Page 4 - Logistics News March 2018

Thought Leadership

Ethical supply chains:

More style than substance?

Courtesy Supply Chain Quarterly

While four-fi fths of respondents to a new study say they have a “responsible supply
chain”, only a quarter say their companies are addressing issues such as child labour or
climate change in their supply chains.

MANY COMPANIES are eager to promote what environmental impact when it may include
they are doing to create ethical supply chains, thousands or even millions of suppliers. Even
such as sharing best sustainability practices with so, executives generally have “unwarranted
suppliers, incorporating social responsibility confi dence” about how responsible their supply
metrics into supplier audits and improving chains really are, the report asserts.
“supply chain transparency”, to name a few To better support social responsibility in
examples. A new report from The Economist global supply chains, the report recommends
Intelligence Unit, however, suggests that – for that companies should make better use of digital
the majority of global businesses, at least – technologies to map and monitor their supply
these eff orts remain superfi cial. chains, and they should collaborate more with
According to ‘No more excuses: Responsible other companies on setting standards. Only 27
supply chains in a globalised world’, percent of respondents are willing to cooperate
sponsored by Standard Chartered Bank, four with non-competitors to raise supplier standards,
in fi ve executives surveyed say they have a and only 23 percent are willing to cooperate with
“responsible supply chain”, yet less than a competitors, the study found.
quarter of their companies have supply chain The study surveyed 100 respondents from each
policies in place to address long-term issues of the following markets: China, Germany, Hong
such as child labour, climate change or gender Kong, Italy, Japan, Singapore, South Korea and the
inequality. Furthermore, 30 percent of fi rms United States. Nearly 40 percent of respondents
have actually decreased their focus on supply held a C-suite or board member position, while
chain responsibility over the past fi ve years, the rest held manager level positions. In addition,
according to the study. more than 50 external experts and practitioners
The report recognises the diffi culty of were consulted through interviews or in round-
monitoring a supply chain’s social and table discussions. •

4 March 2018 | Logistics News