Drivers and Benefits of Ethical procurement

In recent years ethical procurement has moved from the fringes of the business world to become one of the main concerns for business leaders. Forward-looking organisations now put ethics at the centre of their vision, values and objectives. Policies are put in place to promote ethical approaches across an organisation.

What is driving the move to ethical procurement?

1. The Law: Around the world new laws are being introduced to protect the environment, backed by heavy penalties for those organisations who fail to comply.
2. Customers: The people who buy products and services are increasingly focused on trying to do the right things for society and the environment. They are more likely to spend money with companies that give priority to ethical issues.
3. Stakeholders: Stakeholders such as shareholders, trades unions and the church are demanding good governance on issues like modern slavery and climate change.

Some of the benefits of practicing ethical procurement include: 

1. Brand

As an organisation it helps you to build a strong reputation with customers and suppliers. People will want to do business with you.

2. Reputation

An ethical Procurement Professional is respected in the business community and within their profession, which will bring new opportunities for career development. If your organisation sells healthcare products to the public sector, a positive reputation will be critical.

3. Trust

Ethical behaviour in business helps to establish long-term relationships. Collaboration and trust with suppliers can generate added value for your organisation.

4. Recruitment

A reputation for ethical procurement will help your organisation to attract and retain the best talent, who want to work for businesses with the best reputation.

5. Investment

Shareholders are keen to invest in ethical businesses because they are known to be well run and show they respond to their markets. Your organisation’s ability to win contracts in the public sector will be strengthened if you have the financial support of banks or investors who are trusted.

6. Sustainable Returns

Your valuable resources will last longer, so your current business model can be sustained, giving you time to plan and make changes as the environment changes.