Your company’s responsible purchasing strategy needs to be backed by clear, measurable goals. Tracking progress against these goals—and reviewing it regularly—is essential for holding both the company and individual teams accountable. Reporting publicly on progress not only reinforces this accountability but also helps maintain momentum and build trust with external stakeholders.
It's equally important to monitor day-to-day practices. These smaller, routine actions can often create pressure points for suppliers and undermine your company’s broader commitments. Strengthening internal systems may be necessary to improve tracking in key areas (explored further in Principles 3, 4, and 5). For example, tracking adherence to the critical path can help identify where delays originate internally; monitoring payment terms and contract compliance can highlight risks; and analysing costing mechanisms can reveal how pricing decisions relate to workers’ wages.
In this video: Chana Rosenthal, Principal and Founder of ReDesign Consulting
Chana talks about KPIs and incentives for responsible purchasing.
Whilst Chana does talk about financial incentives, it is important to note that there are other ways to promote engagement and commitment to responsible purchasing, particularly when the company doesn’t provide financial incentives.
Key strategies include:
- Engaging a range of functions in responsible purchasing goal setting and decision-making
- Reviewing progress during performance reviews
- Celebrating key successes and milestones with all relevant functions
These approaches are essential for maintaining engagement and accountability across the business.
Buyer behaviour incentives
In this resource, Chana Rosenthal outlines a practical approach to embedding incentives that encourage socially responsible behaviour and meaningful supplier engagement and gives some examples of KPIs.