Responsible Sourcing Policy Definition
A responsible sourcing policy is a set of guidelines that a company uses to ensure that its products are sourced from vendors that adhere to certain standards. These standards can include environmental, social, and governance criteria.
The purpose of a responsible sourcing policy is to help a company ensure that its products are sourced from vendors that are committed to sustainable and ethical practices. By doing so, a company can avoid supporting vendors that engage in harmful or unethical practices.
A responsible sourcing policy typically includes several elements. First, it outlines the standards that vendors must meet in order to be considered for business. Second, it establishes a process for monitoring and auditing vendor compliance with these standards. Third, it provides guidelines for how to handle vendors that do not meet the standards.
Many companies choose to develop their own responsible sourcing policies, but there are also some industry-specific initiatives that companies can participate in. For example, the Responsible Business Alliance’s Electronics Industry Citizenship Coalition (EICC) has developed a code of conduct that participating companies commit to following. The EICC code covers areas such as environmental protection, labor rights, and health and safety.
Developing and implementing a responsible sourcing policy can help a company protect its reputation and build trust with its stakeholders. It can also create operational efficiencies by reducing the risk of supply chain disruptions.
