Supplier Code Of Conduct


Recognition of Alshehili Company’s Ethical and Legal Business Standards

Alshehili Company firmly commits to maintaining the highest ethical and legal standards in the conduct of its business operations. Alshehili Company extends this commitment to encompass all entities engaged in business with it, including suppliers, vendors, manufacturers, contractors, and sub-contractors. Consequently Alshehili Company necessitates that all such entities formally acknowledge and commit to abiding by the policies and principles delineated in the attached Alshehili Company Supplier Code of Conduct.

 Acknowledgment  Process

Every supplier, vendor, manufacturer, contractor, and sub-contractor, whether they are new registrants or have an existing registration, is obliged to acknowledge the Alshehili Company Supplier Code of Conduct. This acknowledgment is a prerequisite for engaging in business with Alshehili Company. Furthermore these entities are required to re-acknowledge the code every three years or whenever Alshehili Company updates it.


This Supplier Code of Conduct establishes mandatory guidelines for all current and potential Alshehili Company Suppliers. Alshehili Company Suppliers encompass vendors, manufacturers, contractors, and sub- contractors who are seeking registration or are already registered with Alshehili Company and are seeking to provide goods, services, or personnel, including consultants, to Alshehili Company. This scope extends to those who are parties to agreements with Alshehili Company or one of its contractors. The term “Alshehili Company,” as used herein, includes Alshehili Company itself and its subsidiary companies or controlled affiliates.


Alshehili Company is resolute in conducting its business activities in an ethical, legal, safe, and environmentally and socially responsible manner. In line with this dedication, Alshehili Company insists that its Suppliers share and demonstrate this commitment. Consequently, Alshehili Company has devised this Supplier Code of Conduct to outline specific requirements that suppliers must consistently meet to initiate or continue their business associations with Alshehili Company.


1. Compliance with Laws, Codes, and Regulations

Suppliers affiliated with Alshehili Company must adhere to all applicable laws, codes, and regulations delineated in procurement documents and agreements, which include but are not limited to technical specifications, proposals, invitations to bid, solicitations, and resulting contractual and purchasing agreements.

2. Environmental, Health, and Safety Practices

Suppliers bear the responsibility to ensure that their facilities are designed and operated in a manner that aligns with established government and industry environmental protection policies. It is essential that these facilities do not pose unnecessary risks to the environment or the public. Alshehili Company Suppliers are also expected to maintain safe, sanitary, and healthy living conditions for their employees.

Compliance in this regard entails:

Acquiring and maintaining any requisite environmental permits.

Properly handling and disposing of hazardous materials and waste.

Monitoring, controlling, and responsibly treating discharges generated from operations.

Conducting appropriate employee safety training and furnishing adequate safety equipment.

Keeping accurate records of safety training, relevant certifications, licenses, and monitoring safety performance.

Ensuring that Suppliers’ employees comply with applicable health and safety rules and regulations, working in a manner that does not endanger themselves or others.

Providing training required to promote sound public health and hygiene practices.

3. Ethical Business Practices

Both Alshehili Company and its Suppliers are obligated to conduct their business activities at all times in accordance with the highest standards of ethical behavior. Suppliers are expected to have their own Business Ethics and Code of Conduct Policy along with an extensive training program for all personnel. This policy should, at the very least, address subjects related to ethical business conduct, including conflict of interest, bribery, corruption, gifts and entertainment, fraud, and reporting and whistleblower protection.

Suppliers are further expected to adhere to the highest ethical standards in the following areas:

Antitrust / Competition Laws and Regulations: Suppliers must comply with all applicable antitrust and competition laws and regulations, refraining from engaging in practices or entering into agreements that contravene these laws.

Ethical Sourcing: Suppliers are required to source goods or services from third parties that meet, at a minimum, country of origin standards for health and safety, working hours, pay, employment conditions, and environmental protection.

Labor & Human Rights: Alshehili Company Suppliers must ensure that the basic human rights of their employees are upheld, treating them with appropriate dignity and respect. They must adhere to relevant labor laws in the Kingdom of Saudi Arabia, which includes aspects like forced labor, working hours, working conditions, living conditions where applicable, minimum age, minimum wage, end of service benefits, and medical insurance.

4. Relationships and Communications

Alshehili Company’s Business Ethics Policy necessitates that all transactions are conducted fairly, honestly, and with integrity, adhering to the highest ethical standards. Any abuse or violation of this policy is considered dishonest. Suppliers and their personnel must avoid any appearance of unethical or compromising practices in their interactions, actions, or communications concerning existing or proposed business relationships with Alshehili Company.

Alshehili Company views it as a conflict of interest and improper business practice for current or former Alshehili Company employees to utilize any confidential or proprietary business, technical, or other information obtained while in the service of Alshehili Company to influence Alshehili Company’s existing or proposed commercial transactions for personal gain, benefitting any third party, or causing harm to Alshehili Company, whether during or after their employment with Alshehili Company.

All communications between Suppliers and Alshehili Company must consistently adhere to communication protocols designated by Alshehili Company. Suppliers must not encourage or utilize current or former Alshehili Company employees in any manner that would lead them to disclose or provide any confidential, proprietary, or restricted information obtained during their employment with Alshehili Company to influence Alshehili Company’s existing or proposed commercial transactions for the purpose of gaining a commercial advantage.

Suppliers must also refrain from hiring, employing, engaging as consultants, procuring the services of, or allowing the acquisition of any ownership interest of the Supplier, except through a permitted passive investment, by any current Alshehili Company employee. This restriction also applies to any former employee who has held a position within Alshehili Company at the level of “department head” or higher. For former employees, this restriction remains valid for one year following their departure from Alshehili Company.

Suppliers may request exceptions to these restrictions from Alshehili Company, with such requests submitted in writing to the Senior Vice President, Procurement & Supply Chain Management. Alshehili Company is responsible for detecting any improper business practices and will take appropriate action against current or former employees and Suppliers who violate these restrictions. Suppliers are expected to cooperate with Alshehili Company’s investigations and provide reasonable assistance as requested.

5.Bribery, Kickbacks, and Fraud

Bribery is illegal in all regions where Alshehili Company conducts business, and Alshehili Company maintains a zero-tolerance stance on bribery or corruption in any form. Suppliers must not tolerate, permit, or engage in any form of bribery, corruption, or extortion. This policy applies to dealings with government officials or individuals in the private sector.

Do not offer bribes, kickbacks, or other payments intended to influence or compromise the conduct of Alshehili Company or its employees.

Do not offer bribes or anything of value to any person with the intent to gain an unfair advantage for yourself or Alshehili Company.

Do not use a third party to make or offer bribes or anything of value to any person with the intent to obtain an improper advantage.

Suppliers must avoid even the appearance of unethical practices in existing or proposed business relationships with Alshehili Company.

6. Gifts, Gratuities, and Hospitality

Suppliers and their personnel should refrain from offering or providing gifts, gratuities, or hospitality to Alshehili Company or its personnel, unless such gestures involve nominal value and align with customary business practices. Nominal gifts are defined as those of a general nature with low value, including items such as pens, caps, shirts, and coffee mugs with logos. Acceptable hospitality in terms of customary business practice includes reasonable business entertainment and business meals. Gifts, gratuities, and hospitality that surpass nominal value or reasonable standards are subject to reporting under internal Alshehili Company policies and regulations. Items available to the general public do not fall under this policy.

For clarity, Alshehili Company takes responsibility for its employees’ business expenses, and Suppliers are not expected to incur or reimburse business expenses for Alshehili Company employees.

7. Monitoring and Compliance

Suppliers are accountable for ensuring they conform to the standards and requirements set out in this Supplier Code of Conduct. They must conduct and document periodic internal reviews, inspections, and audits to ascertain their compliance with this code and its applicable requirements. Moreover, Suppliers are responsible for ensuring that their personnel working on or in support of Alshehili Company projects, jobs, contracts, agreements, and orders are well-informed and adhere to the standards and requirements outlined in this code. Suppliers are held accountable for their employees’ conduct and actions.

The implementation of this policy is a shared responsibility between Alshehili Company and its Suppliers. Suppliers are obligated to promptly disclose, in a confidential manner, any ongoing or potential incidents that raise concerns about conflicts of interest, unethical or fraudulent behavior by any party, including Supplier employees or Alshehili Company employees in relation to any Alshehili Company procurement and contracts business. Suppliers must cooperate with Alshehili Company in any inquiries or investigations regarding past, current, or potential instances of unethical or fraudulent behavior or conflicts of interest associated with any Alshehili Company business activity.

Suppliers must promptly inform Alshehili Company when they become aware of actual or potential violations of this Code of Conduct and communicate plans to correct and rectify such violations. Furthermore, Supplier employees who discover violations of this Code of Conduct should notify Alshehili Company.

Potential or actual violations of this Code of Conduct and other ethical irregularities should be reported directly to the Alshehili Company General Auditor through email, fax, or telephone.

Phone: +966-9200-10000 Ext: 115

Suppliers are expected to maintain appropriate records to substantiate compliance with the terms and conditions of this Code of Conduct and provide such evidence to Alshehili Company upon request. Alshehili Company or its designated representatives may engage in periodic monitoring activities to confirm Suppliers’ compliance with this Code of Conduct. These activities may include on-site inspections of facilities, the use of questionnaires, the review of publicly available information, or other measures necessary to assess Supplier compliance with this Code of Conduct. Such monitoring activities may be conducted in addition to any audit rights specified in an agreement with Alshehili Company. A Supplier’s performance assessment may be a factor in Alshehili Company’s selection of bidders, the administration of contracts and procurements, or possibly restricting Supplier access to new Alshehili Company business opportunities.

Based on the assessment of information available to Alshehili Company, Alshehili Company reserves the right to disqualify potential Suppliers or terminate relationships with current Suppliers that violate this Supplier Code of Conduct, in addition to exercising all other legal and contractual rights.


As Suppliers engage in the process of providing goods, services, or personnel, or when providing such under the terms of an applicable Agreement, they may access information or material deemed proprietary or confidential by Alshehili Company. In all instances, Suppliers must comply with confidentiality obligations specified in the applicable request for proposal, invitation to bid, other solicitation document, or agreement between Alshehili Company and the Supplier. Breaches of confidentiality and unauthorized disclosure or use of proprietary or confidential information are taken extremely seriously by Alshehili Company. Alshehili Company reserves the right to disqualify potential Suppliers or terminate relationships with current Suppliers who violate these confidentiality obligations.

All advertising, press releases, or printed material that references Alshehili Company or a Supplier’s relationship with Alshehili Company must obtain prior approval from the Alshehili Company Public Relations Department before publication or any other form of use.


This Supplier Code of Conduct provides a broad framework of Alshehili Company’s expectations and requirements concerning its Suppliers. It is not intended to replace Supplier obligations specified in requests for proposals, invitations to bid, other solicitation documents, or agreements between Alshehili Company and the Supplier. If a conflict arises between this Code of Conduct and Alshehili Company’s solicitation documents or applicable agreements, the terms of Alshehili Company’s solicitation documents or agreements will take precedence. The requirements outlined in this Code of Conduct are non-negotiable. Neither Alshehili Company, its Suppliers, nor their personnel or representatives are authorized to propose or approve conduct inconsistent with this Code of Conduct.