Buyer Analytics

Ethical sourcing is an organized social approach which promotes selling goods which adhere to standards for international labor, environmentalism, and social policy.  Ethical sourcing focuses mostly on goods from developing areas which are sold in developed countries.

The rationale for implementing ethical sourcing as part of buying practices is compelling.

• According to the World Bank 2.7 billion people in the world existing on less than $2 / day.
• In the Pearl River Delta region near Hong Kong, factory workers lose or break about 40,000 fingers on the job every year, according to a study published a few years ago by the Shanghai Academy of Social Sciences.
• Rights groups estimate there are as many as 60 million children working in violation of the Child Labor Act, which prohibits children under 14 from working in 72 jobs, ranging from cutting diamonds and shelling cashews to blowing glass.

According to ICLEI key elements of ethical sourcing include:

• Equal partnership and respect between producers and consumers
• A fair price for socially just and environmentally sound work
• Healthy working conditions
• Fair market access for poverty alleviation and sustainable development
• Stable, transparent and long-term partnership
• Guaranteed minimum wages and prompt payment
• Financial assistance, when needed (pre-harvest or pre-production financing)
• Premiums on Fair Trade products used to develop community projects
• Encouraging better environmental practices

Your initial reaction might be "well I don't purchase from third world countries, this doesn't apply to my company". If your company has vending machines, an employee cafeteria or buys gifts for employees or customers - you have an impact on free trade and ethical sourcing.

At the end of the day, ethical sourcing will create a more socially and environmentally conscious network of suppliers. No doubt, this network of suppliers will make the earth a better place to live.

For more information, here is a presentation from ICLEI titled "Buy Fair Trade, Make Fair Trade".