Just as most businesses are concerned with the ethical practices of their suppliers, suppliers should be taking a closer look at those of their clients. But why should your supplier care about your business practices?
- Reputation can make or break a business overnight. When thinking about brand reputation, suppliers understand the consumer, as possibly the most critical stakeholder, is asking, “Does this company share my ethical values, and is it transparent in their business practices?” Your supplier knows that public opinion will see them as guilty by association. If a company is known for operating honestly and with a moral compass, its supplier’s reputation is also enhanced by association.
- Legal Compliance is scrutinized at every stage of fulfillment. The supplier could be liable if a company does not comply with the laws and regulations dictating humane and environmental practices. It is in the supplier’s best interest to confirm that those they collaborate with are legally compliant.
- Cost Savings is a focus for all those in the supply chain. We stay in business by having a healthy bottom line. If a company proactively addresses human rights and environmental issues within the supply chain, problems can be addressed before they become costly negligence. This reduces the risk to the supplier and reduces expensive disruptions to the supply chain.
- Risk management is your supplier’s primary interest in your business practices. Verifying your company’s legal compliance and ethical practices allows them to sleep better at night knowing they are in business with a company of integrity.
Approaching business partnerships from an ethical standpoint is essential for mutual success. Mitigating potential impacts before they become costly disruptions is critical. Suppliers are motivated to partner with companies that operate ethically to reduce their risk to operations and bolster their reputation.