When organizational activity is consistent with social responsibility, the advantages are significant. They include greater public trust, improved reputation and international trade opportunities, optimized risk management, and an increased competitive edge.

Yet despite the best intentions, many organizations struggle to manage large, complex networks of suppliers in a way that is resilient and efficient, and that drives continuous improvement to ensure social responsibilities are met.

Standards can guide your company in developing and implementing policies and practices that benefit the entire value chain, improving its resilience and helping your business maintain a leadership position on environmental, social and governance (ESG) matters.

The rise of ESG

More than ever, businesses are being held accountable by shareholders, investors, employees and customers for aligning their brand values with supply chain capability. Failure to demonstrate accountability and transparency can cause long-lasting damage to brand perceptions, risking the loyalty and esteem of both customers and partners.

The connection between social responsibility and supply chain management also has a direct effect on financial performance. Structured properly, a fair and up-to-date supply chain policy creates a win-win situation for both buyer and supplier.

What’s more, governments have begun to regulate social practices to identify and mitigate risk – making visibility and transparency a top priority all the way down the chain.

Understanding supply chain challenges

While companies seek to improve ESG, recent events have served to expose vulnerabilities in global supply chains. The Covid-19 pandemic caused impacts with widespread knock-on effects, while the war in Ukraine has, for example, highlighted European reliance on Russian gas and oil, agricultural products, minerals and metals. 

In fact, supply chains are at risk from numerous angles. KPMG research from November 2022 found that 71% of global companies regard raw material costs as their chief supply chain threat for 2023. More than 60% expect geopolitical instability to present a risk over the next three years, and almost half consider cyber security to be an important operational challenge for their supply chains.

At the same time, 67% say that meeting customer expectations regarding speed of delivery is a critical force impacting the structure and flow of their supply chains, and some 53% plan to increase their sustainable sourcing.

It would be no understatement to say that risk will define supply chains for years to come.

The role of standards in supply chain integrity

Taking a standards-based approach is the best way to establish a strong, responsible supply chain. Standards allow organizations to do business fairly and sustainably, and to validate supply chain integrity through continuous improvement.

So, what are the key standards for organizations looking to integrate ESG principles throughout their supply chain?

Security and resilience

BS ISO 28000:2022 Security and resilience. Security management systems. Requirements protects an organization’s goods from point of manufacturing to point of sale. Using this standard, businesses can identify risks across the supply chain and apply appropriate controls to actively manage and minimize them. It addresses potential security issues at all stages of the process, including financing, manufacturing, information management and transportation.

Managing collaborative relationships

With a BS ISO 28000 compliant management system in place, businesses can demonstrate their commitment to the safety of individuals and security of goods and services, improving business confidence, reputation and future growth. In order to achieve this, organizations must work together and support one another. A further standard can help: BS ISO 44001:2017 Collaborative business relationship management systems. Requirements and framework. It specifies requirements to develop and manage contractual relationships, enabling organizations to build towards a supply chain in which all parties share responsibility and approach risk management appropriately.

Managing risks

Another useful standard is BS ISO 31000:2018 Risk management. Guidelines, which provides a common approach to managing risk at all levels. Its structure allows businesses to mitigate social responsibility risks across the supply chain, developing plans for evaluating environmental and social compliance, as well as ethical sourcing and development.

Environmental management

It is also wise to consider specific standards on environmental management and sustainability, such as BS EN ISO 14001 Environmental management systems and BS ISO 20400 Sustainable procurement. Guidance.

BS EN ISO 14001 puts environmental management at the heart of an organization’s operations to help meet regulations and improve efficiency and performance across the supply chain. Similarly, BS ISO 20400 helps organizations introduce sustainable procurement processes, improving the performance of all supply chain partners and ultimately increasing overall reputation and value.

Ethical supply chains

BS 25700 can ensure businesses develop a better understanding of modern slavery risks in their operations and supply chains. The standard provides organizations with guidance on the risks, including prevention, identification, response, remediation, mitigation and reporting. Alongside more responsive and stable supply chains, the benefits to business can include improved investor confidence, reputation, and a greater ability to attract talent and retain staff.

Information risk

Finally, in today’s ever-changing digital landscape it’s never been more important to apply an ethical approach to managing information risk. The ISO/IEC 27000 series, including the recently-published BS EN ISO/IEC 27001 guides the creation and implementation of an information security management system (ISMS), helping organizations to maintain effective privacy and security protocols to protect both consumer and organizational data throughout the supply chain.

Discover BSI Knowledge

Over 100,000 internationally recognized standards are available for simple and flexible access with a BSI Knowledge subscription. Our tailored subscription service allows you to build your own custom collection of standards or opt for access to one of our pre-built modules, keeping you up to date with any changes. With support from a dedicated BSI account manager, our subscription service helps you achieve a more coherent and effective approach to best practice. Request to learn more.