Poor CSR Engagement. So Why Is That?
When it comes to getting suppliers on board with environmental and social goals, the choice seems straightforward: build relationships or lay down the law. If you’re a company that relies heavily on suppliers for about 80% of your income—a common situation—then choosing to force compliance is definitely barking up the wrong tree.
You might think, “Hey, it’s clear that working together is the way to go, right?” But oddly enough, when we look at what companies actually do, many still default to strong-arming their suppliers. This approach rarely works the way they hope, while building strong relationships consistently delivers better results. So, what gives?
Here’s the thing: many companies see sustainability as just another box to tick or a way to look good, rather than a real chance to do better business and innovate. Plus, when you’ve got a huge network of suppliers all over the place, the thought of changing how you work with them can seem like a mountain too high to climb.
There’s also this idea floating around that it’s easier, cheaper, and more straightforward to just tell suppliers what to do through contracts. This mindset, along with sticking to the old ways and not wanting to rock the boat, means a lot of companies keep doing what they’ve always done, even if it’s not really working.
Let’s not forget the big picture: the vast majority of businesses around the world are small or medium-sized. The further you go up the supply chain, the smaller these companies get. And while it might be true that a small chunk of suppliers make up a big part of spending, these same suppliers are struggling to connect with their own smaller suppliers, many of which are these small businesses. Read more from Suppeco on SME’s The secret sauce to sustainability.
These smaller players often wonder, “What’s in it for me?” They might not have fancy systems or processes because they’re too busy keeping the lights on. Sometimes, they don’t even know they’re part of your supply chain, feeling like they’re just a small cog in a much larger machine.
So, if you’re looking to make a real impact on corporate social responsibility within your supply chain, don’t just lay down the law. Focus on building genuine connections.
We’re here to show you that by creating real relationships, you can make a big difference. Why not reach out and lets let’s get started.