Ethical sourcing applies stated labor, human-rights, environmental and business-conduct expectations when choosing and managing suppliers. The program should convert policy language into supplier requirements and decisions.
The operating decision
Set the applicable code, risk screening, contractual obligations, evidence and response to violations. Higher-risk countries, products and subcontracting need deeper review.
What to keep
Retain supplier acknowledgments, assessments, audit evidence, grievances, corrective actions and decisions on continued business.
| Area | What the record should show |
|---|---|
| Control | Set the applicable code, risk screening, contractual obligations, evidence and response to violations. Higher-risk countries, products and subcontracting need deeper review. |
| Evidence | Retain supplier acknowledgments, assessments, audit evidence, grievances, corrective actions and decisions on continued business. |
| Tradeoff | Publishing a supplier code does not show that conditions were checked or problems were remedied. |
A practical limitation
Publishing a supplier code does not show that conditions were checked or problems were remedied.
Related definitions: supplier qualification, strategic sourcing, landed cost.
