Complying with corporate social responsibility policies are a no-brainer. But those that include tracing origin of goods can sometimes be a difficult challenge for supply chain professionals.
For example: Let’s say I bought a lovely ceramic birdbath with a wooden base from Crate and Barrel. Crate and Barrel bought it from another vendor, who probably got it from a manufacturer in Thailand, who probably got the wood from another vendor, who probably didn’t harvest the wood himself, wherever that may have occurred. So then, the questions for Crate and Barrel to answer include: Was the plant material harvested legally? What are the genus, species and weight of the plant? In what country was it harvested?
Virginia Thompson, Director of Import/Export Operations and International Trade Compliance at Crate and Barrel
Answering these questions is part of complying with the Lacey Act, which is designed to prevent the trade of illegally harvested plants. But as our panel at today’s session pointed out, when working back through multiple tiers of the supply chain, getting complete, accurate information about the source of raw materials can be very difficult.
NRF’s International Trade Counsel Erik Autor led today’s panel, Managing Corporate Social Responsibility and the Supply Chain at the NRF Supply Chain Summit, that included Virginia Thompson, Director of Import/Export Operations and International Trade Compliance at Crate and Barrel, David Bouffard, Vice President of Public Relations at Sterling Jewelers, Inc. and Elena Lagdameo-Hogan, Assistant General Counsel at The Children’s Place.
It was the feeling of most in the room that when it comes to protecting human rights and the environment, many corporations and the people who run them do what they can to comply with these laws not just because it’s the law but because it’s the right thing to do. But the reality of the compliance process is quite daunting both for retailers and regulators. Along the way, however, the retailers have learned a few tactics that can come in handy when meeting regulations. A few suggestions from our panel included:
Build good relationship with vendors and partners. Vendors are a key part of the process. Each panelist agreed that in working with their vendors, whether with plant material as in the case of Crate and Barrel, or gold and minerals in the case of Sterling Jewelers, or cotton for apparel at The Children’s Place, vendors are very cooperative. However, the ongoing challenge lies in getting accurate and complete information about the source of the materials after so many tiers of suppliers.
Collaborate with other retailers and organizations. Lagdameo-Hogan pointed out that there is no single source of standards in the textile/apparel and footwear industries, which presents a challenge when working with suppliers. However sharing audit data with other retailers and joining initiatives such as GAFTI and Better Work can help move the ball forward. And if the scope of the information you need goes beyond your capabilities, partner with organizations that have expertise in that area and can relieve some of the burden.
Stay involved in NRF and keep an eye on legislation. As lawmakers consider passing more legislation, it’s important to stay in the know. Trade organizations like NRF can help provide updates and alert retailers to legislation that can affect their business.
