Supply Chain Ethics

It's easy to think "business ethics" and think "simple." After all, the only rule you'll ever need is the golden one, just like in grade school and everywhere else, right?

Well, sure. But in the highly complex world of commerce that we now inhabit there is a lot going on, not all of which is readily visible, one might say, "to the naked eye." Any business that deals in physical products especially, like vacuum cleaners or auto parts, will necessarily rely on a large "supply web." This web often consists of dozens of global partners, not all of whom you can monitor for things like fair labor practices compliance, at least not all of the time.

That's why the Ethical Trading Initiative, a trade organization that helps companies comply with transnational fair labor practices, recently released a new version of its workbook to help you ensure that your company is dealing with ethical supply partners.

Highlights include:

Know your suppliers â€" Cut out the middle man and where possible and develop long-term, direct relationships with your suppliers. This will help you build the trust and leverage you need to help make sustained improvements to workers' conditions.

Incentivise your suppliers to do the right thing â€" Make sure compliance with labor standards is built into your contracts with your suppliers, so they know you mean business. Reward them for their efforts with repeat orders.
Improve production planning â€" Deciding to change an entire line after production has already started can mean workers are forced to work excessive hours in their efforts to complete orders on time. Give suppliers clear and predictable lead times, making it easier for them to ensure their employees work predictable and reasonable hours.

Look at the price you pay your suppliers â€" Make sure that it allows your suppliers to pay their workers a wage that they can afford to live on--

To see more or order the workbook via PDF, visit the ETI website.

This intelligence comes to us via our friends at Ethics World.

(Image by pickinjim2006 via Flickr, CC 2.0)