Survey: Sustainability A Driving Force for Supply Management

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Oct 15, 2019, 10:32 ET

Research analyzes organizations' sustainability goals, business practices and metrics

TEMPE, Ariz., Oct. 15, 2019 /PRNewswire/ -- Institute for Supply Management^® (ISM^®) and Boise Paper, conducted a survey in summer 2019 to assess how sustainability is perceived and implemented by U.S.-based supply management professionals and their organizations in relation to three common pillars: social responsibility, environmental impact and economic awareness.

The resulting white paper examines the results through the lens of these three pillars, as well as the 11 attributes of the ISM Principles of Sustainability and Social Responsibility: anti-corruption, diversity and inclusiveness, environment, ethics and business conduct, financial integrity, global citizenship, health and safety, human rights, labor rights, supply chain sustainability, and transparency.

With environmental, social and governance (ESG) ratings a growing factor on Wall Street, sustainability has made significant inroads into corporate consciousness. Of those surveyed, 74 percent have sustainability goals in place, with nearly half (48 percent) reporting that their companies' sustainability goals are a part of daily operations. The following captures additional key findings that impact corporate decision-making and supply management initiatives.

Of the 11 sustainability attributes, ethics and conduct, followed by health and safety, are most important to supply management organizations and companies.
Between 48 and 67 percent of supply managers say they would pay more for the most common spend categories, including capital equipment, office supplies and manufacturing components, if they were offered sustainably. What they are willing to pay more for can depend on industry.
Non-manufacturing companies are less likely to prioritize working with U.S. suppliers than their manufacturing counterparts.
Generally, 46 to 63 percent of companies say they are willing to pay more for U.S.-made products like capital equipment and manufacturing components.
Companies with 10,000 or more employees are more likely to have goals in place and have them integrated into daily operations versus smaller companies.

"Sustainability only continues to grow in importance, for consumers, the companies that serve them and the supply management function that orchestrates the company's sustainable policies, processes and performance," said ISM Chief Executive Officer, Thomas W. Derry. "A great track record in sustainability is linked to higher revenues, profit and company valuations. It's here to stay."

The research revealed that focusing on the three pillars of sustainability while drawing from the 11 attributes of the ISM Principles of Sustainability and Social Responsibility — in particular, ethics and business conduct, health and safety, and environment, the sustainability attributes considered most important to supply management organizations — can help companies create value while impacting the environment, being responsive to customers, and improving communities.

The sustainability survey yielded 778 usable responses from supply management professionals from U.S.-based companies. ISM^® asked survey respondents about their companies' sustainability goals, how they evaluate environmental impact, why they work with U.S-based suppliers, health and safety in their supply chains, and other topics.

To learn more about the survey and download the white paper, visit: https://go.weareism.org/sustainability_whitepaper.

About ISM^®Institute for Supply Management^® (ISM^®) is the first and leading not-for-profit professional supply management organization worldwide. Its 47,000 members in more than 90 countries around the world manage about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 by practitioners, ISM is committed to advancing the practice of supply management to drive value and competitive advantage for its members, contributing to a prosperous and sustainable world. ISM empowers and leads the profession through the ISM Report On Business^®, its highly-regarded certification and training programs, corporate services, events and the ISM Mastery Model^®. For more information, please visit instituteforsupplymanagement.org.

About Boise Paper:
Boise Paper is a division of Packaging Corporation of America, headquartered in Lake Forest, IL. They manufacture a full line of office papers including copy, multipurpose, inkjet, laser, and colors, as well as printing and converting papers. They also offer recycled content options across all product lines. Their high-quality products provide consistent, reliable results and are proudly made in the USA. Through their Quality You Can Trust promise, Boise Paper is committed to meeting the highest standards for product performance, customer collaboration, and supply chain excellence. Keep current with news and events at www.BoisePaper.com.

Contact: Jessica Boyd, 480.752.6276, ext. 3085
[email protected]

SOURCE Institute for Supply Management