Question

1. Describe FOUR ways a service company can use ethical and sustainable sourcing. Provide an example of how this can happen.

Answer 1

Ethical and sustainable sourcing refers to the process in which all the products and services being sourced are get in the first place in a sustainable and responsible manner, which says that all the workers involved in producing the same are safe and are treated fairly and also, all the environmental precautions and safety standards are taken care while sourcing process. To understand this concept clearly, I would like to take the example of H&M.

4 ways a service company can use this ethical and sustainable sourcing are:

1. Suppliers Benefits: H&M is one of the most reputated organisation when it comes to using the ethical sourcing process. It is being researched that the organisation pays a fix rate to its suppliers for its products which is not very less not very high and is a reasonable amount. It takes care of all its suppliers and the clothing and fashion material they are availing by benefiting the suppliers' lives as well providing them good source of profit to make them happy and satisfied.

2. High standards: H&M have high standards in their workplace organisation. It is often seen that employees even in retail stores or manufacturing have a high degree of sense of ethics which is formulised way of ensuring the qualitative aspects if the organisation. The organisation takes care of its employees and customers and all the stakeholders at large to maintain a good brand name and goodwill in the market.

3. Transparency: For committing to the supply chain transparency, H&M publish a list of 98.5% of its suppliers' names and addresses on its online website to ensure the level of transparency and legal framwork and what and how they could be felt accountable for any disruption. This shows the level of ethical sourcing they perform.

4. Environmental Factor: At last, H&M also attains a sustainable and a responsible sourcing good by using only 100% of the recycled or sustained sourcd materials by reaching out to the year of 2030. This makes the organisation a kind of a trendsetter and one of the best ethical leader in the clothing retail.