Ethical sourcing is a commitment by a company to the purchase goods and services that are manufactured and provided in a way that does not involve exploitation, or represent a danger to health, safety or the environment. Companies develop 'Codes of Conduct' to provide clear guidance to our team members and our suppliers about the employment practices and social standards we expect to be upheld in the process of supplying their company branded products. The following are examples of codes of conduct for companies in Australia:
- Kmart
- David Jones
- Food and Grocery Industries
Consumers are generaly more aware of where their products are made due to the connected world we now live in, and demand that their retailers act ethically. However this is not always the case as highlighted in a recent article (January 2016) in the Sydney Morning Herald. Kmart and Target are reported as selling school uniforms for as low as $2. Oxfam highlight that the workers who make the uniforms are not paid neough to cover basic living expenses.Target’s Back to School promotions feature a $2 polo shirt made in Bangladeshi factories where wages can be as low as $97 a month – not enough to allow workers to pay for basic food, water, shelter, clothing, and transport. At the same time, Kmart sells $5 button-up school shirts (made in Bangladesh) and $2 polo shirts (made in China).
Learning Portfolio
Complete exercise 10 in your Learning Portfolio.