"As procurement has developed into a vital function for a business’ success, purchasers need to understand the role they have in protecting the reputation of their companies. They must ensure that they are informed and that they prevent or mitigate the negative social, economic or environmental impacts that their buying practices could potentially have within their wider supply chains, as the repercussions for not doing so can be massive. And the way to do this correctly is called Responsible Supply Chain Management or, in short, RSCM.
The global authoritative standard for RSCM
Ever since the 1990s, shipping companies have been facing increasing stakeholder pressure to address issues like unsafe working conditions for seafarers, piracy, pollution of water suppliers and bribery, as these were posing high operational, financial and reputational risks. However, without a global authoritative standard, this was a difficult endeavour and companies’ ways of dealing with suppliers was unstructured and highly difficult at times.
With the rise of the United Nations Guiding Principles on Business and Human Rights (UNGPs) in 2011, businesses across the world finally received internationally-endorsed guidance on how they are expected to manage their adverse impacts on human rights, both internally and within their supply chain. Together with the 10 principles of the United Nations Global Compact that concern human rights, labour standards, environmental principles and anti-corruption regulations, the UNGPs form the authoritative internationally-endorsed guidance on RSCM."
To read the full article, going deeper into what RSCM requires, whom it targets and how your peers are faring, please head over to www.impa.net/marine-trader, and subscribe or download our Marine Trader Journal mobile app today.