It’s a tough challenge for any procurement professional, trying to balance the needs of consumers, against rising costs and the shift in focus of ethical codes and practices. However, no-one can afford to ignore the fact that consumers are increasingly demanding well-priced goods that have also been sourced ethically.  

The Co-operative Bank’s strong stance on ethical codes and focus seems to have paid dividends, recently announcing that they have turned down over £1 Billion of unethical business since 1992, and have also recently extended their policy on animal rights. Rather than business lost, Co-op claim this has in fact increased their net corporate lending by £3.8 Billion.  

Can the same results be achieved in the world of sourcing? It is every organisation’s responsibility to ensure that suppliers are adhering to the ethical requirements and standards required by sourcing contracts and policies, but how often suppliers and practices are audited is questionable, and upholding these practices can easily add to process costs. 

A best-in-class procurement system can ensure that measures and subsequent checks are in place, but this still raises the question as to which ethical code they should be designed to meet. Voiced by Tesco’s Terry Babbs, International law and Trading Director, a common code of practice for ethical sourcing is called for, providing us all with global standards, rather than just declaring ‘we have an ethical policy’ which is not comparable to anyone else’s.