Shoppers are increasingly asking companies about their supply chains. Do they meet ethical standards? Does each link in the chain take care of its workers? How are materials sourced? Are they renewable? Younger consumers, particularly Gen Z, are driving this trend.
Have a look at the conversation below and highlight the words and phrases you might find useful when discussing ethical supply chains.
Expressions in context
John is being interviewed for the post of assistant designer at a fashion house. His interviewer, Jenny, asks if he has any questions.
John: Actually, I do have a couple of questions. It's important to me that I work in an ethical organization. The fashion industry's supply chains have been in the news recently. How do you manage yours?
Jenny: It hasn't been easy. We have many different suppliers. Most of them are in areas of the world where garments used to be produced in sweatshops. And sometimes, child labour was used.
John: How have you dealt with that?
Jenny: By showing our suppliers the importance of ethical work practices to our end customers.
John: And has that worked?
Jenny: It's been a gradual process. But we're happy with the situation now.
John: There has also been a discussion in the media about garments that are produced unsustainably.
Jenny: We are very aware of this issue. We have a code of practice that clearly defines the types of materials that can be used. We also need to know how these materials are sourced. And we regularly inspect all our suppliers' workshops.
John: Sounds good.
Jenny: Sadly, though, there is one area outside our control - the recycling of used garments. Far too many clothes still end up in rubbish dumps. We're working to create an awareness of this problem.
Good to know!
Accenture Strategy's latest global survey found that 71 per cent of German consumers demand greater transparency in how companies source their products. But how do you ensure an ethical supply chain? There are five basic steps you need to take:
Create a code of practice for suppliers
Your code of practice should include clear statements about your commitment to human rights and ethical labour practices. It needs to specify how the code is to be implemented and define the consequences of misconduct.
Thoroughly trace your supply chain
Have a system in place that traces exactly how your products are made and sourced. Build a picture of one seamless supply chain, from raw materials to finished product.
Cooperate with your suppliers
Show your suppliers what consumers are demanding. Use your code of practice as a basis for talking to them.
Be transparent
Show your customers that you are building an ethical supply chain. This can be hugely beneficial to your company and to your suppliers.
Be committed
Constantly check and update your code of practice and your supply chain. Weed out unethical suppliers and add those who meet your requirements.