Developing and Managing a Responsible Global Supply Chain
Extending the Reach of Emerson Values
As Emerson grew and expanded globally we broadened our supply chain, and in this process, helped elevate business standars in the locales in which we operate. Our success with growth and innovation helps suppliers worldwide advance their processes and technologies to gain access to new markets. Over the past half century, Emerson actively engaged the developing world in global growth, opportunity, and rising standards of living. As we invest in our capabilities around the world, we emphasize parallel efforts to localize sourcing as the best path to serve customers. Investing resources in new suppliers helps to accelerate progress throughout developing regions.
Emerson views our supply base as a direct extension of our company – one which projects our values and principles. We expect suppliers to stay current with technology, act with integrity and treat people and the environment with respect – all actions that reflect our priorities. In this way, identifying and cultivating the right partners requires significant investments as we strive to employ high caliber suppliers that demonstrate responsibility and commitment to fair and productive approaches as well as compliance with laws and norms.
As Emerson expands into new regions, we sometimes encounter existing business cultures and practices that may conflict with our standards for honesty, integrity and full legal compliance. Having a growing vendor base aligned with our ethical position helps to assure our future in these geographies. We closely monitor our supply chain to eliminate wrongful practices and acts, allowing Emerson to build local vendor bases in new, developing-country production locations that align with our stances on social responsibility and ethics.
This vendor management process advances several critical goals:
- Extension of high standards of integrity and responsibility
- Continuation of quality assurance throughout our operations
- Expansion of commerce and employment
Our supplier management practices include:
Affirming Supplier Responsibility
We expect suppliers to abide by our ethical behavior guidelines that forbid any Emerson employee or family member from accepting payment from outside parties in connection with supplier transactions. We also prohibit suppliers from offering gifts that could influence Emerson-related purchasing decisions.
We plan to require principal suppliers to affirm their understanding of Emerson values and standards regarding ethical behavior, labor practices, human rights and environmental protection. We expect all suppliers to operate in a manner that supports Emerson’s commitment to conduct business responsibly.
Training Emerson Employees
Corporate social responsibility efforts address a range of complex issues across differing geographies, cultures and business practices. Acting responsibly requires knowledge of each subject, understanding of laws and practices, and the ability to recognize potential deviations.
To deal with these complexities, Emerson trains managers and employees annually to help them engage effectively with suppliers as they communicate Emerson’s priorities. This training also helps improve our ability to recognize, report and support remediation and compliance issues.
To enhance our knowledge of suppliers and limit the risk of inadvertently supporting wrongful practices, we use internal, industry and public sources to alert us to improper supply chain behavior. We expect division supply chain managers to make reasonable assessments of questionable activity and to ensure that practices conform to Emerson expectations.
This is intended to comply with the California Transparency in Supply Chains Act. For additional information about Emerson's business ethics policies and practices, see Ethical Behavior.