What is an Ethical Sourcing Programme?

An ethical sourcing consultant from Executive Interims - Supply Chain Practice can help your organisation rapidly implement an Ethical Sourcing Programme (ESP).

Typically in outline this involves either establishing a small internal organisational structure (or outsourcing the service), introducing policies, procedures and guidelines based upon best practises, the selection and ongoing review of auditors in key offshore locations and systems to drive continuous improvement which are seamlessly integrated with supplier relationship management programmes.

Ethical Sourcing - Supplier Code of Conduct.

A fundamental tool of any Ethical Sourcing Programme, is the Ethical Sourcing - Supplier Code of Conduct, which establishes unequivocal standards for vendor behaviour.

Achieving Supplier "Buy In"

In the same way that suppliers have to formally sign up to quality assurance standards, it is necessary to obtain confirmation they both understand and sign-up to their obligations under an Ethical Sourcing - Supplier Code of Conduct.

An important element of this part of the process, is establishing procedures which remove potential excuses for non-compliance downstream. This means that the Ethical Sourcing Supplier Code of Conduct must be communicated clearly, its message appropriately reinforced and the procedure for the application of sanctions in the even of non-compliance clearly explained. Best practise Ethical Sourcing Programmes have elements to address these issues clearly procedurised.

Cascading the Ethical Sourcing - Supplier Code of Conduct

Often an Ethical Sourcing - Supplier Code of Conduct will specify that suppliers must apply the same principles in dealings with their own supply chain. Making this happen in practise is challenging and auditing procedures must be designed to reflect this.

Auditing of Supplier Compliance

Our ethical sourcing consultants understand how difficult it can be to assure compliance with the standards of an Ethical Sourcing Programme, particularly because its not unknown for some suppliers to systematically misrepresent their levels of conformance. This means that when dealing with offshore suppliers, local auditors need to be selected using an in-depth approach to reviewing both their supplier auditing and self-auditing procedures. Testing the transparency of prospective suppliers of auditing services is a key part of any selection process, so that throughout the lifetime of the relationship auditors are themselves prepared to be scrutinised.

Driving Continuous Performance Improvement

Conformance to ethical sourcing standards needs to be measurable, so that improvements can be encouraged as part of an ongoing supplier relationship management programme. Performance metrics need to be carefully designed accordingly.

Procedures and Sanctions in the Event of Non Compliance

The procedure for the application of sanctions in the event of non compliance, must be clearly understood from the inception of the commercial relationship, and when the Ethical Sourcing - Supplier Code of Conduct is not complied with, it is crucial that suppliers understand that appropriate sanctions will be applied.

Corporate Social Responsibility Reports

Any ethical sourcing programme will have a considerable input into the preparation of regular Corporate Social Responsibility Reports.

Ethical Sourcing Programme - Want to Know More ?

If you'd like to know how ethical sourcing consultants can help you to implement an ethical sourcing programme to protect your organisation's reputation for ethical trading and corporate social responsibility, feel free to contact us.