CSR risk and VOCID-19: supply chains under stress
EcoVadis analysed 35,000 companies around the world to learn about the impact of key sustainability indicators on health crisis preparedness, and thus measured the degree of resilience of supply chain actors.
This report* reveals the importance for purchasing servicesanalyse the performance of their suppliers in terms of respect for rights to work, working conditions and employee support programme with the aim of identifying inherent risks or, in other words, points of improvement.
It shows that companies are better prepared to deal with health crises if their sustainability management systems involve concrete actions in three key areas:
- Health and safety of employees
- Working conditions
- Reasonable supply chain sensitivity
Unsurprisingly, 80% of suppliers have no information or follow-up on the measures to be implemented in the event of a health crisis in their own subcontracting networks (level 2 and +)...
While level 1 providers are, on average, better equipped to deal with health, safety and working conditions issues, overall readiness levels remain low At the global level, more than 1/3 of them have not taken any action for all indicators, and just over half have taken concrete action to ensure the health security of their employees during the pandemic.
On the other hand, only 20% of companies report being informed by their own suppliers of the measures taken to deal with health crises.
These results show that the concepts of due diligence and responsibility of the supply chain are still poorly integrated into the resilience strategies of international trade actors.
With a vulnerability in the event of a health crisis of only 33%, China is at world average level. The country is thus distinguished within the AMEA region** where 43% of suppliers are not prepared at all.
Chinese providers also offer a larger share of health care coverage (37% compared to 28% for AMEA providers) and are more likely to apply an extended leave policy (32% versus 24% AMEA).
* Study report available online: « Health crisis and supply chain readiness -COVID-19 » (EcoVadis – July 2020)
** AMEA : Asia, Middle East and Africa
To go further...
ACTE International, Global Supply Chain Management Specialist and International Auditing and CSR Consulting Firm complete your risk mapping and assist you in the deployment of your ethical vigilance and policy plan in Asia, Africa, Europe and the Americas.
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