Module 12: Socially Responsible Supply Chains

Corporate Social Responsibility (CSR)

A business model that helps a company be socially accountable—to itself, its stakeholders, and the public.

Aspects of CSR

Legal and Ethics
Serves the Community/Society
Environmentally Sustainable

Environmental, Social, and Governance (ESG)

Practices that promote responsibility for environmental issues, social improvement, and ethical internal practices

Sustainability in the Supply Chain

Ethical Sourcing
Sustainability in Manufacturing
Logistics and Environmental Impact
Transparency and Accountability
Community Impact

Ethical Sourcing

The process of ensuring that the products being sourced are obtained in a responsible and sustainable way, respecting people, animals, and the planet.

Four Reasons to be Socially Responsible

Avoid legal trouble

Positive public image

Enhanced profitability

Doing the right thing

Due Diligence

The process of evaluating and monitoring business partners to ensure legal and ethical compliance.

Aspects of Due Diligence

Supplier Evaluation
Transparency and Traceability
Risk Management
Accountability
Collaboration
Continous Improvement

Supplier Code of Conduct

A set of guidelines for suppliers to adhere to regarding ethical, legal, and social standards.

Aspects of Supplier Code of Conduct

Labor Practices
Environmental Standards
Ethical Business Practices

Manufacturing Compliance

Ensuring that manufacturing processes and products adhere to relevant laws, regulations, and standards related to safety, quality, and environmental impact.

Good Manufacturing Practices (GMP)

Manufacturing Audit

Audits that systematically evaluate manufacturing processes, facilities, and systems to identify areas for improvement and ensure adherence to industry standards.

Fair Trade

A movement aimed at promoting equitable trading practices, ensuring that producers in developing countries receive fair compensation and work under favorable conditions

SA8000 Certification

A globally recognized certification that sets requirements for fair treatment of workers, including aspects like child labor, forced labor, health and safety, freedom of association, discrimination, working hours, and compensation

Whistleblower Program

A system that allows individuals to report unethical or non-compliant practices while maintaining anonymity.

Sustainability

The practice of conducting business in a manner that meets present needs without hindering future generations' ability to meet their own

Sustainability Challenges

Obstacles organizations face in implementing sustainable practices due to factors such as regulation, costs, and supply chain complexities.

Closed Loop Supply Chain

A supply chain model that incorporates reverse logistics to recycle materials and reduce waste.

Triple Bottom Line

A framework for measuring a company's commitment to social, environmental, and economic performance, often summarized as "people, planet, prosperity."

Life Cycle Assessment

A systematic process for evaluating the environmental impacts of a product throughout its entire life cycle, from raw material extraction to disposal.

The Sustainability Consortium (TSC)

An organization that promotes sustainable consumer products through collaboration among researchers and stakeholders across the supply chain.

Sustainable Accounting Standards Board (SASB)

An organization that develops and maintains sustainability accounting standards to measure ESG outcomes

Carbon Footprint

The total amount of greenhouse gases emitted directly and indirectly by an organization or product

ISO 14000

A series of certifications offered by the International Organization for Standardization in the area of sustainable business practices and management

Carbon Neutral

Refers to achieving a balance between carbon emitted and carbon absorbed