Supply chain standards under the spotlight
by PMToday Staff / 7/17/2017 9:36:22 AM
Less than a quarter of global businesses address climate change and child labour in their supply chains, according to a new study.
The Economist Intelligence Unit, the widely-respected research branch of the Economist magazine, released figures showing 80% of executives claim their companies have a responsible supply chain.
But 30% admit to having decreased their focus on supply chain responsibility in the last five years.
Just 27% of firms said they were willing to cooperate with non-competitors to raise standards, while just 23% said they would work with competitors to do the same.
The report, sponsored by Standard Chartered Bank, urges organisation to renew oversight of supply chain ethics, concluding that transparency is good for business.
“Firms need to get out ahead of the regulatory wave and show leadership in improving supply chain transparency and management. Those who do will find it does not just mitigate risks, but also generates opportunities.
“Consumers and business customers are paying attention: in every market we surveyed, customers were cited by firms as one of the top influences driving them to make their supply chains responsible, with a greater perceived impact than even regulators.”
On a more positive note, 94% of respondents said their organisation’s standards were compliant with government regulations, while 97% said their systems met the guidelines of industry watchdogs.