Commitment to change should be driven by upper management. This is the most direct way to ensure funds are allocated and goals are aligned. It is equally important that responsibilities for progress are shared, measured, and communicated across the organization. We encourage ambitious targets that are underpinned by corporate strategy and embedded into internal strategy systems. This provides accountability for progress. 

Having a business and operations code serves two purposes. It informs the rights, rules, and obligations important to your organization, both internally and externally. It also sets employees free to make decisions and find new solutions to challenges when they are well-versed in the company’s ethos. One example of such a code could be an employee handbook. 

To avoid a battle of price and delivery times vs. social and environmental values, internal alignment on procurement is key. This means guidelines should be developed to ensure consensus on your direction, the way you reach your goals, and the way you measure and document your progress. See other Brand policies here.

Well-performed due diligence is not a one-off risk assessment but an ever-evolving system, where social, environmental, and financial risks are identified, assessed, prioritized, and ideally mitigated. An established system is the best way to monitor responsible business conduct. 

Start by diving deep into the supply chain and identify where raw materials originate and where they are processed. Work your way from direct suppliers upstream, to all manufacturers, as well as direct and indirect business relationships. In some cases, suppliers are protective of their supply. This may signal a need to establish more trust and transparency within the business relationship. 

As part of your mapping, it is useful to identify the certifications your suppliers already hold. This will give you an idea of how quickly you can move forward. Understand that asking your suppliers to obtain an additional certification may be more successful if your company is willing to take on some of the certification costs (e.g. cover costs for the first year), pay a price premium, offer support in identifying new material suppliers, or even commit to a set number of items or collections from the supplier. 

As a responsible business partner, you need to make sure your suppliers are clear on what you expect from them and what you, in turn, can guarantee. A straightforward way to ensure such mutual understanding is to use a code of conduct, a code of cooperation, or a supplier manual. Additional, more detailed policies could be developed on relevant topics identified in your risk assessment. Topics could be: 

• §  Human rights

• §  Workers’ rights

• §  Environment