Corporate Social Responsibility in Sourcing

I've helped companies check suppliers robustly and where child labour was found, to remediate it for kids many times in my 20+ years supply chain human rights / responsible sourcing career. Somehow today though hearing about even more systemic cases made me a bit teary. It's another case of their home country (Burma) being under attack (people sell the regime weapons), so parents have little money, are migrants to Thailand, and free schooling (a super basic human right) is often not provided. This isn't a criticism of Thailand; I'm more annoyed with the root causes of all those (us?) making money (pensions?) selling "aerospace product" weapons and parts (the UK exports many "defence sector" "products") which empower some in Burma to cause others to need to leave their homes.... in 2024. For now though, better to see and understand than "see no evil, hear no evil" (which could lead to future risks), and I'm back to creating tailored guidance for my client on what can be done in this case inline with supply chains human rights due diligence legislation #LkSG #CSDDD expectations. Breathing beyond my sadness by knowing that these efforts can both help the client protect their brand; but most importantly, that the engagement we guide the client to increase (with local NGOs, etc) can help people (parents) on the ground get verified fairer incomes, and ultimately, some of these kids get the chance we all had for decent schooling before work. Keep up the "eyes open" everyone in Responsible Sourcing (dig deep as is expected by new supply chains due diligence legislation), and then where these issues are found, take the opportunity to use your buyer leverage to cause Change. In doing so we can help deliver the #livingincomes needed to end #modernslavery #childlabour and exploitation, ensure respect for #humanrights, and realise positive #socialimpact #SDGs including #SDG8 #decentwork #SDG1 No Poverty, to realise #SDG4 "Quality Education..for all". And if you want to ensure your pension etc isn't invested in weapons, for USA, click here: https://lnkd.in/eBwmHSzM and here's some in the UK: https://lnkd.in/e2QiuKSv and another with discussion: https://lnkd.in/eQzQM9Jp

'the data reveals that artisanal mining for cobalt is a very hazardous vocation undertaken for basic survival, involving long hours, subsistence wages, and severe health impacts. The data further reveals that within the surveyed respondents, there is a high rate of forced labour and an almost 10% rate of child labour' Rights Lab, University of Nottingham recent report, Blood Batteries, The #humanrights and #environmental impacts of cobalt mining in the Democratic Republic of the Congo demonstrates the continued issues with cobalt mining. '- 36.8% of respondents met the project’s conservative criteria for forced labour - 9.2% of respondents met the project’s conservative criteria for child labour - 27.7% of respondents began working in artisanal mining as a minor - Not a single respondent was a member of a trade union, as none exist - Not a single respondent had a written agreement for their work . For those #supplychain and #procurement professionals who are able to trace cobalt to source there are potential steps to be taken: 1. Ethical and Responsible Sourcing Ensure traceability from artisanal and industrial mining sites in the DRC to final product, especially for cobalt used in EVs and electronics. Demand transparency from suppliers, require disclosure of sourcing practices, human rights due diligence, and environmental impact assessments. Prioritise suppliers who can demonstrate compliance with international labour standards and reject those linked to exploitative practices. 2. Environmental Stewardship Incorporate geospatial and water toxicity data into supplier evaluations to avoid contributing to ecological degradation. Promote circular economy principles such as battery recycling, reuse, and alternative materials to reduce dependence on high-impact cobalt mining. 3. Compliance and Governance Align with UK Modern Slavery Act, ensure supply chain mapping and annual transparency statements reflect risks in high-impact regions like the DRC. Embed environmental, social, and governance standards into tendering and contract management processes. 4. Practical Procurement Measures Use multi-quote and business case procedures to ensure value for money and ethical sourcing, as outlined in UK finance and procurement policies. Establish KPIs related to ethical sourcing, labour conditions, and environmental impact. Anticipate changes from the Procurement Act 2025 and EU Critical Raw Materials Act that may affect sourcing obligations. For the majority of buying organisations or as consumers this is a very difficult area, but as the report recommends Government's could do a lot more to reduce exploitation: 'Strengthen supply chain transparency and due diligence requirements of consumer-facing tech and EV companies with more robust legislation; laws should include strict and severe penalties as opposed to simple reporting requirements, including a potential import ban;'

Mapping ESG topics across the entire value chain is essential to understand where impacts occur and how they translate into financial exposure. The value chain mapping presented in Nestlé’s 2025 non financial disclosure is a strong example of how to approach this exercise in practice. It positions sustainability topics across upstream sourcing, own operations and downstream activities, making visible where specific exposures concentrate. Upstream agriculture carries a significant share of environmental and human rights exposure. Climate risk, deforestation, water stress, soil degradation and labor vulnerabilities are embedded in raw material production. These issues influence supply stability, input cost volatility, regulatory scrutiny and long term sourcing resilience. In own operations, the focus shifts to energy consumption, manufacturing emissions, workplace health and safety, diversity and governance controls. These areas affect operational efficiency, cost management and compliance. Performance at this level determines whether commitments translate into measurable outcomes. Downstream, packaging design, food loss, product formulation, marketing practices and data protection shape regulatory exposure, consumer expectations and competitive positioning. Circularity and nutrition influence market access and brand strength in tangible ways. This type of mapping shows how impact materiality and financial materiality intersect across different segments of the chain. A topic such as greenhouse gas emissions originates largely in agricultural sourcing, becomes an efficiency variable in manufacturing and evolves into a regulatory and reputational factor in consumer markets. It also clarifies ownership. Procurement manages sourcing practices. Operations manages energy and safety. R&D and marketing shape the product portfolio. Governance bodies oversee conduct and accountability. Without this alignment, ESG remains difficult to integrate into core decision making. For companies operating in complex global value chains, this visibility supports more precise prioritization, capital allocation and risk management across environmental, social and governance dimensions.

🌍 𝐖𝐡𝐚𝐭 𝐢𝐟 𝐘𝐨𝐮𝐫 𝐒𝐭𝐚𝐫𝐭𝐮𝐩/𝐂𝐨𝐦𝐩𝐚𝐧𝐲 𝐂𝐨𝐮𝐥𝐝 𝐂𝐡𝐚𝐧𝐠𝐞 𝐭𝐡𝐞 𝐖𝐨𝐫𝐥𝐝 - 𝐅𝐨𝐫 𝐁𝐞𝐭𝐭𝐞𝐫, 𝐍𝐨𝐭 𝐖𝐨𝐫𝐬𝐞? 🌍 Lately, at a major startup conference, while listening to the vibrant discussions on innovation and tech, I was struck by a concerning trend. While I love seeing startups expand into developing countries, it’s important to address the ethics of their operations. I heard several founders on stage brag about paying local workers in developing countries only the bare local minimum wage, a salary they and their families cannot even live of. I was shocked... about history repeating itself. As businesses grow, their impact on global communities scales too. Here’s where 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐄𝐒𝐆 𝐚𝐝𝐯𝐢𝐬𝐨𝐫𝐲 comes into play. Responsible business practices in international supply chains are not just about compliance - they’re about building sustainable, supportive ecosystems that benefit all stakeholders. 𝐇𝐞𝐫𝐞’𝐬 𝐡𝐨𝐰 𝐈 𝐜𝐚𝐧 𝐡𝐞𝐥𝐩: 💡 𝐒𝐨𝐜𝐢𝐚𝐥 𝐈𝐦𝐩𝐚𝐜𝐭 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲: Develop comprehensive strategies that ensure your business operations contribute positively to the communities you operate in. 💡𝐅𝐚𝐢𝐫 𝐖𝐚𝐠𝐞 𝐒𝐲𝐬𝐭𝐞𝐦𝐬: Implement wage systems that are not only compliant with local laws but are also reflective of the cost of living, ensuring workers and their families can lead dignified lives. 💡𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐭𝐲 𝐄𝐧𝐠𝐚𝐠𝐞𝐦𝐞𝐧𝐭: Move beyond the workplace to engage with the wider community, supporting local development through education, healthcare, and infrastructure. Expanding into new markets is an opportunity to bring innovation, but also a responsibility to uplift rather than undermine. If your company is ready to redefine success not just in profit margins but in positive global impact, let’s connect. Together, we can build supply chains that are robust, fair, and future-proof. 🔗 𝐋𝐞𝐭’𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬 𝐡𝐨𝐰 𝐲𝐨𝐮𝐫 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐜𝐚𝐧 𝐥𝐞𝐚𝐝 𝐭𝐡𝐞 𝐜𝐡𝐚𝐧𝐠𝐞 𝐭𝐨𝐰𝐚𝐫𝐝𝐬 𝐦𝐨𝐫𝐞 𝐞𝐭𝐡𝐢𝐜𝐚𝐥 𝐚𝐧𝐝 𝐬𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐩𝐫𝐚𝐜𝐭𝐢𝐜𝐞𝐬 𝐰𝐨𝐫𝐥𝐝𝐰𝐢𝐝𝐞. 𝐑𝐞𝐚𝐜𝐡 𝐨𝐮𝐭 𝐭𝐨 𝐦𝐞. #ESG #SocialImpact #SustainableDevelopment #GlobalSupplyChain #BusinessEthics #CorporateResponsibility

This week, a Financial Times investigation reveals that Apple is facing a criminal probe over sourcing “blood minerals” from the Democratic Republic of Congo (DRC). The company allegedly relied on flawed certification processes that allowed conflict minerals to enter its supply chain, despite claims of ethical sourcing. As a tech leader, Apple now faces scrutiny for sourcing minerals from conflict zones known for human rights abuses. The complexity of multi-tier supply chains makes tracing these materials difficult, but it’s essential for businesses to address this challenge. As companies scale, integrating sustainability and human rights into every stage of their operations is crucial. Are we fully aware of where our materials come from? This serves as a reminder that sustainable business models must go beyond carbon footprints and ESG reports, they must ensure ethical sourcing and maintain supply chain integrity. 💡 Key Takeaways for Companies: 1. Map the Supply Chain from raw extraction to finished product to ensure ethical sourcing. 2. Conduct Regular third-party Supplier Audits to verify supplier compliance with sustainability standards. 3. Engage in Industry Collaborations: Support and participate in global initiatives to raise ethical sourcing standards (e.g. Responsible Business Alliance) As stakeholders, consumers, and businesses, we have the power to create change. Let’s not wait for another scandal—sustainability is a responsibility, not a trend. 🌍 https://lnkd.in/euHPdqvX #Sustainability #SupplyChainTransparency #CorporateResponsibility #EthicalBusiness #DueDiligence #HumanRights #Apple #SustainabilityInBusiness #CarlosSanchezEco

A supplier once explained responsible sourcing to me in one sentence."If you want us to improve working conditions, we need predictable orders." It sounds obvious. But it exposes a tension many companies avoid discussing. Responsible business conduct often focuses on supplier behaviour. Yet many of the conditions suppliers operate under are shaped by buyer behaviour. Short-term contracts. Last-minute order changes. Constant price pressure. Those decisions rarely sit with the sustainability team. They sit with procurement. And that is where human rights due diligence becomes a strategic question. Not about whether suppliers follow policies. But about whether purchasing practices make improvement possible. Three questions boards increasingly need to ask: 1. Are our purchasing practices aligned with our due diligence commitments? 2. Do our key suppliers have enough predictability to invest in improvements? 3. Which sourcing decisions create the highest risk for people and for the company? This is where responsible business conduct becomes operational. Not a policy. A business model choice. 𝐑𝐞𝐬𝐩𝐨𝐧𝐬𝐢𝐛𝐥𝐞 𝐬𝐨𝐮𝐫𝐜𝐢𝐧𝐠 𝐰𝐢𝐥𝐥 𝐧𝐨𝐭 𝐢𝐦𝐩𝐫𝐨𝐯𝐞 𝐮𝐧𝐭𝐢𝐥 𝐩𝐮𝐫𝐜𝐡𝐚𝐬𝐢𝐧𝐠 𝐩𝐫𝐚𝐜𝐭𝐢𝐜𝐞𝐬 𝐜𝐡𝐚𝐧𝐠𝐞. Not supplier policies. Not more audits. Purchasing practices. #CSRD #duediligence #supplychains #responsiblebusinessconduct

After more than 2 decades working across Asia, Europe, and North America, one thing has become consistently clear to me: Supply chains are where sustainability becomes real. Not in beautifully written policies.Not in polished ESG reports. But on the ground — in the day-to-day decisions, trade-offs, and relationships that define how business actually gets done. Right now, many companies are navigating a difficult paradox: → Increasingly complex regulations like the EU’s Corporate Sustainability Due Diligence Directive (CSDDD)→ Expanding data and reporting expectations→ Growing pressure placed on suppliers While at the same time: → Standards remain fragmented and often misaligned→ Compliance costs are rising→ Operational teams are stretched, creating real bottlenecks From what I’ve seen firsthand, sustainability is no longer a “corporate function.”It has become a core supply chain capability. And this is where I believe many organisations need to shift their mindset: You cannot outsource responsibility. You cannot push risk indefinitely downstream.And you cannot treat due diligence as a reporting exercise. Regulations like CSDDD — alongside frameworks such as the UN Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance — are not just about compliance. They are pushing companies toward something more fundamental: Visibility, accountability, and shared responsibility across the value chain. The companies that will move faster — and more credibly — are those that: → Invest in long-term supplier relationships, not just audits→ Build real traceability into their systems→ Work with suppliers to solve challenges, not simply impose requirements Because responsible sourcing today is not about ticking boxes. It’s about designing systems that work in practice — commercially, operationally, and ethically. #SupplyChain #ResponsibleSourcing #HumanRights #ESG #DueDiligence #Sustainability #Procurement

Swedwatch recently published an important report highlighting the blind spots in EU socially responsible public procurement. The report concentrates on healthcare sector products purchased (through EU-based intermediaries) from Pakistan— where serious labour rights abuses are widespread. Workers endure low wages, long hours, poor health and safety conditions, lack of contracts, and social security. Women and marginalised groups face additional discrimination, pay gaps, and harassment. Unions are suppressed; any attempt to organise is met with retaliation. Key takeaways: - EU procurement rules rely heavily on voluntary sustainability measures, audits, and certifications which often fail to detect or correct abuses. - Social audits are shown to be superficial and sometimes manipulated by factories. - Certification schemes (e.g. OEKO-TEX, BSCI) often serve as a “smokescreen” for poor labour practices. - The 2014 EU Public Procurement Directives lack mandatory human rights and environmental due diligence. - Emphasis on lowest-price tenders incentivizes cost-cutting at the expense of workers’ rights. Swedwatch recommends: - Introducing mandatory human rights and environmental due diligence in public procurement, elimination of price-only tenders, better supply chain transparency, including factory and subcontractor data. - Creation of legal frameworks allowing exclusion of companies with rights violations. - Strengthening public buyer capacity, monitoring tools, and enforceable standards. These are serious issues that will be very difficult to resolve in the short run, and any new piece of legislation will not be enough without a collective effort and a EU-wide decision to take socially responsible procurement at least as seriously as green procurement. But one legislative change may be impactful - socially responsible exclusion grounds need to be mandatory in the new directives.