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The challenges
Companies the world over are increasingly recognising that unacceptable supplier practice - such as the use of child labour, or the destruction of the rainforests - have the potential to damage corporate reputations, brands and ultimately, profits.
But managing the diverse range of issues that fall under the CSR umbrella (such as health & safety practice, environmental performance, labour standards and community involvement) is becoming ever-more complex.
Other issues such as globalisation, low-cost country sourcing and shortage of supply add to the challenge of effectively and efficiently managing the supply chain.
Managing the risk
Achilles, in its role as a provider of information to buyer and supplier communities in a range of geographical and industry sectors, is uniquely placed - not only to help companies manage ethical risk, but also to encourage performance improvement and the raising of standards across the supply chain.
Working with customers, Achilles has, for some time, been integrating CSR-related issues such as labour standards, anti-bribery and corruption and ethical performance into its services.
Some examples.
In the information & communications technology sector (ICT), Achilles has been working to develop a new e-tool to help companies collate and manage CSR information. The development of E-TASC (Electronics - Tool for Accountable Supply Chains) is backed by the United Nations Environment Programme (UNEP).
In the UK, the company's long-standing UVDB service for utilities has been updated to include new CSR focused questions. These help subscribers to examine and compare suppliers' labour, human rights and ethical policies, performance and behaviour standards as part of the pre-qualification process.
Also in the utilities sector, but this time in Spain and Portugal, the RePro service provides buyers with information including details of any CSR policies adopted by suppliers.
StartBANK was developed by Achilles in 2005 specially for Norway's Construction Industry Association, and was created to tackle the problems of tax evasion and illegal labour. Today, the service aims to assist reputable participants within the construction industry and ensure that all companies are able to compete on equal terms.
Achilles has worked closely with the mining industry in Chile to create a performance and rating system for suppliers. REGIC enables buyers to access detailed information about suppliers, including details of CSR policies.
A new approach
There is progress in other industry sectors, too. In the oil and gas markets, for example in Nigeria, the North Sea and Kazakhstan, there is an increasing emphasis on the need for responsible and ethical business practices that reach across the supply chain. Achilles is working with both existing and new customers to look at new ways of reflecting these issues in its services.
What marks out Achilles in this field is its ability and desire to work in continuing partnerships with customers, using open discussion and debate to formulate the right approaches - and ultimately, the right questions that need to be added to pre-qualification questionnaires.
It is working together in this way that ensures all those who use Achilles' supplier management services can make ethical purchasing decisions based on the criteria that really matter to their businesses.
Achilles believes this approach encourages not only the establishment of agreed CSR standards, but also helps improve them.
The UN Global Compact
Achilles aims to be at the forefront of the drive to help companies meet their CSR and wider risk management obligations across the whole supply chain.
To demonstrate its commitment, in 2005 the company signed up to the United Nations Global Compact, which enshrines a set of 10 principles covering human rights, labour standards, the environment and corruption.
By signing the Compact, Achilles is underlining its belief in the importance of advancing responsible corporate citizenship, aligning itself with the UN's goal of helping to build more sustainable and inclusive global markets.
The company has also joined forces with Oxford University's Said Business School to create The Oxford-Achilles Working Group on Corporate Social Responsibility. The group seeks to provide a forum for debate on CSR supply chain issues, and will produce white papers and case studies, as well as a CSR electronic resource.
For more information on corporate responsibility see our corporate responsibility resource page.
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