Dialogue and partnerships with suppliers
The path to creating CSR improvements in the supply chain is for suppliers themselves to see the value of their CSR activities. You should therefore base your supply chain management on dialogue and cooperation with your suppliers on establishing the necessary processes, rather than on monitoring and inspection. Dialogue and cooperation are also vital when suppliers are expected to disseminate your expectations to their own suppliers.
You can achieve the greatest improvements in your suppliers' CSR performance by sharing your knowledge and experience with them. In this way, you can create the necessary understanding and develop the competences needed for suppliers to live up to the requirements.
Dialogue and cooperation are also the path to take when you discover that a supplier has problematic CSR issues. If you break off the cooperation, this is not likely to improve the situation. You should only do this if you are not able to persuade the supplier to remedy the situation.
In Phase 4 of the CSR Compass, you can read more about your opportunities to influence suppliers and cooperate on continuous improvements.
Under Cases you can find examples of small companies that have achieved good CSR results in dialogue with their suppliers.