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5 Tips for the Ethical Supply Chain in 2018

Posted on June 13, 2018 3:00 am;

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By Morgan International Staff Writers 

The world we are living in is changing and individuals and businesses are increasingly paying attention to the ethical attributes of their supply chains. Some of that interest is altruistic and some of it is surely driven by the desire of their customers to be more socially responsible. These are our 5 top tips to maintain an ethical supply chain in 2018.

  1. Do your due diligence

Before you begin working with vendors, or indeed their vendors, plan out how you are going to find out if anything unethical is happening within their businesses. Consider asking questions around human trafficking, child labour, poor working conditions and so on. It may also be appropriate to conduct a site visit.

  1. Define your CSR policy

As a business, define your CSR policy and socialise it internally. Ensure your own employees are committed to maintaining ethical processes and procedures. Then make sure your entire supply chain commits to the policy. It may be worthwhile to run training sessions to bring vendors up to speed with your expectations.

  1. Review and update supplier contracts

Have a look through the contracts you have with your suppliers and ensure that they are bound by your CSR policy and any changes that you introduce in line with updated country level legislation.

  1. Audit

Check what your suppliers are doing. Within the contracts you have with them, make sure you have the right to periodically visit site. Go to their facilities or offices, speak with employees and check there are no unethical practices.

  1. Hire a CSR manager

This one will very much depend on the size of your organisation and their ability to fund a full time CSR manager. If this is not possible, ensure that somebody within the organisation has responsibility for ethics and CSR. This may fall quite neatly with an individual in a supply chain role.

In Summary

The attention given by customers, governments and businesses to ethics within the supply chain has exponentially increased in recent years and is only set to expand further. It would be prudent to begin the process now of reviewing the current supplier contracts and producing a robust CSR policy.

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