Operating a Sustainable Supply Chain

Business today must aim not only to do no harm to the environment, people or communities, but to show commitment to building a better society. The is termed Corporate Social Responsibility CSR.

 “Companies - the game has changed. Your responsibilities have changed. The supply chain is now a fundamental part of your responsibility." Dwight Justice , The International Trade Union Confederation

How it works

For a Supply Chain , CSR goes further than aiming to be compliant with national or international regulations. Managing risks, or corporate philanthropy. It has to be an integral part of every aspect of operations which helps creating sustainable business.

A company still has to be competitive and profitable but must avoid taking decisions merely for short term gain. Instead it must consider the future impact on society, the environment and wide range of stakeholders in it is supply chain. Companies now report annually on how they have met their CSR and are benchmarked and ranked against competitors.

Supply Chain Stakeholders & What matters to them

·       Suppliers: Fair trade , supply chain ethics , Code of Conduct , Transparent Policies.

·       Operations: Ethical Trading including ethical practices and pricing , managing customers and financial reporting policies.

·       Community: Housing , infrastructure , partnering with local institutions , local suppliers initiatives , educating and training local employees.

·       Workforce: Workforce safety , health and wellbeing , diversity equal opportunities , learning and development ethical policies and practices.

 Supply Chain Sustainability Reporting

In 2011, 97% of UK FSTE 100 Companies “Financial Times Stock Exchange” reporting in Sustainability on annual basis.

Companies can use the ready frameworks available globally like GRI “Global Reporting Initiative” which offer guidance on “What To Report & How To Report “ for your supply chain.

Case Study

Many Consumers expect the companies they buy from to uphold ethical practices , in 2000 an international campaign pressurized companies like Nestle and Starbucks to serve Fairtrade products like coffee and chocolate .

The public wanted to understand the supply chains as there was concern for the livelihoods of chocolate and coffee farmers. Many of whom are indigenous people . Fairtrade is an organization that ensure farmers receive a fair price for their crop. Plus a premium which is invested in improving farming practices . Coffee was one of the first products to carry the Fairtrade mark.

Next time you eat your chocolate bar, come to think if it’s a sustainable product or not. The two different pics for the same product one holds Fairtrade Sign “indicating no slavery took place in this product” and the other doesn’t.

Slavery In The Supply Chain

The World is not as perfect as we think of it, many companies has practices that is harmful to social life of its workers and society , many companies have been accused of ethical misconduct and unethical practices. The World Economic Forum issued a video on Supply Chain slavery