Last Updated on October 14, 2022 by Hamna Nouman
Procurement is an integral function in every organization, and it involves the acquisition of materials and equipment that facilitate production. Your procurement department aims at cutting down purchasing costs while guaranteeing your business quality commodities for products that meet customer expectations. Several principles ensure sustainable procurement is observed in every firm, and our article focuses on explaining them in detail. Here are the core principles of sustainable procurement every business person should understand and consider implementing in their department.
Core Principles of Sustainable Procurement
One of the core principles of sustainable procurement is human rights. This principle focuses on respecting human rights when interacting with the involved individuals; it can be suppliers, clients, or even the surrounding community. You are more likely to create a stronger and more beneficial relationship with these individuals once you focus on treating everyone humanely.
Another essential consideration is to ensure the suppliers you contract also uphold the same principles as your business; they should respect human rights. Working with a team that ignores such principles will mean an inappropriate working environment. It may also affect your brand’s reputation and public appeal.
Compliance with Applicable Laws
Your procurement department must conduct its activities within the required legal restrictions. Various legal requirements are involved in procurement, including international, state, national, and local laws. Your suppliers need to understand these laws and ensure they abide by them when offering you services and delivering commodities to maintain local and international standards. Each jurisdiction has unique legal requirements; it would be wise to consider an ideal freight procurement software to help identify local legal requirements on time.
Forced labor violates several human rights and should be avoided in every procurement engagement. It would be best to avoid suppliers who use forced and compulsory labor to force their employees to work under unhealthy conditions and environments. Your procurement department should also feature employees out of their free will and can leave any time provided they follow the recommended channel.
Child labor is another concern that seems to raise concerns in the business community. Here are the conditions set for child labor in most jurisdictions:
Every employee should be above the legal minimum age for employment
Persons under 18 years should not work in hazardous environments that may affect their personal development.
Equality and Diversity
Equality and diversity are two essential requirements for your organization to achieve and maintain sustainable procurement. Do not accept unlawful discrimination in your work environment, and ensure your team is diverse. A diverse population features individuals from different parts of the world with unique views on life. Such a population will promote teamwork and guarantee that your employees will learn from each other and maintain a suitable workspace for everyone.
Focus on achieving sustainable procurement in your business to guarantee growth and quality services. You may enjoy other benefits from an ideal purchasing department, including saving time and getting premium commodities for the best price. The mentioned principles should guide you on the correct path to streamlining your procuring activities.