Guidance

DHSC supplier code of conduct

Updated 25 October 2023

Applies to England

Introduction

The Department of Health and Social Care’s (DHSC) supplier code of conduct sets out the standards and behaviours that are expected from you, and the importance of sustainability as an objective of our procurement policy.

The public expects that you will behave ethically and treat the end users of your service, employees, and subcontractors, fairly and with respect. We expect our employees to treat you with fairness and respect, and for you to work jointly with them to build constructive working relationships.

We expect you to encourage your supply chain to adhere to this code as part of fulfilling your contractual obligations. We reserve the right to check compliance with this code.

This code is available for the use of members of the health family which includes the DHSC, its agencies and partner organisations, also known as arm’s length bodies (ALBs).

Standards of behaviour

Fraud, deception, and dishonesty

Our principle: a system-wide approach to reducing and preventing fraud which enables taxpayers’ money to be used for better patient care.

What we mean	Working with us
It is fraud when you try to deceive someone or act dishonestly to gain any kind of material advantage or use or involve anyone to do so.	We require that you adhere to all applicable anti-corruption laws, including but not limited to the Bribery Act 2010, and those listed in regulation 57 of the Public Contract Regulations 2015. We expect you to have robust processes to ensure that the subcontractors in your supply chain also comply with these laws.
Fraud is usually carried out for profit or to obtain money, property, or services unjustly. It can involve us, you or a third party.	You should immediately notify DHSC where fraudulent practice is suspected or uncovered and disclose any interests that might impact decision making or the advice that is given to government.
Tax evasion is the illegal and fraudulent non-payment of tax.	We expect you to act honestly, fairly, and openly, and to fully comply with your tax obligations.

Bribery and corruption

Our principle: civil servants are required to uphold the Civil Service code and its core values of integrity, honesty, objectivity, and impartiality. These apply to their dealings with all third parties, and we expect you to behave in the same way.

What we mean	Working with us
Bribery is obtaining something of value by influencing an official in the discharge of their public or legal duties so that they act in a way in which a reasonable person would consider improper in the circumstances. This could involve conflicts of interest, gifts and hospitality, procurement, and commissioning. For example, an employee accepting payment to influence the award of a contract or grant.	You must never offer, give, or receive bribes or make or accept improper payments to obtain new business, retain existing business, or secure any improper advantage and never use or permit others to do so. This includes any type of facilitation payment, large or small, even where such payments are perceived as a common part of local business practice or are acceptable under local law.
Corruption is any form of abuse of entrusted power for private gain and may include, but is not limited to, bribery and fraud by abuse of position. An example is an employee deciding that a particular drug should be prescribed when they have an undeclared interest in the pharmaceutical company supplying it.	The highest standards of ethical conduct and integrity are critical in achieving DHSC’s objectives. We have a zero-tolerance approach to corruption. We expect the same from you and we will enforce regulation 57 of the Public Contract Regulations 2015.

Treatment of supply chain and prompt payment

Our principle: we do not just contract with a supplier but with the complete supply chain, to deliver an effective service which complies with both applicable government policy and legislation.

What we mean

Working with us

We expect you to deal fairly with the subcontractors in your supply chain.

We expect you to avoid passing down unreasonable levels of risk to subcontractors who cannot reasonably be expected to manage or carry these risks. We expect both DHSC and you to be fair and reasonable in your payment practices. You should pay subcontractors within 30 days as a minimum in line with regulation 113 of the Public Contracts Regulations 2015. We aim to exceed the government’s target to pay 90% of undisputed invoices within 5 days, and the remaining undisputed invoices within 30 days.

Conflicts of interest

Our principle: conflicts of interest must be effectively prevented, identified, and managed during procurements to ensure that competition is not distorted, and that fair and equal treatment is upheld.

What we mean

Working with us

We expect you to mitigate appropriately any real or perceived conflict of interest through your work with the health family. A supplier with a position of influence gained through a contract should not use that position to unfairly disadvantage any other supplier or reduce the potential for future competition. Conflicts of interest in public procurement fall into one of three categories — actual, potential and perceived.

You are required to declare potential conflicts of interest including any personal or family relations within the health family at the procurement and post-award stages. All disclosures should be in full and include the business interests of the family, friends, or contacts of those involved in the procurement process. Any changes to conflicts of interests that may arise during the commercial lifecycle must be declared.

Data protection

Our principle: data protection is about ensuring people can trust us to use their data fairly and responsibly. Our approach is to protect data by design and default.

What we mean	Working with us
Our internal data protection policy sets out the standards we must meet when we collect, handle, and store personal data to comply with the seven key principles of the United Kingdom General Data Protection 2018 Regulations (UK GDPR).	Where a service requires personal data to be processed, we will, as part of a risk assessment, ask questions of you to establish that the appropriate technical and organisational measures (the security principle) are taken to ensure this is done securely.
We consider how data protection can be integrated into processing activities and practices, from design through to the contract lifecycle.	You and your supply chain must comply with UK GDPR and any reasonable, additional requirements of DHSC and cooperate with any data protection impact assessments or compliance matters.

Sustainability

Net zero

Our principle: to achieve net zero emissions by 2050, by embedding sustainable procurement policies and practices within DHSC.

What we mean

Working with us

In 2019, the UK government introduced a target of at least 100% reduction of greenhouse gas emissions (compared to 1990 levels) in the UK by 2050.

Your carbon reduction plans and commitment to net zero will be taken into account in the procurement of relevant contracts over £5 million per annum. For contracts under this value, supplier commitments will be considered on a case-by-case basis depending on the scope of the contract. All DHSC contracts may contain requirements for you to provide an annually updated carbon reduction plan that sets out their net zero target date, action plan and emissions data. DHSC may assess if the supplier has taken steps to understand its environmental impact and carbon footprint relevant to the delivery of the contract. We do recognise that many of our suppliers have strong ambitions and action plans to achieve net zero emissions ahead of 2050. We wish to work collaboratively to achieve environmental benefits together through our commercial activity and relationships.

Social value

Our principle: our procurements must support national and local outcomes for public benefit as determined by:

- the Social Value Act 2012 which lays out the importance of the wider social, economic, and environmental benefits that can be achieved when working with the health family

- the United Nations Sustainable Development Goals of achieving 17 goals by the end of 2030 to end poverty, protect the planet and ensure prosperity for all

What we mean

Working with us

The Social Value Model as laid out in Procurement Policy Note 06/20 – taking account of social value in the award of central government contracts provides a model for imbedding social value outcomes into contracts. We use this model to set out the social value award criteria and to formulate the key performace indicators (KPIs) against which your performance is measured. All supplier bids are assessed on qualitative factors. In our procurements, we consider 3 key aspects: - economic: increasing employment or apprenticeship/ training opportunities - social: promoting cohesive communities - environmental: reducing carbon emissions and reducing waste

We will assess your plans to address social value as part of our evaluation of your bids and the contract will contain key performance indicators which will measure progress against that plan. We wish to work with you to leave a positive legacy through the application of the social value model as part our procurement policy.

Treatment of employees in the supply chain

Human rights, modern slavery, and labour standards

Our principle: we respect and protect human rights and we expect you to do so. We will not tolerate forced, debt bonded, indentured labour practices or human trafficking.

What we mean	Working with us
Modern slavery is often a hidden crime involving one person denying another person his or her freedom. It includes slavery, servitude, forced and compulsory labour and human trafficking. The Procurement Policy Note 05/19: tackling modern slavery in government supply chains sets out what action must be taken from October 2019 to ensure modern slavery risks are identified, mitigated, and managed effectively in government supply chains. This includes the publication of our annual modern slavery statement. ‘Eradicating the use of goods or services that are tainted by slavery and human trafficking’ describes an amendment to the Health and Care Bill which ensures that the NHS does not buy any goods or services which do not comply with the Modern Slavery Act 2015.	You and your sub-contractors must comply with all applicable human rights and employment laws in the jurisdictions in which they operate and with the Modern Slavery Act 2015. You and your sub-contractors shall ensure that slavery, including forced and compulsory (bonded) labour and human trafficking are not present in your business and operations.
We expect you to abide by the principles of the United Nations’ Global Compact, UN Universal Declaration of Human Rights, 1998 International Labour Organisation Declaration on Fundamental Principles and Rights at Work.	You shall comply with national laws regarding working hours, wages and benefits and shall put mechanisms in place to ensure that your supply chains also comply with relevant national laws.

Health and safety

Our principle: the health and safety of everyone who works for or with us is to be taken with the utmost seriousness during the commercial lifecycle.

What we mean	Working with us
You should demonstrate an active commitment to creating health-improving workplaces that is co-produced with employees and illustrates an active monitoring approach that utilises evidence-based practice for employer-led health improvement.	You and your subcontractors shall comply with all applicable laws, regulations and standards relating to health and safety.

Equality and discrimination

Our principle: we believe in respectful treatment of people, advancing equality of opportunity and we do not tolerate harassment or discrimination.

What we mean	Working with us
The Equality Act 2010 legally protects people from discrimination in the workplace and in wider society on the grounds of ‘protected characteristics’: - age - being or becoming a transsexual person - being married or in a civil partnership - being pregnant or on maternity leave - disability - race including colour, nationality, ethnic or national origin - religion, belief, or lack of religion/belief - sex - sexual orientation	Our employees, those of our suppliers, and service users have the right to respectful treatment. We are committed to creating an inclusive working environment in which everyone is respected and can flourish equally, without fear or favour. We do not tolerate behaviour or attitudes that support coercion, intimidation, or discrimination. We expect you to provide the same commitment, including to your own employees in accordance with the Equality Act 2010.
The Public Sector Equality Duty (PSED) was developed to meet the above requirements. DHSC must: - eliminate unlawful discrimination, harassment, victimisation (and other prohibited conduct) - advance equality of opportunity between people who share a protected characteristic and people who do not - foster good relations between those who share a protected characteristic and those who do not	We expect you to comply with the Equality Act 2010 and to ensure that the PSED is supported. This will be achieved by us designing and implementing commercial processes that: - remove or reduce disadvantages suffered by people because of a protected characteristic meet the needs of people with protected characteristics - encourage people with protected characteristics to participate in public life and other activities

Whistleblowing

Our principle: it is important that we all work in an environment where it feels safe and comfortable to speak up if we have a concern and there are various ways staff can do this.

What we mean	Working with us
DHSC is committed to the Civil Service code and our department’s code of business conduct.	If you have concerns about any stage during a procurement you should contact the DHSC commercial lead. If this does not resolve the issue, which conflicts with the Public Contract Regulations 2015, you can contact the Public Procurement Review Service by completing the public procurement review service case request form.
Our ‘speak out adviser’ service is on hand to support our staff, by discussing issues related to giving feedback, challenge, or concerns – no matter how big or small the matter may seem.	You should have a comprehensive whistleblowing policy which allows employees to report any incidents or concerns anonymously and safely.