Babcock has always been and will always be committed to doing business honestly and openly. We hold our leaders to account for ensuring their businesses operate according to the standards we expect.
Our Group-wide Code of Business Conduct lays out our policy of strict ethical conduct, highlighting the fundamental importance of conducting all business activities to the highest standards of honesty and integrity. A key contributor to our ability to deliver effectively is our corporate values, expressed in being Babcock which underpin our activities so that we operate in a safe, respectful and trusted environment.
We believe that ethical behaviour underpins our sustainability activities.
We establish robust processes and controls to identify opportunities and manage corporate risks. We understand that our reputation and good name are amongst our greatest assets, which could easily be lost by actual or suspected unethical behaviour.
Code of Business Conduct
To protect the Company and reduce these risks, we have set out a policy on how we should conduct business, which we summarise in the form of the Babcock Code of Business Conduct. Compliance with this policy is compulsory for our employees, business advisers and business partners.
As an international business, we recognise our responsibility for upholding and protecting the human rights of our employees and other individuals with whom we deal in our operations around the world. While we continue to believe that our exposure to the risks of human rights abuses and modern slavery is low within our own business and supply chain, we welcome the opportunity we have to contribute positively to global efforts to ensure that human rights are understood and observed.
Our Modern Slavery Transparency Statement is published annually.
Our ability to deliver secure IT and other information assurance systems to maintain the confidentiality of sensitive information is critical for our customers. Babcock’s Group Security Board meets quarterly to provide governance covering cyber and other security and informational assurance risks, issues and threats facing the Group.
Babcock is a key member of the joint MOD/industry Defence Cyber Protection Partnership which is an initiative to ensure the Defence supply chain understands the cyber threat and is appropriately protected against attack. Babcock is represented on all the working groups and DCPP Executive committee.
Babcock’s core IT Services are certified to ISO27001 (Information Security) and ISO22301 (Business Continuity).
We partner with our supply chains to identify innovative solutions and ensure timely delivery of quality products and services.
External expenditure via third party suppliers, including Original Equipment Manufacturers (OEMs), accounts for approximately 50% of our turnover and our approach and ability to manage these relationships impacts our ability to deliver performance and margin.
Small and Mid-Size Enterprises
We recognise the value that SMEs play in the wider economy and we actively encourage them to engage with us. Working closely with SMEs ensures that we have access to optimal solutions and provides enhanced flexibility and agility.
The development and execution of our supply strategy is aligned with the overall business requirements, both short and longer term. To ensure a robust supply chain, we have developed a series of procedures that guide our group-wide procurement activity. In addition, each sector has supporting policies which outline their operating principles and ways of working.
Supplier Code of Conduct
Our group-wide Supplier Code of Conduct is designed to provide clarity about our expectations of suppliers, including compliance with all applicable laws. While we recognise that our suppliers operate in different geographic and economic environments, we expect that products and services are delivered in a way that support Babcock’s high standards and contribute to the reputation of Babcock and our customers.
Supplier Due Diligence
Before engaging with suppliers we assess their ability to demonstrate that they are “fit for business” with financial, commercial and governance capability. We also look for potential suppliers to support our social purpose and sustainability agenda. Suppliers also demonstrate they are “fit for purpose” with technical, health and safety capability and security compliance to meet our contractual requirements.
We understand the importance of predictable payments when running a business and encourage good practice across the group. All relevant entities submit returns to Companies House according to the Payment Practices and Performance Regulations. Further information can be found here.