Suppliers Risk Management Process
In association with LVMH programmes and the principles promoted by the Responsible Jewellery Council, this commitment translates into the constant monitoring and management of the supply chain, aimed at continually improving the social and environmental performance of its partners. Bvlgari has put in place a Suppliers Risk Management Process, constituted by three main steps:
1. SUPPLIER RISK ASSESSMENT
2. SOCIAL & ENVIRONMENTAL AUDITS TO SUPPLIERS
3. FOLLOW UP
The Suppliers Risk Management Process is standardized and applied among all Bvlgari Divisions, however since Bvlgari Businesses (Jewellery, Watches, Accessories, Perfumes) and Supply Chains are characterized by specific peculiarities and risks, auditing strategy and methodology may change from case to case and it is yearly discussed and agreed by CSR and Business Units. Audits could be led either internally (by Bulgari CSR/Purchasing Departments) or externally (by External Consultants); it could be announced, semi-announced or not announced (Bvlgari has included in agreements with suppliers the right to visit suppliers factories in any moment). Audit methodology is based on the most recognized standards: SMETA (Sedex Members Ethical Trade Audit) 4 pillars; Social Accountability SA 8000; ISO 14001; RJC Code of Practices; RJC Chain of Custody. The more adequate auditing methodology is applied basing on supplier risks.