Governance Research Digest – June 2012
The Eurosif Procurement report examines trends and factors used in assessing responsible corporate supply chains by investors. It provides an overview of sustainability challenges and opportunities in global procurement and supply chain management.
- Responsible supply chain management is seen as a significant factor in reducing business risk and improving the attractiveness of an investment opportunity.
- A responsible supply chain takes into account environmental and social issues to reduce the risk of expensive business disruption.
- A robust supply chain audit includes:
- an assessment of the extent of outsourcing and locations of suppliers;
- corporate policies and standards;
- ]effective monitoring procedures;
- capacity building along the supply chain;
- active collaboration with competitors and stakeholders;
- clear product labeling.
- The report is mainly concerned with the textile and technology sectors though the the impact of responsible supply chain management, especially regarding environmental issues, is cross-sector.