Tag Archives: purpose

Procurement Pros – What’s Your Legacy?

Procurement leaders are starting to use the phenomenal buying power of their organisations to address big social challenges. What legacy do you want to leave?

In the old days, procurement was focused on two things: minimising costs and risk.

Purpose should be a pivotal part of every organisation’s business strategy. Being purpose-focused is essential to engaging customers and employees and being perceived as relevant, admired, and innovative by investors, partners, communities, and public entities. Today, it’s all about sustainability and corporate social responsibility.

Why are organisations increasing their focus in this area? It is not purely out of the goodness of their hearts, rather, they understand that key stakeholder groups care about these issues.

Consumers increasingly gaining a conscience is helping to drive this change. According to the 2016 US National Survey on Corporate Social Responsibility, which surveyed some 1200 individuals, 39 per cent  of consumers are likely not to buy a company’s products or services if they believe they are not “responsible” and 25 per cent will actively advise friends and family to avoid the company. Additionally, the report reveals that 84 per cent of global consumers actively seek out responsible products whenever possible.

Everywhere you look, business is under scrutiny. Whether it is for environmental practices, labour conditions, tax or paying suppliers on time, individual citizens increasingly are expecting companies to behave in a socially responsible manner. Stock exchanges and Governments are also now issuing requirements for companies to report on CSR data in annual reports, and CSR is increasingly perceived by investors to be important for their understanding of a company’s risks and opportunities.

Many of these issues are embedded in supply chains, and the role of procurement and supply chain in addressing them is therefore clear. Concerned citizens will expect action from government and businesses, which will, in turn, encourage firms to take steps that will reverberate throughout complex supply chains. The world is becoming smaller, which means we have increased, and faster, access to information about what organisations are doing and how they behave. This is a great opportunity for procurement and supply chain executives to play a leading role in these “wider world” issues.

This issue is no longer just for idealists or activists. For example, globally there are 46 million people worldwide who are modern-day slaves and about 150 million child workers. Any company doing business needs to make sure that its supply chain is not tainted by this cruel practice, and in many countries now, it’s not just best practice – it’s the law.

Eliminating forced labour from your supply chain is just one example of what SAP Ariba calls “procurement with purpose”. This is an umbrella term that includes social, environmental and sustainability practices. Leveraging the power of business networks like SAP Ariba and the intelligent, cloud-based applications underlying it, companies can gain a whole new level of transparency into the capabilities, performance, and social and environmentally responsible practices of their suppliers – and their suppliers’ suppliers. They can map the bill of materials for products and services right down to their raw materials and cross-reference this information with hotspots where there is a high propensity for the use of forced and child labor to determine their risk.  And, more importantly, they can receive timely alerts, which can be used to drive actions and report on them in meaningful ways.

All business leaders need to be focused on these topics. Research suggests that companies that do so can significantly outperform their rivals over a 10-year period. Or look at it this way: can you afford the reputational risk of a photo in social media showing one of your suppliers using child labour?

To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate”. Larry Fink, CEO of BlackRock (the world’s largest investment company)

Procure with Purpose

Procurious have partnered with SAP Ariba to create a global online group – Procure with Purpose.

Through Procure with Purpose, we’ve been shining a light on the biggest issues – from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Diversity and Inclusion.

Click here to enroll and gain access to all future Procure with Purpose events including exclusive content, online events and regular webinars.  

SAP Ariba are sponsoring Big Ideas Summit London on March 14th. Sign up now as a digital delegate to follow the day’s action wherever you are in the world. 

8 Organisations On The Nice List This Year

It’s possible to do good and do well – just check out the Procurious 2018 nice list…

Christmas is coming and, at Procurious HQ, we’re feeling pretty festive.

To get into the spirit of things and to give Santa a helping hand this year, we’ve put together a “Nice List” to recognise the organisations who are doing good whilst doing well!

1. Dell

In December 2017 Dell announced that it would be launching the world’s first commercial-scale, ocean-bound plastics supply chain, which takes ocean-bound plastics and repurposes it for their packaging.

“When Dell uses plastics from the beach, shorelines, waterways and coastal areas, we bring them back into the economy and stop them from breaking down and becoming part of a bigger problem.

It gives us an affordable resource, creates jobs for the recyclers, provides a template for others to follow and helps put a dent in the vast problem of plastics entering the ocean.”

In partnership with The Lonely Whale Foundation, Dell have helped convene Next Wave, an open-source initiative that brings leading technology and consumer-focused companies together to develop a commercial-scale ocean-bound plastics and nylon supply chain.

The group anticipates that they will divert more than 3 million pounds of plastic and nylon-based fishing gear from entering the ocean within 5 years – the equivalent of keeping 66 million water bottles from washing out to sea.

2. Colgate-Palmolive

Colgate-Palmolive has a 24/7 EthicsLine, which allows all employees to get in contact to ask questions about the company’s code of conduct, obtain guidance or report any violations of the company’s ethics.

They also reach 60 million people annually with hand washing education, provide health education to communities around the world, partner with local and global organisations to bring clean water to underserved areas of the world and are working toward a goal of Zero Waste.

3. Sky

Sky launched Sky Ocean Rescue in 2017 to shine a spotlight on the issues affecting ocean health, find innovative solutions to the problem of ocean plastics, and inspire people to make small everyday changes that collectively make a huge difference.

Partnering with WWF, Sky have committed £25 million to help find innovative solutions to reduce plastics and pledged to eliminate all single-use plastics from their operations, products and supply chain by 2020.

They’re also running a successful online campaign to encourage consumers to #PassonPlastic

4. GAP

GAP’s P.A.C.E. program is committed to helping one million women around the globe take charge, dream bigger, and unlock opportunities to better their lives and communities.

They also source sustainable cotton and are turning recycled plastic bottles, and even wood, into yarns.

They are also partnering with governments and other international organisations to improve factory work environments and safety in seven countries including Cambodia and Indonesia.

5. Salesforce

Salesforce’s Philanthropy Cloud is the first global platform to connect employees, customers, and partners with the causes they care about. It connects employees to the charitable causes that they care about, gives recommendations for causes and volunteer activities based on location, preference, and charitable history and  connects companies and their employees to nonprofits at scale.

6. TOMS

TOMS has given more than 86M pairs of shoes to children need as part of their one for one scheme. 

They focus heavily on the environmental and social impact of their products and operations, responsible giving and employee life. They offer shoes with sustainable and vegan materials and all shoe boxes are made from 80 per cent recycled post-consumer waste and printed with soy ink. All employees are held accountable for complying with company policies, including the prevention of slavery and human trafficking within our supply chain.

7. Levi Strauss & Co.

Levi Strauss & Co. operate by the motto “Give More Take Less”.

It has adopted production techniques that use far less water than traditional methods, grows quality crops that benefit the environment and farmers and recycles old denim.

Wearing vintage jeans saves an estimated 65 per cent of the water typically used during the lifecycle of a pair of jeans, since no new water is necessary to grow cotton. Levi’s  Authorised Vintage denim is renewed in different facilities in the US before being sold again, which significantly reduces the collection’s footprint.

8. Ikea

Ikea is aiming to inspire and enable more than 1 billion people to live a better everyday life within the limits of the planet.

It is also transforming into a circular business in order to become climate positive and regenerate the earth’s resources.


Procure with Purpose

Procurious have partnered with SAP Ariba to create a global online group – Procure with Purpose.

Through Procure with Purpose, we’re shining a light on the biggest issues – from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Environmental Sustainability.

Click here to enroll and gain access to  all future Procure with Purpose events including exclusive content, online events and regular webinars.