Giving Compass' Take:

• The organization Global Communities discusses the challenges in creating a fair and ethical supply chain: It goes beyond simply monitoring and requires buy-in across many partners.

• What can corporations do to make sure investments in the workforce meet the highest standards? Establishing clear career pathways and adopting new technology is a start.

• Speaking of tech, AtSource is a new sustainable supply chain instrument that is worth looking into.

With an increasingly globalized economy, many multi-national corporations (MNCs) find it more profitable to outsource production of goods and services to companies operating in countries where manufacturing inputs and labor costs are lower. However, as these efforts continue to grow in size, some MNCs find it challenging to ensure that their products are sourced in an ethical manner.

Suppliers often try to maximize profits by investing very little in their workforce, keeping wages low, providing little to no benefits, and subjecting workers to abuses and unsafe working conditions. The further upstream you go in certain supply chains, the more pervasive the problems are.  In addition to guidance from OECD and the U.N. Global Compact, there is a plethora of supplier codes available aimed at addressing these issues. Nonetheless, MNCs must partner with their suppliers and commit to influencing and educating them on the importance of investing in improved labor conditions to increase workers’ productivity and professional success.

Supply chain challenges are too complex to be solved by one organization alone.

Our experience implementing workforce development programs has taught us that partnerships with MNCs, suppliers, and other stakeholders is critical to promote a more efficient supply chain and resilient sourcing communities.  In an innovative public-private partnership through USAID, Global communities worked together with Haitian textile manufacturers to improve the manufacturing skills of more than 2,000 Haitian workers involved in the textile industry to upgrade their skills, from basic workplace skills to improved garment manufacturing techniques.

Read the full article about creating a more ethical supply chain by Global Communities at CSR Wire.