Ethical Working Practices

Publication Date: 14 March, 2022, 00:00

Over the years, there have been marked improvements in the way that companies are required to operate. Gone are the days when price was the only factor taken into consideration by buyers when selecting suppliers.

Nearly 50 years ago, The Health and Safety at Work etc Act 1974 set out the general duties which employers, employees and certain self-employed have towards themselves, each other, and members of the public. Since then, there has been a raft of wider legislation that determines the standards that companies must adhere to, for the benefit of employees and the general public.

It is no longer sufficient just to provide excellent goods or services – the manner in which they are delivered, the way in which employees are treated, and the effects of working practices on the general public and the environment are nowadays considered by buyers to be of equal, if not greater importance. This is particularly true in the public sector, and companies bidding to win tenders must pay particular attention to their policies and procedures if they want to be considered. Ethical working practices are now a precondition for being able to win contracts.

Buyers often insist on evidence that bidders have policies on many diverse subjects, including for example (but not restricted to) Business Continuity, Community Benefits, Environmental Protection, Drugs & Alcohol, Equal Opportunities, Equality & Diversity, Fair Working Practice, Modern Slavery, Social Responsibility and Sustainability. These are in addition to the statutory requirements for Health & Safety and Data Protection.

Some companies can fall into the trap of believing that they are too small to need policies like these, but it is important to remember that a buyer may be considering a longer-term relationship such as a framework contract. It is possible that your company will grow during the term of the contract, so  these policies may become necessary in time, and the buyer will want to know that you are fully prepared.

In any event, if a buyer asks for evidence of a policy and it is not provided, then you can either be excluded from the tender process altogether or you may be given a “0” score against that requirement, which could rule out any chance of being successful.

For many public sector contracts, providing defined community benefits (such as taking on apprentices or supporting local groups) is now mandatory and the amount of input you have to make is proportionally based on the value of work awarded. The delivery is monitored, and it is wise to consider in advance which benefits you can realistically provide. A Community Benefits Policy will go a long way to prepare for this. 

The best time to put policies and procedure in place is before they become absolutely necessary, for two main reasons – 1) they will be ready when required and 2) it is easier to create relevant, fit-for-purpose policies if the exercise is not being done in haste to satisfy a pressing need.

There are a number of things you can do to ensure that you are best prepared:

• Make sure you have policies that are relevant to your business – not just “off-the-shelf” templates that are vague and have no bearing on your operations
• Make it clear who is responsible for enforcing each policy  and how the contents are communicated to everyone who needs to know
• Regularly assess performance – you need to know that the policies are being effective
• Sign and date each policy and set a date for review – at least annually, if not more regularly
• Keep up to date with changes in legislation and make sure that policies are updated accordingly

Once the initial exercise has been carried out to create a comprehensive library of policies, it becomes a simpler task to maintain them and to be sure not only that you are in the best position to bid for work, but also that you are operating in an ethical and sustainable manner.