What is Responsible Sourcing?
The ICC Commission on Business in Society [1] defines responsible sourcing as,
“… a voluntary commitment by companies to take into account social and environmental considerations when managing their relationships with suppliers.”
When companies purchase materials, they should ensure that an holistic approach is taken, meaning that they consider how a material is mined, or extracted, through to the final use and whether it can be re-cycled or, if not, how it is disposed of. Such an approach, if carried out in an ethical fashion, can ensure that materials are responsibly sourced.
The Need for Responsible Sourcing
Arguably, one of the most effective mechanisms that a company can implement towards sustainability is that of a responsibly sourced supply chain. For a company to become a sustainable organisation, strategies that promote sustainability must be ingrained throughout the whole company. This includes any materials or goods that the company procures at any stage and the origination of such materials must be responsibly sourced if a company is to claim that it is a sustainable organisation.
Companies are growing increasingly aware that they need to promote more environmentally friendly images to their customers, to other stakeholders and to the wider public. They not only have to be accountable for their own actions but also those of their suppliers. Over the years we have seen companies criticised for their methods of production, and in some cases rightly so. For example, the multi-billon dollar global brand Nike has been criticised for allegedly employing children from the third world, e.g. Cambodia, to work in their factories. There were reports that children as young as 10 years old were being used to make shoes [2]. More recently, the high street chain, Primark has received criticism for the way it outsources some of its employment in third world countries. There were claims that some of the Indian supply chains that Primark used sub-contracted work out to children, and as a result of this Primark has now dropped three of them [3].
While it may be argued that both Nike and Primark did not suffer too much from the bad publicity, there is no doubt that it has made consumers more aware of issues such as responsible sourcing. The implementation of an effective and ethical supply chain is a positive way for businesses to gain a competitive advantage and the ICC [1] feel that this is particularly true for companies which outsource much of their production, such as clothing companies.
What Can Responsible Sourcing Lead To?
Companies such as Primark and Nike are hugely influential in the global markets and can exert leverage and influence. Therefore, arguably they have a responsibility to use this influence to implement positive change in third world countries were workers’ rights may be less progressive. They can use their influence to ensure good working conditions and that the labour rights of workers are respected [1].
Finally, more and more companies are producing corporate social responsibility (CSR) reports which include statements and policies on responsible sourcing, but it is vital that such statements and polices are upheld. While a lot of the actions of companies are done voluntarily, increased public pressure can lead to greater transparency of companies’ actions and ensure that their supply chains are regulated and comply with standards that we would expect in the UK.
References
[1] ICC Guide to Responsible Sourcing (2008) [Online]. Available from: http://www.iccwbo.org/uploadedFiles/ICC/policy/business_in_society/Statements/ResponsibleSourcing%20Brochure%20final.pdf
[2] The Independent Online (2010). ‘Nike admits to mistakes over child labour’ (2001). Available from: http://www.independent.co.uk/news/world/americas/nike-admits-to-mistakes-over-child-labour-631975.html
[3] The Independent Online (2010). ‘Primark drops three Indian suppliers for using child workers.’ (2008). Available from: http://www.independent.co.uk/news/business/news/primark-drops-three-indian-suppliers-for-using-child-work
