Ethical Sourcing
The practice of sourcing raw materials and products in a way that respects human rights, fair labor practices, and environmental sustainability.
Implications
The practice of procuring materials, products, or services in a manner that respects human rights, labor standards, environmental sustainability, and ethical business practices, often used to build brand reputation and meet consumer demands for responsible business practices.
Example
Example: A smartphone manufacturer commits to ethical sourcing by ensuring that all its components are obtained from suppliers who adhere to fair labor practices and environmental standards, enhancing its brand image.
Related Terms
Different from traditional sourcing, which focuses primarily on cost and efficiency, ethical sourcing emphasizes the importance of social and environmental responsibility in the supply chain.
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