Understanding and identifying operational supply chain risk as part of a solid ESG program
With increasing pressure from consumers, regulators, and investors, companies are implementing environmental, social, and governance (ESG) programs into their operations. ESG components include understanding the impacts the supply chain can have on both financial and operational risk. Our US-based technology focused manufacturing client engaged us to audit their global supply chain to develop and implement a supplier social responsibility program in line with their ESG goals.
Our client, their global suppliers, and supplier employees worked together to create an employee-driven respectable conduct and safe workplace program. We conducted supplier factory audits and corrective action plan reviews, prepared audit reports, assisted with open findings management and strategic program implementation, and provided regular progress reporting and analysis support. Given the cost sensitivity for suppliers, we spent a significant amount of time coaching and guiding them through the process of making improvements.
When suppliers foster a culture of communication, employees can openly raise concerns without fear of retaliation, intimidation, or harassment. Aligned with local regulations and our client's code of conduct, the program promotes fair labor practices, worker health and safety, addresses operational risk, and drives environmentally sound manufacturing processes globally.
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