The global expansion of supply chains is exposing companies to increased risks. Stakeholders (customers, employees, NGOs, trade associations, labor unions, government observers, etc.) ask comanies to be responsibile for their supplier’s environmental, social and ethical practices.
For instance, one bad incident with one supplier can result into huge adverse impacts on the organization. In addition, it may damage a company’s reputation and brand image and result into non predictable costs.
Therefore, companies make responsible sourcing an essential part of their procurement and supply chain management processes.