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Why is ethical sourcing important

How Important is Ethical Sourcing to Business?

The demand for ethical sourcing transparency has skyrocketed due to consumers being more aware of their own social responsibility in building a sustainable future.
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Have you ever thought about how the coffee we drink or the food we consume on a daily basis is sourced? More people are starting to ask these questions and want to ensure their products’ journey from farmer to market is sustainable and ethical.

Business has become aware of this, which is why we see brands pushing their “sustainable”, “environmentally friendly”, or “Fairtrade” credentials, hoping to give consumers peace-of-mind that the purchase they are making is an ethical one.

The Growth in Awareness of Ethical Sourcing

In recent years, the demand for ethical sourcing transparency has skyrocketed due to consumers being more aware of their own social responsibility in building a sustainable future. The expectation is now that businesses adhere to ethical standards, which include environmental protection, sustainable sourcing, waste reduction, and improved working conditions.

Infographic showcasing statistics of ethical sourcing

Benefits of Ethical Sourcing

In this climate, the choice for businesses should be clear, but making the move to ethical sourcing can still be seen as expensive and difficult to achieve. Having implemented ethical sourcing ourselves, we can let you in on the key benefits, which are as follows.

Brand Loyalty

Customers have a stronger emotional attachment to a company that engages in ethical sourcing practices. It enhances the company’s brand image and helps to retain a more loyal consumer base.

Waste Reduction

No company wants to waste money on its valuable resources. Sustainable sourcing leads to less wastage, saves water, and protects natural resources.

Better Relationships

An ethical sourcing strategy encourages cooperation and engagement in supply chains. Knowing where products come from enables a business to avoid being linked to exploitative practices. Consumer loyalty grows when businesses support local production, traders, growers, and farmers through partnerships and actively participating in the
advancement of local communities.  

Money Saved

Implementing sustainable practices in business helps to save money in the long-term as products become more
energy-efficient, generate less waste, and last longer. It also decreases operational costs by reducing energy consumption and equipment for pollution control and eliminating waste.

Supports Local Production

Sourcing locally represents a tremendous opportunity to help the environment. When businesses reduce their transportation and storage costs, they cut their emissions and energy consumption too. Local sourcing not only helps support sustainable manufacturing but also establishes customers’ trust while contributing to the economy.

Environmental Sustainability

Consumers are interested in buying products that do not contribute to environmental degradation, human trafficking, or animal cruelty. Consumers are willing to pay more if a company is sourcing goods sustainably and ethically.

Better Business Performance

Protecting worker’s rights and providing safe working conditions leads to lower injury and absenteeism rates. According to academic studies, businesses with strong sustainability practices have higher operational success.

Complying with Laws and Regulations

Operating responsibly and sourcing ethically helps a business to meet or exceed requirements set by law. Failure to follow these regulations can result in sanctions, and heavy fines.

Ethical Sourcing Leadership

COS endeavours to always provide customers with top quality products at a reasonable price without ever compromising on ethical standards. In the  global marketplace, this means we source products from manufacturers around the world that reflect our moral and ethical standards.

COS is committed to upholding environmental protection, human rights and fair working conditions and expect all our partners to adhere to the same standards. As part of this commitment we have transformed our operations to reflect best practices in terms of ethical sourcing and combatting modern slavery in supply chains. 

As part of this commitment, COS works with suppliers to improve their social and environmental practices, and trains all buying staff on how to ensure suppliers are adhering to ethical standards. Maintaining our reputation for the highest ethical, environmental and legal standards in our dealings with suppliers, customers and key stakeholders is a vital component of our current and future success.

Ethical sourcing is a critical step for businesses to become more socially and environmentally responsible, better connecting with the needs and desires of their consumers and the world around them.

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