Hailey Corr's blog

8 Keys to Ensure Ethical Sourcing Standards

An image of gears with text overlay that has ethical statements.

In my last blog, I spoke about ethical sourcing and the many benefits it can have for your company. Seems like a no-brainer, right? When attempting to put in a plan to obliterate unethical practices in your supply chain, it starts to be risky business. The best way to mitigate risk is to set up a solid plan and be diligent about following through with it. 

In my research to find a clear plan to mitigate unethical practices, I found a slew of proposed methods. Unfortunately, I felt that many of them seemed too simple—basically, too easy and too good to be true. I finally came across a solid and thorough plan proposed by Declan Kearney, the founder of 360° Supplier View, who shares tips with companies to ensure ethical sourcing practices in their supply chain.

Do Your Research

Make sure you do your research on your suppliers…and their suppliers. With myriad complex regulations now put in place, go out and learn from case studies and the resources that will act as a survival guide as you attempt to research your vendors and suppliers.

Stay Away from the Fat Cat

Assess whether the higher-ups in your supplier organization are well known or politically aligned. These individuals are more susceptible to bribery or corruption.

Hailey Corr, Junior Editor and Marketing Associate, Outsource and SIG

The Business Case for Ethical Sourcing Practices

Ethical sourcing best practices.

In my time working in the sourcing sphere I have become passionate about ethical sourcing. Mexico, where I have lived for nearly eight years, is where many companies source cheap, nearshore labor and is a resource for bilingual, cost-saving talent. I have witnessed unethical sourcing practices in my time here and I am always looking to educate myself and others on the benefits of ethical sourcing. As companies chase better costs to remain viable, the possibility of building a supply chain with poor ethical practices increases. Ensuring ethical sourcing practices in your supply chain can be labor intensive but the benefits are immense.

According to the  Chartered Institute of Purchasing & Supply (CIPS), ethical sourcing is the process of ensuring the products being sourced are obtained in a responsible and sustainable way, that the workers involved in making them are safe and treated fairly and that environmental and social impacts are taken into consideration during the sourcing process. Ethical sourcing also means the procurement process respects international standards against criminal conduct and human rights abuses and responds to these issues immediately if identified. 

The good news is that  84 percent of businesses report having a supplier code of conduct  in place to ensure ethical sourcing practices.

Hailey Corr, Junior Editor and Marketing Associate, Outsource and SIG

The Confection Connection Between Chocolate and Supply Chain: A Sweet or Sour Tale?

In the Mexican coastal town of Puerto Vallarta, where the weather is hot and the tequila flows like wine, a new trend is emerging from an old Mexican delicacy...chocolate. The town is host to a chocolate museum, chocolate tour and fancy tequila/chocolate-paired tasting. Last week I had the opportunity to attend to one of these tastings where I learned about the different types of tequila and how the chocolates amplify their flavors when properly paired.

This unique experience also came with a crash course on the history of Mexican cocoa, the main ingredient used to make chocolate. Cocoa was once only consumed by ancient Mexican royalty. According to my tequila sommelier and a report by the World Agroforestry Centre, the Olmecs – an ancient tribe in Mexico – were thought to be the first people to consume chocolate. These indigenous people crushed the beans, added water, spices and chilies and drank the delicious elixir.

Ironically, last week an article came across my desk about cocoa. What were the odds that in the same week that I learned about the origins and use of this delicious nut, I’d also circumstantially run across an article about its production? I found the correlation too good to be true until I read the article and discovered the unfortunate state of cocoa production. Sadly, this article did not come with tequila, but the bitter reality of a lack of ethics in the cocoa industry’s supply chain.

As supply chain practitioners know, it is critical to know where and how your products are being sourced, but the farther you are geographically from the beginning of the supply chain, the harder it is to control…and in countries where labor laws are lax, it becomes even more tragic. This gets tricky with products that can only be produced in very specific environments. Cocoa is one such product that can only be grown 10 degrees north or south of the equator with the majority of its production in West Africa, the Ivory Coast and Ghana.

Hailey Corr, Junior Editor and Marketing Associate, Outsource and SIG