Ethical procurement implies that the acquisition of goods and services is created in a safe and hygienic environment for workers who pay fair wages and work well during legal classes . This is a critical element of corporate social responsibility. The main purpose is to use a supplier who incorporates the principles of morality in production conditions, including minimizing the environment and minimizing workplace damage and / or exploitation. Ethical Procurement in Ethical Procurement Minimizes Risk of Failure
The most important points of ethical acquisition:
When delivering products and materials ethically. These include:
a. It is important that you visit your suppliers more frequently to see if they are doing what they are saying. Find out if your production is hygienic, safe and sustainable.
b. Check that the supplier will be able to deliver the same amount of quality and quality products to the line for several months
. If you can not visit the vendor personally, ask them about the above key questions. If possible, visit another company that comes from the same supplier and check the quality of the products they ship.
d. Find out the supplier information and check their websites.
e. Check out what other manufacturers are doing and where they come from.
Advantages of Ethical Procurement:
Early users of ethical procurement have done a lot with this practice. With technological advances, ethical acquisitions now benefit much more in the days. These benefits are as follows:
a. Market Image:
Consciousness in the minds of consumers and their behavior on shopping habits greatly influences the organization's business. The last thing an organization wants is a negative or disadvantageous publicity. The issue of a small child labor or environmental issue can have a far-reaching impact on a public image of an organization outside its market position.
b. Lower Linearity:
Better supplier relationships, better cost structures and reduced risk exposure are the most common benefits that companies derive from ethical procurement. This is because these companies are making greater efforts to allocate time and resources in order to bring these benefits closer to or greater than moral norms, thereby ensuring that organizations benefit from these benefits
. Cost Benefit:
During ethical procurement, companies focus on product safety and better process control, enabling better supervision of supplier scorecards and contract management. This will allow companies to minimize suppliers and, above all, the failure rate of the product / service will be reduced, thereby improving the overall cycle time. This factor is very important during declining sales or recession times, as financial manager officers put pressure on to minimize costs and increase margins.
Ethical procurement clearly provides the required economic difference in difficult economic times. Ethical procurement is not a new kind of narrowed approach, but a potential channel that organizations can implement to improve their public image and minimize waste
Source by Thomas M Johanson