The Rise of Ethical Sourcing*

"The term "ethics" continues to evolve; ethical sourcing is not just a matter of checking a single box. Instead, the phrase represents the culmination of several co-ordinated efforts, suggesting that an organisation is committed to enforcing sustainability as well as social responsibility and awareness. While cynics might once have dismissed sustainability and responsibility as catchy buzzwords, they've become an essential element of any risk mitigation strategy. Holding your own organisation and its partners to a higher standard isn't just good ethics, it's good business.

Organisations that engage in unethical sourcing are vulnerable to a host of reputational and financial risk factors. Even companies that believe they are engaged in ethical sourcing are often mistaken. In many instances, unethical behaviour further down the supply chain leads to unknowingly breaking the law and lying to customers .

Badger Sportswear, an American apparel company, provides another cautionary tale. The North Carolina-based company learned last year that it was also unwittingly party to modern slavery. They also, presumably, learned that it is dangerous to rely on the efforts of third-party inspectors. While the company's Chinese supplier passed investigations by Worldwide Responsible Accredited Production, probes by AP journalists painted a far grimmer picture. Badger might have avoided scandal, embarrassment, and lost profits if it had taken the assessment into its own hands."

* Thomas Insights - Ethical Sourcing is the Future of Manufacturing

Instruction

Your company is doing business in the retail sector and has decided to heed the warning as reflected in the above-mentioned article. The executive committee therefore decided to give serious attention to the issue of ethical sourcing. It is currently considering the best way of becoming more involved in ethical sourcing and who to partner with in this endeavour.

Critically and thoroughly discuss the endeavours of the "Fairtrade" organisation based on the following aspects:

1. the underlying philosophy of Fairtrade (20)

2. a description of the workings of the organisation (20)

3. the positives of being involved with and associated with this particular organisation (20)

4. any possibilities that an association with this organisation might become an embarrassment to your company. (20)