Ethical management

Committed to protecting human rights in global supply chains

Around the world, millions of people—including children—put their lives at risk daily working in unsuitable circumstances. Earthquakes, floods, and other natural perils create obvious risks within company supply chains. Less evident, though, are risks presented by associations with companies that put employees in jeopardy.

"Deloitte helps its clients mitigate risks by leveraging their proficiency in labor rights, supply chain strategy development and management, risk profile analysis and compliance procedures, and their status as a global independent audit services network," explains Simon Brew, Deloitte Global Supply Chain Services Leader. "Deloitte helps leaders understand that good business and social responsibility are not mutually exclusive."

According to a report released by Deloitte U.S. in 2013, supply chain risk continues to rank among the top concerns of executives, especially because of the potential impact to a company's brand and reputation. More than half of the 600 executives surveyed said supply chain disruptions have become more costly over the last three years. Yet, 45 percent admitted their supply chain risk management programs are only somewhat effective or not effective at all.

"Supply chains are increasingly complex and their interlinked, global nature makes them vulnerable to a range of risks," says Kelly Marchese, Principal, Deloitte Consulting U.S. "This increased complexity, coupled with a greater frequency of disruptive events, such as geopolitical events and natural disasters, presents a precarious situation for companies without solid risk management and supply chain resiliency programs in place."

DTTL and its member firms are not immune to supply chain risk, either. With operations spread across the globe, Deloitte procures goods and services ranging from software to security services. Increasingly, we are asked by member firm clients how we work with our supply chain. DTTL is evaluating implementation of supply chain policies to better address risks and provide more consistency across the network. Some Deloitte member firms already have implemented supplier-procurement policies that cover sustainability, ethics, and other key areas related to corporate responsibility.

For questions on supply chain, please email us.