When starting an ethical sourcing project, it’s crucial to prioritize which products or services to focus on for maximum benefit. It’s best to start by directing attention to the supply chain areas with the highest risk of unethical practices, such as products or services sourced in countries with a history of human rights violations or tracing possible conflict mineral sourcing. This approach is similar to starting a sustainability initiative and can help ensure the effectiveness of the project.
It’s crucial to keep in mind that a buying organization cannot impose a higher standard of ethical sourcing on its suppliers than what it follows in its own policy on those same issues. This is essential when evaluating compliance throughout a supply chain.
Establishing ethical sourcing practices can be improved by implementing compliance measures throughout the supply chain. One effective approach is to create corporate ethics teams with members from senior leadership, legal counsel, human resources, and other functional areas of the company. This will help ensure that ethical standards are followed throughout the organization.
Best practices for ensuring ethical compliance include the following:
1. Develop strategic, close, honest buyer-seller relationships to deter unethical behavior that might destroy the relationship.
2. Build trust by allowing the suppliers to report non-compliance without fear of losing business
3. Reward best practices.
4. Schedule regular meetings with suppliers to discuss issues, risks, and best practices.
5. Implement “supplier exchanges” so that suppliers can work together to develop joint solutions.
6. Hold conferences so that suppliers can showcase solutions to the challenges faced.
7. During the audit process, include interviews with workers, not just management.