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Being an Ethical Business
Gill Thorpe FCIPSCEO, The Sourcing TeamUnited Kingdom
British Promotional Merchandise Association
Lifetime Fellow: Chair, President and Board Member
The Chartered Institute of Procurement & Supply
CIPS Trustee on Council
FCIPS - Fellow since 2011
CIPS Fellows Committee Member
Women-Owned Business (WBE) Council
Set up in 2015 to support WEConnect. Now Chair.
Meeting Gill
• What is an Ethical Business?• Why Does it Matter?• Recognizing Ethical Behaviors• Where do we Start?• The Ethical Business Case• Three Key Areas • Our Commitment
Agenda
What is an Ethical Business?
Defining an Ethical Business
• Force for good• Power of principles• Managing risk• Integrity• Taking responsibility• Accountability• Putting back • Doing the right thing
“A truly ethical company will be one that is not causing damage to the environment, exploiting its workforce by paying low wages, using child labour, or producing products which are harmful or dangerous.”
What is an Ethical Business?
Why does it matter?
“True Cost”
Impacting the Supply Chain
Being ethical impacts all inputs and processes
up and down the supply chains …
from fashion to manufacturing …
Freedom of Association?
Pollution in our Environment
Bribery & Corruption
Bonded & Child Labor
Health & Safety
Health & Safety
Health & Safety
What can we do differently?
“Being good is good business”
Anita Roddick 1942-2007
British founder of The Body Shop
How do we do it?
“Trading Ethically (ETI)”
The Ethical Trading Initiative (ETI) is a leading alliance of companies, trade unions and NGOs that promotes respect for workers' rights around the globe.
Marks of an Ethical Business
• Ensure workplaces are fit for workers
• Payment of living wages
• Integrating ethical trade into core business practices
• Tackling discrimination in the workplace
• Focusing improvements on the most vulnerable workers
• Capacity Building within the supply chain
Priorities set by ETI
The world's largest corporate sustainability initiative
Calling companies to align strategies and operations with universal principles on human rights, labour, environment and anti-corruption, and take actions that advance societal goals.
UN Global Compact
Since 1919, the ILO has brought together governments, employers and workers representatives of 187 member States, to set labor standards, develop policies and devise programmes promoting decent work for all women and men.
International Labor Organization
Managing Global Supply Chain Risk
• Driving collaboration, transparency, reducing duplication
• End-to-end process addressing Environmental, Social and Governance issues
• Not for profit membership organisation
Three levels of Membership, 37,000+ supplier organisations across 150 countries, 650+ purchasing organisations including FTSE100/Fortune 500 brands, 70,000+ audits on Sedex
Impacts 24 Million workers globally
• Labor Standards• Health & Safety• The Environment• Business Ethics
Marks of an Ethical Business
What is the business case?
Ethical Business In Profit
Ethical companies are more profitable for many reasons:
• employees are more productive• employees are less likely to leave • consumers respond positively to companies that are
perceived as ethical • vendors and suppliers prefer to deal with ethical companies • ethical companies attract higher talented executives and
employees.
The Dow Jones Sustainability Index 2016
“Sustainability Investing has the extraordinary power to shape the world we want to live in while generating financial returns for our clients.”
Michael Baldinger, CEO RobecoSAM
Top US Sustainable Companies
Sustainability Yearbook Highlights 2015
The World’s Most Sustainable Companies
Top 10 Industries by participation rate
Primark Case Study: CIPS Award Winner 2016
Ethical in Practice: People
Empowering women in the supply chain
Sodexo Case Study: CIPS Award Winner 2016
Ethical in Practice: Supply Chain
Sodexo’s supply chain inclusion program is designed to help small to medium sized enterprises enter Sodexo’s supply chain
Ethical in Practice: Environment
PWC Case Study: Ethical in Practice Award Winner
PWC was awarded the Best in Waste Management Award for its robust waste minimisation programme, reducing the total waste generated by the firm by 29% over the previous certification period.
Where do I start?
What is an Ethical Business?
Three key areas that work for our sector
PeopleSupply Chain Transparency
Environment
Key Areas to Focus On
How well are you managing your teams?
Focus On: People
• Identify vulnerability and risk
• Supplier engagement
• Evaluation and set the criteria
• Procurement plan
Focus On: Supply Chain
• Audits and site visits
• Drive improvement
• Share best practice
• Ongoing supplier engagement
• Annual surveys and process reviews
• Share best practice
Focus On: Supply Chain
How many of you are being asked by your customers for transparency of your supply chain?
Focus On: Transparency
Lack of transparency hurts people around the world. It is robbing billions of people of a brighter future.
Focus On: Transparency
• Establishing goals
• Setting the measures
• Review progress
• Engage with teams, suppliers and customers
• Evaluation and set the criteria
• Accreditations: EcoVadis / ISO’s
Focus On: Environment
What can you take back to your business?
Three Key Areas for Our Sector
People
Supply Chain and Transparency
Reduced Inequality
Annual Strategy for Change
• Goals • Measures• Ongoing improvement• Share learning and success
How do we do it?
Focus On: People
Help people reach their potential
• HR review• Development program • Freedom of expression• Worker committees
Focus On: Supply Chain
Supply Chain Management
• Review/implement supplier approval process• Create/update supplier selection criteria• Ask meaningful questions – “don’t tick boxes”• Share your knowledge
Focus On: Environment
Start with Small Steps …
• Energy usage• Recycling• Staff awareness• Reducing packaging waste
Commit today to Three Actions
Commitment