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An Integrated Reporting Process Promoting Value Creation
Creating Value for Suppliers and Business Partners
Vivendi contributes actively to the local economic fabric of the territories
in which it conducts business, particularly through the business contracts
that it signs with its different partners in compliance with the group’s
rules of conduct. To assess the creation of value, economic results and
fairness of practices must go hand in hand. As the Vivendi Compliance
Program states: “The desire to strive for economic performance cannot in
any circumstances justify breaching the rules of business ethics. On the
contrary, this requirement for performance requires everyone to act in a
way which favors commercial relationships which are lasting and based
on loyalty and integrity”.
The Vivendi business units make sure to integrate the group’s
commitments based on the Compliance Program and the principles of the
United Nations Global Compact in their tender calls and their contracts
with their principal suppliers. In 2015, to assess the risks associated
with the Vivendi supply chain, an evaluation of the purchases made
from suppliers and subcontractors accounting for at least 75% of the
total expenditures of each of its subsidiaries was updated. This study
shows that 85% of the group’s purchases comprise the purchase of
content and professional services and that 84% of these purchases
are made in Europe.
Canal+ Group pays particular attention to ensuring that its suppliers and
service providers are economically independent. Thus, the proportion
of the sales of these suppliers and service providers attributable to
Canal+ Group is audited regularly using ERP (Enterprise Resource
Planning) purchasing management software. When this proportion
becomes significant and reaches 30%, assistance may be offered to the
service provider who is then alerted and invited to diversify its clientele.
The Purchasing department ensures, as far as possible, not to sign
contracts for more than three years. At the end of this period, the supplier
must compete in requests for proposals.
In 2015, in six African countries (Burkina Faso, Cameroon, Congo, Gabon,
Ivory Coast and Senegal), Canal+ Group maintained business relations
with 76 local producers for the purchase and pre-purchase of rights and
the coproduction of shows, films and productions. The group created
close to 4,500 indirect jobs through its distribution network, its purchases
of communication services and the technician services that it used to
install the equipment necessary for subscribers to receive the packages.
In its main business regions, Universal Music Group requires its suppliers,
through its calls for tender, to sign the Universal Music Group Supplier
Corporate Responsibility Policy. In the United Kingdom, the UMG
Purchasing department has been made aware of the new regulatory
framework of the Modern Slavery Act adopted in 2015 requiring
companies to detail the measures that they have taken to ensure that
their suppliers do not engage in modern slavery practices or in human
trafficking.
Bravado Australia, UMG’s Australian merchandising subsidiary,
requests its suppliers to provide evidence of international accreditation
(WRAP, BSCI and SEDEX) certifying that they comply with the ethical
requirements prior to any contractual commitment. They are also asked to
sign a Manufacturing Agreement that reminds them of their commitments
in relation to respect for human rights, and compliance with those
commitments is verified by the company through annual audits.
In connection with the renewal of its EMAS environmental certification,
Vivendi SA includes environmental protection clauses in its contracts and
its business relationships with its suppliers and subcontractors.
In 2016, Vivendi will continue its work to consolidate the commitments
it has made to making progress on its purchasing operations with the
operations staff of its business units and in order to better anticipate
increasingly demanding regulatory changes.
2.9. Creating Value for Suppliers and Business Partners
PURCHASES BY CATEGORY
Scope:
- UniversalMusicGroup limited toa focusgroupofninecountries (Australia,Brazil,France,Germany,Japan, theNetherlands,SouthAfrica, theUnitedKingdomand theUnitedStates);
- Canal+Group:entities located inFrance, inAfrica (a focusgroupofsixcountries:Canal+BurkinaFaso,Canal+Cameroon,Canal+Congo,Canal+Gabon,Canal+ IvoryCoast,Canal+Senegal), inPolandand inVietnam;and
- VivendiVillage:VivendiTicketing,MyBestPro,Watchever,L’Olympia.
PURCHASES BY GEOGRAPHIC REGION
Africa
30%
13%
Asia-Pacific
2%
1%
France
North America
54%
Europe (excl. France)
K E Y F I G U R E S *
*
Figures as of 12/31/2015. Source: Vivendi.
Finished products
30%
Raw materials
9%
1%
5%
Content
Professional services
Others
55%
CANAL+ GROUP:
renewal of
THE SOCIAL RESPONSIBILITY
LABEL
FOR CALL CENTERS
78%
of purchases
MADE FROM LOCAL SUPPLIERS
EXTRA-FINANCIAL INDICATORS HANDBOOK
2015
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