MOST Analysis

Mission Statement

This workshop features a practical guide to continuous improvement, and can help companies to overcome challenges by offering practical guidance on how to develop a sustainable global supply chain process, based on the values and principles of the Global Compact. Featuring numerous examples of good corporate practice, the guide will assist companies in setting priorities for action that will lead to continuous supply chain performance improvement.

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Objectives

01. Developing Business Case: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
02. Establishing Expectations: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
03. Determining Scope: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
04. Engaging Suppliers: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
05. Role & Responsibilities: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
06. Industry Collaboration: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
07. Multi-Stakeholder Partnerships: departmental SWOT analysis; strategy research & development. 1 Month
08. Tracking Performance: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
09. Process Practices: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
10. Communicating Progress: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month

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Strategies

01. Developing Business Case: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
02. Establishing Expectations: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
03. Determining Scope: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
04. Engaging Suppliers: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
05. Roles & Responsibilities: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
06. Industry Collaboration: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
07. Multi-Stakeholder Partnerships: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
08. Tracking Performance: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
09. Process Practices: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
10. Communicating Progress: Each individual department head to undertake departmental SWOT analysis; strategy research & development.

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Tasks

01. Create a task on your calendar, to be completed within the next month, in order to analyse developing the business case.
02. Create a task on your calendar, to be completed within the next month, in order to analyse establishing expectations.
03. Create a task on your calendar, to be completed within the next month, in order to determining the scope.
04. Create a task on your calendar, to be completed within the next month, in order to analyse engaging with suppliers.
05. Create a task on your calendar, to be completed within the next month, in order to analyse roles and responsibilities.
06. Create a task on your calendar, to be completed within the next month, in order to analyse industry collaboration.
07. Create a task on your calendar, to be completed within the next month, in order to analyse multi-stakeholder partnerships.
08. Create a task on your calendar, to be completed within the next month, in order to analyse tracking performance.
09. Create a task on your calendar, to be completed within the next month, in order to analyse process and practices.
10. Create a task on your calendar, to be completed within the next month, in order to analyse communicating progress.

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Workshop Introduction

Workshop Objective

This workshop features a practical guide to continuous improvement, and can help companies to overcome challenges by offering practical guidance on how to develop a sustainable global supply chain process, based on the values and principles of the Global Compact. Featuring numerous examples of good corporate practice, the guide will assist companies in setting priorities for action that will lead to continuous supply chain performance improvement.

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Introduction

More and more companies are extending their commitment to responsible business practices to their value chains, from subsidiaries to suppliers. They do so not only because of the inherent social and environmental risks and the governance challenges the supply chain poses, but also because of the many rewards supply chain sustainability can deliver. Indeed, sustainable supply chain management can be a strong driver of value and success – for business as much as for society. By spreading good business practices around the globe, it has enormous potential to contribute to more inclusive markets and advance sustainable development in the spirit of the United Nations’ mission.

Today, UN Global Compact participants around the world are demonstrating leadership by applying the ten principles in their supply chains. However, developing sustainable supply chain programs that encompass all of the Global Compact’s four issue areas – human rights, labor, environment and anti-corruption – remains a daunting challenge for many.

Supply Chain Sustainability: This workshop can help companies overcome these challenges by offering practical guidance on how to develop a sustainable supply chain process, based on the values and principles of the Global Compact. Featuring numerous examples of good corporate practice, the workshop will assist companies in setting priorities for action that will lead to continuous performance improvement. We hope this workshop will encourage more businesses to embark on the journey towards more sustainable supply chains, thereby delivering tangible and lasting benefits to business, the environment and societies everywhere.

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Practical Steps Towards Achieving Supply-Chain Sustainability

Supply chain sustainability is increasingly recognized as a key component of corporate responsibility. Managing the social, environmental and economic impacts of supply chains, and combating corruption, makes good business sense as well as being the right thing to do. However, supply chains consist of continuously evolving markets and relationships. To navigate this complex terrain, we offer a few baseline definitions and practical steps that companies can take toward progress, using the United Nations Global Compact principles as the basis to work toward supply chain sustainability. What is Supply Chain Sustainability? Supply chain sustainability is the management of environmental, social and economic impacts, and the encouragement of good governance practices, throughout the lifecycles of goods and services. The objective of supply chain sustainability is to create, protect and grow long-term environmental, social and economic value for all stakeholders involved in bringing products and services to market. By integrating the UN Global Compact principles into supply chain relationships, companies can advance corporate sustainability and promote broader sustainable development objectives. Why is Supply Chain Sustainability important? There are numerous reasons why companies start a supply chain sustainability journey. Primary among them is to ensure compliance with laws and regulations and to adhere to and support international principles for sustainable business conduct. In addition, companies are increasingly taking actions that result in better social, economic and environmental impacts because society expects this and because there are business benefits to doing so. By managing and seeking to improve environmental, social and economic performance and good governance throughout supply chains, companies act in their own interests, the interests of their stakeholders and the interests of society at large.

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What Steps Can A Company Take?

This workshop outlines practical steps companies can take to achieve supply chain sustainability and presents examples to inspire action. The recommended steps summarized below are based on the Global Compact Management Model, which is a flexible framework for continuous improvement for the mainstreaming of the Global Compact into strategies and operations. The steps described below and throughout the guide are not linear. Rather they represent complementary actions that companies can take in order to achieve more sustainable supply chains. In addition, there are three principles for successful supply chain sustainability management – governance, transparency and engagement – that are essential to every step of the model.

Commit:Develop the business case by understanding the external landscape and business drivers; Establish a vision and objectives for supply chain sustainability; Establish sustainability expectations for the supply chain.

Assess:Determine the scope of efforts based on business priorities and impacts.

Define & Implement:Communicate expectations and engage with suppliers to improve performance; Ensure alignment and follow up internally; Enter into collaboration and partnerships.

Measure & Communicate:Track performance against goals and be transparent and report on progress.

This workshop is intended to help companies, both those who are new to and those experienced in supply chain sustainability, to apply the Global Compact principles throughout their supply chains and to integrate sustainability into their business strategies.

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Supply Chain Sustainability Defined

In today’s globalized economy, outsourcing business operations doesn’t mean outsourcing responsibilities or risks—or that a company’s responsibility ends once a product is sold. Leading companies understand that they have a role to play throughout the life-cycle of their products and services. Supply chain sustainability management is key to maintaining the integrity of a brand, ensuring business continuity and managing operational costs. It is also an important aspect of the implementation of the Global Compact principles. Working Definitions “Sustainability” definitions vary. For the purposes of this guide, the definition encompasses the business role in addressing environmental, social (human rights and labor) and corporate governance issues, as covered by the Global Compact’s ten principles. “Supply chain sustainability” is the management of environmental, social and economic impacts, and the encouragement of good governance practices, throughout the lifecycles of goods and services. The objective of supply chain sustainability is to create, protect and grow long-term environmental, social and economic value for all stakeholders involved in bringing products and services to market. Through supply chain sustainability, companies protect the long-term viability of their business and secure a social license to operate.

Supply Chain Sustainability & the United Nations Global Compact

The Global Compact encourages participants to engage with suppliers around the ten principles and to advance sustainable development objectives as part of their commitment to the Global Compact, and thereby to spread good corporate citizenship practices throughout the global business community.

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The 10 Principles of the Global Compact and Supply-Chain Sustainability

Human RightsPrinciple 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses.

LaborPrinciple 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labor; Principle 5: the effective abolition of child labor; and Principle 6: the elimination of discrimination in respect of employment and occupation.

Companies have a responsibility to respect human rights. The baseline responsibility is not to infringe on the rights of others. In addition, business can take steps to support and promote the realization of human rights, and there are good business reasons to do so.

Labour conditions in offices, in factories, on farms and at natural resource extraction sites such as mines, particularly in the developing world, often fall significantly below international standards and national regulatory requirements and can lead to serious human rights abuses. Businesses should strive to uphold international labor standards within their supply chains, including the right to freely chose employment, the freedom of children from labor, freedom from discrimination and the freedom of association and collective bargaining.

In addition, workers at times suffer from other labor rights abuses, including excessive work hours, degrading treatment by employers and inhibited movement. In order to avoid complicity in abuses, businesses should seek to ensure that they do not cause the rights of workers and others affected by their supply chain to be infringed upon, including the right to freedom of movement, freedom from inhumane treatment, the right to equal pay for equal work and the right to rest and leisure. The rights of all peoples to work in safe and healthy working conditions are critically important as well.

Companies can also begin to address human rights (including and beyond labor conditions) alone or by working with partners to promote a broad range of human rights such as gender equality and access to education and health.

EnvironmentPrinciple 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Environmental impacts from supply chains are often severe, particularly where environmental regulations are lax, price pressures are significant and natural resources are (or are perceived to be) abundant. These impacts can include toxic waste, water pollution, loss of biodiversity, deforestation, long term damage to ecosystems, hazardous air emissions as well as high greenhouse gas emissions and energy use. Companies should engage with suppliers to improve environmental impacts, by applying the precautionary approach, promoting greater environmental responsibility and the usage of clean technologies.

Anti-CorruptionPrinciple 10: Businesses should work against corruption in all its forms, including extortion and bribery.

The significant corruption risks in the supply chain include procurement fraud and suppliers who engage in corrupt practices involving governments. The direct costs of this corruption are considerable, including product quality, but are often dwarfed by indirect costs related to management time and resources spent dealing with issues such as legal liability and damage to a company’s reputation. Companies that engage with their supply chains through meaningful anti-corruption programs can improve product quality, reduce fraud and related costs, enhance their reputations for honest business conduct, improve the environment for business and create a more sustainable platform for future growth.

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The impact of Sustainable Development upon Global Supply-Chains

By virtue of their ongoing business relationships, every company makes direct economic impacts through payments to employees, suppliers and governments and indirect economic impacts through monetary flows throughout supply chains and beyond. Companies which make their supply chains more economically inclusive can support further economic development through for instance job creation and increased incomes. Economic development has secondary impacts on socioeconomic development and the environment and is therefore a critically important aspect of sustainability.

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Executive Summary