Guide to responsible sourcing: integrating social and environmental considerations into the supply chain

Many companies have literally thousands of suppliers across the globe. While a company cannot be held accountable for the actions of all its suppliers, its purchasing activities may create leverage to influence and monitor its suppliers’ conduct in areas such as working conditions, respect for labour rights and environmental protection.

The ability of companies to influence their suppliers’ business conduct will vary greatly depending on the commercial environment in which they operate and the nature of their supplier relationships. The great diversity that exists within business requires companies to consider a range of tools and approaches so that these can be tailored to their specific circumstances.

To help companies develop their own approaches to responsible sourcing, this guide provides a series of practical steps from a global and multisectoral perspective. These steps are based on real-life experiences from around the world, and can be used by companies of all sizes, sectors and regions.

Because not all suppliers pose risks, and many have good business practices already in place, the guide suggests that a company should focus on high-risk areas, concentrating efforts where they are needed most and most likely to bring about change. It elaborates on the following basic steps that companies can take to influence and monitor social and environmental performance in their global supply chains:

• selecting a supplier
• set clear expectations on compliance with the law
• integrate responsible sourcing into buying practices
• support suppliers in setting their own business standards
• track supplier compliance
• manage stakeholder expectations and reporting