We’re delighted that the National Business Initiative (NBI) has launched a drive to build ethical supply chains, and that forestry giant Sappi is nailing its colours to the ethics mast.
Dolphin Bay is a member of the NBI, a South African business coalition promoting a resilient and sustainable economy. We have repeatedly emphasised the need for businesses to operate with integrity.
It takes great care to grow an ethical business. Why should we take the trouble?
Because ethical businesses are sustainable and choose other ethical businesses as partners, benefiting them both in the long term; because large corporations – like Sappi – have zero tolerance for corruption, choosing only ethical suppliers; and because ethical businesses are the cornerstone of a strong economy.
Why should we take the trouble? Because ethical businesses are sustainable and choose other ethical businesses as partners.
These are some of the messages from a podcast in the NBI’s Integrity Talks series in which Zoe Mthimunye, the NBI Programme Manager for Social Transformation, spoke with Stafford Augustine, Sappi’s General Manager of Procurement Operations in South Africa.
At a crossroads
Why is the NBI taking such a strong stand on ethics?
“Our country stands at a crossroads,” wrote the NBI in a recent LinkedIn post. “Our supply chains − the invisible engines powering jobs, growth, and trade − remain plagued by… unethical practices that undermine our nation’s potential.
“This isn’t just unsustainable; it’s a threat to our global competitiveness. NBI is changing that. With global investors, trade partners, and consumers demanding transparency, businesses that act now will lead the next era of SA’s economy.”
We agree wholeheartedly, as we have seen illegality grow within our own industry, threatening its future – while businesses operating with integrity are the most likely to prosper.
The NBI’s ethics project includes an e-learning platform guiding businesses on how to implement ethical practices, the Integrity Talks Podcast, and the Ethical Coalition for Business project, which it describes as “a united front to transform South Africa’s supply chains for good.”
What does ethics look like?
What constitutes ethical practices, Zoe asked Stafford in the podcast? “In a nutshell, fairness, transparency, sustainability, and compliance with the laws of the country”, he answered.
Unethical businesses cause “a lot of leakage out of the economy due to corruption; development cannot take place. So that is why it is so important that we have strong ethical practices with our supply base.”
Sappi prioritises businesses in the communities around its operations. Its Enterprise Development Unit empowers these businesses to take up the opportunities Sappi offers. After a skills gap analysis for its potential suppliers, Sappi provides tailored training to fill in the gaps.
This covers its code of ethics, its code of conduct, and national regulations.
Enforcing compliance
How is compliance enforced? Sappi has partnered with Ecovadis, a sustainability risk assessment platform, which rates the performance of the forestry giant – and its suppliers – on four business pillars: sustainable procurement; ethics and anti-corruption; labour and human rights, and environmental and carbon management.
Sappi also uses processes to identify non-compliance with the regulations. When it identifies problems, it helps the supplier correct them.
What constitutes ethical practices? “In a nutshell, fairness, transparency, sustainability, and compliance with the laws of the country.”
Stafford explained that the consequences of unethical practice are reputational damage; potential legal action, and loss of business, as Sappi has zero tolerance for corruption.
In one example, two suppliers colluded in a tender, which was discovered as their submissions were so similar. The two companies were suspended from that process and from other work with Sappi.
Stafford acknowledged that SMEs may find it difficult to comply with all the requirements, but Sappi‘s dedicated team helps them. The approach is tailored for each smaller business in forms that include mentorship or coaching.
“If your house is in order, you gain market recognition, and that gives you a seat at the table, which obviously is a competitive advantage,” Stafford said.
“Ethics is the cornerstone of business in South Africa. If your foundation is good, then the building will stand strong.”
Dolphin Bay took the bold decision many years ago to make a public statement in displaying our core value, “Founded on Integrity”, below our logo. This was not an easy decision back then, and even to this day, because the statement holds us accountable for our actions.
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