Repost (2016): Defining an Ethical Supply Chain

Re-posting one of my first blogs on ethical supply chains about some of the innovations Marks and Spencers was introducing. Almost a decade on, many of these ideas are still innovative but certainly have become more mainstream and are now seen as the "gold standard," and something worth working towards, rather than as unnecessary and unachievable for most businesses.

At its heart, an ethical supply chain prioritises fair labour practices, environmental sustainability, and transparency throughout all stages of production and distribution. It's about ensuring that every step of the process - from sourcing raw materials to manufacturing and shipping the final product - is done in a way that respects both people and the planet.

Marks & Spencer: Leading the Way in British Retail

Marks & Spencer, affectionately known as M&S, has been at the forefront of ethical supply chain management in the UK. Let's examine a few key aspects of their approach:

1. Transparency and Traceability

Marks has made significant strides in supply chain transparency. Mike Barry, Director of Sustainable Business at Marks, mentioned in a recent interview: "We believe that customers have the right to know where their products come from and how they're made. That's why we've committed to mapping our entire supply chain, right down to the raw materials."

This commitment is evident in their interactive supply chain map, which allows customers to trace the journey of their products.

2. Fair Labour Practices

Marks is a member of the Ethical Trading Initiative, which promotes respect for workers' rights worldwide. They've also developed their own Global Sourcing Principles, which all suppliers must adhere to.

This idea, of having a policy which all vendors in a Supply Chain must read, sign and adhere to, has become an especially important way for global corporations to ensure that the ethical values their customers expect from them are being followed at all stages of their supply chains. This is only one step in developing an ethical supply chain, monitoring and enforcing compliance through random checks - as well as on-going training and preventative support - are also key to this approach.

3. Environmental Responsibility

Marks' commitment to the environment is embodied in their Plan A initiative. Launched in 2007, Plan A sets out 100 commitments to tackle environmental and social issues.

One impressive aspect is their focus on sustainable cotton. As of 2015, 32% of Marks' cotton comes from more sustainable sources, including Better Cotton Initiative cotton, Fairtrade, and organic.

4. Waste Reduction

Marks has partnered with Oxfam for their "Shwopping" initiative, which encourages customers to donate unwanted clothing to be resold, reused, or recycled. "It's about creating a circular economy in fashion," explains Louise, a Marks customer I met at a store in London. "I love that I can bring in my old Marks clothes and know they'll be put to good use."

The Impact of Ethical Supply Chains

Implementing an ethical supply chain isn't just good for people and the planet - it can also be good for business. A recent Nielsen study found that 66% of global consumers are willing to pay more for sustainable brands.

Marks' approach seems to be paying off. Despite challenges in the retail sector, their commitment to sustainability remains strong, with Plan A delivering £160 million in net benefits in 2015.