Conduct a regular risk assessment of our supply base and audit any high-risk suppliers identified to ensure full compliance with our Ethical Sourcing Code of Conduct.
Our operations are based in North America and the Caribbean, but we have suppliers around the world. We recognize that the integrity of our partners influences the integrity of DPS. Doing the right thing means ensuring that the companies we work with do, too.
We also know that our consumers are paying attention. Not only do they base their purchasing decisions on whether beverages are safe and of the highest quality, but increasingly, they’re also concerned about whether the ingredients and packaging materials are ethically sourced.
We use a third-party risk assessment tool to evaluate our supply base, segmenting our direct suppliers into low-, medium- and high-risk categories. This helps define the DPS roadmap for ethical sourcing.
Our risk assessment process includes a quantitative evaluation of each supplier’s performance on key third-party indices, including the United Nations Human Development Index, the Heritage Foundation’s Index of Economic Freedom and the Labor Rights Index of the International Labour Association. As a result of this process, the number of our suppliers in the high-risk segment has been reduced by 50 percent from 2013 for the second consecutive year, with many suppliers transitioning to our medium- or low-risk segments.
Corporate social responsibility (CSR) is more than just “doing the right thing. When a company commits to sustainability, it’s making a promise to do good things that net a positive change for everyone it touches. See how Dr Pepper Snapple Group is doing good things with flavor.
In 2011, DPS spent nearly $145 million with companies either wholly or mostly owned by women and/or minorities, and another $1.4 million with disadvantaged business enterprises. Collectively, these relationships accounted for nearly 4 percent of our direct and indirect supplier expenditures in 2011.
Supplier Code of Conduct
Dr Pepper Snapple Group, Inc. conscientiously integrates the standards and commitments set forth in this Ethical Sourcing Code of Conduct into the way we run our businesses. We expect that any supplier or vendor doing business with us will adhere to this Code in order to achieve high ethical and environmental standards and social responsibility in its business practices.