Ethical Sourcing Roadmap
The purpose of this Roadmap is threefold:
To create a vision for the company to achieve its ethical sourcing goals.
To be transparent to our clients, suppliers and wider stakeholders on our commitments and intent.
To create policies and processes relevant stakeholders in our business operations and supply chains.
This roadmap outlines an our strategic plan and vision of how STR can implement ethical sourcing throughout its business operations and supply chain.
By first understanding where we are at now, ‘the Baseline’, the roadmap unfolds in three main phases – Build, Embed and Improve. Each phase is intended to achieve key milestones over time, creating a work plan that is both realistic and achievable. Recognising that success is not an end goal but rather genuine integration into core business.
To examine STR's policy and procedures as they relate to ethical sourcing in its business operations and supply chain
• Join relevant industry or multi-stakeholder initiatives and participate in relevant policy discussions
• Update supplier evaluation processes with minimum ethical sourcing requirements
• Update risk register with ethical sourcing and human rights considerations
• Develop staff education on ethical sourcing including human rights
• Develop performance targets or incentives for procurement staff on ethical sourcing
• Participate in a third party assessment of ethical sourcing practices
• Update preferred supplier list
• Update supplier engagement processes to include ethical sourcing considerations
• Update supplier contract templates with clauses that promote ethical sourcing, including the verification and resolution of ethical sourcing claims
• Develop key performance indicators for suppliers which correlate with ethical sourcing
To create a foundation of good policies and procedures from which to build ethical sourcing practices
• Define risk ratings and categories for ethical sourcing
• Develop a Stakeholder Engagement Matrix, including an internal cross-functional group to consider ethical sourcing
• Define staff reporting requirements and responsibilities for progress against targets
• Define supplier groups
• Apply an initial supplier risk rating based on supplier status as well as spend, country and sector risk
• Disseminate Supplier Self-Assessment Questionnaire (SAQ)
Ensure policies and procedures manifest in practice across business operations and supply chains
• Update IT procurement policies and procedures to address conflict minerals
• Update tender process to include ethical sourcing requirements
• Integrate Ethical Sourcing Roadmap in STR strategy
• Develop due diligence criteria for low, medium and high risk suppliers
• Implement corrective actions from third party audit
• Analyse and publish results from Supplier SAQ
• Host Supplier Sustainability Roundtable
• Develop supplier information packs based upon any identified needs
• Review supplier contracts and develop verification clauses on ethical sourcing
• Engage two key suppliers in supply chain mapping at multiple tiers
To measure the success of current initiatives, makes recommendations for improvement and report on progress.
• Review the implementation of Ethical Sourcing Roadmap, setting goals and activities for continued improvement
• Develop remediation guidelines based on findings / experiences from previous phases
• Explore if procurement practices (price and lead time) impact supplier performance
• Review and close out corrective actions from third party audit
• Conduct a supplier satisfaction survey on supplier engagement and ethical sourcing
• Strategic suppliers have updated policies and procedures as they relate to ethical sourcing
• First tier suppliers are allocated an ethical sourcing or ESG risk rating
• Host second Supplier Sustainability Roundtable