Key Priorities For Ethical Supply Chains
With companies increasingly looking to avoid such controversy by improving ethical practices along their supply chains, we wanted to know which link in the chain consumers claim to care about most.
“Ethical” supply chains invariably mean higher costs for raw materials and labor.
It has been estimated, for example, that the cost of an iPhone could effectively double if it were manufactured in the United States, under stricter labor standards.
But despite the higher costs of having more ethical supply chains, some believe that it ultimately pays off for companies, as such efforts can improve reputation among consumers and produce greater loyalty from employees.
To help business owners and supply chain managers better understand consumer attitudes towards improving supply chain ethics, Software Advice conducted a series of surveys to gauge which initiatives along different links of the supply chain would make them more likely to buy - or pay a premium for - a company’s products.
Key Findings:
- On average, consumers say they would pay 27 percent more for a product normally priced at $100 if it was produced under good working conditions.
- Consumers were split on whether improved working conditions, community involvement or environmental efforts would most convince them to buy from a firm.
- Twenty-eight percent of consumers said reducing water usage was an environmental initiative that would make them more likely to purchase a company’s products.
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