New Frontiers in Procurement-Driven CSR

Corporate social responsibility is a big deal in the modern procurement industry. Modern consumers have more information at their fingertips than ever before, and they have no qualms about drilling down into a company’s operations and basing a purchasing decision on how that company behaves throughout its entire network.

Not only this, but the regulatory environment is getting ever tighter, and a time will come very soon when those brands which are still relying on suppliers which exploit people, and the environment will simply no longer be able to operate.

And there’s the small matter of it undeniably being the right thing to do.

“No company can avoid the topic of sustainability any longer,” writes Apsolut’s Ferhat Eryurt. “With new legislations mounting, companies are under growing pressure to take environmental, social, and employee concerns into account, to respect human rights and to support the fight against corruption. Examples include the EU’s CSR Directive, which requires large publicly traded companies to regularly submit sustainability reports, and the European Green Deal, which commits companies in the EU to climate-neutral operations by 2050.”

Beyond Boycotts

However, boycotts are not necessarily the answer. Many of those countries which we rely on for base materials and other products, have things child and forced labour baked into the entire culture and, if they market suddenly dries up for those materials, that workforce can find itself simply moved into far darker and more abusive industries.

This means that big brands need to work with these people and invest to change things at a far deeper level than simply withdrawing business. Yes, this will have a monetary price tag attached to it – not to mention time and effort – but if we’re truly dedicated to creating a better and more corporately responsible world, then it’s the only way to truly achieve it.

Obviously, this all ties into procurement. Businesses need to establish a deeper relationship with their procurement departments and grant them more power to work with suppliers. This way, organisations which have a real commitment to creating a better world for everyone can help educate and develop those countries where irresponsible practices are rife and improve their own image, profitability, and the planet as a whole.

“Procurement can be the vehicle to help document organizational needs, scope out external services, compare offerings across multiple providers, and negotiate both price and services to align with your organization's budget and requirements,” writes Strategic Sourcerer. “CSR is a culture, and sourcing can help drive that culture and promote participation.”