Whether you agree
with the cause and effects of climate change or not, there is no doubt that
organizations across the world play a large role in our environment and
society. The idea of "Social Responsibility" has become more and more
prevalent and impossible for consumers to ignore.
As it relates to a
corporation, Social Responsibility implies that a corporation has a duty to act
in the best interest of their environment or society. Examples include reducing
their carbon footprints, improvinglabor policies by embracing fair trade, and
changing certain corporate policies to benefit the environment.
The four types of
Corporate Social Responsibility fall into these categories:
Ethical business practices
Direct philanthropic giving
In this post, learn
how your organization's Procurement department can accelerate the impact of your
corporate social responsibilities
Get creative with your
When most people
think sustainability, they think directly sourcing sustainable goods or
products. But what if this isn't possible? What if your organization simply
doesn't make enough purchases to have a measurable impact on the environment?
Well, one of the
methods companies are turning to is looking at indirect methods of reducing
their environmental impacts. A few examples are only ordering products that can
be delivered using electric vehicles. Or, contract with a facilities
management company who uses energy-efficient and electric power tools and/or
mowers. Perhaps your cleaning crew can switch to environmentally friendly
cleaning products. The combination of these efforts truly makes a large impact.
Understand your sources
The introduction of
blockchain allows for procurement organizations to effectively manage and track
the origin of the products and materials they purchase. This directly
contributes to the impact of ethical business practices rating. For example,
purchasing raw materials such as wood or steel from a country for very cheap
may seem harmless on the surface. However, if the source harms the local
population or environment, then that could reflect poorly on the business's
social responsibility. If that wood purchase contributes to massive
deforestation and habitat destruction, many people and communities could face
For those that don't
know, to define blockchain: "originally blockchain, a growing list of
records, called blocks, that are linked using cryptography. Each block contains
a cryptographic hash of the previous block, a timestamp, and transaction data.
By design, a blockchain is resistant to modification of the data."
One of the growing
behavioral epidemics amongst teens is car theft and vandalism. This has always
been a problem, but the crime has started to grow at an alarming rate. By
nature, this is a great opportunity for insurance companies to get involved.
When a child steals a car or spray
paints a building, more than often,
insurance companies will see some losses when they must replace or repair the
property. But how would they tackle this issue?
creativity and looking at the root cause could contribute to the solution.
Insurance companies that invest in youth programs that help educate and improve
youth opportunities understand the larger impacts that these problems have to
their bottom line, and more importantly, society.
take a holistic view on society and determine philanthropic methods of
influencing change as it relates to their own mission.
responsibility relates to growing the business in a sustainable and responsible
manner. Typical examples of this are manufacturing companies that incorporate
policies are often introduced to make significant changes to business
practices. For example, straws and single-use plastics have been banned in some
cities. To combat this policy and remain responsible, some companies have
adopted biodegradable straws or metal reusable straws. Both get the job done while contributing to the bottom line of growing profits and remaining
This is another
opportunity for innovation and creativity. Not all companies have the
opportunity or need to change materials that are crucial to their process. Some
changes are direct sources of what is being sold. For example, harvesting
caviar often involves slicing the fish open to remove the delicacy. Obviously,
the fish does not live using these methods. Through innovation, some companies
have developed a no-kill method to harvest caviar, leading to a sustainable and
economically responsible process.
The human race will
forever be a society of innovators and problem-solvers. No matter the issue, we
can find a solution. Not all problems can be solved through better procurement
practices, but there is no doubt that the sourcing organization of your company
can play a key strategic role in contributing to your social responsibility