Socially Responsible Procurement
1.0 Understand the concepts of sustainability and Corporate Social Responsibility (CSR)
1.1 Explain the concept of sustainability and the practical implications for procurement and supply
- Meeting the needs of the present, without compromising the ability of future generations to meet their needs.
- Adopting a broader range of decision-making criteria other than traditional economic criteria.
- Extending procurement decision-making criteria away from just price and quality
- Including environmental merits and social impacts of alternative solutions
1.2 Explain the importance of Corporate Social Responsibility (CSR)
- Extension of corporate goals and decisions to include organisational objectives and financial measures of performance.
- Promoting good corporate citizenship and responsibility for corporate actions
- Encouraging positive impact on all stakeholders
- Social, economic and cultural diversity
2.0 Understand the environmental impact of procurement and supply
2.1 Describe the impact of environmental sustainability
- Globalisation vs. green logistics
- Public awareness
- External pressure on organisations
- International legislation and agreements
2.2 Explain the environmental impact of transportation and storage
- Air pollution and atmospheric emissions
- Carbon footprint calculation
- Noise pollution
- Accidents
- Vibration
- Land-take
- Visual intrusion
2.3 Explain the role of government in promoting environmental sustainability
- Define sustainability
- Define environmental impact
- Greener modes of transport
- Energy efficiency
- Reducing emissions
3.0 Know the implications of CSR for the procurement and supply function
3.1 Identify procurement and supply processes and practices that the organisation may adopt to support CSR
- Adoption of sustainable practices, standards and specifications in the supply chain
- Consideration of the social impact of the organisation’s behaviours.
- Design procurement processes to deliver positive social outcomes
- Expanding reporting frameworks to include ecological and social performance
- Defining organisational value for money to include social outcomes – such as the use of local labour and participation of disadvantaged and/or minority groups
3.2 Describe the triple bottom line concept and how it should apply to procurement and supply
- Three pillars of social responsibility such as:
- People
- Profit
- Planet
3.3 Describe the key metrics that can be used to measure and report on sustainability
- Environmental – such as energy consumption, water consumption, greenhouse gas emissions, waste generation
- Social – such as demographic trends, use of local labour, disadvantaged and/ or minority groups
4.0 Understand methods to monitor Corporate Social Responsibility (CSR) in procurement and supply
4.1 Describe the key methods that can be used to monitor CSR compliance
- Discuss methods such as:
- KPIs
- Audits
- Supplier appraisals
- The use of regulatory frameworks
