In order to align its contractor and supplier companies with its own responsible development objectives, the CAP Group establishes standards in the selection processes and in the service contracts aimed at promoting the transfer of best practices to all their operational personnel. The foregoing includes compliance with the current legislation, health and safety standards, good labor practices and the protection of human rights, among others.
In line with the CAP Group’s Code of Ethics, suppliers are selected in an impartial manner according to established technical, commercial and sustainability standards. At CAP Mineria, this is carried out through a Suppliers Register.
Noteworthy among service providers are the so-called contractor companies, whose workers relate with the companies of the Group on a daily basis and even perform their activities inside their own work site compounds. It becomes relevant, therefore, in addition to the commercial relationship with such contractor companies, to ensure their workers’ compliance with a number of conditions.
On the other hand, CAP maintains a special commitment toward its small-and-medium-size (Pyme, in its Spanish acronym) supplier companies.
| Minería | Acero | Procesamiento | Infraestructura | CAP S.A. | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2014 |
2015 |
2016 |
2014 |
2015 |
2016 |
2014 |
2015 |
2016 |
2014 |
2015 |
2016 |
2014 |
2015 |
2016 |
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| % Of endowment | 54% | 53% | 54% | 59% | 58% | 59% | 25% | 22% | 25% | 44% | 97% | 82% | 27% | 28% | 29% |
The Group’s economic, social and environmental risks, among them those associated to suppliers and contractors, are evaluated annually. See: Risk Management.
So that contractor companies have a sustainability approach and comply fully with the labor laws, the Group includes performance indicators (KPI) in all its new service contracts, which safeguard compliance with legal aspects and standards of safety and environmental performance. For example, the quality standards of the installations and the safety and health goals set forth by CAP also apply to contractors. In order to follow up these indicators, there is a continuous control on the part of contract managers and the units for the prevention of risks and the environment.
For transferring knowledge on issues of safety, periodic meetings are held with preventing officers of each contractor company and training is carried out.
In order to strengthen fair trade practices between large corporations and their Pyme contractor companies, the Government of Chile established a “Pro-Pyme Seal”. During 2016, the company participated in disseminating the importance of such Seal and of the Chile Global Compact Network regarding subcontracting and labor relations with third parties. 1,809 Pyme companies are suppliers of the two CAP Group companies that already have this Seal.
In 2016, for the second consecutive year, CAP Acero led the ranking as best paying Company to Pyme contractors, according to a study prepared by Chile’s Commodities Exchange and by the Association of Chilean Entrepreneurs (Asech, in its Spanish acronym).
The supplier development program, carried out by CAP Mineria jointly with CORFO, is already going on its fifth year of execution. The general objective of this program is to promote improvements in the business management practices of these companies in the areas of financial, strategic, human resources and compliance with safety and environmental protection regulations, according to their individual needs and problems. 2016 was the third year in the development of 25 suppliers for the Pellet Plant and the Los Colorados mine.
CAP Mineria also participates, along with Corproa and Corminco, in business rounds of mining suppliers in the regions of Coquimbo and Atacama.
