Ethical Supply Chain Management
As the world observes International Human Rights Day on December 10th, it’s crucial to reflect on the role of ethical supply chain management in safeguarding human rights. Ethical supply chain practices lie at the heart of corporate social responsibility, ensuring that products and services are produced in a sustainable manner that prioritises fair treatment for workers and the environment. This includes eradicating child and slave labour, guaranteeing safe working conditions, fair remuneration, and anti-corruption measures.
The importance of effectively managing your business’s supply chain cannot be overstated, and here are some outlined benefits:
1. Consumer Demands and Competitive Edge: A 2018 Accenture Strategy survey, polling 30,000 consumers in 35 countries, revealed that over half of UK consumers expressed a desire for companies to take a stand on ethical issues such as sustainability and fair employment practices. This signifies that the supply chain has evolved over the years from a concealed “back-office” function to a visible, competitive differentiator in today’s business world. Your firm needs to acknowledge this trend and align supply chain practices with ethical values to stay ahead in the market as this now influences consumer choices.
2. Emphasise Ethicality Across Stakeholders: A significant 83% of supply chain professionals prioritise ethics within their organisations, according to a 2021 survey by OpenText. Ethical supply chain management isn’t solely the responsibility of your firm; it involves all stakeholders – from employees to suppliers, customers, and trading partners. Focus primarily on employment and worker issues, followed by robust general policies to embed ethical practices within the supply chain.
3. Adherence to Stringent Regulations: Aligning with government regulations, (such as The Modern Slavery Act (MSA) 2015 and the Environment Act 2021) is crucial. Given the advancing legislation worldwide imposing stricter penalties for breaches in working conditions and anti-slavery laws, your firm needs to ensure compliance. Non-compliance can lead to severe consequences, including hefty fines, sanctions, investor withdrawal, and loss of customer confidence.
4. Brand Loyalty and Revenue Impact: Adopting ethical supply chain practices can positively impact brand loyalty and revenue streams. Choosing suppliers that prioritise fair wages, environmental sustainability, and responsible sourcing not only enhances operational efficiency but also elevates your brand value. This resonates with consumers who value products made ethically and sustainably.
In summary, ethical supply chain management stands as a cornerstone in advocating for and safeguarding human rights globally. Businesses must provide transparency within their supply chains to prevent human rights violations and ensure adherence to international laws and standards. This not only shields companies from potential legal and reputational risks but also positively impacts their bottom line.
As International Human Rights Day approaches, this call for ethical commitment becomes more resonant. It’s not a one-time fix but a continuous dedication crucial for sustained success. At Migasuto, we stand firm in reinforcing your pursuit of ethical business practices to foster a more equitable and just world. Let’s stand together as we embark on this journey toward a future where ethical principles shape the very core of corporate operations.
