Unit II

Sustainable and Ethical Sourcing

PEOPLE
PLANET
PROFITS
IT’S NOT GOOD
ENOUGH TO JUST
CONSIDER THE
PROFITS

Dr. Neha Sah, Assistant Professor, School of Fashion Design, LPU

ETHICAL SOURCING [Starting at the source]
Integration of social, ethical and environmental
performance factors into the process of selecting
suppliers.
GOAL
• Based on • to build strong, long-
trading activities term relationships with
that are ethical
suppliers.
• Tool for
new market • improving performance
opportunities in environmental, social
and ethical issues.
 • Good practice to bring a healthy environment in the
market.
• Ethical sourcing has expanded considerably from the
workers’ stand to the product itself.
• Paying respect to the social dimension of business
(people).
• The consumer demand for ethical trading.
The manufacturer keeps in consideration ethical grounds at two levels.

1. During the manufacturing process while making a product that the

customer gives importance to, while purchasing or consuming it.

2. When the manufacturer chooses the supplier for the raw materials and
other intermediate processes.
• Supply chains are no longer linear, simple and slow.

• The use of technology at every stage of supply chain

activity has enabled production and consumption in
opposite corners of the world.

• Consumers, through media are more aware and

influenced and hence they want to know whether the
goods and services they buy are sourced in a responsible
manner.
• In order to produce high quality goods and provide
socially responsible employment that complies with
international standards, the company has to make sure
that the following factors are worked upon:

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

• Employment of appropriate workers

• Workplace safety
• Pay and hours
• Respect for individuals
• Environmental standards
• Ethical standards
• Trade unions
• Inspection requirements
SOURCING LOCAL AND LIGHT
 • Producers strive for global
marketing for cutting cost
and to expand customer
GLOBAL base.
MARKET • More transportation and
more carbon footprint.
• In transportation a fabric
RESULT uses local resources and
causes local pollution, both
Homogenization of which are seen as
& external costs to the
Autonomy of product and are not passed
on to the consumer.
products
Concept of sustainable fashion celebrates:

• Originality,

• Self awareness and,

• empowerment
 Made locally
"Think globally and act locally”

• Central part of Slow fashion

• Local as a specific geographical site as well as a particular
human organization.
• Local cultural based production with the use and reuse of
local resources.
• Important for developing slow and Sustainable attitudes.
 Trending local made
• Products that enhance diversity
• Celebrate traditions, build communities
• Create meaningful employment and respect local
environment
• A combination of product, skill and emotional
investments
 LOCAL & LIGHT

• Designing local means developing a sector

with greater sensitivity to place and scale

• Designing light is focused on resourcefulness

in production and consumption
 Three P’s: Planet, People, Profit
Sourcing your products and materials locally has
benefits in all three areas:

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.