Ethical Sourcing: A Crucial Aspect of Modern Supply Chain Procurement

In today’s modern world, ethical sourcing plays an important role in sustainable supply chain management. According to experts at Gibson Consulting, companies that minimize environmental impacts and follow the right labor practices doesn’t just benefit financially. They also contribute greatly to a more sustainable and just society. This, in turn, creates a more promising and better future for everyone who depends on ethical sourcing.

What is Ethical Sourcing?

Ethical sourcing is a process that ensures the employees involved in manufacturing the products are not just safe. It also ensures they are in a sustainable environment free of bribery, fraud, and corruption. Because of this, workers are treated fairly, and human rights are respected.

Procurement experts must also consider the bottom line: profit, planet, and people. They should always uphold ethical behavior by reporting instances of corruption and bribery they encounter.

In addition, the ethical sourcing concept involves various practices aimed at minimizing environmental impacts and promoting fair labor conditions. All these are achieved through the following practice:

• Sustainable procurement: This concept doesn’t just involve preserving natural resources for future generations. It also involves minimizing carbon footprint and choosing supplies that are produced or harvested in an environmentally conscious way.

Ethical Sourcing Challenges

Monitoring the behaviors of suppliers globally is not easy. Cultural diversities also add to this complexity. And do you know what this means? It means one code of conduct won’t be enough.

Solutions

Regardless of the challenges, many business organizations have started acknowledging the need for sustainable and ethical sourcing. This reflects their commitment to environmental and social responsibilities. We can effectively address those challenges through collaborative and dedicated strategies like the following:

Define Sustainability Goals & Values

We can achieve this in two major ways. First, we will need to begin with introspection. What are your business's core values regarding environmental sustainability and social responsibility? Clearly define those values to set the basis for your strategy.

Second, develop comprehensive policies. This involves translating your core values into concrete policies by outlining your expectations. These policies must address ethical business conduct, fair labor practices, and environmental sustainability.

Collaborate with Suppliers

Suppliers’ collaboration to improve and change ethical practices and behaviors is one of the top strategies that improve performance. 

Nearly half of the businesses in a report believe investing in collaboration programs can improve ethical sourcing performance.

Prioritize Education & Awareness

You can provide proper resources and training to understand sustainable and ethical sourcing and the negative effects of irresponsible and unethical business practices.

Providing resources and education can also help cultivate awareness of the need to adopt more sustainable and ethical business practices.

The bottom line is that responsible procurement has already become important in today’s modern market. Ethical sourcing remains an important aspect of this concept, ensuring businesses prioritize environmental and social practices in supply chain management. Proper ethical sourcing practices will enable your company to protect your well-being/rights and greatly contribute to developing sustainable goals.