Do you care how your business processes impact people and the environment? Then you are most likely thinking about ethical sourcing. It is a way of making, designing and producing goods through an ethical supply chain.
Did you decide for an ethical supply chain approach? Most probably it means you are using methods and choosing materials that will likely reduce your impact on the environment. As a bonus, it can increase your business success as well!
Source your materials responsibly. Be transparent and communicate your commitment to ethical making.
Why sourcing ethically?
It is not anymore just about “feeling good” about your choices. Negative impact is being more and more addressed by growing number of companies. Consumers are increasingly interested in the ethical standards of products. They are demanding companies to help improving the environment.
Millennials seems like the age group standing as the biggest supporter. Company’s profitability and appearance on the market is required to be connected with transparency and authenticity. Nowadays, authentic branding is the key.
There are, however, certain challenges businesses face. If they decide for an ethical supply chain, the costs of materials might get higher. Stability of the supply of materials is also a challenging aspect. But the benefits seem to out-weight these aspects!
We should mention some of the commercial benefits. These include the ability to leverage differentiation on the market and increased value of a product. Last but not least, retention of customers who are concerned about provenance.
Emotional value
If a product your business is offering comes with an origin story, customers might have a higher emotional value in it. The story of origin might reflect its symbolic meaning. Symbolic meaning such as special moments or relationships. That way your products can tell a story or add meanings to valuable moments.
Nonetheless, symbolic value behind a product can be easily destroyed if there is unfair treatment of communities and environmental destruction behind it.
By increasing the emotional value of your product you can for instance increase its economic value at the same time! In my opinion, people are attracted to products with meaningful stories.
Is there a market for ethical supply chain?
You might think there are not that many ethically aware consumers. Yet ethical consumers represent a growing market. Consumers are consciously avoiding buying products or services for their ethical reputation.
Nowadays, we know that consumer awareness is increasing. As a result, an effort to source ethically can help your business to succeed. Ethical business can gain you customer brand recognition and loyalty.
Therefore, yes, there definitely is a market for this kind of a business!
What areas of change do we recognise?
In this paragraph, we are discussing how you can do your business responsibly. Firstly, try and help limiting the harmful effects by responsible sourcing of materials. Secondly, eliminate the water pollution, harm to aquatic life and damage to landscapes. Thirdly, the ecosystem we are living in deserves to be preserved for our future generations. Did you know that with your individual behaviour you can contribute to that goal?
Did you know this way you are also preventing more people-related problems by following an ethical supply chain? For example you can diminish human rights violations or use of child and forced labour. It definitely is worth it.
How to introduce ethical measures into your business?
So once you have made your decision and you are going to introduce ethics into your sourcing procedures, you need to make sure that you are using the right channels.
Different industry networks provide a directory of sustainable sourcing. This can be looked into even if it should give you just some ideas about how to deal with the task. You can find many support systems aiming to make the supply chains more transparent.
Promoting good ethics are mainly helping you to build trust with your stakeholders. They will recognise how well are you monitoring the process of your business development!
