What can Buyers do?  

What does business have to do with international development?

Millions of people in developing countries depend on international buyers for their livelihoods. Companies therefore have a responsibility to take steps to stop exploitative practices in their supply chains. Businesses, as key actors, have a role to play in understanding what impacts they have around the world, and how these can be improved.

Why purchasing?

A key area of every business’s operations is to purchase in the most cost effective and timely way the products needed for the delivery of products and services. The impacts of sourcing decisions can be felt in countries across the world, and buyers have an opportunity to exercise a positive influence in sourcing countries. Although there may be several levels in a supply chain, the way products are sourced can enable or disable suppliers – who are in turn employers and buyers – to treat farmers and workers well.

Good for business?

Purchasers are used to managing conflicting requirements as business becomes more competitive, professional purchasers are under great pressure to source products with tight schedules, low prices, and to a quality specification. However as trade has become increasingly international buyers also need to ensure that minimum human rights, which were signed more than 50 years ago at the United Nations, are adhered to when sourcing from developing countries.

What does Responsible Purchasing look like?

Companies and buyers can assess and where appropriate update their purchasing practices to enable and encourage their suppliers to treat their workers and suppliers well. This is set out more fully in our reports, but the key characteristics of responsible purchasing policies are:

• Good, stable, long term relationships with the suppliers.
  • Clear, timely, honest communication.
  • Price calculation and the establishment of sustainable prices, which covers the cost of production, living wages and enables the supplier to make a level of profit.
  • Clear lead time and on time, in full payments.
• Respect for Human Rights in the supply chain
• Support to the small groups of farmers and workers in the supply chain