Our companies work to develop and maintain business relationships with suppliers who share our commitment to:
- conduct business in a responsible manner in compliance with applicable laws;
- respect the rights of workers to safe working environments;
- comply with environmental laws and regulations and aim to reduce the environmental impact of their activities; and
- implement management and monitoring practices to ensure compliance with contracts and applicable laws.
Altria and its companies employ a comprehensive plan for engaging with suppliers, including:
- “top-to-top” meetings among senior executives from our companies and our suppliers to discuss business strategy;
- ongoing meetings with supplier sales and quality representatives;
- regularly-scheduled supplier review meetings where discussions focus on supplier performance, supplier feedback and mutual business updates;
- visits to supplier facilities; and
- the Altria Supplier Code of Conduct.
Below are additional ways we engage with our suppliers and work to improve our supply chain:
SUPPLIER DIVERSITY DEVELOPMENT
Altria has long supported organizations who work to increase procurement and business opportunities for minority-owned and women-owned businesses. They include:
SUPPLIER ENGAGEMENT & RISK ASSESSMENT
We want to understand opportunities within our companies’ supply chains and take positive steps to advance effective solutions. In doing so, we consult a range of resources and stakeholders. Where risks have been identified, we work to communicate expectations, share information and support continuous improvement.
SUPPLIER VALIDATION
To validate contractual compliance and support continuous improvement, we established a monitoring system for certain areas of identified risk. This monitoring system involves one or more of the following: supplier self-assessment, assessment by our employees, supplier certifications and monitoring by an unaffiliated third party. In the case of non-compliance, we work with the affected supplier to remedy the issue through a corrective action process. In some situations, we may discontinue the relationship.
SUPPLIER ENGAGEMENT & RECOGNITION
In 2011, more than 70 select suppliers participated in an engagement and recognition event. The event provided an engagement opportunity for senior leadership to share the company’s business priorities. The event also focused on building supplier capabilities around the topic of sustainability.
In 2012, Altria’s companies will continue to engage with and recognize suppliers for achievements in the key areas of innovation and sustainability.
In addition to engagement and recognition, our procurement group communicates about business priorities and developments through periodic newsletters and other formal communications.
ENGAGING SUPPLIERS ON CHILD & FORCED LABOR ISSUES
In 1997, Philip Morris USA conducted its first Marketing Incentives Supplier Forum in Shanghai, China. The forum focused on engaging with and educating suppliers on child and forced labor.
Since then, Altria’s procurement staff has conducted child and forced labor forums and workshops in Mexico City, New York City, Shanghai, Shenzhen, Taiwan, Charlotte, N.C. and Richmond, Va.
