Procurement Policy Principles
The fundamental objectives of the standard operating procedure of procurement are:
- Respect human rights and reduce the negative impact on the environment while strictly complying with relevant laws and regulations;
- Increase competition among Suppliers by constantly attracting new potential Suppliers to maximize procurement efficiency;
- Provide equal opportunities to compete for our suppliers
- Effective cooperation with the supplier, building mutual understanding and trust;
- Follow principles of economy, efficiency, accountability and cost reduction
Supplier Selection Policy
We expect our suppliers to comply with the UN Global Compact ‘10 principles’ http://www.unglobalcompact.org/
- Businesses should support and respect the protection of internationally proclaimed human rights; and
- Make sure that they are not complicit in human rights abuses.
- Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
- The elimination of all forms of forced and compulsory labour;
- The effective abolition of child labour; and
- The elimination of discrimination in respect of employment and occupation.
- Businesses should support a precautionary approach to environmental challenges;
- Undertake initiatives to promote greater environmental responsibility; and
- Encourage the development and diffusion of environmentally friendly technologies.
- Businesses should work against corruption in all its forms, including extortion and bribery.
Supplier Code of Conduct
This Supplier Code of Conduct is a minimum standard expected from our suppliers and serves as guidance to extend/proliferate MCS Group values through our supplier chain. We expect our Suppliers to ensure that this Code of Conduct is communicated to your employees, agents, parent, subsidiary, and affiliated entities as well as any subcontractors.
LABOUR AND SAFETY:
- Health and Safety: Our Group expects its suppliers to prioritize workplace and occupational safety, and shall ensure and take all relevant arrangements to protect its employees from any injury or health risks.
- Freedom of Association and Collective Bargaining: We expect our Suppliers to respect employees’ right to join, form, or not to join in a labor union without fear of reprisal, intimidation, or harassment. Where employees are represented by a legally recognized union, establish a constructive dialogue with their freely chosen representatives, and bargain in good faith.
- Non-Discrimination: Our suppliers are expected to ensure that their basis for recruitment, hiring, placement, training, and compensation and advancement should be qualifications, performance, skills and experience.
- Elimination of child labor and forced labor: Supplier shall adhere to minimum age provisions of applicable laws and regulations, avoid any physical abuse of employees, and prohibit the use of all forms of forced labor, including, prison labor, slave labor and any form of human trafficking.
- Wages and working hours: The supplier shall compensate its’ employees relative to the industry and local labor market, and operate in compliance with applicable wage, work hours, overtime, and benefits laws. The Supplier is also expected to offer employees an opportunity to develop their skills and capabilities, and provide advancement where possible.
- Dignity and Respect: We expect all our suppliers to create and maintain an environment that treats all employees with dignity and respect, notwithstanding their age, ethnicity, gender, sexual orientation, or social and employee position.
- No harassment/abuse: We expect our suppliers to ensure a harassment-free workplace and environment, where none of their employees engages in any threats of violence, verbal or psychological abuse, or sexual exploitation.
- Environmental protection: We expect our suppliers to have an effective comprehensive environmental management policy, and to comply with applicable legislation and regulations on the environment protection, water, energy, hazardous materials, emission and other significant risks. Suppliers are also encouraged to minimize adverse impacts, and enhance positive effects on the environment, as relevant and appropriate.
- Waste management and recycling: Our suppliers shall identify and manage its chemical and hazardous materials, ensure safe handling to the extent possible, and aim to reuse and recycle.
- Trainings provided to all relevant personnel to ensure knowledge of sustainability, environment and compliance with all necessary legal permits.
- Anti-Corruption/bribery: We expect our suppliers to uphold the highest standard of ethical conduct, to respect local and international laws and regulations, and to not engage in any fraudulent or corrupt practices.
- Conflict of Interest: Our suppliers are expected to disclose if there is an imminent conflict of interest situation that are emerging in connection with suppliers’ business with any of our companies and its’ decision-making process.
- Gifts and Hospitality: Unless on national holidays and for greeting purposes, we expect our Suppliers to not offer, give or promise any form of gifts and hospitality to any of our employees.
- Moreover, no gifts or greetings shall be in form of cash, cash equivalents, luxurious items, or recreational activity, intended to influence or retain business cooperation with our group. The gifts are permitted to the extent that their promotional materials with the Suppliers’ logo, and have no higher value than MNT300,000 as an aggregate annual amount given to any employee from one Supplier within such year.
COMPLIANCE WITH LAWS AND REGULATIONS:
- International and domestic regulations: In addition to the internationally accepted principles of International Labor Standards, and Global Anti-Bribery Initiatives, we expect all our suppliers to comply with their regional and local laws and regulations, including but not limited to tax, labor, employment, immigration, health and safety, intellectual property, Anti-trust and competition, and environmental regulations to its core.
- Stakeholder transparency: We expect all our suppliers to maintain a clear and transparent system of stakeholder and management communication.
Procurement Method Selection
Procurement shall be based on the principles of openness, fairness, competitive market price, efficiency and accountability. Depending on the threshold, one of the following procurement methods shall be applied:
- Competitive selection method for procurement up to MNT 300 million, with minimum of three competitive offers from Suppliers.
- Tender selection method for procurement over 300 million MNT
You can report any ethical misdemeanor or other conflict related to the activities of our Group or companies. You may keep your name and other personal information private when submitting information. We will keep the information you provided confidential and our Ethics Committee will review your submission and seek to resolve the matter. If you are interested, we can keep you informed on how we dealt with the matter.
Thank you for trusting us with your information.