By including ethical sourcing practices in the supply chain, similar benefits can be achieved as when incorporating sustainability in the procurement process.
1. To prevent legal consequences such as fines, legal fees, or environmental cleanup costs, it is important to ensure compliance.
2. It is important to avoid any actions that could harm the company’s reputation for not being socially and environmentally responsible.
3. Improving the health, safety, and environmental policies of suppliers in developing countries can lead to an increase in return on investments.
4. Collaboration, monitoring, and audits can enhance the efficiency of supply chain operations.
5. A positive corporate image can lead to a boost in competitive advantage.