Supply Chains

Corporate supply chains are bigger and more complex than ever before. Open markets have enabled companies to source materials and outsource production to suppliers in developing and emerging economies. When done right, this can deliver significant benefits to companies in the form of reduced costs and enhanced profitability and shareholder value. It can also contribute to much needed economic and social development, resulting in higher standards of living for millions of people.

Therefore, a company’s entire supply chain can make a significant impact in promoting human rights, fair labour practices, environmental progress and anti-corruption policies. However, supply chain practices can be an organization's biggest challenge because of their scale and complexity. Successful managers must think beyond short-term financial considerations to build relationships that can deliver long-term value along the entire supply chain. This includes incorporating sustainability issues into the company’s sourcing and purchasing practices.

 

The UN Global Compact encourages companies to make sustainability a priority from the top of the organization. If the chief executive sees the supply chain as an extension of their workforce and community, the company can set expectations for best practices across its supply chain. These can include key areas such as selection, training, auditing, and remediation. Doing so promotes a broader understanding within an organization of how decisions made, beyond procurement, can affect the supply chain. For example, legal staff, product developers, and marketing all can have an impact. In addition, companies must look at their supply chain as a whole, and consider the suppliers that may have the most significant challenges to address.

​

To help, the UN Global Compact we develop guidance and resources listed below to assist companies in developing more sustainable supply chain practices.