Advancing Asia as a New Generation Digital Champion

Suppliers

We establish solid and mutually beneficial relationships with our suppliers that maximise long-term value for both parties.

Axiata Procurement Centre (APC)

APC’s mission is to source high quality products and services for the lowest overall cost of ownership for the Axiata Group. It accomplishes this objective by leveraging on Axiata’s demand and ensuring fair and ethical competition among existing and potential suppliers.

APC’s scope is focused on the Group’s network and IT hardware and software needs and all requirements for the Axiata Corporate Centre organisation. It also has overall responsibility for the Group’s procurement policies, systems and processes.

Axiata Supplier Awards

Axiata launched the Axiata Supplier Awards in 2015 in recognition of the Process and Operational Excellence of our suppliers in the Asian region.

Held biennially in conjunction with the Axiata Supplier Forum, award recipients are identified through a performance evaluation process conducted across five key strategic pillars aligned with our Group’s long term goal of being a New Generation Digital Company:

  • Commercial and Contract Compliance
  • Quality and Operational Performance
  • Ethics
  • Strategy and Roadmap
  • Sustainability

Winners of the Axiata Supplier Awards 2017:

  • Huawei
  • Cisco
  • Watchdata Technologies

Procurement Policy

Axiata’s Procurement Policies are based on the following principles:

  • The Group’s standard for selecting suppliers and awarding businesses is through a competitive bidding process.
  • Supplier selections shall be made on the basis of best overall value to Axiata, taking into account all relevant factors which may include price, quality, technical considerations, financial stability, performance, reliability and sustainability.
  • Axiata shall treat suppliers in a fair, ethical and impartial manner.
  • Axiata shall ensure that all supplier information it receives are handled responsibly and expects the same from suppliers. Suppliers must ensure that any information it considers confidential is given to Axiata only under the terms of a Non-disclosure Agreement.
  • Axiata employees are discouraged from giving or receiving gifts and expressly forbidden from doing so if they are engaged in an active sourcing project.

eProcurement

Axiata Group Berhad is using Coupa cloud-based Spend Management Software as its end to end eProcurement system. Majority of Axiata Group’s sourcing activities and procurement transactions are conducted within the Coupa platform. The same platform will also be deployed across the group.

The main functions in Coupa are:

  • eSourcing including tendering and requests for information, proposal and quotation
  • The ability to conduct eAuctions where appropriate
  • Supplier information management
  • Requisitioning and ordering (Purchase Order)
  • Online eInvoice submission by suppliers

The objectives of Coupa is to drive spend visibility, improvement in process efficiency and effectiveness; to reduce the cycle time of the sourcing process and to ensure full transparency throughout the procurement process.

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Overview

The provisions set forth in this Code of Conduct provide the minimum standards expected of our suppliers. Axiata expects that any supplier providing products or services will adhere to the spirit of this Code of Conduct. Axiata believes in reaching the standards established in this Code as a dynamic process and encourages suppliers to continually improve, to the extent they can adhere to, or exceed these standards on a corporate and social level.

Axiata Code of Conduct

Axiata is strongly committed to observing the highest ethical standards in all its procurement activities. As such, this Supplier Code of Conduct has been prepared to provide a clear statement of Axiata’s expectation from Suppliers in all procurement dealings, ensuring that internationally recognised procurement ethics are followed. Transparency and accountability should be strictly adhered to in all procurement activities. This Axiata Supplier Code of Conduct establishes the standards required for conducting business with Axiata. Our goal is to work with our Suppliers to ensure full compliance with these principles. These requirements set out the minimum levels of compliance required of Axiata’s Suppliers. As a Supplier you are encouraged to exceed the requirements wherever possible. We will consider these principles in our selection of Suppliers and will actively monitor Suppliers’ compliance.

Laws, Including Regulations and Other Legal Requirements

Axiata Suppliers shall comply with all applicable laws and regulations in all locations and jurisdiction where they conduct business.

Policy on Corruption and Position on Conflict of Interest

Axiata expects all contracted Suppliers and companies seeking to sell goods or services to conduct their business in accordance with the highest ethical standards. Suppliers shall never offer a bribe or kickback in any form to Axiata employees, their families or nominees, or engage in unethical or unacceptable business practices in order to obtain or maintain Axiata’s business. Suppliers must report to Axiata if any Axiata employees or business associates requests any such incentive. During a bid or evaluation process, suppliers should not entertain Axiata employees involved in the bid or evaluation or their families by for example, providing hospitality to special events or other functions. Any gifts given or received shall be in compliance with the law and shall not violate Axiata’s policies. It is understandable that the giving of promotional items of nominal value are part of normal business practice and it is Axiata’s policy that employees declare any gifts received.

Forced or Involuntary Labour

Axiata Suppliers shall not use forced or involuntary labour of any type (e.g. forced, bonded, indentured or involuntary prison labour); employment is voluntary.

Child Labour Avoidance

Axiata Suppliers shall not use child labour. The term “child” refers to any person employed under the age of 15 (or such other age where the law of the country permits), or under the age for completing compulsory education, or under the minimum age for employment in the country, whichever is lowest. The use of legitimate workplace apprenticeship programmes, which comply with all laws and regulations, is supported. Workers under the age of 18 shall not perform work that is likely to jeopardise the health or safety of young workers.

Wages and Benefits

Compensation paid to workers shall comply with all applicable wage laws, including those relating to minimum wages, overtime hours and legally mandated benefits. The basis on which each worker is being paid is to be provided in a timely manner via pay stub or similar documentation.

Working Hours

Axiata expects its Suppliers to comply with industry norms and applicable local laws on working hour requirements as stipulated in any applicable country’s governing labour laws. Suppliers shall ensure that all overtime work is voluntary and compensated at the prevailing overtime rates. Employees should be allowed at least one day off per seven-day week.

Respect and Dignity

Axiata Suppliers shall treat all employees with respect and shall not use corporal punishment, threats of violence or other forms of physical coercion or harassment.

Non-discrimination

Axiata Suppliers shall not discriminate in its hiring and employment practices on grounds of race, religion, age, nationality, social or ethnic origin, sexual orientation, gender, gender identity or expression, marital status, pregnancy, political affiliation, or disability.

Freedom of Association

Suppliers shall recognise their employees’ rights to join or refuse to join labour unions or associations and to bargain collectively as permitted by law. Suppliers have the right to establish favourable employment conditions and to maintain open communication and direct engagement between workers and management as a means to resolve workplace and compensation issues and promoting positive employee relations that make employees view third-party representation as unnecessary.

Health and Safety

Suppliers shall provide their employees with a safe and healthy workplace in compliance with all applicable laws and regulations. Consistent with these obligations, Axiata Suppliers shall have and implement effective programmes that include effective safety programmes covering such areas as: human safety, emergency preparedness, chemical, physical and biological agent exposure, ergonomics, and incident reporting and investigation.

Protection of the Environment

Axiata Suppliers shall operate in a manner that is protective of the environment. At a minimum, Suppliers shall comply with all applicable environmental laws, regulations and standards, such as requirements regarding chemical and waste management and disposal, recycling, industrial wastewater treatment and discharge, air emissions controls, environmental permits and environmental reporting. Suppliers shall also comply with any additional environmental requirements specific to the products or services being provided to Axiata as called for in design and product specifications, and contract documents. Suppliers should strive to implement management systems to meet these requirements.

Applicability of the Code of Conduct

This Code of Conduct shall apply to all Suppliers including all Axiata-approved sub-contractors and other entities acting on the Suppliers' behalf. Suppliers including such sub-contractors shall make this Axiata Supplier Code of Conduct and other relevant information available to their respective employees in the native language(s) of the employees and supervisors.

Monitoring compliance to the Code of Conduct

To facilitate the monitoring of Suppliers’ compliance with this Code of Conduct, Axiata expects Suppliers to:

  • Develop and maintain all necessary documentation to support compliance with the described standards; such documentation shall be accurate and complete;
  • Provide Axiata’s representatives with access to all relevant records, upon Axiata’s request;
  • Allow Axiata’s representatives to conduct interviews with the Supplier’s employees and management separately;
  • Allow Axiata’s representatives to conduct announced and unannounced site visits of Supplier locations; and
  • Respond promptly to reasonable inquiries from Axiata’s representatives in relation to the implementation of this Code of Conduct

Representation

Suppliers shall provide honest, accurate and open representation of their organisation, its qualification, experience and capabilities. Suppliers shall also disclose, if requested, accurate references of previous work undertaken. Where references of previous work undertaken cannot be disclosed due to confidentiality obligations, the Supplier shall reasonably endeavour to obtain the appropriate permissions and shall at a minimum disclose such information without breaching such obligations of confidentiality.

Raising Concerns

The official Speak Up channel can be used by Suppliers to voice and register their concerns, including any act or conduct that is in violation of the Supplier Code of Conduct, actual or suspected misconduct, illegal or unethical behaviour, without fear of retaliation or unfair treatment. A Supplier shall ensure that there is a reasonable belief or basis for the concern and the disclosure is made in good faith and not for personal gain or motivated by ill or malicious intention. Mere rumour or hearsay information is not the basis for speaking up or to whistle blow. Axiata Group is committed to protect, within reason and means, anyone who reports or raises a concern in good faith, and those who participate in or conduct an investigation, from retaliation. For further information on Whistleblowing/Speaking Up and the official Speak Up channel, please refer to Axiata Group’s Whistleblowing/Speaking Up Policy and Procedures.

Laws, Including Regulations and Other Legal Requirements

Axiata Suppliers shall comply with all applicable laws and regulations in all locations and jurisdiction where they conduct business.

Sanctions

A Breach of the Code of Conduct may result in actions being invoked against that Supplier, in addition to any contractual or legal remedies. The actions applied will depend on the nature and seriousness of the breach and on the degree of commitment shown by the Supplier in breach to its obligations under the Code of Conduct. The range of actions available to be imposed on the Supplier includes but is not restricted to the following:

  • Formal warnings – that the continued non-compliance will lead to more severe actions;
  • Disclosure of nature of breach to all Axiata subsidiaries and associate companies; or
  • Immediate termination of contract, without recourse.

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Please download the free Adobe Acrobat Reader to view these documents.