Sustainable Supplier Procurement for Businesses

In this article, you will be introduced to the concept of sustainable supplier procurement and learn how businesses develop and implement supplier selection criteria and codes of conduct.

Purchasing power is a license to purchase power.

_{(Raoul Vaneigem b. 1934 Belgian writer)}

Defining the concept of sustainable supplier procurement

…identification of appropriate supply partners with the most beneficial monetary value and the least effects of their operations on the society and the environment.

_{(Goebel et al. 2012)}

…environmental soundness should become a recognised feature of a supplier’s overall performance.

_{(Lamming and Hampson 1996)}

Responsible supplier selection criteria

• Comply with applicable laws and regulations
• Behave ethically and with integrity
• Integrate quality into business processes
• Respect human and employment rights
• Promote the safety, health and well-being of employees
• Embrace sustainability and operate in an environmentally responsible manner
• Implement management systems to maintain business continuity, performance governance and continuous improvement
• Disclose information associated with the supplier’s impact on the environment and social issues

Supplier codes of conduct

References

_{Barrientos, S., and Dolan, C. (2006) Ethical Sourcing in the Global Food System: Challenges and Opportunities to Fair Trade and the Environment. London: Routledge 204}

_{Blowfield, M. (2000) ‘Ethical Sourcing: A Contribution to Sustainability or a Diversion?’ Sustainable Development 8 (4), 191-200}

_{Carter, C. R., and Jennings, M. M. (2002) ‘Social Responsibility and Supply Chain Relationships’. Transportation Research Part E. 38 (1), 37-52}

_{Gilbert, D. U. and Rasche, A. (2007) ‘Discourse Ethics and Social Accountability – The Ethics of SA 8000’. Business Ethics Quarterly 17 (2), 187-216}

_{Goebel, P., Reuter, C., Pibernik, R., and Sichtmann, C. (2012) ‘The Influence of Ethical Culture on Supplier Selection in the Context of Sustainable Sourcing’. International Journal of Production Economics 140 (1), 7-17}

_{Hutchins, M. J., and Sutherland, J. W. (2008) ‘An Exploration of Measures of Social Sustainability and their Application to Supply Chain Decisions’. Journal of Cleaner Production 16 (15), 1688-1698}

_{Jenkins, R. (2001) Corporate Codes of Conduct. Self-Regulation in a Global Economy. Technology, Business and Society Programme Paper Number 2. New York: United Nations Research Institute for Social Development (UNRUSD)}

_{Jiang, B. (2009a) ‘The Effects of Interorganizational Governance on Suppliers’ Compliance with SCC: An Empirical Examination of Compliant and Non-Compliant Suppliers’. Journal of Operations Management 27 (4), 267-280}

_{Jiang, B. (2009b) ‘Implementing Supplier Codes of Conduct in Global Supply Chains: Process Explanations from Theoretic and Empirical Perspectives’. Journal of Business Ethics 85 (1), 77-92}

_{Johnson & Johnson (2017) ‘Responsibility Standards for Suppliers 2017’.Global Procurement report. Johnson & Johnson. available from https://www.jnj.com/partners/responsibility-standards-for-suppliers [8 July 2019]}

_{Leigh, J., Waddock, S. (2006) ‘The Emergence of Total Responsibility Management Systems: J. Sainsbury’s (PLC) Voluntary Responsibility Management Systems for Global Food Retail Supply Chains’. Business and Society Review 111 (4), 409-426}

_{Noci, G. (1997) ‘Designing ‘Green’ Vendor Rating Systems for the Assessment of a Supplier’s Environmental Performance’. European Journal of Purchasing and Supply Management 3 (2), 103-114}

_{Sarkis, J. (1995) ‘Supply Chain Management and Environmentally Conscious Design and Manufacturing’. International Journal of Environmentally Conscious Design and Manufacturing 4 (2), 43-52}

_{Waddock S., Bodwell, C. B., and Graves, S. (2002) ‘Responsibility: The New Business Imperative’. Academy of Management Executive 16 (2), 132-148}