We place high expectations of excellence and ethical conduct on our suppliers, who are expected to act in a way that is consistent with our principles and values.
Our Supplier Code of Conduct and purchase contract Terms and Conditions set forth expectations for ethically responsible social, business and environmental practices. Our Terms and Conditions clearly state our prohibition against any use of child labor or any other form of forced or involuntary labor, abusive treatment of employees or corrupt business practices in the supplying of goods and services to GM.
3,900 suppliers participated in supplier compliance surveys in 2021.
Our contracts lay out expectations for lawful compliance within the following areas: data protection and privacy, wages, hours and conditions of employment, subcontractor selection, antidiscrimination and occupational health and safety. GM also expects suppliers to cascade our Supplier Code of Conduct or a code with similar requirements throughout their own value chain.
We are committed to upholding human rights across our network of suppliers and have several policies in place, including our Human Rights Policy and Conflict Minerals Policy. Our strong focus on supplier sustainability influences sourcing decisions. We strive to utilize ethical and sustainable suppliers who share our values to work together to reach mutual sustainability goals. When sourcing, criteria including meeting conflict mineral reporting requirements, CDP participation and EcoVadis scores are reviewed. High-scoring suppliers may be rewarded with the potential for new or extended contracts.
When we become aware of violations or alleged violations of our Supplier Code of Conduct, we respond swiftly and appropriately, up to and including the termination of business relationships. GM conducts annual self-verification surveys to validate adherence to the Code and contractual obligations. Material noncompliance disclosed in surveys or otherwise identified is addressed directly with suppliers. In 2021, survey responses were collected from 3,900 suppliers spanning production, logistics, customer care and after sales support.
Supplier responses to the survey are reviewed and, if required, are escalated to remediate risk and noncompliance.
GM requires our Tier I suppliers that provide production parts for vehicles across the globe to mandate that their direct suppliers meet all GM’s quality standards. The foundation of this process is our Built in Quality Supplier (BIQS), consisting of IATF 16949 certification and Quality Performance Metrics. This foundation allows them to cascade quality standards through the tiers of our supply base. We aim for all GM Tier I suppliers to achieve BIQS Level 5, the highest level possible. BIQS compliance also encourages these Tier I suppliers to uphold the same quality standards within their own supply bases, since issues here can ultimately affect their quality performance. To support monitoring, suppliers’ IATF 16949 certification status is part of our Sourceability Report, which is a compilation of metrics used to make informed sourcing decisions and support supplier engagement. Suppliers found not conforming to the IATF standard are required to implement corrective actions. After implementation, the certification body reaudits the supplier to ensure conformance.