This is when a company consciously and actively sources and obtains services and products for their venture in a sustainable, ethical, and socially conscious manner. This means that a company will make sure that its practices, both in terms of supply chain and the business do not have any negative impact on the environment and the people.

Why is it essential?
Businesses usually source services and products; both the ones that they sell and the ones that they utilize – from various parts of the globe. Organizations have the accountability to comprehend the impact their business activities can have and to restrict any negative impacts. This incorporates the comprehension of the supplier operation impact. The responsibility is more often a formal legal need for businesses that operate in a nation or sell to the people.

But, working conditions differ greatly across worldwide supply chains. The global network complexity makes it very difficult for organizations to be acquainted with everything that takes place in their supply chain.

Various benefits
Ethical and responsible sourcing goes far beyond legal needs relating to practices. It can bring reputational, operational, and financial enhancements. Safeguarding workers and offering safe working conditions help reduce injury rates, employee turnover rates, worker error rates, and absenteeism rates all of which often tend to cost an organization. Research has revealed that businesses with robust sustainability practices exhibit better operational performance and this eventually translates into good cashflow.

Mosaic RSR is a multi-industry, knowledge management platform that offers impartial, localized enhancement guidance to suppliers and buyers. They are on a mission to offer suppliers what they need to enhance labor and environmental practices.