Environment And Social Governance (ESG)
Sustainable Business Practices
Environment
Controlling environmental impact and hazardous waste materials
Climate change mitigation – adapting manufacturing practices
Increasing resource efficiency
Biodiversity protections
Human rights
Saying no! to child labour and forced labour
Equal opportunities and non-discrimination; Enterprise Supplier Development (ESD)
Freedom of association
Active citizenship
Labour practices
Equitable Employment practices and fair employment relationships
Fair working conditions and social protections
Health and safety at work
Social dialogue
Fair operating practices
Fighting corruption
Responsible political alliance
Fair competition (ESD)
Respecting property rights
The requirement for transparency, disclosure and company capacity to manage supply chains is very challenging. Many companies are just beginning to develop the tools and practices needed to identify, engage with and manage ESG but first let’s clarify the issue.
Traditional supply chain was clinical, suppliers were required to focus on managing themselves and manufacturers would do what they did best with little interference in each others operations. Manufacturers could source from anywhere and retail as per market demand.
Supply chains hold great potential and provide opportunities to avoid or at least decrease considerable risks to the environment.
Building an inclusive supply chain requires consistent focus towards structured outcomes targeted to mirror the society in which the business operates. This should not be a seasonal activity as it requires metrics, policies and a budget in order to impact investors.
Higher company revenue from increased labour and process productivity;
eaders in supply chain management can demonstrate a positive correlation between good management of labour rights and product quality, lead times and cost of goods sold.
Communities support brands that visibly show that they care in live among them.
Amended BEE codes guideline: 15% EME Supply chain
One of the most effective ways to influence inclusion and diversity outside a company is to embed inclusion and diversity requirements into supplier agreements. This not only influences external organisations but also shows a company’s commitment to inclusion and diversity targets. Engaging with supply chain influence towards fair and equitable practices goes beyond compliance it ensures sustainability for the generations to come.
Companies face significant commercial and physical challenges to managing risks throughout their supply chains, especially when they have multiple tiers.
Our recommendation:
Systems thinking applied.
Policy statement: – be clear on the company position.
Supply chain mapping
Supply network categorisation
Low weighted impact suppliers (phase 1)
Action plan including budgets
Enterprise Risk Management (ERM) system entry
Scaling Small Businesses
The SMME Bottomline is a business network that supports operational small businesses.