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3 Reasons to Prioritize Supply Chain Human Rights

When it comes to supply chains, there are many factors to consider. From sourcing materials to manufacturing and distribution, businesses have a responsibility to ensure that their supply chains are ethical and respect human rights. While this may seem like a daunting task, prioritizing supply chain human rights is not only the right thing to do, but it also brings several benefits. In this blog post, we will explore three reasons why businesses should make supply chain human rights a top priority.

1. Ethical Reputation

In today's interconnected world, consumers are becoming increasingly aware of the ethical practices of the companies they support. A study conducted by Cone Communications found that 87% of consumers are more likely to purchase from a company that advocates for an issue they care about. By prioritizing supply chain human rights, businesses can build a reputation for ethical practices, which can attract a loyal customer base.

Furthermore, a positive ethical reputation can also attract top talent. In a survey conducted by Glassdoor, 75% of employees stated that they consider a company's social and environmental commitments before deciding where to work. By prioritizing supply chain human rights, businesses can position themselves as desirable employers, attracting skilled and passionate individuals who align with their values.

2. Risk Mitigation

Supply chain disruptions can have severe consequences for businesses. From natural disasters to political instability, there are numerous risks that can impact the flow of goods and services. By prioritizing supply chain human rights, businesses can mitigate some of these risks.

For example, companies that rely on suppliers with poor labor practices may face strikes, protests, or even legal actions. These disruptions can lead to delays in production, increased costs, and damage to the company's reputation. By ensuring that suppliers adhere to human rights standards, businesses can reduce the likelihood of such disruptions and protect their bottom line.

3. Legal Compliance

As awareness of supply chain human rights grows, so does the legal framework surrounding it. Many countries have implemented legislation that holds businesses accountable for human rights violations in their supply chains. By prioritizing supply chain human rights, businesses can ensure compliance with these laws and avoid legal repercussions.

For example, the UK Modern Slavery Act requires companies with a turnover of £36 million or more to publish an annual statement detailing the steps they have taken to address modern slavery in their supply chains. Failure to comply with this legislation can result in reputational damage, fines, and even criminal charges. By prioritizing supply chain human rights, businesses can avoid legal pitfalls and demonstrate their commitment to ethical practices.

In conclusion, prioritizing supply chain human rights is not only a moral imperative but also a strategic business decision. By building an ethical reputation, mitigating risks, and ensuring legal compliance, businesses can reap the benefits of a responsible and sustainable supply chain. It's time for businesses to take action and make supply chain human rights a top priority.

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