Page 74 - Annual Report 2014
P. 74

Compliance                                                            Our procurement practices include strict adherence                          Overview
StarHub was subjected to one fine, relating to the                    to the ethical code of conduct, which addresses issues
provision of printed telephone directories, during 2014.              of integrity, due diligence, fairness and conflict of                       Strategy
We provided online telephone directories.                             interest in the selection of vendors, suppliers
                                                                      and contractors.                                                            Performance
Supply Chain Sustainability
StarHub has four main business areas – Mobile, TV,                    An overview of our supply chain is illustrated below.
Broadband and Fixed Network. Bulk of our purchases
include network equipment, consumer handsets and                      Supplier Sustainability Survey
customer premise equipment, and media content.                        We strengthened our supplier engagement in 2014 by
                                                                      introducing a comprehensive Supplier Sustainability
In 2014, we purchased from 1,409 suppliers. Out of                    Survey to improve our understanding of social and
these, 86% were local suppliers. Our total purchase                   environmental issues in our supply chain. The survey
during the year amounted to $684 million, up from                     questionnaire was sent to our top 20 suppliers who
$600 million in 2013. Local suppliers’ share in the total             together accounted for 21% of the total purchases in
purchase was 91%, up from 87% in the preceding year.                  2014. The survey results are presented in the chart below.

An Overview of StarHub Group Supply Chain

Business   External  Collaterals                   Soft Content   IT Suppliers    Own          Customer           Sales &        After Use
   Unit              Suppliers                       Suppliers                  Network         Premise          Fulfilment
                                                                                              Equipment          Channels       Traded-in
  Mobile                Printers                        Apps        Customer        2G,         Mobile                          handsets,         Governance
                     (of publicity/                               Relationship      3G,       handsets,           Stores,        donated
     TV                                            Programmes     Management,       4G       Sim cards,          Exclusive      handsets,         Financials
                       marketing                      (content                                  mobile           Partners,    take-back of
Broadband             materials),                                   Enterprise   Hybrid     accessories          Resellers,  faulty/obsolete
   Fixed             corporate gift                providers and     Planning      Fibre                                       equipment
                     vendors, etc.                  production      Resource,    Coaxial    Set-up boxes           Sales      for recycling,
 Network                                             partners)        Billing,    (HFC),                         Partners,     recycling of
Corporate                                                           Database,    Fibre IP        Cable                         surplus/old
           Fibre                                                     Storage,                 modems,              Direct      marketing/
                                                                                   HFC,         routers            Sales,        publicity
                                                                        etc.     Fibre IP                          Retail        material
                                                                                              Customer             Chain
                                                                     Intranet     Fibre,       Premise            Stores,
                                                                     Office IT   Fibre IP,   Equipment              Field
                                                                    hardware    Undersea                         Services
                                                                                  Cable      Expendable
                                                                                                 office

                                                                                               supplies

Supplier Sustainability Survey Result (%)

(Proportion of vendors with sustainability initiatives)

               Environment policy statement                                                                      95
                         Recycling programme                                                                          100
                         Use renewable energy
                                                   20
         Measuring environmental impacts
                      Environmental reporting                                                           85
                                                                                60
     Social responsibility policy statement
                 Corporate philanthropy fund                                                   75
                     Social outreach initiatives
                                                                  40
       Risk Management policy statement
                         Whistle blowing policy                                                          85

                   Employee code of conduct                                                                      100
Business continuity mangagement policy
                                                                                            70               90
                    Non-discrimination policy
               Freedom of association policy                                                    75
                                                                                                     80
                              Child labour policy
                                                                                            70
                                                                                                     80

StarHub Ltd | Annual Report 2014                                                                                                              71
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