Traidcraft, CIPS and the Walk Free Foundation have launched the guide in response to the human cost of sourcing cheaper goods in an increasingly competitive and complex global economy.
The guide, Ethical and Sustainable Procurement, is designed to help buyers who may unknowingly be sourcing from companies operating outside the law or subjecting workers to poor wages and inhumane conditions or in forced labour environments. The guide forms part of the initiative between CIPS and Walk Free Foundation to eradicate modern slavery in supply chains.
The document offers guidance on the procurement cycle including identifying vulnerability and risk, evaluating and shortlisting suppliers, creation of contract performance and updating ethical procurement programmes. It contains useful practical information on how to communicate with suppliers from other regions in the world and highlights potential social and cultural differences.
Walk Free Foundation’s Global Slavery Index estimates there are 29.8 million people who are trapped in modern day slavery and the International Labour Organisation believes that business and governments are largely responsible for this.
CIPS Group CEO David Noble commented, “The increase in global sourcing has led to an increase in serious issues being discovered in procurement practices, in particular the occurrence in the supply chain, unwittingly or otherwise, of modern slavery. We have to make a step change as a profession to make a real difference in business and society.”
Andrew Forrest Chairman of Fortescue Metals and Founder of Walk Free Foundation said: “The slavery industry generates over $32 billion in profits globally. Businesses around the world have their part to play in ensuring slavery is eradicated from their supply chain. The first step is asking the question – that is – doing a supply chain audit, and that is where procurement officers can show true leadership on the issue.”
Mags Vaughan Chief Executive of Traidcraft added, “Purchasers have a crucial role to play in ensuring their actions enable good working conditions. Good planning, sufficient lead times, paying enough for workers to earn a living wage, and prompt payments are key enablers for suppliers to be able to employ their workers with good conditions.
“This guide provides practical pointers for purchasers to use. We hope that senior management and chief executives will set objectives and incentives which reward their buyers for selecting suppliers with good conditions for their workers, and those buyers who purchase in a way which enables suppliers to plan and provide good working conditions.”
Anyone with responsibility for procurement and supply chain management is urged to read the guide available on the Traidcraft and CIPS websites.