Responsible business and human rights protection 

In today’s interconnected global marketplace, company purchasing practices play a crucial role in shaping both the ethical landscape of business and its impact on workers, communities, and the environment. At the heart of this responsibility is the need for businesses to prioritise responsible sourcing and respect for human rights throughout their supply chains. 

A company’s everyday purchasing practices have a significant influence on the conditions for workers in the supply chain. Short-term planning, last-minute changes in orders, inaccurate forecasting, pricing below production cost and late payments can all have negative effects on the management of orders and financial stability of suppliers. This in turn can lead to issues related to excessive overtime, low wages for workers and excessive use of temporary labour. As purchasing practices cascade and pressures compound along the length of the supply chain, the risk of severe exploitation increases. 

What are responsible purchasing practices? 

Responsible purchasing practices refer to the strategies and decisions made by businesses when selecting and developing relations with suppliers and managing supply chains. These practices ensure that businesses consider not only cost and quality but also the broader social, environmental, and human rights implications of their operations. By integrating responsible business principles into everyday procurement decisions, companies can help reduce negative impacts on workers and communities and promote long-term sustainability. 

Course

ETI responsible purchasing practices support & training

Upcoming human rights legislation explicitly acknowledges the importance of purchasing practices, requiring companies to review their own commercial operations and take action to prevent potential adverse impacts.

Read more

What are responsible purchasing practices? 

Responsible purchasing practices refer to the strategies and decisions made by businesses when selecting and developing relations with suppliers and managing supply chains. These practices ensure that businesses consider not only cost and quality but also the broader social, environmental, and human rights implications of their operations. By integrating responsible business principles into everyday procurement decisions, companies can help reduce negative impacts on workers and communities and promote long-term sustainability. 

Risk of labour rights abuses and human rights due diligence 

A responsible business must actively seek to understand the conditions within its supply chain, particularly in regions where governance structures might be weak or where vulnerable populations are at greater risk of exploitation. By undertaking human rights due diligence, companies can prevent harm caused by their own commercial behaviours while contributing positively to the communities they engage with.  

The role of responsible sourcing in business success 

By adopting responsible purchasing practices, companies are better positioned to manage risks, maintain strong supplier relationships, and enhance their reputations. Responsible sourcing can lead to long-term benefits, including improved product quality, more resilient supply chains, and stronger brand loyalty. Moreover, it ensures that businesses play a positive role in promoting fairness and sustainability within the global economy. 

ETI initiatives

ETI played a key role in developing the Common Framework for Responsible Purchasing Practices, which outlines key principles and actions that apparel and footwear companies can take to drive responsible business practices while respecting human rights and addressing salient risks within their supply chains. 

For the food sector, ETI subsequently released the Common Framework for Responsible Purchasing Practices in Food. 

Our Purchasing practices in manufacturing initiative is aimed at exploring the applicability of the principles outlined in the framework to various manufacturing sectors. 

We also host the Learning and Implementation Community (LIC) a peer-learning community of clothing retailers and brands that collaborates with brands to problem-solve and foster fairer relationships. 

Page

Responsible purchasing practices

ETI promotes 5 principles of responsible purchasing through several initiatives that span our sector groups of company members.

Read more

Document

Responsible purchasing practices in European legislation

How the human rights aspects of CSDDD relate to the Common Framework for Responsible Purchasing Practices in Manufacturing Industries (CFRPP MI).

Read more