Ethical Procurement Definition
Ethical procurement is the process of sourcing goods and services in a way that minimizes harm and maximizes benefits to people and the environment. It includes consideration of human rights, labor standards, environmental sustainability, and other factors in the supply chain.
The goal of ethical procurement is to create social and environmental value throughout the supply chain, from production to consumption. By ensuring that suppliers adhere to high standards of labor, environmental, and social responsibility, businesses can minimize their impact on people and the planet. In addition, ethical procurement can help businesses build relationships with suppliers that are based on trust and transparency.
There are a number of different initiatives and standards that businesses can use to guide their ethical procurement practices. The most widely-recognized standard is the Responsible Business Alliance’s Code of Conduct, which sets out principles for responsible sourcing. Other initiatives include the Fairtrade Foundation’s Fairtrade Sourcing Program and the Global Compact’s Business for Peace initiative.
