Companies that succeed in greening their supply chains are going beyond the factory audit, working directly with vendors on boosting environmental performance, according to a new report.
The report, from Business for Social Responsibility, is based on several pilot projects looking at the IT sector and suppliers in China. It outlines several steps companies can take to build capacity in their supply chains:
Support multiple capacity-building strategies. Approaches can include providing generic tools (such as a factory committee or worker hotline to address concerns), conducting trainings, creating supplier-support networks and implementing factory-specific projects.
Focus on the business case. To achieve buy-in from suppliers, identify real incentives and allow suppliers to shape their own approach to CSR improvements within the factory.
Integrate a mentoring system into the monitoring process. Work with the supplier to identify root causes of compliance issues. This strengthens the relationship between the company and the supplier, shifting focus from immediate compliance to continuous improvement.
Foster ongoing dialogue among stakeholders. These include customers, suppliers, NGOs, local government and industry associations. This reinforces each group’s efforts, creating the potential for a much bigger impact on everyone’s CSR efforts.
"The challenges with capability building identified in this report is not unique to the IT sector or to China, and many of the recommendations can be applied to a wide variety of sectors and geographies," says Laura Commike Gitman, BSR's director of advisory services.
To download the report, click here (PDF).
via | Sustainable Media Life
