Ethical supply chain management is a critical aspect of responsible business in developing countries. Work by NRET and ETI has shown that business is willing to develop this approach to managing social and environmental performance, but has highlighted the need to understand more thoroughly the cost implications. There is anecdotal evidence that improved environmental performance can reduce production costs, but this has not been thoroughly analysed. There is concern that improved social performance will increase costs, and lead either to companies not adopting such approaches or deter investment in foreign direct investment in developing countries.

The cost components of ethical supply chain management fall under two headings: first, the cost of auditing and reporting ethical standards; second, the cost of making improvements necessary to comply with such standards.

NRET has worked with the Ethical Trading Initiative and others to identify these costs so that business can plan its supply chain management strategies.

The project reports are now available on our website.

The Business Costs of Ethical Supply Chain Management: South African Wine Industry Case Study

The Business Costs of Ethical Supply Chain Management: Kenya Flower Industry Case Study