Comply or Die Series – Blog #1 – The Trident of Governance
Over the past few decades the consumer marketplace has changed and evolved to a point that is barely recognisable to that of the 1960s and 1970s. Developments in collaborative digital information exchange, a reduction on scrutiny of foreign trade policy and growth of third world industry has changed the market landscape for all companies no matter how big or small. The cost advantages are obvious and readily exploited by all businesses and their competitors, but companies need to be cautious especially when competing on price which leads to exploitation of other elements within their supply chain. In this day and age, taking time to properly audit your supply chain on factors other than cost can pay dividends in many different ways.
Phrases such as “green”, “ethical” and “sustainability” are banded around the media on a regular basis but what exactly do they mean for businesses in the consumer products industry and where do the distinctions between these phrases lie?
‘Green’ is a relatively non-descript phase used to suggest that a business promotes an environmentally friendly stance and seeks to use less of everything in the activities they undertake. ‘Sustainability’ takes this position one step further by ensuring that all resources used across the supply chain are renewable and not depleted by the organisations actions at any stage. ‘Regulation’ refers to the legislation put in place by government to control activities within a particular jurisdiction. Linked into this is ‘Compliance’ which typically refers to the requirement for an organisation to abide by formal regulations or principles. Finally a further media buzzword is ‘Ethical’ which encompasses an organisation’s moral ideology that is employed in the company and is reflected in all actions and processes that the company undertakes. Broadly speaking, all these elements (and more) can be contained within three key drivers: Corporate Governance, Environmental Regulation and Ethical Compliance.
This series of mini blogs will address each of these drivers and take a look at the impact that each driver has on the business and what it means going forward. They will cover case studies and options available to businesses to address each of these drivers; the practical differences between legal and public image requirements; and, what the costs implications are of compliance and more importantly non-compliance.
5 January 2011 – The Trident of Governance;
7 January 2011 – Corporate Governance;
10 January 2011 – Environmental Regulation;
14 January 2011 – Ethical Compliance; and
17 January 2011 – Supplier Opinion.
Rob Smith is the head of enterprise projects within the Product Development Partnership Group of companies. He is also a fully qualified commercial solicitor.
Contact Rob at email@example.com