ESG and Ethical Supply Chains: The People-Positive Approach

Every business needs to align with values and principles of ESG (Environmental, Social and Governance) beyond their financial achievements. ESG is an important pillar of running a successful business that is sustainable and ethical. Nowadays, ethical considerations are increasing in supply chains, where people and the planet are being prioritised over profit. Mahindra Susten is a leading energy solutions company that has become one of the renewable energy ESG leaders due to its people-positive, planet-positive and trust-positive approach.  

An ethical supply chain minimises harm and creates a positive outcome for the communities, workers, and stakeholders involved in the business process. This mindset is central to the future of ethical supply chains, where the well-being of workers and the integrity of business practices can have a groundbreaking impact on the success of any Green Energy Solutions company. This blog explains what ESG means and how businesses can adopt a positive mindset within their supply chains. 


ESG and Ethical Supply Chains 

ESG is a set of criteria which measures a business' performance in three key areas: 

  • Environmental: This involves efforts to minimise the negative impact on the planet, including reducing carbon footprints, resource consumption, and waste generation. 
  • Social: This focuses on values related to human and human rights, such as fair labor practices, diversity and inclusion, community development, and workers' rights. 
  • Governance: This tells how a company is governed, including transparency, ethical leadership, and sound decision-making processes. 

Ethical supply chains: 

Ethical supply chains go beyond compliance with laws—they foster human’s basic needs, human rights, transparency, and fair wages, while promoting a sustainable and ethical approach to sourcing raw materials and production process of any business. Being a trusted Renewable Company ESG Leader Mahindra Susten prioritises inclusive community growth to deliver value to its stakeholders and community. Their people-positive approach programs empower societies, drive positive change and foster livelihood development.  

The People-Positive Approach: Prioritising Humans over Profit 

A people-positive supply chain focuses on the well-being of people, centered on workers and their local communities. It empowers individuals, offers fair opportunities, and improves lives. The people-positive approach goes beyond reducing harm to actively creating positive outcomes for people along every step of the supply chain. 

Here are some ways to follow a people positive approach in ethical supply chains: 

  1. Fair l practices: A core principle of a positive supply chain ensures fair wages, safe working conditions, and the protection of workers’ rights. Businesses committed to ethical sourcing and supply chains avoid exploitative labour practices, such as child labour, unsafe working environments, and unfair compensations.  
  2. Worker empowerment and safety: Ethical supply chains focus on providing fair treatment and support the professional growth of workers in many ways like-offering training, creating opportunities for skill development, and encouraging safe working environments. Moreover, businesses that adopt a people-positive approach ensure that workplace safety standards are upheld by preventing workplace injuries and ensuring the well-being of employees. 
  3. Diversity and inclusion: A people-positive approach in ethical supply chains encourages businesses to support diversity within their supply chains. It means not only hiring and promoting individuals but also ensuring that suppliers themselves operate with a focus on diversity and inclusion. By supporting minority-owned businesses and promoting equal opportunities for all workers, businesses can drive social equity and inclusivity. 
  4. Community engagement and development: Businesses should adopt people-positive approach to contribute to the local community by creating jobs, supporting education, improving healthcare access, and funding local development initiatives. This creates benefits for both workers and their families, while fostering goodwill towards the company. 
  5. Transparency and accountability: A people-positive supply chain also focuses on transparency of a company’s sourcing and procurement processes. Businesses must be accountable not only for the products they sell or services they provide but also for the practices employed in acquiring those products and services.  

Benefits of People-Positive Supply Chains 

  1. Earning customer trust with brand loyalty: Customers are constantly becoming aware of the impact their purchases have on the world. Ethical sourcing and fair labour practices can significantly boost brand loyalty and earn the customer’s trust. A business that embraces people-positive approach creates long lasting relationships with their customers who share those values. 
  2. Attracting and retaining talent: Employees, especially Gen Z constantly look for employers who align with their ethical values. Energy Solutions Company or any business with people- positive approach attract workers who want to contribute to social good. Ethical practices in supply chains can reduce turnover and it can increase job satisfaction among employees. 
  3. Avoiding risks: Companies can avoid the risks associated with human rights violations, environmental damage, and bad publicity just by ensuring their supply chain is ethical. Businesses that are proactive about maintaining ethical standards can prevent themselves from damaging their reputation and legal liabilities that may arise from working with unethical suppliers. 
  4. Sustainability and long-term profitability: Ethical supply chains are often more sustainable and resilient. By fostering fair treatment of workers and investing in their long-term success, businesses can ensure their stability and high-quality production processes. A focus on sustainability within the supply chain reduces the risk of resource depletion and environmental damage that creates a model that benefits both business and the planet.  

How Companies Can Adopt a People-Positive Supply Chain 

  1. Implementation of ESG criteria in supplier selection: Companies should integrate ESG principles into their supplier selection process like Mahindra Susten. It means evaluating suppliers based not only on cost and efficiency but also on their commitment to fair labour practices, sustainability, and human rights. 
  2. Collaboration with NGOs and third-party auditors: Businesses can work with non-governmental organizations (NGOs) or any third-party auditors to assess their supply chain's social and ethical impact. It ensures that the company stays accountable to its workers, suppliers, and communities. 
  3. Engagement in long-term partnerships: Every business should seek long-term partnerships with suppliers who have the same commitment to people-positive approach. This promotes mutual growth, shared values, and a more ethical supply chain overall. 
  4. Investment in technology and transparency: Digital tools, like blockchain, can increase transparency by tracking products throughout their journey, from raw materials to finished products. It can ensure that ethical practices are upheld at every stage of the supply chain. 

Conclusion 

Being in a rapidly changing business ecosystem Mahindra Susten has maintained to be a renewable company ESG leader among all green energy solutions companies due to its ethical supply chain strategy and ESG model.  A people-positive approach to supply chains creates an environment in which businesses not only thrive but contribute positively to society. By prioritising fair labour practices, transparency, diversity, and community engagement, companies can build resilient and sustainable supply chains that are good for people, the planet, and profits. Ethical supply chain is a necessity of any business. Not only does this help in growth but it also gives an opportunity to create lasting, positive change in the world.

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