Being an Ethical Business

Gill Thorpe FCIPSCEO, The Sourcing TeamUnited Kingdom

British Promotional Merchandise Association

Lifetime Fellow: Chair, President and Board Member

The Chartered Institute of Procurement & Supply

CIPS Trustee on Council

FCIPS - Fellow since 2011

CIPS Fellows Committee Member

Women-Owned Business (WBE) Council

Set up in 2015 to support WEConnect. Now Chair.

Meeting Gill

• What is an Ethical Business?• Why Does it Matter?• Recognizing Ethical Behaviors• Where do we Start?• The Ethical Business Case• Three Key Areas • Our Commitment

Agenda

What is an Ethical Business?

Defining an Ethical Business

• Force for good• Power of principles• Managing risk• Integrity• Taking responsibility• Accountability• Putting back • Doing the right thing

“A truly ethical company will be one that is not causing damage to the environment, exploiting its workforce by paying low wages, using child labour, or producing products which are harmful or dangerous.”

What is an Ethical Business?

Why does it matter?

“True Cost”

Impacting the Supply Chain

Being ethical impacts all inputs and processes

up and down the supply chains …

from fashion to manufacturing …

Freedom of Association?

Pollution in our Environment

Bribery & Corruption

Bonded & Child Labor

Health & Safety

Health & Safety

Health & Safety

What can we do differently?

“Being good is good business”

Anita Roddick 1942-2007

British founder of The Body Shop

How do we do it?

“Trading Ethically (ETI)”

The Ethical Trading Initiative (ETI) is a leading alliance of companies, trade unions and NGOs that promotes respect for workers' rights around the globe.

Marks of an Ethical Business

• Ensure workplaces are fit for workers

• Payment of living wages

• Integrating ethical trade into core business practices

• Tackling discrimination in the workplace

• Focusing improvements on the most vulnerable workers

• Capacity Building within the supply chain

Priorities set by ETI

The world's largest corporate sustainability initiative

Calling companies to align strategies and operations with universal principles on human rights, labour, environment and anti-corruption, and take actions that advance societal goals.

UN Global Compact

Since 1919, the ILO has brought together governments, employers and workers representatives of 187 member States, to set labor standards, develop policies and devise programmes promoting decent work for all women and men.

International Labor Organization

Managing Global Supply Chain Risk

• Driving collaboration, transparency, reducing duplication

• End-to-end process addressing Environmental, Social and Governance issues

• Not for profit membership organisation

Three levels of Membership, 37,000+ supplier organisations across 150 countries, 650+ purchasing organisations including FTSE100/Fortune 500 brands, 70,000+ audits on Sedex

Impacts 24 Million workers globally

• Labor Standards• Health & Safety• The Environment• Business Ethics

Marks of an Ethical Business

What is the business case?

Ethical Business In Profit

Ethical companies are more profitable for many reasons:

• employees are more productive• employees are less likely to leave • consumers respond positively to companies that are

perceived as ethical • vendors and suppliers prefer to deal with ethical companies • ethical companies attract higher talented executives and

employees.

The Dow Jones Sustainability Index 2016

“Sustainability Investing has the extraordinary power to shape the world we want to live in while generating financial returns for our clients.”

Michael Baldinger, CEO RobecoSAM

Top US Sustainable Companies

Sustainability Yearbook Highlights 2015

The World’s Most Sustainable Companies

Top 10 Industries by participation rate

Primark Case Study: CIPS Award Winner 2016

Ethical in Practice: People

Empowering women in the supply chain

Sodexo Case Study: CIPS Award Winner 2016

Ethical in Practice: Supply Chain

Sodexo’s supply chain inclusion program is designed to help small to medium sized enterprises enter Sodexo’s supply chain

Ethical in Practice: Environment

PWC Case Study: Ethical in Practice Award Winner

PWC was awarded the Best in Waste Management Award for its robust waste minimisation programme, reducing the total waste generated by the firm by 29% over the previous certification period.

Where do I start?

What is an Ethical Business?

Three key areas that work for our sector

PeopleSupply Chain Transparency

Environment

Key Areas to Focus On

How well are you managing your teams?

Focus On: People

• Identify vulnerability and risk

• Supplier engagement

• Evaluation and set the criteria

• Procurement plan

Focus On: Supply Chain

• Audits and site visits

• Drive improvement

• Share best practice

• Ongoing supplier engagement

• Annual surveys and process reviews

• Share best practice

Focus On: Supply Chain

How many of you are being asked by your customers for transparency of your supply chain?

Focus On: Transparency

Lack of transparency hurts people around the world. It is robbing billions of people of a brighter future.

Focus On: Transparency

• Establishing goals

• Setting the measures

• Review progress

• Engage with teams, suppliers and customers

• Evaluation and set the criteria

• Accreditations: EcoVadis / ISO’s

Focus On: Environment

What can you take back to your business?

Three Key Areas for Our Sector

People

Supply Chain and Transparency

Reduced Inequality

Annual Strategy for Change

• Goals • Measures• Ongoing improvement• Share learning and success

How do we do it?

Focus On: People

Help people reach their potential

• HR review• Development program • Freedom of expression• Worker committees

Focus On: Supply Chain

Supply Chain Management

• Review/implement supplier approval process• Create/update supplier selection criteria• Ask meaningful questions – “don’t tick boxes”• Share your knowledge

Focus On: Environment

Start with Small Steps …

• Energy usage• Recycling• Staff awareness• Reducing packaging waste

Commit today to Three Actions

Commitment