The Onus to Know Ones Suppliers

One of the best things the internet has done for business is allowed the type of instant communication and information dissemination that makes running operations small or large, local or multinational, a breeze.  Unfortunately, this speed of data transference has also grown to pose one of the biggest threats to business as consumers can now learn and spread negative information about a business just as easily.  And with this development have come quite a few activist groups that make it their sole mission to inform the public about companies that are failing to do their part when it comes to running ethical operations, including every link in the supply chain.  So if you think that your business won’t eventually come under scrutiny in this arena, think again.  The age of information means that there are eyes and ears everywhere, and it’s only a matter of time before they turn on you and your business.

But what does this really mean for the average business owner?  The truth is, if you’re not engaging in blatantly unethical practices, you probably have nothing to worry about.  This is especially true for small or local businesses.  Larger corporations (those that have to juggle a host of suppliers) are the ones that may be in trouble, especially if some of their supply chain operates in foreign countries.  While many nations have laws in place to regulate labor so that human rights issues like child labor and forced labor don’t occur, some do not have strict enough laws and some simply do not enforce them.  So even in our modern world, exploitation of labor still occurs.  And companies that support it are sure to come under fire for ethical violations.

So it behooves you to know your supply chain inside and out, which means to you need to visit international operations before you sign a contract to work with them.  You don’t want to discover down the road that there are children in a field picking cocoa beans to make your chocolate, that workers are being forced to operate in sweatshop conditions day and night to create your cell-phone casings (to the point where they’re committing suicide), or that desperate laborers are sand-blasting your jeans without proper ventilation and masks (leading to fatal silicosis).  You might be horrified by these scenarios, and you should be.  All of them are real-world occurrences that have made headlines in the last few years and each instance was linked to a major international brand name (Nestlé, Apple, and Levi’s, respectively).

But besides the obvious (preserving the integrity of your company and taking a stand against worker exploitation), why should you clean up your act when it comes to the supply chain?  After all, it could cost a lot more to purchase goods and services that are guaranteed fair trade.  In truth, there may not be a quantifiable way to gauge the success of such a venture.  Bad press is bound to find you if you’re engaging in ethical violations, but who’s going to talk you up when you’re on the straight and narrow?  Companies that pull out their money clips can certainly advertise their ethical operations in a bid to get more business, but it is the patronage of concerned citizens that will help you the most.  Even if you’re paying a bit more for ethical suppliers, you can earn it back in good press and increased consumer dollars.  So whether you’re in it for the ethical goodwill, the bump in revenue, or both, you will find that only good things come from ensuring an ethical supply chain.

Shirley Simpson is a contributing writer for the Executive Gift Shoppe where you can find a bevy of great gifts for the professional in your life.