CSR AT SDH

SDH has been committed to CSR since 2005 and has published CSR reports since 2008. Its current corporate plan, "United to 2016", is built upon CSR principles and the 5 dimensions of the EURHO-GR® framework. It includes precise CSR objectives which are translated into concrete actions, regularly monitored by managers.

In order to support continuous improvement, SDH’s CSR maturity is assessed every year since 2011 by an external auditor, through an evaluation scheme based on the ISO 26000 standard; in December 2013, SDH scored 649 out of 1,000.

OBJECTIVE:

To improve collaboration with suppliers and support continuous progress across the supply chain.

CONTEXT

SDH plays a major role in the local economy. Each year SDH’s activity generates an income of 139M€ for its stakeholders, mostly local suppliers. SDH thereby contributes to local jobs, particularly in the construction sector, and supports local economic growth; through its projects and activities, SDH also helps foster innovation and sustainable production processes.

Beyond contractual relations, SDH favours partnerships with its stakeholders, based on trust and reliability. It helps find ways to address some issues that SDH would not be able to solve alone (faster interventions, traceability…). These partnerships are essential to maintain high quality standards and ensure that the company indeed fulfils its quality commitments towards its tenants. They also contribute to support all stakeholders’ progress and overall improvement of practices.

In the frame of its corporate plan (component 6: developing partnerships with stakeholders), SDH has decided to develop synergies and alliances with the local construction industry federation and with its suppliers. The objectives are two-fold: support local economic development (considering SDH’s potential contribution to local firms’ income) and provide high quality services to tenants.

DESCRIPTION OF THE GOOD PRACTICE

Three key initiatives have been developed, both with suppliers directly and the local construction federation.

A co-elaborated charter (by SDH and its suppliers) sets the frame for long-term mutual commitments between SDH and its suppliers. This charter reinforces trust between the different parties, and contributes to better quality services. On SDH side, it includes such commitments as a 30-day payment term, a high level of responsiveness and an easy access to SDH staff; partner suppliers’ commitments relate in particular to appointments with tenants, attitudes towards tenants, traceability… It helps improve everyone’s actions and better meet tenants’ needs. Upon signature of each new contract, this “Supplier Charter” and SDH Environmental charter are presented to the supplier by the procurement department.

To support this collaboration and make it more effective, a dedicated Extranet platform has been set up. It targets suppliers referenced for daily maintenance, such as masonry, plastering, painting, tiling, electrical, plumbing, sanitation, etc. This collaborative platform enables to register and monitor suppliers’ works, from the issuance of the order until the payment of the invoice. Suppliers gain in work efficiency and the platform helps harmonize working processes. The follow-up system enables to limit order or invoice misunderstandings and potential conflicts.

For building firms, SDH has established a partnership with the local construction federation, with a “good practice framework agreement”. It aims to ease business relationships and establish win-win relationships between construction firms and SDH, in order to, together, address the local construction and renovation needs.

In addition, SDH organises a yearly suppliers’ meeting to encourage mutual sharing and exchange. It also allows to identify potential issues and mutual expectations. At the end of the 2013 edition, the 3 suppliers which had scored best in the quality assessments were rewarded.

Key results and benefits

• By the end of 2012: 97,6% of daily maintenance suppliers using the Extranet platform
• In 2013: 19,000 purchase orders passed through the platform (i.e. 6.7 M€, nearly 100%)
• Better work quality on the whole value chain through optimized interaction and shared analysis of suppliers’ performance and weaknesses, resulting in higher tenant satisfaction
• Reduced order or invoice misunderstandings and conflicts thanks to the Extranet service
• Spread of a "win-win" mindset among the company and suppliers, supported by the charter
• Improved traceability of works
• Support to improvement of small-sized suppliers’ organisation, by defining clear standard processes