Supplier evaluation

We engage with a wide range of suppliers and partners globally to achieve our business objective of providing innovative treatments to our patients. We select suppliers and partners on their ability to deliver the requested service or product while meeting our legal and ethical standards.

For decades, Lundbeck’s quality assurance processes have ensured compliance for our suppliers and partners with regulatory requirements within research, development and manufacturing. Since 2005, these requirements have been extended for manufacturing suppliers to include fundamental labour rights and environmental obligations.

Today, all new agreements with suppliers or partners globally contain a binding commitment to respect human rights, employee rights, environmental protection and anti-corruption. This forms a pivotal element in Lundbeck’s compliance and sustainability framework.

Evaluation process based on global principles and dialogue

Our Supplier Evaluation process rests on the well-established global principles contained in the UN Global Compact Principles and the OECD Guidelines on Multinational Enterprises.

The evaluation is based on dialogue between the relevant Lundbeck entity and the potential supplier or partner. The level of evaluation depends on the desired product or service, the location of the company and value of the potential collaboration.

Globally, less than 10% of our suppliers and partners are selected for an in-depth evaluation that ranges from self-assessment questionnaires, due diligence checks, training and onsite visits. Here the global principles are translated into direct questions to the potential supplier or partner, including their governance, management of QHSE (Quality, Health, Safety and Environment), working hours, remuneration, freedom of association and prevention of discrimination, child labour, bribery and corruption.

We use professional databases and public sources to assess export controls, conflicts of interests and reputational issues. For particular sensitive activities, we conduct audits before an agreement is made. As part of our monitoring activities we regularly assess performance, conduct training and audits.

Our most recent Communication on Progress to the UN Global Compact contains information about the performance of our Supplier Evaluation process.

UN Global Compact Report 2018

Each year we report on progress within our work with the ten principles of UN Global Compact.

Read and download the latest report
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