Responsible Sourcing

Abstract

Consumer awareness and concerns regarding the environmental and social impact of the supply chains that produce the products they consume is increasing. Other stakeholders such as non-governmental organizations (NGO’s) are also pressuring firms to improve the environmental and social impact of their supply chains. Therefore, in addition to producing high quality products at low cost, firms must ensure that their suppliers are able to supply parts that are produced using processes that adhere to environmental and social impact standards—that is, firms must source responsibly. This chapter discusses what it means to source responsibly and gives an overview of the challenges faced by firms and the mechanisms they can use to implement responsible sourcing.