Program Overview

The Sustainable and Ethical Procurement Program aims to equip participants with the knowledge, tools, and strategies to integrate sustainability and ethics into procurement practices. By the end of the program, participants will understand how to balance business goals with environmental, social, and ethical considerations in procurement decisions, fostering long-term value for both the organization and society.

Learning Objectives:

• Understand the principles of sustainable and ethical procurement.
• Learn how to apply sustainability criteria to procurement decisions.
• Identify the role of procurement in corporate social responsibility (CSR).
• Develop strategies to evaluate and manage suppliers based on ethical and sustainability standards.
• Understand how to address risks and challenges in sustainable procurement.

Module 1: Introduction to Sustainable and Ethical Procurement

Key Concepts:

• Sustainable Procurement: The process of purchasing goods and services that meet the needs of the present without compromising the ability of future generations to meet their own needs.
• Ethical Procurement: Ensuring that procurement practices respect human rights, minimize environmental harm, and foster social good.

Topics Covered:

• Definition and significance of sustainable procurement.
• Ethical considerations in procurement (e.g., fair labor practices, avoiding corruption).
• The business case for sustainable and ethical procurement.
• Key international frameworks and standards (e.g., UN Global Compact, ISO 20400).

Activity:

• Case Study Discussion: Analyze real-life examples of companies that have successfully implemented sustainable and ethical procurement practices and discuss the benefits they’ve experienced.

Module 2: Integrating Sustainability into Procurement Practices

Key Concepts:

• Environmental Sustainability: Reducing the environmental footprint of procurement decisions (e.g., minimizing waste, sourcing renewable materials).
• Social Sustainability: Ensuring suppliers adhere to fair labor practices, diversity, and inclusion.
• Economic Sustainability: Ensuring that procurement decisions are economically viable and contribute to long-term profitability.

Topics Covered:

• The triple bottom line (people, planet, profit) in procurement.
• Key considerations for sustainable sourcing (e.g., energy use, water conservation, resource efficiency).
• Sustainable supply chain management and risk mitigation.
• Evaluating environmental and social impacts of suppliers.

Activity:

• Sustainability Assessment: Participants will assess a potential supplier using a sustainability criteria checklist, considering environmental, social, and economic factors.

Module 3: Ethical Standards and Corporate Social Responsibility (CSR) in Procurement

Key Concepts:

• Ethical Sourcing: Sourcing products and services from suppliers that meet ethical standards (e.g., fair wages, safe working conditions).
• Corporate Social Responsibility (CSR): A business model where companies integrate social and environmental concerns into their operations and interactions with stakeholders.

Topics Covered:

• The relationship between procurement, CSR, and organizational reputation.
• How ethical procurement practices support CSR goals.
• Legal and regulatory requirements for ethical procurement.
• Certifications and audits (e.g., Fair Trade).

Activity:

• Supplier Code of Conduct Development: Participants will create a basic supplier code of conduct that aligns with ethical procurement principles and CSR guidelines.

Module 4: Supplier Selection and Evaluation for Sustainability and Ethics

Key Concepts:

• Supplier Screening: Processes for evaluating potential suppliers on sustainability and ethical criteria.
• Supplier Audits: Conducting audits to ensure that suppliers meet agreed-upon sustainability and ethical standards.

Topics Covered:

• How to select suppliers based on sustainability and ethical criteria.
• The role of due diligence in assessing suppliers’ sustainability practices.
• Developing and using Supplier Sustainability Audits and Self-Assessments.
• Key performance indicators (KPIs) for ethical and sustainable suppliers.
• Working with suppliers to improve sustainability practices over time.

Activity:

• Supplier Evaluation Exercise: Participants will use an evaluation matrix to assess suppliers on sustainability and ethics criteria (e.g., environmental impact, labor practices, compliance with legal standards).

Module 5: Addressing Challenges in Sustainable and Ethical Procurement

Key Concepts:

• Risk Management: Identifying and managing risks associated with unethical or unsustainable procurement practices.
• Overcoming Barriers: Addressing common barriers to sustainable procurement such as cost constraints, lack of awareness, and resistance to change.

Topics Covered:

• Common challenges in implementing sustainable and ethical procurement (e.g., cost vs. value, lack of supplier transparency).
• Managing supplier relationships and encouraging sustainable practices.
• Conflict resolution in procurement decisions.
• Dealing with greenwashing and false claims of sustainability.

Activity:

• Group Discussion: Participants will discuss potential challenges they face in their organizations and brainstorm strategies to overcome these barriers.

Module 6: Building a Sustainable and Ethical Procurement Strategy

Key Concepts:

• Strategic Alignment: Aligning procurement practices with the organization’s sustainability and ethical goals.
• Continuous Improvement: Ensuring procurement processes are continually assessed and improved to meet evolving sustainability standards.

Topics Covered:

• Steps to develop a sustainable and ethical procurement strategy.
• The role of leadership in promoting sustainable procurement practices.
• Incorporating sustainability into procurement policies and procedures.
• Engaging stakeholders (internal and external) in the process.

Activity:

• Strategic Plan Development: Participants will work in groups to develop a sustainable and ethical procurement strategy tailored to their organization’s needs.

Module 7: Monitoring, Reporting, and Communication of Sustainable Procurement

Key Concepts:

• Monitoring: Regularly assessing procurement activities to ensure alignment with sustainability and ethical goals.
• Reporting: Transparency in communicating the organization’s sustainability efforts.
• Stakeholder Communication: Engaging with stakeholders on sustainability initiatives and progress.

Topics Covered:

• Setting up monitoring and reporting systems for sustainable procurement.
• Tools for tracking and communicating procurement performance (e.g., sustainability reports, KPIs).
• The importance of transparency and accountability in sustainable procurement.

Activity:

• Reporting Simulation: Participants will develop a sample sustainability report that highlights key procurement activities and outcomes.

Conclusion and Final Assessment

Key Takeaways:

• The importance of integrating sustainability and ethics in procurement.
• Practical tools and strategies to implement ethical procurement practices.
• Understanding the role of procurement in driving CSR and sustainability goals.

Final Activity:

• Case Study Analysis & Presentation: Participants will present a case study where they apply sustainable and ethical procurement principles to a real or hypothetical procurement situation. This will help reinforce the learning outcomes and demonstrate their ability to implement the program’s concepts.

Target Participants

• Procurement Managers
• Supply Chain Professionals
• Sustainability Officers
• Purchasing and Sourcing Teams
• Business Owners and Executives