Westpac’s decision to cull its supplier pool based on social responsibility is not the first instance of a major prime
Westpac’s decision to cull its supplier pool based on social responsibility is not the first instance of a major prime contractor getting tough with its supply chain partners and it certainly won’t be the last.
As the pressure heats up on business to become better corporate citizens, the demands on suppliers will increase. Business is looking to its supply chain for the answers to mounting environmental and social questions.
Westpac’s more than 10,000 suppliers will be asked to sign up to a new sustainable supply chain management code of conduct which shows they meet minimum standards of regulatory compliance and responsible business practice. Suppliers who cannot or will not meet the standards will be dumped from the supply chain.
In the current edition of SupplyChain Review, we brought you a similar story from Telstra and its quest to consolidate its supplier base through setting higher hurdles.
Businesses everywhere are drafting new codes to ensure their entire supply chain – end-to-end – is meeting the regulatory and compliance standards in safety, environmental management and ethical business practices. As new business imperatives like climate change strategy impinge on corporate Australia, it’s vital companies can map their supply chain and integrate their suppliers in the process.
For contractors, there is the opportunity to stand out from the pack by offering best-practice compliance and service levels as companies become more discerning in their supplier choices.
Driven by more socially-conscious consumers, corporate responsibility is more than a fad. The supply chain must keep up.
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