Our business partners
As a multinational company and purchaser, we are in a position to influence ethical and social conduct among our suppliers in areas such as human rights, working conditions, gender and race equality, fair competition, the environment and anti-corruption. We see our suppliers as true business partners and work closely with them to create value and support continuous improvement and delivery of shared goals. We are committed to building long-term relationships with our suppliers and leading by example through the Supplier Code of Conduct, which promotes fairness, collaboration, transparency and open communication.
Apart from building responsible relationships with our suppliers, we also recognise that interaction with distributors is essential within the medical device industry to reach customers accross different markets and geographies.
Supplier Code of Conduct
We ask all suppliers to comply with the company´s Supplier Code of Conduct, which is based on the Code of Conduct for our employees. They in turn are asked to apply similar codes among their own partners and suppliers. In 2022, 100% of our direct material suppliers acknowledged the Supplier Code of Conduct. We ask suppliers in critical areas such as raw materials and components, as well as high-risk indirect suppliers, to sign Mölnlycke´s Supplier Standard, which incorporates the Supplier Code of Conduct, with additional requirements on quality and the environment.
In 2022, all new suppliers were evaluated based on their ability to meet our requirements as a medical device company as well as their commitment to follow the company’s Supplier Code of Conduct.
Supplier support visits
For suppliers located in countries where there is an increased risk of Code of Conduct violations, we carry out specific on-site assessments as part of its supplier selection, strategy and collaboration processes. The list of Code of Conduct risk countries is updated annually. Suppliers are regularly assessed throughout our relationship by either our employees or a third-party experts in the local market. Mölnlycke is willing to work with suppliers if minor issues are identified during assessments and they follow a corrective action plan. However, we do not work with suppliers where major non-conformities to the Code of Conduct are identified.
Our distributors
Third party risk management
Within the medical device industry, interaction with distributors is essential to reach customers across different markets and geographies. These relationships can expose Mölnlycke to ethics and compliance risks, such as bribery and corruption.
In order to reduce this risk, we enhanced our third party program in 2022 with additional documentation and guidance to ensure that third parties are working in alignment with Mölnlycke’s values. The purpose of the program is to ensure compliance with business ethics standards and increase efficiency when working with third parties. Where deficiencies are identified, we support our distributors in achieving the improvements needed for a sustainable business relationship.
We will continue rolling out the program during 2023 including:
- improved screening of distributors,
- a more systematic due diligence program and tool,
- a dedicated Distributor Code of Conduct,
- dedicated training for distributors and employees who interact with them.
Training to support ethical growth in India
Mölnlycke carries out a screening and due diligence process before entering business relationships with distributors. We also offer training for distributors to give them an understanding of the ethical standards expected from them. As we expand our distribution network in this region of the world, we launched training for its sales teams on compliance rules, ethical decision making, engagement with healthcare professionals and interactions with distributors.
Then key Indian distributors were also invited for dedicated sessions to ensure mutual understanding of the risks linked to the medical technology sector. The sessions covered topics such as ethical decision making, corruption and bribery risks, engaging with government officials and the overall Mölnlycke due diligence process. It was an occasion to explain to distributors what they can expect from our new due diligence process and discuss any questions they may have.
