What is it?
Obtaining supplies and materials in a responsible and sustainable way, considering the workers’ conditions and environmental impact.
How does it work?
Ethical Sourcing refers to the process of ensuring that the products being sourced are obtained in a responsible and sustainable way, which takes into account the working conditions of laborers, and the environmental impact of sourcing practices.
When is it useful?
In a business context, ethical sourcing is increasingly becoming a vital aspect of corporate behavior and brand identity. Companies that practice ethical sourcing will look to obtain their materials and products from suppliers that adhere to certain ethical standards. These standards can include fair labor practices, such as paying fair wages and ensuring safe working conditions, and environmental sustainability, such as reducing waste and minimizing carbon emissions.
Real-World Impact
A prominent example of ethical sourcing is the coffee company, Starbucks. They established their Coffee and Farmer Equity (C.A.F.E.) Practices in 2004, a set of guidelines designed to ensure that the coffee they source is grown and traded in an ethical and sustainable manner. These guidelines cover product quality, economic accountability, social responsibility, and environmental leadership. By 2015, 99% of Starbucks coffee was ethically sourced.
How to Get Started
Understanding ethical sourcing is beneficial when using Empress’s suite of tools and services to enhance business operations. It can help businesses to build a more sustainable, fair, and ethical supply chain. This not only improves the company’s image and relationship with its customers, but also increases the stability and quality of its supply chain, leading to more reliable business operations.
Get the Empress Edge
Effective ethical sourcing goes beyond just ‘doing the right thing’. It can also bring significant business benefits. For example, it can help to strengthen a company’s brand, by demonstrating a commitment to ethical values. This can boost customer loyalty, and even attract new customers who value ethical behavior. It can also help to ensure a stable supply chain, by promoting good labor practices and sustainable sourcing, which can reduce the risk of supply disruptions.