How to Achieve Ethical and Sustainable Procurement

In this modern environment, everyone is concerned about sustainability. We are becoming more aware of our impact on the planet and what we can do to help. Meanwhile, our clients are becoming more concerned with how to obtain high-quality goods and services while also making a positive, sustainable, and ethical impact.

eXceeding is a procurement consultancy founded on the principle of providing organisations of all sizes with impartial, best practice procurement advice. As guiding principles evolved to include more sustainable and ethical methods, so did eXceeding’s abilities and knowledge. eXceeding has years of experience delivering procurement solutions to the marketplace, working with both the public and private sectors.

This guide will teach you how to be ethical and sustainable in your procurement and why it is so important.

What is Ethical and Sustainable Procurement?

Being ecologically responsible and ethical means purchasing goods and services in the most environmentally friendly and ethical manner possible. It’s not just about finding suppliers who can meet your needs; it’s also about working together to help society and deliver goods with a low environmental impact.

Ethical procurement encompasses a wide range of topics. It can be seen in supply chains that actively seek to eliminate modern slavery and child labour, in supply chains that are thinking about reducing emissions and waste, or simply in supply chains that want to diversify their workforce.

The concept of ethical and sustainable procurement is multifaceted. It aids in defining how an organisation searches for suppliers by making it about more than just price. It enables an organisation to find a supplier who shares their perspective on the social, economic, and environmental impact on our world.

What is Ethical and Sustainable Procurement?

Long-term sustainability is one advantage of a more ethical approach to procurement. Obtaining a source in an ethical manner ensures that the supply chain will remain open for an extended period of time. It also removes any threat of closure for illegal activity.

Organisations are under more scrutiny these days, with customers expecting them to do the right thing. Purchasing goods in accordance with an ethical code of conduct demonstrates that an organisation is customer-centric and operates correctly from the start. It is critical that both the organisation and its employees are held accountable in accordance with the ethical code of conduct that it establishes.

Sustainable procurement is a method for an organisation to future-proof itself in an uncertain world. Most organisations’ carbon footprint will be largely attributed to their supply chain. Procuring from sustainable suppliers reduces the likelihood of any environmental violations occurring.

Another advantage of sustainable procurement is the potential cost savings. It will not only help to reduce long-term overheads such as utilities, but it will also significantly reduce staff turnover, both for your supplier and in-house, resulting in less supply chain disruption.

Tips to Achieve Ethical and Sustainable Procurement

The number of organisations looking for dependable suppliers is increasing by the day. It is difficult for any organisation to find a supply chain they can trust with a long-term plan, which is made even more difficult when post-Brexit issues and the desire for sustainable and ethical chains are taken into account.

The easy option would be to return to old ways of finding suppliers, based solely on cost, but this is not a viable option for any organisation that wishes to succeed in today’s market. Customers come first, and if they notice anything suspicious or out of the ordinary, they will scrutinise the organisation until they find the source of the problem. As a result, in today’s world, it is critical to be ethical and sustainable.

Here are some suggestions to assist your organisation in achieving ethical and sustainable procurement:

Maintain awareness of changing attitudes

As previously stated, consumers are more aware than ever before of ethical and sustainable organisation practices. They scrutinise any brand or organisation to see how they fare. It is important for organisations to understand how their customers want them to conduct themselves ethically and sustainably. Not only that, but how quickly these values will be incorporated into their long-term strategy. Organizations that do not stay on top of what their customers want will quickly fall behind.

Raise awareness of modern slavery

A frightening statistic claims that modern-day slavery generates $150 billion in profit. The UK government also believes that there are tens of thousands of slaves in the country today. Raising awareness and collaborating with sustainable suppliers can help reduce these statistics while also portraying the organisation as ethically conscious.

Establish transparent monitoring and review procedures

It is not sufficient to find one borderline sustainable supplier and then move on. Being committed is an important part of being an ethical and sustainable organisation. You can ensure compliance with the strict processes that have been put in place by constantly monitoring your supply chain and procurement process.

In Summary

Today, ethical and sustainable procurement is critical. Organisations should look for new ways to adapt their strategies and eliminate any unsustainable and unethical practices.

We understand that it is not as simple as simply declaring that your organisation will be ethical from now on, but doing the right thing is essential. Fortunately, at eXceeding, we assist organisations in developing ethical and sustainable procurement processes by developing a customised strategy to deliver cost savings. This streamlined process saves time while also reducing human error.

With over a decade of experience, we have assisted organisations such as CRFCA, ICAEW, and WorldRemit in improving their procurement strategies, so why not contact us to see how we can assist you in achieving your objectives?

Check out our procurement ebook for more information on procurement and how we can help your business deliver value.