With an effective corporate social responsibility (CSR) policy that adequately addresses supply chain issues, a company can better manage legal, reputational and economic risks.

A company risks legal, reputational and economic damage if its suppliers engage in illegal or inhumane employment practices, violate human rights, cause environmental harm or engage in bribery or corruption.

Empowered by new technology and encouraged by recent successes, consumers are increasingly holding companies accountable for unethical behavior within the companies’ supply chains. In addition, governments, legislators and regulators are now starting to act to require companies to disclose more information regarding their own practices and those of their suppliers.

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