If you haven’t already, it’s time to take supplier engagement seriously
Andrea Galvez, Verité’s First Mile Due Diligence Lead on why brands need to take supplier engagement seriously.
Why Supplier Engagement is Crucial
In today’s rapidly evolving global business landscape, due diligence is no longer just a buzzword—it’s a critical component of sustainable and ethical business practices. As directors of Sustainability, CSR, or Supply Chain Management for multinational brands, you’re likely grappling with a significant shift: the transition from voluntary to mandatory due diligence.
The Changing Face of Due Diligence
The global regulatory framework is evolving, and with it, our approach to due diligence must adapt. This shift is forcing us to reconsider our investment, business, and purchasing decisions. But while brands face uncertainty, our suppliers are often left in an even more precarious position.
Consider this: If your brand is struggling to navigate new legislation and requirements, imagine the challenges your suppliers face. They’re not only contending with changing laws but also trying to anticipate the business decisions of their main customers – you.
At Verité, we see this as an opportunity for both brands and suppliers. The fundamental concept of due diligence has always been to involve supply chain actors in designing strategies to address labor risks. So why not embrace this principle fully?
Engage Early, Engage Often
As you design your sustainability and human rights programs for the coming years, we strongly recommend bringing your suppliers into the conversation early. Don’t keep them in the dark until your plans are finalized. Instead, involve them in the design process from the start.
Why Supplier Involvement Matters
- Contextual Insight: Suppliers possess invaluable information about local risks, resources, and opportunities that can inform your human rights programs.
- Risk Identification: They’re better positioned to identify potential issues before they become problems.
- Practical Solutions: Their on-the-ground experience can lead to more effective, implementable strategies.
- Buy-in and Commitment: Early involvement fosters a sense of ownership, increasing the likelihood of successful implementation.
In the world of due diligence, knowledge is power. And often, the most valuable knowledge comes from those closest to the ground. By involving suppliers in your due diligence design, you’re not just ticking a box—you’re creating a more robust, informed, and effective program. This collaborative approach can lead to better outcomes for your brand, your suppliers, and most importantly, the workers in your supply chain. Their insights are crucial for designing a due diligence program that effectively addresses, prevents, and mitigates labor risks.
About the Author:
Andrea Galvez is a Senior Program Director at Verité. She leads the First Mile Due Diligence Practice Group, which focuses on strengthening brands and suppliers’ capacity to prevent labor risks and improve workers’ rights and conditions across the extended supply chain. Based in Mexico City, Andrea works with first-mile supply chain actors, such as sugar mills, producer associations, and packaging plants. She engages deeply with suppliers to build their capacity in understanding and embedding human rights due diligence into their operations and systems. Andrea equips raw material suppliers with knowledge, skills, and tools to detect, prevent, and eliminate labor and human rights abuses, emphasizing worker input throughout.
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