs) designed to complement its Ethical
Sourcing Program.
These
SOPs serve as a crucial tool in providing the business with granular knowledge
of various aspects within the supply chain. Specifically, they address animal
testing in Own Brand goods for resale and goods not for resale (GNFR) that are
high risk (in particular suppliers that manufacture GNFR products such as
cotton, mica, rubber, and solar panels).
Animal
Testing
Owners
and handlers of animals bear a responsibility for the welfare and well-being of
the animals in their care. While recognising the prevalence of animal testing
in pharmaceutical products for safety and efficacy verification, Wesfarmers
Health emphasises the humane treatment of animals. The business expects
suppliers to prioritise practices that safeguard and promote animal welfare.
Cotton
Cotton
is one of the most common fibres used in Wesfarmers Health’s Own Brand products
and team members’ apparel. The sector, however, is linked to human rights
abuses in certain high-risk regions, emphasising the need for careful
consideration when sourcing this material.
Mica
Widely
used in cosmetics, mica mining is known for being highly manual,
labour-intensive and often dangerous. Wesfarmers Health acknowledges the risk
of exploitative practices, particularly involving children, in regions where
mica is sourced.
Rubber
Extracted
from trees, natural rubber is a key material used in medical gloves and other
products. The manufacturing hubs of rubber, concentrated in specific South
Asian countries, pose potential risks to migrant workers who may be exposed to
excessive recruitment fees and exploitative labour conditions.
Solar
Panel
The
solar panel supply chain, from quartz mining to the production of solar
modules, could potentially be linked to serious human rights abuses, including
forced labour. The tiered structure of the supply chain highlights potential
risks associated with each stage.
The
newly developed SOPs mandate that suppliers disclose relevant information to
Wesfarmers Health to ensure alignment with the Ethical Sourcing and Modern
Slavery Policy. These disclosures are expected to be regular and will become an
integral part of the supplier onboarding procedure. Business units, including
merchandise, wholesale, supplier engagement and indirect procurement teams,
were actively consulted during the SOP formulation.
Wesfarmers
Health is prepared to fully operationalise the SOPs in the upcoming reporting
period, underscoring its commitment to ethical sourcing practices and robust
risk management.