Ethical Procurement Policy - NHS Highland · Procurement Strategy, and in National Procurement’s...

1 NHS Highland Ethical Procurement Policy 2016 - 2017

NHS Highland

Ethical Procurement Policy

2016 - 2017 Written by: Neil Stewart, Head of Procurement, NHS Highland Review date: August 2017


Contents Title Page

1. Aim 3 2. Objectives 3 3. Ethical Procurement Aspects 3 4. Procurement Practice 3 5. Professional Standards 3 6. Obligations incumbent upon Procurement staff 4 7. Equality and Diversity 4 8. Fair and Ethically Traded Goods 5 9. Serious and Organised Crime (SOC) 5 10. Child Labour 5 11. Policy Review 5 12. Best Practice and Training 5 Appendix 1 CIPS Ethics and Code of Conduct 6 Appendix 2 Equality and Diversity Procurement Statement 8 Appendix 3 Environmental & Sustainability Policy Procurement 9 Appendix 4 Serious and Organised Crime Bidders Self-Declaration 10 Appendix 5 Sectors Vulnerable to Serious and Organised Crime 13 Appendix 5 Ethical Procurement Labour Framework 14


1) Aim NHS Highland requires that goods and services purchased for the delivery of healthcare to patients are sourced ethically and bought from supply sources which maintain ethical standards through-out their supply chains. 2) Objectives The objective of this policy is to put in place an operational framework which provides support and guidance to staff engaged in procurement activities across NHS Highland to meet the following outputs:

Awareness of potential ethical procurement issues. Awareness of business sectors at risk of an ethical procurement issue. Awareness of behaviours and traits expected by staff involved in

procurement related activity. Guidance of how procurement will help deliver sustainability in what it does. Provision of best practice guidance to deal with potential criminal activities.

3) Ethical Procurement Aspects Ethical procurement forms an important part of The Procurement Reform (Scotland) Act 2014 (and enabling regulations) and as such is referenced in both NHS Highland’s Procurement Strategy, and in National Procurement’s Corporate Procurement Strategy. Ethical procurement covers a very wide range of areas to ensure a focus on deliverable outcomes this policy identifies and addresses the following key issues: 4) Procurement Practice NHS Highland Procurement, in line with National Procurement and other NHS Scotland Health Boards, has agreed to adopt the Chartered Institute of Purchasing and Supply (CIPS) code of practice for procurement ethics. It is therefore expected that and each member of staff engaging in Procurement activities must adhere to the code of practice and that procurement strategies will be developed in accordance with it. The Code of Practice procedure is attached as Appendix 1 of this policy. 5) Professional Standards The NHS Highland Procurement Department embraces the values and high professional standards enshrined in the Nolan Principles (listed below) and these should be upheld by all employees in the department at all times. Selflessness - Holders of public office should act solely in terms of the public interest. Integrity - Holders of public office must avoid placing themselves under any obligation to people or organisations that might try inappropriately to influence them in their work. They should not act or take decisions in order to gain financial or


other material benefits for themselves, their family, or their friends. They must declare and resolve any interests and relationships Objectivity – Holders of public office must act and take decisions impartially, fairly and on merit, using the best evidence and without discrimination or bias. Accountability - Holders of public office are accountable to the public for their decisions and actions and must submit themselves to the scrutiny necessary to ensure this. Openness - Holders of public office should act and take decisions in an open and transparent manner. Information should not be withheld from the public unless there are clear and lawful reasons for so doing. Honesty - Holders of public office should be truthful. Leadership - Holders of public office should exhibit these principles in their own behaviour. They should actively promote and robustly support the principles and be willing to challenge poor behaviour wherever it occurs. The Procurement department accepts that it has an obligation to all those with whom it has dealings – and this includes, inter alia, employees, suppliers, other institutions and organisations and the wider communities the Board serves – to observe and meet these standards. NHS Highland’s reputation, and the trust and confidence of those with whom it deals are important attributes, the protection of which is of fundamental importance. 6) Obligations incumbent upon Procurement staff Staff must act honestly, diligently and in good faith, placing the interests of NHS Highland at the forefront of their minds. The actions of staff must always seek to promote and protect the reputation of the department and the Board and decisions taken by staff must be to the benefit of NHS Highland and not for any improper or personal motive. Staff should avoid any action (or inaction) which would bring the reputation of the department or Board into disrepute, would have the potential to do so, or which might be perceived as doing so. Staff must also adhere to all relevant regulations, policies and procedures of the Board. 7) Equality and Diversity NHS Highland’s Equality and Diversity Action Plan identifies procurement as an area which can have a huge influence and promote best practice in respect of services procured which have a high propensity to impacting on Equality and Diversity issues. Working with the leading charities, such as Stonewall, NHS Highland is working to develop its standard documentation to ensure we tackle discrimination within our supply chain. We aim to embed best practice in our specification development, tendering procedures, award of contracts and contract management and to help our suppliers to do the same in their own business. The Equality and Diversity Action Plan Procurement Statement is attached as Appendix 2 of this policy.


8) Fair and Ethically Traded Goods Fairtrade is about better prices, decent working conditions, local sustainability, and fair terms of trade for farmers and workers in the developing world. NHS Highland’s Environmental and Sustainability Policy references our support to purchasing Fair and Ethically Traded Goods in line with The Scottish Sustainable Procurement Action Plan and is attached as Appendix 3 of this policy. 9) Serious and Organised Crime (SOC) The Scottish Crime and Drugs Enforcement Agency (SCDEA) have identified the risk of SOC groups gaining from public sector contracts through their involvement in companies bidding for such contracts. NHS Highland, in close conjunction with colleagues from Police Scotland has developed an Information Sharing Protocol and a Declaration of non-involvement in SOC activities, which will be included in all NHS Highland tender exercises. A copy of the declaration is attached as Appendix 4 of this policy. A list of areas vulnerable to SOC activities, developed by Police Scotland is attached as Appendix 5 of this policy. 10) Child Labour It is unacceptable to NHS Highland that any goods or services procured use Child Labour in any part of the associated supply chain. It is recognised that the use of child labour continues to be a significant problem across world-wide supply chains particularly in sub-contracted manufacturing within the developing world. Use of child labour can be very difficult to identify in complex world-wide supply chains. NHS Highland supports the work done by National Procurement to develop a national ‘Ethical Procurement Labour Framework’ which provides operational guidance and buyer tools to mitigate the risk of unethical labour practices in the NHS supply chain. A copy of the framework will be attached as Appendix 6 of this policy when it becomes available. 11) Policy Review NHS Highland Procurement will continue to review this policy on an annual basis and will ensure it is aligned to the NHS National Procurement Ethical Procurement Policy which is under continuous review and updated to reflect additional significant areas at risk and/or legislative changes. 12) Best Practice and Training Each of aspects set-out in this policy are intended to provide best practice guidance and points of reference for staff across NHS Highland. All NHS Highland staff with responsibilities for procurement activity can contact the Head of Procurement for additional support and advice in any aspect of this policy.


Appendix 1 CIPS ETHICS & CODE OF CONDUCT Procedure Purpose This procedure sets the Ethics and Code of Conduct each member of the Procurement Department must adhere to and procurement strategies will be developed in accordance with. Overview The following CIPS code of practice has been adopted by the NHS Highland Procurement Department. This is in addition to the requirements set out in the Boards Standing Financial Instruction’s.

Introduction

Members of staff undertake to work to exceed the expectations of the following Code and will regard the Code as the basis of best conduct in the Purchasing and Supply profession. Staff should raise any matter of concern of an ethical nature with their immediate supervisor or another senior colleague if appropriate, irrespective of whether it is explicitly addressed in the Code.

Principles

Staff shall always seek to uphold and enhance the standing of the Purchasing and Supply profession and will always act professionally and selflessly by:

(a) maintaining the highest possible standard of integrity in all their business relationships both inside and outside the organisations where they work;

(b) rejecting any business practice which might reasonably be deemed improper and never using their authority for personal gain;

(c) enhancing the proficiency and stature of the profession by acquiring and maintaining current technical knowledge and the highest standards of ethical behaviour;

(d) fostering the highest possible standards of professional competence amongst those for whom they are responsible;

(e) optimising the use of resources which they influence and for which they are responsible to provide the maximum benefit to their employing organisation;

(f) complying both with the letter and the spirit of: i. the law of the country in which they practise; ii. Institute guidance on professional practice; iii. contractual obligations;

Members should never allow themselves to be deflected from these principles.


Guidance

In applying these principles, members should follow the guidance set out below:

1. Declaration of interest – Any personal interest which may affect or be seen by others to affect a member’s impartiality in any matter relevant to his or her duties should be declared.

2. Confidentiality and accuracy of information – The confidentiality of information received in the course of duty should be respected and should never be used for personal gain. Information given in the course of duty should be honest and clear.

3. Competition – The nature and length of contracts and business relationships with suppliers can vary according to circumstances. These should always be constructed to ensure deliverables and benefits. Arrangements which might in the long term prevent the effective operation of fair competition should be avoided.

4. Business gifts – Business gifts, other than items of very small intrinsic value such as business diaries or calendars, should not be accepted.

5. Hospitality – The recipient should not allow him or herself to be influenced or be perceived by others to have been influenced in making a business decision as a consequence of accepting hospitality. The frequency and scale of hospitality accepted should be managed openly and with care and should not be greater than the member’s employer is able to reciprocate.

Decisions and Advice

When it is not easy to decide between what is and is not acceptable, advice should be sought from the member’s supervisor, another senior colleague or the Institute as appropriate. Advice on any aspect of the Code is available from the Institute.” This Code was approved by the Council of CIPS on 16 October 1999


Appendix 2

NHS HIGHLAND EQUALITIES ACTION PLAN 2014 The following is an extract from the NHS Highland Equalities Action Plan 2014 which relates specifically to Procurement.

“NHS Highland’s Policies and Standards on Procurement are set out in the Board’s Standing Financial Instructions (SFIs) which are written in accordance with the requirements of NHS statutory regulations, NHS Circulars issued by the Scottish Government and in conjunction with other relevant instructions. These instructions apply equally across all of NHS Highland and outline the high level principles and rules that need to be adhered to, so as to ensure that all our procurement activity will be legally compliant in the areas of Equal Treatment, Transparency, Proportionality and Non-Discrimination whilst striving to deliver Best Value for the money that we spend. NHS Scotland’s Standard Conditions of Contract for the Supply of Goods and Services outline the obligation that NHS Boards and their Suppliers and Contractors must fulfill in line with the Equalities Act 2010. In the tendering and awarding of contracts, a failure of any supplier/contractor to commit to abiding by the obligations of the Equalities Act 2010 will result in an automatic exclusion from the contracting process.”


Appendix 3

NHS HIGHLAND ENVIRONMENTAL AND SUSTAINABILITY POLICY The following is an extract from the NHS Highland Environmental and Sustainability Policy 2015 - 2017 which relates specifically to Procurement.

NHS Highland Procurement:

NHS Highland will ensure adherence to the guidance contained within “The Scottish Sustainable Procurement Action Plan (SSPAP)” which covers areas including Climate Change and Fair and Ethically Traded goods.

NHS Highland will support the Government’s sustainable development objectives and will adhere to the obligations of the “sustainable procurement duty” which it will reflect through its procurement policy and practices.

NHS Highland will work in partnership with Zero Waste Scotland to implement the United Nations Marrakech Task Force approach to sustainable (social, economic and environmental) procurement practices.

NHS Highland will promote the use where appropriate, of recycled and recyclable products and ensure that goods purchased are constructed, consumed and disposed of in a sustainable manner.

NHS Highland will look to embed usage of the “Flexible Framework” and “Government Buying Standards” as best practice tools for ensuring that sustainability is a key factor of its procurement processes.


Appendix 4

SERIOUS AND ORGANISED CRIME BIDDERS SELF-DECLARATION

CRIMINAL JUSTICE AND LICENSING (SCOTLAND) ACT 2010 DECLARATION OF NON-INVOLVEMENT IN SERIOUS ORGANISED CRIME

Section 28 - Involvement in serious organised crime (1) A person who agrees with at least one other person to become involved in serious organised crime commits an offence. (2) Without limiting the generality of subsection (1), a person agrees to become involved in serious organised crime if the person — (a) Agrees to do something (whether or not the doing of that thing would itself constitute an offence), and (b) Knows or suspects, or ought reasonably to have known or suspected, that the doing of that thing will enable or further the commission of serious organised crime. (3) For the purposes of section 28 and 31 • “serious organised crime” means crime involving two or more persons acting together for the principal purpose of committing or conspiring to commit a serious offence or a series of serious offences, • “serious offence” means an indictable offence — (a) Committed with the intention of obtaining a material benefit for any person, or (b) which is an act of violence committed or a threat made with the intention of obtaining such a benefit in the future, and • “Material benefit” means a right or interest of any description in any property, whether heritable or moveable and whether corporeal or incorporeal. (4) A person guilty of an offence under subsection (1) is liable — (a) On conviction on indictment, to imprisonment for a term not exceeding 10years or to a fine or to both, (b) on summary conviction, to imprisonment for a term not exceeding 12 months or to a fine not exceeding the statutory maximum or to both. Section 31- Failure to report serious organised crime (1) This section applies where — (a) A person (“the person”) knows or suspects that another person (“the other person”) has committed — (i) an offence under section 28, (b) That knowledge or suspicion originates from information obtained — (i) in the course of the person's trade, profession, business or employment, or (ii) as a result of a close personal relationship between the person and the other person.


(2) In the case of knowledge or suspicion originating from information obtained by the person as a result of a close personal relationship between the person and the other person, this section applies only where the person has obtained a material benefit as a result of the commission of serious organised crime by the other person. (3) The person commits an offence if the person does not disclose to a constable — (a) the person's knowledge or suspicion, and (b) the information on which that knowledge or suspicion is based. (4) It is a defence for a person charged with an offence under subsection (3) to prove that the person had a reasonable excuse for not making the disclosure. (5) Subsection (3) does not require disclosure by a person who is a professional legal adviser (an “adviser”) of — (a) information which the adviser obtains in privileged circumstances, or (b) knowledge or a suspicion based on information obtained in privileged circumstances. (6) For the purpose of subsection (5), information is obtained by an adviser in privileged circumstances if it comes to the adviser, otherwise than for the purposes of committing serious organised crime — (a) from a client (or from a client's representative) in connection with the provision of legal advice by the adviser to that person, (b) from a person seeking legal advice from the adviser (or from that person's representative), or (c) from a person, for the purpose of actual or contemplated legal proceedings. (7) A person guilty of an offence under this section is liable — (a) on conviction on indictment, to imprisonment for a term not exceeding five years or to a fine or to both, (b) on summary conviction, to imprisonment for a term not exceeding 12 months or to a fine not exceeding the statutory maximum or to both. To ensure that NHS Highland do not unwittingly engage with serious organised criminals through the contracting or letting of any services it is considered relevant and proportionate to obtain a ‘declaration of non-involvement in serious organised crime’. To satisfy the requirements of that declaration it is necessary that an authorised signatory confirms that the content of the following statement is applicable to your company or each of the companies within the group or consortia and your sub-contractor(s) (as appropriate). I confirm that I have received, read over and understood sections 28 and 31 of the following legislation, Criminal Justice and Licensing (Scotland) Act 2010. I hereby declare that I have nothing to report in relation to this legislation at this time.


I can confirm that no director, shareholder, or other persons who have power of representation, decision or control over in respect of my business area or otherwise connected to me are engaged in serious organised crime, as defined in the Criminal Justice and licensing (Scotland) Act 2010. In making this declaration, I confirm that I have taken all the necessary steps to ensure the accuracy of my attestation and understand that the wilful provision of misleading or inaccurate information may constitute fraud and or termination of my contract. Print name: .................................................................... Signed: ........................................................................... Company business details include address and postcode: ........................................................................ ........................................................................ ........................................................................ Home address including postcode: ........................................................................ ........................................................................ ........................................................................ Contact telephone number: .................................................................... Witnessed by print name: ......................................... Job title: ...................................... Signed: ...................................................................... Witnessed by print name: ......................................... Job title: ...................................... Signed: ...................................................................... Date and place of signature: ..........................................................................................


Appendix 5

SECTORS IDENTIFIED BY POLICE SCOTLAND AS VULNERABLE TO SOC ACTIVITIES

BUSINESS SECTOR SUB SECTOR

VEHICLE TRANSPORT

BUS/COACHES

CAR WASH/VALET

DEALERSHIP

GARAGE/REPAIRS/MAINTENANCE

HAULAGE

PETROL STATION

PLANT HIRE

TAXI/PHC

VEHICLE BREAKDOWN

VEHICLE LEASE/HIRE/RENTAL

PROPERTY

BUILDING/CONSTRUCTION

BUILDING/CONSTRUCTION – COMMERCIAL

BUILDING/CONSTRUCTION - RESIDENTIAL

DEMOLITION

GROUNDSWORK/LANDSCAPING

HOME IMPROVEMENT

PLASTERER

JOINERY

PLUMBING

PROPERTY DEVELOPMENT

PROPERTY MAINTENANCE

ROOFING

SCAFFOLDING

LICENSED PREMISES BAR/PUBLIC HOUSE

NIGHTCLUB

CATERING/FOOD

BAKERY

BUTCHERS (SUPPLY/PRODUCTION)

ICE (SUPPLY/DELIVERY)

MOBILE VAN/CATERING

RESTAURANT


TAKE AWAY

WHOLESALER

STORAGE FACILITIES

SERVICE/RETAIL

CLEANING

HOTEL

JEWELLERS

MARKET TRADING

NURSERY (CHILDREN)

SHOP

SOCIAL CARE

STORAGE FACILITIES

UNDERTAKER/FUNERAL DIRECTOR

HEALTH/BEAUTY

HAIRDRESSERS/BARBERS

NAIL BAR

TANNING SALON

PROFESSIONAL

EDUCATION ESTABLISHMENT

ESTATE/LETTING AGENT

FINANCIAL/INVESTMENT

IMMIGRATION ADVISORY

LANDLORD/PROPERTY RENTAL

SECURITY DOORS

SITE

ENVIRONMENTAL

RECYLCING

SCRAP YARD

SKIP HIRE

TYRES

WASTE DISPOSAL

RECREATIONAL

CHILDREN’S REC ACTIVITIES

ENTERTAINMENT – DANCE/MUSIC/EVENTS

FOOTBALL CLUB/AGENTS

GYM

SNOOKER CLUB


Appendix 6

NATIONAL PROCUREMENT ETHICAL PROCUREMENT LABOUR FRAMEWORK Details of the Ethical Procurement Labour Framework will be inserted upon their release.

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