Capita has produced its first ever ‘supplier charter’, outlining how it operates and works together with its 35,000 suppliers.

The charter sets out the core principles by which the company does business – in line with its purpose of creating better outcomes for all stakeholders – in an open, honest and transparent manner. It also outlines what Capita expects from its suppliers in return.

The supplier charter is the first such document that Capita has produced in its 30-year corporate history. Previously, it had a simple set of policies and procedures covering its £1bn annual spend with suppliers.

The charter covers a range of business and operational areas from health and safety to human rights, diversity and inclusion, cybersecurity, and how any breaches of the charter principles are reported.

Capita is currently in the middle of a three-year transformation programme under chief executive Jon Lewis. It is focused on becoming a truly responsible business, including treating its suppliers and partners fairly, and encouraging them to deliver.

As part of the ongoing Capita restructuring, the centralised procurement function is also undergoing change – to improve the systems and processes that will simplify and improve the way the company works with its supply chain.

Capita supports the Government’s aspiration that a third of its external supplier spend goes to micro, and small and medium-sized businesses by 2022; and we are taking positive action to further increase our own spend with smaller businesses.

Capita is also committed to meeting the government prompt payment code, ensuring full compliance on payment terms for our micro and SME suppliers. In October, the company updated its supplier payment terms, committing to pay micro businesses (fewer than 50 employees) within 14 days and SMEs (fewer than 250 employees) within 30 days. In the year ended 2018, 76% of micro organisations were paid within 14 days and 77% of SME suppliers within 30 days or less. In both cases, over 95% were paid within 60 days.

Jon Lewis, Chief Executive Officer, said: “We value the business relationships we have with our suppliers and seek to build lasting relationships, treating our suppliers and partners fairly and paying promptly.

“This supplier charter sets out the core principles of how we conduct business in an open, honest and transparent manner. It shows the depth and range of issues we are prepared to tackle and improve in our supply chain.

“We want to work with suppliers who share our values and support us in delivering our purpose to create better outcomes. Our aim is to encourage and work with suppliers to achieve the highest standards.”

He added: “I am proud that we have drawn up our first ever supplier charter, which meets the highest industry standards.

“We aim to source responsibly, working with our suppliers to enhance the sustainability of what we buy, while ensuring we work with suppliers who uphold our ethical principles.

“Our supply chain is critical to the success of Capita – and our new charter is central to our drive to become a truly responsible business.”

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