Wednesday 7 October 2015

Risk Management in the Supply Chain: Reputational Risk

In many organisations, procurement is beginning to see risk as one of their responsibilities, second only to savings. With Risk Management so high on procurement's agenda, we've been taking a look at some differing types of risk and their impact on the organisations in question.

We start today with child labour issues and how they can hurt your reputation and brand.

Primark, an Irish clothing retailer with revenues of approximately £4.3m, is a subsidiary of Associated British Foods. In 2006 Primark joined the Ethical Trading Initiative (ETI), a collaborative organisation bringing together businesses, trades unions and Non-Governmental trade Organisations (NGO) to work on labour rights issues in their supply chains. ETI members commit to working towards the implementation of a code of conduct based on the International Labour Organization's core conventions.