How to Implement a Social Responsibility Policy in Your Purchasing Department

Business purchases can have global consequences.

The increase in globalization of business and the growth of information sharing has made business' impact on society more evident than ever. News of negative impacts can spread and become a liability. Many businesses and their purchasing departments have responded by implementing social responsibility in their business decisions. Businesses measure the health, environmental and human rights impact of their purchases and make social impact a consideration alongside cost.

Instructions

Setting a Social Responsibility Policy

1. 

   Make social responsibility an important part of your business plan.

   Assign social responsibility to the appropriate part of the business. Larger corporations may assign a social responsibility department to oversee all parts of the business. Smaller enterprises may incorporate social responsibility into their public relations department or assign it to an individual.

2. 

   Seek suppliers that use environmentally friendly resources.

   Review all suppliers and their commitment to social responsibility. Make sure they follow all local laws and international standards for environmental stewardship, labor relations and human rights. Suppliers should also seek out diversity in employees and business associations and be fiscally ethical and transparent. Consider whether they work and provide a benefit to the local communities they serve or your company serves.

3. Partner with nonprofits that specialize in social responsibility. Several organizations can provide guidance in fair trade, environmental stewardship, community development and small and minority business development.

4. 

   Seek out local and minority-owned businesses to add value to local communities.

   Open supplier bidding and contracts to socially responsible corporations, local business and minority-owned enterprises. Consider the value of potential suppliers' social responsibility commitments and value to the communities in which your business operates.

5. Promote your social responsibility practices through public relations. Letting the public know your company's commitment to social responsibility will increase the awareness, popularity and value in the mind of consumers.

   Let shareholders know the benefits of social responsibility and explain it as a value and an opening for opportunity, not just an additional cost. Let employees outside the purchasing department know so they understand the social responsibility ethics of the business and integrate them into their job.

6. Challenge your suppliers to meet higher social responsibility standards. Every business has a sphere of influence, including the power of their purchasing department. Tying your purchasing standard to social responsibility sends the message to suppliers that the environment, human rights and business ethics are values you demand with your purchase from them.

References

• Institute For Supply Management
• Journal of International Business Ethics