How can you use supplier sourcing to promote social responsibility?

1 Assess your social responsibility goals

Before you start sourcing suppliers, you need to define what social responsibility means for your business and what goals you want to achieve. For example, you may want to reduce your carbon footprint, support fair trade, improve labor conditions, or contribute to social causes. Your goals should align with your mission, vision, and values, as well as the expectations of your customers and investors.

2 Identify potential suppliers

Once you have your social responsibility goals, you can search for potential suppliers that match your criteria. You can use various sources, such as online directories, trade shows, referrals, or social media, to find suppliers that offer the products or services you need. You can also look for certifications, awards, or memberships that indicate the supplier's social responsibility performance, such as B Corp, ISO 26000, or Fair Trade.

3 Evaluate supplier performance

After you have a list of potential suppliers, you need to evaluate their performance on social responsibility aspects, as well as other factors, such as quality, price, reliability, and innovation. You can use different methods, such as surveys, audits, interviews, or site visits, to collect information and data about the supplier's practices, policies, and impacts. You can also use scorecards, benchmarks, or standards to compare and rank the suppliers.

4 Negotiate with suppliers

When you have selected the best suppliers for your needs, you need to negotiate with them to establish a mutually beneficial relationship. You can use your social responsibility goals as leverage to influence the supplier's behavior and encourage them to improve their practices. For example, you can offer incentives, such as longer contracts, higher volumes, or better terms, for meeting or exceeding your expectations. You can also set penalties, such as fines, termination, or litigation, for violating your requirements.