Report charts success and failure in supply chain management

The past five years have seen a dramatic increase in companies taking action to tackle labour standards in their supply chains, according to a new publication from the Institute of Business Ethics (IBE). Taking the temperature: Ethical supply chain management analyses the successes and failures of efforts to improve the life of workers around the world.

"Years of hard work by companies and other organisations have led to real changes in the treatment of the world's workers," say Louise Jamison and Hilary Murdoch of Impactt Limited, authors of the publication. "But the developments of the past five years have taught us that there are no right answers or easy solutions to the highly complex issues of ethical trading. And, while the companies that champion these issues have taken some impressive steps, other companies still ignore supply chain ethics."

The study, which is published on 5th July 2004, 'takes the temperature' of where ethical trading stands now since IBE's last publication on this subject in 2000, and seeks to answer some pivotal questions for the future. It sets out to provide practical guidance for companies.

Key points from Taking the temperature:

• Despite the developments of the past five years, there has not been enough change on the ground.
• Collaborative projects with suppliers and other organisations are crucial in helping companies to achieve ambitious projects.
• Audits - the main tool used to monitor supplier performance - do not necessarily improve labour standards.
• One of the greatest challenges facing companies is to manage the tension between securing the best price and maintaining labour standards.
  

Pentland Group plc, sponsors of the report, has actively worked on supply chain issues since 1995. "We know all too well that this is an extremely difficult area," says Stephen Rubin, chairman of Pentland. "But we, like many companies, continue to strive to improve our standards: to learn, from our and other people's experiences, to avoid the mistakes of the past and to try to find new ways of addressing intractable issues."

According to Alan Roberts, chair of the Ethical Trading Initiative, "ethical supply chain management is one of the greatest challenges facing business today". He describes the IBE publication as "an excellent summary of issues and developments" and says that "Taking the temperature will help to increase understanding and guide companies through the complexities of trading ethically".

Copies of Taking the temperature: Ethical supply chain management are available from IBE, 24 Greencoat Place, London SW1P 1BE, tel: 020 7798 6040, e: info@ibe.org.uk url: www.ibe.org.uk

Ends

For more information, a copy of the publication or to attend the launch, please contact:

• Philippa Foster Back, Director or Simon Webley, Research Director of IBE.
  Tel: 020 7798 6040 e: pfb@ibe.org.uk; simonwebley@ibe.org.uk
• Louise Jamison, Director or Hilary Murdoch of Impactt Limited. Tel: 020 7242 6777 e: louise@impacttlimited.com ; hilary@impacttlimited.com

Notes for editors:

• Taking the temperature: Ethical supply chain management is published in July 2004 and written by Louise Jamison and Hilary Murdoch of Impactt Limited. Price £25, ISBN 0 9539517 5 8.
• The launch of the publication will take place on Monday 5th July from 3-5pm at IBE, 24 Greencoat Place, London, SW1.
• The Institute of Business Ethics (IBE) was established in 1986 to encourage high standards of corporate behaviour and sharing of best practice. IBE is a registered charity, funded by corporate and individual subscribers. The list of nearly 80 corporate subscribers includes Bank of England, Barclays Bank, BP, Diageo, ExxonMobil, GlaxoSmithKline, HSBC, Lloyds TSB, Nestlé UK and Shell. Further information is available at: www.ibe.org.uk
• Pentland Group plc, the sponsors of Taking the temperature, own and manage brands such as Speedo, Ellesse, Berghaus and Mitre. The Group has been actively working on tackling the problems of employment standards in its supply chain since 1995. www.pentland.com
• Impactt Limited's work includes strategy consulting, training, research and report writing, ethical assessments, public speaking, brokering partnerships with local organisations and co-ordinating collaborative projects. www.impacttlimited.com
  

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July 2004