Procurement ’ s role in a company ’ s ESG commitments goes far beyond checkboxes and cost-saving , says Vishal Patel , VP of Product Marketing & Technology Partnerships
ESG : The Value of Sustainable Sourcing
Procurement ’ s role in a company ’ s ESG commitments goes far beyond checkboxes and cost-saving , says Vishal Patel , VP of Product Marketing & Technology Partnerships
WRITTEN BY : RHYS THOMAS
Corporate social responsibility ( CSR ) is a term that has been around for decades . Ostensibly a strategy for businesses to improve society as they push the bottom line higher , it is often seen purely as a reporting exercise : a nod of understanding and acceptance that a company could and should do better , jotted in the margins of quarterly financial reports , while often failing to enact any real change .
But the winds have changed . CSR has been supplanted in recent years by environmental , social and corporate governance ( ESG ), a more proactive and measurable strategy for understanding and shaping the impact of corporate activity . Damning reports revealing the very real threat of environmental collapse , abusive , illegal and immoral labour practices , and a systemic lack of diversity and inclusion throughout global supply chains have pushed these issues to the top of corporate agendas .
It is no longer enough for organisations to be good at doing good . health and safety , carbon neutrality , sustainable sourcing or diversity and inclusion among the other challenges facing society . ESG has become the new battleground for future value , the metric by which socially conscious consumers and socially responsible investors now judge an organisation . Reputation , profit , and long-term growth are on the chopping block for those that fall behind in their responsibilities , and this shift in priorities is creating an interesting new dynamic for procurement professionals .
“ I think what ' s driving ESG is that company boards are now more focused on this topic and asking the question , ‘ What are we actually doing around these things ?’,” says Vishal Patel , VP of Product Marketing & Technology Partnerships .
Procurement ’ s entire purpose is ‘ actually doing things ’, proactively supporting other departments and ensuring the goods and services are in place for the rest of the
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