The Co-operative Bank Partnership Report

^building relationships
^{that deliver} mutual benefits

Suppliers

Last year, the Bank spent over £100 million on goods and services supplied by around 3,000 different businesses. Different being the key word: our suppliers can range in size from a local newsagents shop to a giant multinational telecommunications company. Naturally then, the type of relationship between the supplier and the Bank varies enormously, from 'one-off ' purchases to long-term strategic agreements. But, in every case, our Partnership Approach means much more than just treating suppliers fairly; it means recognising the extent to which we depend upon each other, and working to build lasting relationships which offer real benefits to both parties.

More than a third of suppliers (39%) say the Bank's policies have had an impact on the way their business operates.

Well supplied - from long-term strategic development of all our IT requirements to the type of paper we use, we rely on suppliers of all sizes for our continued success.

[ Making interdependence work to our mutual advantage ]

We believe it is both necessary and healthy for Partners to depend upon each other. But, at the same time, we recognise there are risks inherent in such interdependence.

For the Bank, the most obvious of these is the possibility that we may be let down by a supplier whom we have entrusted with a critical function. While, from a supplier's point of view, there is the danger of coming to rely too heavily on a single customer.

We therefore make a point of monitoring such partnerships carefully, to ensure the risks are minimised and the opportunities fully capitalised upon.

As with all areas of our business, we use some discretion in choosing our Partners. Since 1995 we have, where practicable, screened new suppliers against the principles contained in our Ethical Policy.

We have also looked in detail at the 'ecological profile' of the products and services we buy in. After all, it's these that form the fabric of the Bank and the services we offer our customers - from the paper on which the report you are holding is printed, to the Telephone Banking Centre you may choose to ring.

Importantly, we don't simply set standards for our suppliers, we also play an active part in helping them to meet these requirements. Rather than walking away at the first sign of unsatisfactory performance, we work closely with our Partners to achieve a positive outcome. And we're pleased to say that our suppliers are enjoying real benefits as a result, not just in their dealings with the Bank but also in other areas of their business.

When we introduced our Partnership Approach last year, we clearly stated our commitment to building mutually beneficial relationships with our suppliers.

Our Ethical Policy was originally drawn up to deal specifically with how we invest our customers money.

In 1992 we commissioned an environmental audit of the Bank's suppliers and operations.