In seeking best performance from suppliers, contractors and business partners, we clearly articulate expectations and work with them to improve existing competencies. To realise this agenda, we employ both contractual obligations and a series of reward mechanisms that focus on mitigating social and environmental impacts while guiding performance.
Contractual arrangements are closely monitored and controlled to actively manage potential risks. Under the Enterprise Risk Management System (ERM), each project is assigned a risk register that assesses a spectrum of social and environmental impacts as well as the financial consequences in risk management. Common issues covered include safety, labour and environmental regulations compliance, supply chain and materials integrity and negligence as well as project-specific risks such as site and works disruptions, scheduling and works progress.
Our established partnering programme drives the contract process based on proactive engagement, transparency and accountability. Partnering operates within an environment of mutual respect which involves regular dialogue, site meetings and management by consensus. This approach enables better control over direct project impacts and supports the management of indirect impacts through voluntary target setting and the real-time awareness to the up and downstream consequences.
Partnering has recently taken substantial step changes in management approach with events attached to the NP360 Cable Car. As a result of delays and budget overruns in the development stages, we now actively look for risks in our all projects to avoid or, at minimum, take mitigating actions in areas outside of our core competencies. More recently, in parallel to relying on sub-contractor proficiency in operating non-rail projects; we now directly employ professionals in areas where we have no existing in-house expertise. These facilitate the delivery to performance expectations and help to achieve set targets as well as better strategise the mitigating actions for project and operational risks.
Contractual arrangements that affect project delivery, business objectives or our reputation when working with suppliers, contractors and business partners drive how we manage expectations and outcomes. An example relevant to preventing industry malpractice is the requirement of contractors to stipulate wages for workers and the contractual obligation to verify that such payments are made. Similarly, we lead by example and adhere to obligations imposed on us. In 2007, all contracts were paid in accordance to agreed terms.
To help our suppliers, contractors and business partners understand our corporate expectations and working culture, we share with them our Code of Conduct. The Code clearly articulates our "no tolerance" policy and guides actions to be taken on such issues as bribery, corruption, conflict of interests, discrimination, ethical behaviour, and relationships with customers and business clients. It also enshrines our policy and directives in equal opportunity at the workplace and forms a basis for certain stakeholder engagement practices as well as instilling ethics and company values at the workplace.
