The CSR Category

Transparency-One: Vendor Introduction, Analysis and SWOT [PRO]

Procurement and supply chain organizations are facing pressure from consumers, governments and investors to clean up their supply chains. Whether it’s traceability of ingredients (including their source and their quality), assurance that labor and facility conditions are up to code, or proof that emerging compliance standards like modern slavery laws are being met, companies are increasingly being tasked with mapping their entire supply chain while ensuring that suppliers are meeting, and tracking, myriad metrics for safety, sustainability and corporate social responsibility (CSR).

This is the narrative that Transparency-One, a provider of supply chain visibility and compliance tracking solutions, is betting the farm on. (This is apt, because the provider actually models and monitors farms as part of the extended supply chains being tracked within its system.)

Founded in 2016, Transparency-One enables executives in charge of sustainability or responsible sourcing to report accurate supplier and compliance data to sales, marketing and regulatory compliance functions about what’s happening in their supply chains end to end, as well as to map product tracking and quality information down to the lot/batch level.

While many such efforts are already underway at major companies, compliance tracking is often fragmented, with initiatives like conflict minerals compliance managed separately (and in different tools) from the tracking of, say, facility safety certifications. Transparency-One is seeking to bring all of these efforts into a single platform, starting first with the food, retail (e.g., grocery, apparel) and industrial materials (e.g., rubber, chemicals) sectors.

Currently operating in 30 countries and in six languages, Transparency-One counts traceability projects with Intermarché, Carrefour and Mars among its pilot customers. It has offices in Boston and Paris.

This Spend Matters PRO Vendor Introduction offers a candid take on Transparency-One and its capabilities. The brief includes an overview of Transparency-One’s offering, a breakdown of what is comparatively good (and not so good) about the solution, a SWOT analysis and a selection requirements checklist for companies that might consider the provider. It also touches upon graph databases and their use in this supply chain management, supplier management and risk management mashup area.

CSR Update: Corporate Social Responsibility Can Lead Customers to Spend More, Study Says

BuyerQuest

Consumers are hungry for more information of all kinds when it comes to corporate social responsibility practices, and many are willing to pay more to companies that can provide it, according to a report in the Manufacturing and Service Operations Management Journal. The study, "Supply Chain Visibility and Social Responsibility: Investigating Consumers’ Behaviors and Motives," identified a strong preference among at least 70% of consumers for advertisements with more precise information about corporate social responsibility (CSR) activities compared to ones with vague information if the price did not change.

North America, Europe Include Top Business Performers in Anti-Corruption Efforts

As companies become increasingly aware of their own corporate social responsibility (CSR) obligations, various watchdog groups are beginning to take stock of these indicators. While some companies might look the other way as conflict gold passes through their supply chains, others might be making efforts to do positive things with their power, such as donating to charitable causes. In a new EcoVadis study, “The Fight Against Corruption: Insights Into Ethical Performance in Global Supply Chains,” the company considers the issue of corruption and how prepared companies are to address it.

Addressing CSR and Sustainability Goals Through Improved Indirect Spend Management (Part 1): Background and Challenges

The list of corporate social responsibility (CSR) and sustainability risks in the physical supply chain is long. When securing direct materials, procurement organizations must assess factors from restricted or hazardous substances to the kind of labor that went into raw material extraction and even political restrictions like sanctions on whether companies from certain countries are even allowed to do business with you. Because of these and numerous other potential issues, many companies have begun to focus on identifying and eliminating such risks from their supply chains with the help of third-party CSR data sources and risk-monitoring platforms. But while the value of assessing CSR risks for direct materials spend has gained prominence in recent years, the other side of the procurement coin, indirect spend, has not received nearly as much interest. That’s a shame — and a risk in itself.

Want to Know Your Industry’s Risks? CSR Index from EcoVadis Takes Deep Look

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As customers and businesses seek better environmental practices and fair labor standards, corporate social responsibility (CSR) reporting has taken on greater importance for executives who could face questions about why they use conflict minerals or buy products created by forced labor. To help take a deeper look at the issues, EcoVadis has assessed the CSR reporting of more than 33,000 companies around the world. The Paris-based company is a provider of business sustainability ratings, intelligence and performance-improvement tools for global supply chains.

On CSR Reporting, Smaller Firms Outscore Larger Ones in Global Study

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Small and medium-sized businesses outscored larger companies in managing their corporate social responsibility reports — but all sizes of firms could improve CSR management and remove more risk for their companies, according to EcoVadis’ second annual study of more than 33,000 businesses around the world. Out of 100 points, small and medium-sized companies (26-999 employees) scored 42.4, and large ones (more than 1,000 employees) scored 39.6, the study said. Results below 45 indicate “an unstructured approach” to CSR management — with a medium to high risk for a business on the EcoVadis scoring scale, and the study said large companies have much further to go in improving their CSR practices.

A Big Green Idea: How Procurement Can Balance Profitability and Sustainability

External forces — from climate change to shifts in generational expectations — are causing businesses to take a hard look at the sustainability of their supply chains, and procurement organizations are uniquely positioned to effect environmental and financial change for the greater good, speakers said at Procurious’ 2018 Big Ideas Summit on Thursday in Chicago. In presentations from leading procurement professionals and supporting technology providers, speakers encouraged attendees to reconsider what was possible in the supply chain, including common misconceptions about sustainability.

Why Supply Chains Should Put Curbing Global Food Waste at the Forefront

More than 2 billion tons of food worth $1.5 trillion could be wasted in 2030, according to the Boston Consulting Group. It’s not an unrealistic estimate considering the 1.6 billion tons worth $1.2 trillion lost just three years ago. Food waste is a concept so vast and systemic that one must go beyond the individual impact and look toward how entire companies involved in the process – from production to consumption – can actively work in a way that helps solve a global crisis while attaining tangible business benefits.

The Rise of the Social Enterprise (Part 2): Why Corporate Citizenship is Crucial

As the nature of work changes, so too does our understanding of careers. This is one of the most important trends covered in Deloitte’s 100-page 2018 Global Human Capital Trends Report. While 84% of respondents who took part in Deloitte’s survey deemed the ability to build a 21st-century career as “important” or “very important,” only 37% think they are ready to do so. Part 1 of this series covered C-suite, contingent workforce and compensation trends. Today’s post will discuss four more trends in human capital: corporate citizenship, corporate wellness, longer careers and the redefinition of the career itself.

The Rise of the Social Enterprise: Working Toward a Symphonic C-Suite (Part 1)

marketing procurement

As the concepts of the workforce and the workplace shift, the concept of the business itself may be changing as well, Deloitte’s 2018 Global Human Capital Trends Report suggests, giving rise to what the report’s authors call “social enterprises.” A social enterprise is an organization “whose mission combines revenue growth and profit-making with the need to respect and support its environment and stakeholder network,” the authors write. “Today, successful businesses must incorporate external trends, perspectives and voices by maintaining positive relationships, not just with customers and employees, but also with local communities, regulators and a variety of stakeholders.”

GAO: Majority of Companies Can Now Determine Origins of Their Conflict Minerals

conflict minerals

For the first time, more than half of companies filing conflict minerals reports are able to determine the source of these minerals, according to a Government Accountability Office report on conflict minerals disclosures filed with the U.S. Securities and Exchange Commission (SEC) in 2017. Last year, 53% of the companies were able to report whether their conflict minerals — tin, tungsten, tantalum and gold — came from the Democratic Republic of the Congo or one of the nine neighboring countries.

Risk of Slavery, Trafficking and Labor Abuse in Supply Chains Expected to Increase

As manufacturing becomes increasingly automated, the risk of slavery, human trafficking and labor abuse in supply chains is also expected to rise, according to Verisk Maplecroft’s 2018 Human Rights Outlook. The report presents five issues that will pose “significant challenges to the reputations, operations and supply chains of multinational companies.” Automation tops the list, with an estimated 56% of jobs in Southeast Asia’s key manufacturing hubs potentially affected. Compliance, certification, threats to human rights defenders, and investor expectation for businesses to take up social responsibility round out the list.