Top 10 Questions to Ask Before Hiring an Ethical Supplier
- 05 Oct, 2024
Picture this: You’ve found a supplier that promises ethical sourcing, fair wages, and eco-friendly production. Everything looks perfect—until six months later, a scandal erupts. Workers complain of mistreatment, and your brand is suddenly linked to ethical outsourcing mistakes. Now, you’re scrambling to fix the mess, dealing with PR nightmares, and questioning how you missed the red flags.
Hiring an ethical supplier isn’t just about good intentions. It’s about asking the right questions before signing any contract. Let’s look at the ten most important ones.
(We’ll also add a few edited stock photos to make this guide easier to follow!)
1. Who Are Their Sub-Suppliers?
Many businesses check their supplier’s practices but forget about sub-suppliers. The problem? Your main supplier might be ethical, but if they source materials from a shady factory, your brand still gets blamed.
Example: The Fashion Industry’s Hidden Problem
In 2013, a well-known clothing brand promoted itself as ethical. But journalists later found that its sub-suppliers were violating labor laws. The company had no idea—until it was too late.
✅ Ask your supplier: “Can you provide a full list of sub-suppliers and their compliance reports?“
2. Do They Have Third-Party Certifications?
Many suppliers claim they follow ethical standards, but unless an independent body verifies it, words mean nothing. Certifications like Fair Trade, SA8000, or B Corp help ensure their claims are legitimate.
✅ Ask for: “Can you share valid third-party audit reports?“
3. What Happens If an Ethical Violation Is Found?
Even the best suppliers can make mistakes. The real test? How they handle violations when they occur. Do they fix the issue—or cover it up?
✅ Ask: “What corrective actions do you take if unethical practices are discovered?“
4. How Transparent Are Their Labor Policies?
Some suppliers say they pay fair wages, but that doesn’t always mean living wages. Others claim to have safe working conditions, but have you seen real proof?
Example: Apple’s Manufacturing Controversy
Apple faced criticism for labor conditions in its supply chain. Even with strict policies, workers reported excessive hours and unsafe environments. If a company that big can struggle, smaller businesses need to be extra careful.
✅ Ask for: “Can you share wage reports and worker safety audits?“
5. How Do They Handle Waste and Sustainability?
Ethical sourcing isn’t just about people—it’s about the planet too. Does the supplier recycle materials? Do they reduce energy waste? Or do they dump chemicals into rivers?
✅ Ask: “Can you provide data on waste management and sustainability efforts?“
6. Are They Open to Surprise Audits?
Many suppliers pass scheduled audits but fail when surprise inspections happen. If they refuse unannounced visits, they might be hiding something.
✅ Ask: “Would you agree to third-party surprise audits?“
7. How Do They Treat Their Own Employees?
An unethical company can’t produce ethical products. If the supplier’s own employees face unfair treatment, chances are their ethical claims are just for show.
✅ Ask for: “Can I speak to some employees about working conditions?“
8. Have They Ever Been Involved in a Scandal?
A quick Google search won’t always reveal past issues. Some companies change names to erase bad history. Ask directly—and watch how they respond.
✅ Ask: “Has your company or any related entity ever been accused of unethical practices?“
9. How Do They Verify Their Own Ethical Standards?
Do they rely on self-checks, or do they bring in external auditors? A supplier that audits itself is like a student grading their own exam.
✅ Ask: “Who conducts your ethical compliance checks?“
10. What Are Their Long-Term Ethical Goals?
A good supplier doesn’t just meet today’s standards—they plan for the future. Do they invest in worker training, sustainable materials, or better wages over time?
✅ Ask: “What ethical improvements have you made in the past five years?”
Avoiding Ethical Outsourcing Mistakes: The Final Word
Finding the right supplier takes effort, but rushing into a deal without these questions can lead to disaster. Vet every supplier carefully and, if possible, check out our guide on vetting ethical suppliers for more insights.
Which of these questions do you think businesses overlook the most? Let’s chat in the comments! 🚀
