A few weeks ago, Greenpeace shook up the shoe world when it revealed that leading footwear manufacturers may be using leather which originates from illegal cattle ranches in Brazil. Now, there’s news that yet another high-profile industry is having sourcing trouble. An article in The Sunday Times claims that cosmetics manufacturers are exploiting children as young as six to mine mica in India.
Supplier risk comes in many forms –financial solvency, price, compliance, to name just a few. Today, a day after Wal-Mart announced that it will begin measuring the sustainability of all the products it sells, it’s no surprise that I’m thinking about supplier risks related to sustainability and (even broader) CSR issues. The big question looming is this: If you sell to Wal-Mart, are you –and your suppliers –ready for the new Wal-Mart Sustainable Product Index?
Wal-Mart is introducing this initiative in three phases, beginning with a survey of its more than 100,000 suppliers around the world. This survey includes 15 questions, and according to John Fleming, chief merchandising officer, Wal-Mart U.S, it is a key first step toward establishing real transparency in the corporation’s supply chain.
To give you an idea of the breadth and depth of information Wal-Mart is asking for, I’ve copied the 15 questions here:
