Author: Leas Bachatene, Founder and Chief Executive Officer,
Read the full article on supplychainbrain.com
Today, it’s not enough for business leaders to echo their company values across social media. Regulators, investors and consumers alike are often just a click away from environmental, social and governance (ESG) reports and breaking news of scandals, thrusting potential issues into the spotlight.
While ESG efforts have long aimed to increase transparency, many leaders are realizing that we’re moving past bare-minimum standards into an era of full visibility, where demands for accountability extend all the way across organizations and their supply chains.
For years, activist investors and concerned consumers have demanded that executives take public stances on contentious social issues and make explicit commitments to address ESG concerns. Socially engaged employees have joined the chorus. Leaders must understand that accountability has a major impact on the bottom line and brand reputation and must therefore become a key element in risk management.
While many companies have made strides in enhancing visibility in governance and operations, supply chains remain a significant pain point. Global disruptions spurred by the COVID-19 pandemic have shined a spotlight on the fragility of supply chains, underscoring the pitfalls that companies can fall into when their monitoring efforts fall short.
Embracing Responsible Relationships
As old and new risks are increasingly falling under the banner of ESG, the bottom line is that companies and their leaders must do more to create a comprehensive supply-monitoring ecosystem. Action is crucial as regulations tighten, and the public expects companies to take responsibility for their supply chain partners, from upstream suppliers to downstream intermediaries.
Now is the time to invest in tools that promote visibility down the supply chain and hold suppliers and distributors accountable. The ability to maintain relationships with responsible suppliers will continue to be key in making meaningful ESG progress and creating real impacts, one-third party at a time.