How to include CSR at the core of your company’s procurement policy

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In view of current concerns and general awareness, it has become essential to integrate CSR into your procurement policy and, more broadly, into your overall corporate strategy. This is reflected in the incorporation of certain priority themes into corporate procurement policies, including reducing environmental impact and the promotion of ethical sourcing. Cooperation with suppliers is an essential lever for achieving this.

The rise of CSR

The European Commission defines CSR as “a concept whereby companies integrate social and environmental concerns into their business operations and in their interaction with their stakeholders on a voluntary basis”. Adopting this approach is now essential for the development and sustainability of companies.

First and foremost, the integration of CSR is undertaken through a strategic department in the company: the procurement department. The supply chain is a real showcase for the commitments made. It is responsible for 50 to 70% of the environmental and societal impact of the company. It’s therefore essential to review the procurement process and integrate CSR.

Depending on the actions undertaken, CSR allows for a gradual change in mentality to progress towards more responsible and less environmentally damaging purchases overall.

How can you implement a responsible procurement policy?

To pursue a responsible procurement policy, CSR should be included in its strategy. To this end, the company can take action in a number of areas, which may vary in importance, but all should have an impact on society and the environment.

Reducing the environmental impact

The environment is a major concern today. Therefore, companies must also act to reduce their environmental impact. This commitment includes implementing such policies as:

  • Waste reduction;
  • Smart management of energy and water consumption;
  • Carbon footprint reduction;

To reduce the impact of its procurement policy, a company can also put in place greener logistics and search for better suppliers. It can look towards the circular economy, which will become increasingly important in the coming years. A Swedish study published in October 2020 estimated that the circular economy could generate up to 535 billion in savings at a European level by 2030.

To take action on their environmental impact, it may be appropriate for companies to implement a “small steps” strategy, starting by favouring local sourcing. In addition to the positive environmental aspect, local sourcing offers many advantages, including improved responsiveness and greater control, as well as a reduction in supply chain costs. Switching to products that carry a CSR label may also be an attractive solution, as well as rationalising deliveries (such as: the analysis of journey times, bulk orders, or the timing of orders).

Promoting ethical sourcing

This aspect is very important for the integration of CSR into the company’s procurement policy. It relates to the human aspect: respecting human rights, gender equality, considering the needs of each individual, etc.

Ethical sourcing, therefore, has an impact on human dignity and respect for workers’ rights, which encompass many aspects (health and safety, inclusion, working conditions, etc.). The partner company thus demonstrates that it cares about well-being at work.

Many companies, mindful of their overall impact and their image, take into account the ethical practices of suppliers when selecting their future partners. They not only look at their performance but also seek to identify and rectify any activities that might undermine it.

Manutan’s commitments

Implementing a sustainable procurement programme requires close collaboration with suppliers. Indeed, for a company’s responsible commitment to be viable, it is essential that its suppliers share the same principles, particularly regarding the development and implementation of an effective CSR strategy.

At Manutan, as a company committed to sustainable development, this CSR approach is reflected by the implementation of several actions:

  • Limiting carbon emissions;
  • Consuming more responsibly;
  • Promoting well-being at work;
  • Committing to inclusivity.

As it is in the interest of all companies to take CSR issues into account, Manutan supports them by offering a range of responsible products that contribute to the well-being of employees.

Professionals who rely on Manutan’s services also benefit from sound information on the various strategies that can be deployed, including the best practices to be put in place for a procurement policy that is both effective and responsible.

 

Victoria Vaughan