Supply Side Corporate Responsibility

Its not just about hugging treesIts hard to pick up a business publication without reading about CR (Corporate Responsibility), CSR, Corporate Citizenship or any other of the labels used to describe the latest business phenomena centered on considering the impact the business has on people, the environment and society at large. For some robust action to deliver CR is a pre-requisite, for others the business case remains unclear.  No matter what your position on CR, the consensus in the business community is that businesses will need to embrace CR in the future. Supply chains present the biggest challenge here and require specialist capability to identify impact areas and drive in measurable improvements.

The Supply Side CR Business Case

There are many notable philanthropic organisations, however business case for CR that is relevant to most businesses, is more about minimising risk than philanthropy.  Legislation is on the way or is  already here in some areas. The need to protect the brand is particularly acute in certain sectors, fueled by the internet and an upsurge of good investigative journalism looking for the next big corporate to expose.

Pressure to act is also coming from other quarters: Shareholders are beginning to demand action in this space from the companies they invest in. Indeed the value of Socially Responsible Investment funds (SRIs) has grown exponentially over recent years. Shopping basket activism has begun; not only is it clear that consumers have the belief that the big brands ‘don’t let bad things happen’ so we can enjoy our favourite products but companies whose products are based on ethical or environmental brand attributes are seeing dramatic uplifts in sales. The business case for action here has never been so strong.

Driving Improvements

Improving working conditionsWe can help to identify the priorities for improvement in your supply chains and we can map the required improvement journey for the short to medium term for your business. The Positive Purchasing Supply Side CR programs are aimed at delivering real and measurable improvements at factory or plantation level or the original point of origin. Using a combination of approaches we can develop and implement improvement programs, monitoring progress along the way to achieve the required results.

Achieving Sustainability

Achieving sustainabilityOur Supply Side CR programs not only help you understand the detrimental supply chain impacts but also help your identify the less obvious areas associated with the essential community support systems that underpin the long term sustainability of supply chains. For example programs to educate the future workforce, immunise against disease, prevent the transmission of AIDS or provide safe drinking water. All promote sustainability and help to assure the future of supply chains.

For example; for 2 cents a farmer in Rwanda can harvest the coffee beans needed to make your Latte, for 3 cents the same farmer can afford to buy fertilisers and equipment for the crop next year. The sustainable approach here would look at the long term. Slowly the global organisations that have wielded huge buying power are recognising that both best price and sustainability need to be pursued otherwise the gains are short lived. 

A Positive Purchasing Supply Chain Corporate Responsibility program includes an assessment of the potential areas where there is scope for projects or programs that will make a difference long term and help provide greater sustainability, as well as providing glowing examples that can be promoted to show real and tangible action in this space.

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Detrimental impacts

    Is child labour wrong?

    By Western standards yes, however in an underdeveloped country if the child’s work provides the only source of income for a family and the child is not suffering is it wrong to try to stop the child working? Or is this just an argument companies use to justify child labour. Understanding the true impacts is not straight forward and requires a full understanding of the specific circumstances and careful consideration. 

    Our Supply Side CR programs  begin by understanding the corporate drivers and then  developing a compliance framework and standard covering such areas as child labour, forced labour, poor working conditions, use of resources and environmental damage. Alternatively we can work with you to adopt one of the many frameworks that have been published by different organisations.

    Without local knowledge
    The child labour will run away, toxic waste will be hidden and workers will be reminded of how they must answer questions; all before you’ve even got through the factory gates.  

    Our Supply Side CR programs offers a variety of assessment methods. We combine an initial ‘hot spot’ assessment to identify the priorities for action with a variety of detailed assessment approaches aimed at gaining a precise and in-depth understanding of your supply chain impacts.    

    Sometimes local knowledge of factories in developing countries is essential to give a true assessment. Our factory audit program is designed to provide solutions in this area. We have vast on-the-ground experience within key developing markets, direct local knowledge and extensive benchmarking information. We offer an an audit capability in some of the worlds fastest developing centres for low cost sourcing we can help give you the insight you need.