Ethical Sourcing Awareness Trickling Down Global Supply Chain: Report

Ethical Sourcing Awareness Trickling Down Global Supply Chain: Report

A gathering of stakeholders met in New York this spring to discuss ways of fostering ethical sourcing.

Their ideas have been compiled in the Ethical Sourcing Report 2008 geared toward advancing sustainable social and environmental supply chain practices. Among the finding: Awareness of social responsibility issues is spreading to producer countries and having a positive impact.

"Today's global business environment is filled with higher expectations for responsible supply chain programs, increasing demands for authentic measurement and transparency in reporting, and even greater expectations for effective and sustainable remedial efforts as issues are identified," said Andre Raghu, president of Intertek Sustainability Solutions, which released the report Thursday.

The report found that corporate values have a better chance of trickling down the supply chain via tailor-made capacity building. CSR performance has become a bargaining chip for attracting business, and companies are increasingly training buyers on sustainable procurement.

But the results aren't all rosy. The report found that most companies lack procedures to measure the impact of CSR or ethical sourcing on business operations. Unrealistic buyer and supplier expectations continue to plague the discussion.