Why Your Company Should Be Concerned With Ethical Sourcing


We’ve all heard the term “ethical sourcing” before. But what does it mean, and how do you implement it in your company? In this article, I’ll discuss the benefits of ethical sourcing for both buyers and suppliers and provide examples of how other companies have achieved success with this practice.

Protecting Your Brand Image

Brand image is critical to the success of any business. It’s what makes customers choose you over your competitors and it can be one of the biggest factors in determining whether or not people continue doing business with you.

If your company has a positive brand image, then people will feel confident in buying from you because they know that their experience–and their money–is safe in your hands. In fact, research from Nielsen shows that 91{b863a6bd8bb7bf417a957882dff2e3099fc2d2367da3e445e0ec93769bd9401c} of consumers are willing to pay more for products from companies with strong ethics policies and practices than those with weaker ones (Nielsen).

On the other hand, if someone has had a poor experience with an unethical supplier (or heard about one), they may develop negative feelings towards them which could lead them away from future purchases at all costs! This is why it’s so important to protect yourself against this type of damage before it happens by making sure everything goes smoothly through ethical sourcing practices

Avoiding Reputational Damage

In today’s day and age, it is important to consider the impact that your business has on the world around you. Your company’s reputation can be seriously damaged by unethical sourcing practices. This will not only affect your bottom line but also lead customers away from purchasing goods that were produced in an unethical way.

In 2011, Apple faced a lot of backlash after they admitted they had used child labor while assembling iPads in China. The scandal cost them $1 million in damages and forced them to revamp their supply chain policies going forward so that no child labor was involved in making any Apple products ever again!

Reducing Supply Chain Risk

Reducing supply chain risk is a good thing. Ethical sourcing can help you reduce the risk of supply chain disruption, product quality issues and other problems that could cause financial loss or legal liability.

Controlling Costs and Lead Times

  • Reduce costs and lead times by controlling waste.
  • Use local suppliers to reduce lead times, or have a single supplier for a product or product line.

Aligning With Customer Expectations

If you want to get ahead of the curve and align with customer expectations, you first need to understand what those expectations are. That’s where we can help you.

According to a 2018 Nielsen study on ethical sourcing, 73{b863a6bd8bb7bf417a957882dff2e3099fc2d2367da3e445e0ec93769bd9401c} of global consumers say they would pay more for products that have been ethically sourced. A staggering 91{b863a6bd8bb7bf417a957882dff2e3099fc2d2367da3e445e0ec93769bd9401c} of millennials (18-34 year olds) said that brands should be held responsible for how products are made and only 19{b863a6bd8bb7bf417a957882dff2e3099fc2d2367da3e445e0ec93769bd9401c} said they were willing to buy an item if they knew it was made by child labor or slave labor.*

Improving Employee Morale and Retention Rates

Improving employee morale and retention rates should be a top priority for any company that wants to see its employees thrive. Here’s why:

  • Better morale improves productivity. When your employees are happy and fulfilled, they’re more likely to work harder, stay motivated, and deliver stellar results. This means higher productivity for the company as a whole–and that’s good news for everyone involved!
  • Better retention rates mean less turnover costs. You might think of this as an obvious benefit of ethical sourcing policies, but it’s worth mentioning because it’s so important in today’s business environment (and especially if you’re in an industry where there are plenty of other companies vying for talent). Having strong ethical sourcing practices will help keep your employees invested in their jobs by ensuring that they feel valued; when people feel valued at work–whether through benefits like health insurance or paid time off (PTO), career development opportunities like training programs or mentorship programs…

Ethical sourcing is a win-win.

One of the most important factors in ensuring your business is successful is ensuring that you are ethically sourcing. Ethical sourcing is a win-win for everyone involved: it helps you to create a positive image for yourself and your company, while also helping the people who make your products.

The benefits of ethical sourcing include:

  • Creating a better working environment for employees
  • Improving the quality of life for workers
  • Reducing negative environmental impact by reducing waste and pollution


Many companies are already seeing the benefits of ethical sourcing, and they’re not the only ones. Customers are becoming more aware of the impact their purchases have on people around the world. As a result, they’re demanding that brands make sure their products aren’t made by child labor or in sweatshops where workers are treated poorly–and if they don’t comply with these demands, customers will take their business elsewhere.