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PEOPLE
PLANET
PROFITS
IT’S NOT GOOD
ENOUGH TO JUST
CONSIDER THE
PROFITS
2. When the manufacturer chooses the supplier for the raw materials and
other intermediate processes.
• Supply chains are no longer linear, simple and slow.
Substandard facilities
Uneducated workers
Lack of management capabilities
Inefficient government enforcement of local
labour and environmental legislation
Dimensions of Ethical Sourcing
• Child Labour
• Environment
• Sweatshops
• Racial
Discrimination
For ethical sourcing to address the issue of
ENVIRONMENT, the company must make sure that its
vendor or suppliers comply with the following:
• A published policy, vision statement or charter committing to
protect the environment
• The company should demonstrate environmental leadership and
responsibility
• The company should have staff positions responsible for overseeing
environmental issues
• The company should use "design for the environment“ principles
when developing new products or constructing new facilities
• The company should have a program for recycling materials used at
their facility
• The company should have a policy against using wood and paper
products derived from the harvesting of old-growth forests
• The company should measure and attempt to reduce resource
consumption
For ethical sourcing to address the corporate social
responsibility, the company must make sure that its
vendor or suppliers comply with the following:
• The company should have a social accountability statement,
policy or code of ethics
• The company should monitor corporate social responsibility
(CSR) performance
• The company should have a staff position responsible for
overseeing social responsibility issues
• The company should have a system in place for supply chain
social accountability
• The company should model socially responsible employer
practices
• The company should ensure conditions of employment are
fair and just
The supplier company should set its policy in writing,
for the following issues
• Originality,
• empowerment
Made locally
"Think globally and act locally”
Planet:
• Buying from local vendors and manufacturers cuts
down on fuel emissions
• Local purchasing encourages biodiversity.
PEOPLE
• Support to local economy
• Foster community pride when source locally.
• Easier to build lasting, trustworthy partnerships with
vendors when you can meet them face-to-face.
• Can help reduce corporate contribution to slave labor and
unfair treatment of factory workers when buying supplies
from vendors that hire local workers who are protected
by strict regulations.
PROFIT
• People are willing to pay a little bit more for a product or
service if they know their purchase supports local,
environmental, or social causes.
• Emotional ties to causes can foster brand loyalty.