How do you incorporate sustainability and social responsibility criteria into your sourcing decisions?

Incorporating sustainability and social responsibility into sourcing decisions is crucial for businesses. Here are key practices: 1. Define Clear Principles: Set ethical guidelines for procurement. 2. Screen Suppliers: Evaluate labor practices and environmental policies. 3. Auditing Process: Audit suppliers for labor rights and safety. 4. Transparency: Label responsibly sourced products. 5. Value Chain Commitment: Engage the entire value chain in sustainable practices. By adopting these practices, companies positively impact society, the environment, and their bottom line. Thank you for reading my comment! If you have any questions or would like to discuss this topic further, please feel free to message me directly 👌

To offer a fresh perspective, don't overlook the role of stakeholder input in this process. Soliciting feedback from your employees, suppliers, and customers can offer invaluable insights into the real-world impact of your practices. I've seen a local business significantly enhance their sustainability practices simply by engaging in regular, structured dialogues with their stakeholders. This allowed them to identify blind spots, co-create solutions, and drive improvements that met both their business objectives and their social responsibility goals. This approach proves the adage true: two (or more) heads are indeed better than one.

I assess my situation by taking these steps. 1- I start by connecting with key stakeholders across my organization to understand their priorities, concerns, and expectations. 2- I review our current sourcing practices to assess how sustainability and social responsibility are currently incorporated, if at all. 3- I conduct supplier surveys, audits, and assessments to assess the sustainability and social responsibility practices of our existing suppliers to understand their current performance. This helps me evaluate environmental impact, labor practices, and community engagement. 4- I assess risks related to environmental issues, human rights violations, labor practices, ethical sourcing, and community impact.

To incorporate sustainability & social responsibility into sourcing decisions: 1. Evaluate suppliers based on ethical sourcing, fair labor practices & compliance. 2. Seek transparent suppliers for visibility into materials & working conditions. 3. Prioritize eco-friendly practices & renewable energy sources. 4. Ensure social compliance with fair wages, safe conditions & human rights. 5. Foster collaboration with sustainable & responsible suppliers. 6. Prioritize traceability & certifications for sustainability verification. 7. Assess & mitigate environmental & social risks. 8. Encourage continuous improvement through expectations & monitoring This promotes ethical practices & positive social & environmental contributions in the supply chain

Sourcing decisions should be made with a strong sense of responsibility and accountability. By assessing potential environmental, social, and ethical risks and taking proactive measures to mitigate these risks, we can create a positive impact on the world around us. Be sure to conduct thorough due diligence on suppliers, particularly those who operate in high-risk regions or industries, and establish monitoring mechanisms to address any potential issues. Together, we can build a sustainable supply chain that benefits everyone involved.

Ensure transparency and clarity in the supplier code of conduct and onboarding process, emphasizing that adherence to the code is mandatory and non-negotiable. Enforcing a strong code of conduct helps reduce risks and create positive impacts. Also, regular audits are vital for consistent adherence to sustainability standards and improvement. Ask suppliers to be transparent about their primary supply chain to promote accountability and sustainability, and communicate expectations clearly for sustainable sourcing practices.

Defining clear criteria and policies for sustainable and responsible sourcing is crucial. It demonstrates our commitment to our values and stakeholders' expectations. By aligning with reputable frameworks like the United Nations Global Compact and ISO 26000, we ensure robust and ethical guidelines. Transparent communication with suppliers fosters collaboration towards a greener and socially conscious supply chain. Together, we create a positive impact on the environment and society.

In my experience, a company can create a "responsible sourcing/supply chain" policy statement that sets a lot of obligations on the suppliers. Kind of outsourcing its own compliance requirements to its suppliers in a broad brush manner. This "responsible sourcing/supply chain" policy acts as a check -the-box kind. Companies needs to understand the implications of setting a policy including whether or not the company or its suppliers event is ready to execute the policy. You can have the best written policy and at the same time have no one that understand what is the requirements to really meet the policy. Doing so may subject a company to "greenwashing" accusations and that is the reason companies shy away from setting such policies.

Evaluating and selecting suppliers with a strong focus on sustainability and social responsibility is key to our success. We prioritize transparency and integrity by using robust assessment methods like self-assessment and third-party verification. Our goal is to build enduring partnerships based on shared values, innovation, and diversity. By collaborating with responsible suppliers, we create a positive impact on the environment and society, driving meaningful change in our supply chain.

Constant supplier evaluation is essential. Sustainable procurement KPI's are (or should be) part of your overall strategy. Sustainability, on the long run can bring tangible savings. Suppliers should be evaluated on their global / regional / local impact. You should evaluate also from which regions / country sites you will be purchasing your raw materials / products / and services and assess the risks and sustainability policies put in place by the local government and if the supplier would like to follow even more stricter rules.

By fostering collaboration with our suppliers, we can promote sustainability initiatives throughout the supply chain. By working together and implementing best practices, we can identify opportunities for improvement and track progress toward sustainability goals. By encouraging transparency and open communication, we can overcome challenges and drive continuous improvement toward a more sustainable future.

Evaluating and selecting suppliers involves assessing them against your criteria and policies. Use methods like requests for proposals, supplier self-assessments, and third-party verification to gather insights on their sustainability and social responsibility practices. Additionally, consider factors such as innovation, collaboration, and diversity. Aim to build long-term, mutually beneficial relationships grounded in trust, transparency, and shared values.

One time at work, we were evaluating different grinding technologies that have a long term impact on our strategy as well our profitability. The company was using an elaborate total cost of ownership model that considered electric consumption as well as repair and replacement costs. I added a carbon emissions comparison to the model to compare between different approaches including in-situ repair and replacement as well as off-site repairs and also new replacement every few years. The decision making became a multi-factor decision making rather than based on cost only. It was based on longevity as well as continuity of operations (as compared disruption due to equipment down time). All these variables informed the decision making.

Forgetting to Measure Impact: Without assessing the effectiveness of training programs, you’re missing out on insights that could drive improvement. -Quantitative & Qualitative Metrics: Use a mix of performance data and feedback to gauge success. -Continuous Improvement: Leverage insights gained to iterate and enhance future training initiatives.

Emphasizing sustainability and social responsibility in our sourcing decisions is vital to our business values and success. We continually monitor and improve our performance through meaningful indicators and stakeholder feedback. Our commitment to responsible sourcing not only benefits the planet and society but also strengthens our reputation and competitiveness. By aligning our values with our sourcing strategy, we create shared value for all stakeholders and drive positive change in our industry.

Organizations that want to source talent, goods, or services more sustainably and equitably need to have a hard and honest discussion about 2 things. 1) Economics: While there are a few places where the 'right' choice is also economically neutral or better, in many cases this is not so. Companies must decide how much it is worth to them and pony up funding. 2) Inclusion/Adoption: It is all well and good to bring in diverse talent or alternative goods/services, but if the culture is not one that allowed for inclusion of diverse concepts or adoptions of 'new' alternatives - there will be no success. Tough discussions must be had before step 4 to make sure you are monitoring the right drivers and outcomes.

To promote sustainability and social responsibility, it is crucial to prioritize building long-term partnerships with suppliers who are committed to the same values as yours. It is essential to invest in developing strong relationships based on trust, mutual respect, and shared values. These partnerships can facilitate collaboration and drive positive change over time, enhancing sustainability and social responsibility efforts.

To incorporate sustainability and social responsibility for long term sourcing partnerships it is critical to be aware of industry changes and upcoming regulations. Changes in government regulations, such as the Extended Producer Responsibility (EPR) will put the onus of environmental responsibility and end of life impact on the company that supplies the products. Being mindful of upcoming regulations and adhering to them will help with long term successful sustainability initiatives.

In my experience, you need to build the business case for sustainable procurement. You need to speak the executive language. You need to adjust the message to the audience, which means you need to know your audience. One time, I modeled the impact of 8% procurement savings to be equal to 20% increase in revenue. I used very conservative assumptions that management knows about. I presented in how you can use a leverage to off-set reduction in revenues. The CEO mentioned that it takes a lot of hassle to produce 20% increase in revenue.