What is this procurement policy template?
The basics: this procurement policy template (also known as an ethical sourcing policy) is an internal business policy that sets out guidelines and principles adopted by a business to ensure that the materials, goods and services it sources are produced and obtained in a socially and environmentally responsible manner. The goal of an ethical sourcing policy is to promote fair labour practices, environmental sustainability and overall ethical conduct throughout the supply chain.
Why does my business need an ethical sourcing policy?
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Build trust with customers - customers are increasingly conscious of ethical considerations when making purchasing decisions. This could be their own choice as a consumer, or, when purchasing B2B, because their business has its own ethical sourcing policy that it must comply with. A well-drafted procurement policy demonstrates your commitment to ethical practices and can build trust and loyalty among your customer base.
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Protect brand reputation - an ethical sourcing policy can enhance your brand reputation and attract socially responsible customers. A procurement policy can help mitigate risks associated with negative publicity and potential legal issues related to unethical business practices in the supply chain.
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Supply chain resilience - a focus on ethical sourcing and responsible purchasing encourages a more transparent and resilient supply chain. Knowing and understanding your supply chain better allows you to identify potential risks and vulnerabilities, helping you make informed decisions to ensure the continuity of supply.
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Competitive advantage - in a competitive landscape, having an ethical sourcing policy can set your business apart from competitors. It can be a unique selling point that appeals to consumers who prioritise ethical and sustainable products/services, as well as business customers who have their own ethical procurement commitments.
What is the ETI Base Code?
ETI Base Code: this procurement policy template reflects the key principles of the ETI Base Code. The ETI Base Code is based on the standards of the International Labour Organisation (ILO) and is an internationally recognised code of good labour practice. It is viewed as a global reference standard and is widely used as a benchmark against which to conduct social audits and develop ethical trade action plans. You can find out more here.
Key principles: The key principles of the ETI Base Code are:
- Employment is freely chosen
- Freedom of association and the right to collective bargaining are respected
- Working conditions are safe and hygienic
- Child labour shall not be used
- Living wages are paid
- Working hours are not excessive
- No discrimination is practised
- Regular employment is provided
- No harsh or inhumane treatment is allowed
What does this procurement policy template include?
Key provisions: Docue’s procurement policy template includes the option to include the following sections:
- Background - This section sets out the purpose of the policy and who the policy applies to (e.g. workers, employees and contractors).
- Key principles - This section sets out the key principles that the company aims to comply with throughout its supply chain. The key principles reflect those of the ETI Base Code. The ETI Base Code is based on the standards of the International Labour Organisation (ILO) and is an internationally recognised code of good labour practice.
- Responsible purchasing - This section sets out the principles that the company will comply with in order to ensure that it undertakes responsible purchasing practices. Responsible purchasing, also known as sustainable or ethical purchasing, refers to the practice of making informed and ethical choices when purchasing materials, goods or services. This approach takes into consideration the social, environmental, and ethical impacts of the materials, products or services being purchased.
- Monitoring the supply chain - This section sets out the actions and steps that the company will take to monitor its supply chain to ensure that it complies with its ethics and the ETI Base Code. For example, carrying out due diligence on suppliers before engaging them and undertaking ongoing audits of the suppliers throughout their engagement.
- Roles and responsibilities - This section sets out who is responsible for this policy and who to contact with any queries about the policy.
How can Docue help?
Dynamic template: In order to create your procurement policy template with confidence and speed, simply click through the intelligent tick box options and text box answers in Docue's procurement policy template and you’ll have a ready-to-use policy in no time. The procurement policy template includes model content designed by lawyers to help you draft the policy yourself and tailor it to your needs.
Full contract solution: Signatures can be collected electronically, and all contracts you make are securely saved in your company's own contract account in Docue Drive.
Tags: ethical sourcing policy, procurement policy, procurement policy template, sustainable procurement policy, sustainable procurement policy template, ethical sourcing policy template, ethical procurement policy template
