Most consumers are caught between the idea of being socially responsible and financially practical. This has been a conflict of interest for most corporations that are often forced to make procurement decisions that stray from their personal ideas on sustainability and social liability.
Most of the time we’re conditioned to believe that in we must be willing to pay the price for being conscientious about our choices. We all feel socially more responsible, accountable and certainly more informed. It’s 2019 and there isn’t much room for ignorance, specifically in a digital-run era.
An greater number of suppliers are embracing sustainability, if only to appeal to the masses of those who are more intelligible than some who claim that the threats of global warming are feeble. Those who are making this a priority are setting examples for positive economics at large.
According to the Institute for Supply Management (ISM), socially responsible procurement is “a framework of measurable corporate policies and procedures and resulting behaviour designed to benefit the workplace and, by extension, the individual, the organization, and the community.” It’s a big definition, but it’s rooted in simple logic. Social responsibility by those who supply and those who sell.
How to go the sustainable route:
Here’s where it gets tricky. As supply chains expand globally it is more difficult to determine the sustainability actions that are put forth by a large supply base. To make sure that the chains are well oiled but not pouring over, sourcing and supply management are focused on the idea of “triple bottom line:” being economically strong, upholding social responsibility and maintaining environmental stewardship.
This means that suppliers must have solid plans to maintain sustainable practice or it may as well be a grand gesture. It’s also as good for business as it is for the environment. Let’s face it, sustainability is a market in and of itself.
The green approach can work towards cost reduction. Here’s how:
Freight carriers are choosing a more competitive and sustainable framework. There are mandated federal fuel mileage requirements for truck manufacturers, but its the managers who face pressures to reduce operating costs.
To this end, those pressures manifest into changes in fuel types and in some cases that means from diesel to natural gas or electric. Operating changes lead to more cost effectiveness that helps customers and their bottom lines.
Looking at sustainability in the bigger picture allows businesses to understand that it is an issue with the greatest return on investment.
Being socially responsible when sourcing is only considered when it’s seen as cost effective. It’s only going to become more viable when managers are upfront with suppliers about their sustainability interests and that will ultimately support a sourcing strategy that is truly sustainable – with time and resources.
