Now more than ever before, businesses are prioritising corporate social responsibility (CSR), sustainability and are adopting more ethical practices. It’s good business sense to make these operational changes as increasing numbers of customers look to buy products from ethical providers and work with those that take sustainability seriously. According to KPMG, more than 90% of the world’s top 250 companies now produce an annual report on CSR, And, every businesses needs to make the effort to accelerate and amplify their sustainability efforts.

From reducing plastic through to assessing poor working practices in the supply chain, procurement has a significant role to play in making sustainable business improvements.

Here, we consider five ways procurement professionals can encourage real sustainable change in their organisations through supply chain best practice:

1. Supplier vetting processes

With an increasing number of customers reviewing CSR credentials as part of their buying decision making process, assessing a potential new vendor on the way it works and its commitment to sustainability as part of the sourcing process is essential. Procurement professionals can use a pre-purchase questionnaire (PPQ) to assess potential suppliers on their working practices and CSR values, alongside all the other key criteria for working with your organisation.

For businesses using eSourcing software, potential suppliers can quickly and easily respond digitally to the PPQ allowing procurement to quickly eliminate any that don’t meet the necessary specifications from the process. Informed decisions that are fit for the business and their CSR practices can then be made.

2. Be strict on purchasing

There is little point carefully assessing and selecting suppliers based on specific criteria if buyers from around the organisation frequently decide to go off and make their owning purchasing decisions from unapproved sources. It’s important to make anyone authorised to make purchases within an organisation stick to the approved vendor list. E-procurement software can be used to keep control of purchasing, ensuring all orders are made with approved ‘sustainability friendly’ suppliers at the contracted price.

3. Do you know what’s happening in your supply chain?

Supply chain visibility is vital and as a number of high-profile cases have shown, e.g., fashion brand Boohoo being investigated for poor working practices among its supply base, it’s important to find out as much as you can about where your products come from and how they are produced.

It is imperative that procurement asks vendors questions about the practices that take place in their supply chain such as, how do they treat their staff, do they work in a safe environment, and do they adhere to the Modern Slavery Act? Visibility is key if you’re committed to CSR and there are no excuses for not looking into how the products you sell are made.

4. Cost of products vs environmental footprint

Over the past five years or so, we’ve seen consumers increasingly begin to question where the products they want to buy come from, particularly in the food and clothing sectors. Many people today are willing to look past cost to buy locally sourced produce or ethically made clothing and support environmentally conscious products and companies.

This trend has extended to business buyers too as sustainability has evolved and made organisations consider the environmental versus economic value of a product. This is especially true for those with extensive global supply chains who source from overseas. Of course, businesses need to make sound financial decisions on the items they purchase, but it’s important to consider the environmental impact of these products too.

5. Supporting social enterprises and ethical sourcing

Another way for procurement to make a real difference is consider ethical sourcing and choosing to buy from social enterprises. According to Social Enterprise UK there are over 100,000 social enterprises in the UK, employing two million disadvantaged people who are likely to struggle to find work elsewhere. From office supplies to bathroom soap or IT support, social enterprise organisations are created to provide businesses with a host of different supplies or services that they might need. It’s good for business in other ways too, as people are keen to work for and with socially responsible organisations.

Helping the business become more sustainable does not always have to mean cost savings are overlooked, as these are often generated thanks to operational cost efficiencies such as logistics or waste reduction. Many organisations also recognise that CSR encourages loyalty, with more customers likely to want to repeat business with a brand committed to sustainability. These small wins not only contribute to the environment but can also benefit your organisation in so many other ways too.