The last two weeks we discussed the environmental and social portions of ESG factors and impacts. As a reminder, ESG stands for Environmental, Social, and Governance. Today’s focus is on the governance aspect.
Governance factors are typically seen in the form of structures or policies to ensure risk reduction or mitigation. For example, one of our Just-In-Times issues a couple months ago referenced an article where an Apple employee that managed to defraud the company to the tune of $10M. This situation should have never been able to occur if there are the proper policies and structures in place to prevent a purchasing professional from operating without proper supervision and signoffs.
There are some steps in supply chain we can do to ensure a better governance outlook for our teams:
These are just two simple examples of governance, but the positive dividends they will pay are unquantified. While rounding out our series on ESG - it is imperative to ensure your organization has proper governance in place.
Last week, we discussed the environmental portion of ESG factors and impacts. As a reminder, ESG stands for Environmental, Social, and Governance. Today, we are going to focus on the social impacts surrounding supply chain professionals.
When we look into the social aspects of ESG in supply chain, we are looking at benchmarking and investigating what types of companies and suppliers they work with. We also consider the safety and health of employees working for the company. These are critical factors to consider, now more than ever. We are experiencing one of the hottest job markets, meaning employees are feeling empowered to require the best salary, but also, the best working conditions and circumstances. People are talking about treatment of employees constantly, and it is important to do the best by your employees if you plan to retain top talent.
There are some steps in supply chain we can do to ensure a better social outlook for our teams: