Let us start by asking ourselves some simple yet important questions- Are the products that we use every day manufactured in ethical conditions? Do the products create wastes that are harmful to the environment? Are we really aware of the source materials and where they come from? In a world where human life is completely impossible without the use of commodities, it is only natural to question the ethical sourcing of the products that surround us, which is why it is absolutely imperative to understand the importance of ethical sourcing and how it can build a sustainable supply chain that is significant for branding.
Ethical sourcing is the responsible procurement of products or services, ensuring fair labour practices, environmental sustainability, and respect for consumer rights throughout the supply chain. Over the years it has become a major concern for companies and consumers to incorporate sustainability practice in all stages from manufacture to consumption to producing by-products.
With this article we will explore the importance of ethical material sourcing, highlighting its substantial influence on brand reputation while offering key takeaways for businesses in various industries.
Why is it important?
As we already know, ethical sourcing refers to the use of morally acceptable steps in all stages of manufacturing. It directly impacts the branding, supply and further promotion of the company. To explain further, its importance can be summarised as follows-
Improved brand image: Ethical sourcing is the best way to improve brand reputation. It reflects your diligence towards eco-conscious marketing, ultimately making your brand more reliable with an increased market value.
Transparency: It is very important to be transparent regarding the production of certain commodities with the consumers. This appeals to those who are placing greater importance on authenticity and ethical principles in the brands they choose to support. It will inevitably result in consumer loyalty which will bring in more efficient distribution.
Sustainability: Ethical sourcing leads to sustainability. Use of biodegradable materials and manufacture of organic products all together contribute to making production harmless to the environment and every other living being.
Production Evaluation
Sourcing ethical suppliers to provide raw materials and services should be the first and foremost focus of any venture. It stands at the very core and shapes the foundation of the branding pyramid. Most importantly, it upholds the brand reputation, creating a more well-rounded image by showcasing its dedication to social and environmental obligations. Manufacturers with Fair Trade Certification will add to the credibility of their sustainability claims. This will further impact future partnerships, employee morale, and customer integrity.
Ethical Manpower Sourcing
Behind every merchandise there is always manpower directly related to productions and manufactures. However their equitable rights are almost always overlooked in big companies. The reality is that the deeper you go down into your supply chain, the harder it becomes to monitor unethical and unsafe working conditions, equal wage distribution between men and women and child labour. Failure to maintain fair labour rights management can lead to losing the credibility of brands. Therefore, it is essential to maintain clear oversight of every stage of the supply chain and implement an ethical sourcing policy to steer your procurement practices.
Increased Consumer Support
Transparency with product manufacture creates a greater trusting ground among consumers. Over recent years, there has been an increase in customer awareness regarding production and ethical handling of the commodities of their everyday use. Moral integrity can provide a significant competitive advantage, as almost 90 percent of customers are likely to stop supporting a brand that engages in unethical behaviour. Recent studies show that a large number of consumers are willing to pay more for products that are ethical, such as biodegradable, cruelty-free, and devoid of child labour.
As the main target of every business is to gain more customer attention and future support, it is absolutely crucial to enforce top priority at the primary stage of production. This will highlight company morals and coherence which will automatically result in increased consumer loyalty.
Make Production Sustainable to the Environment
Climate and environment concerns are major aspects of every commerce in today’s world. Naturally, businesses are becoming more competitive in this regard. As carbon emission is a big cause of global warming, it is important to explore new methods for product manufacture, transport and distribution that lessen carbon emission to an extent. Make sure to use recyclable material and renewable energy sources to create by-products that are not only environmentally friendly but also reusable. In fact, big businesses like IKEA, PATAGONIA, UNILEVER, etc. are well known for their dedication to environmental sustainability and upgraded labour conditions to promote social duties.
Learn To Regulate Ethical Sourcing
To maintain ethics when sourcing sustainable elements, it is necessary to learn how to conduct production first. Remember, it is never easy or cost-efficient to assemble and produce goods that are sustainable. It takes time, money and experience to build a brand that can effortlessly operate with a sustainable supply chain.
It does take a lot of moral stability to maintain ethics, as unethical production tends to be faster and, in some cases, a lot cheaper. However, cheaper production will result in a decrease in quality. Besides, there is always the possibility that unscrupulous production is illegal or subject to legislation like- the Modern Slavery Act and Anti Corruption Act. As laws regarding commerce are becoming stricter, it is crucial to avoid such situations in order to maintain smooth trading.
To look at the bigger picture, ensuring ethical sourcing may consume time and money, but in the end, it is what brings in the best possible results when it comes to establishing a brand that is supported by reliable sources, devoted customers and, most importantly, endorses a positive brand image.
In the end, ethical sourcing is not just another option in business and production but a must as it has a lot more to offer in the long run. Business owners should try opting for ethical suppliers, using environmentally efficient production methods, meeting consumer requirements, and, most importantly, ensuring strategic planning in order to bring the best possible results in their respective fields. Embrace the challenges along the way to ethical sourcing and contribute to the efforts of creating a sustainable supply chain.
Author- Jarin Subah Turaba
