ABSTRACT
This chapter focuses on the challenge to business of producing meaningful supply-chain improvement systems that reflect real business needs and embrace social change. The principles of the 1991 ICC Business Charter for Sustainable Development have been incorporated into European Union Eco-Management and Audit Scheme, including the purchasing and sourcing of raw materials. The arena of supplier improvement should and can be expanded to encompass other ethical issues using the same methods and approach as environmental management. On the practical level, there are two facets of risk: the risk of not carrying out supplier evaluation versus the ethical risks inherent in the supply chain and their ultimate effect on the sustainability of the business. In terms of the supplier customer relationship, social audit gives an opportunity for feedback and helps answer the questions concerning the type of ethical improvement needed in the supply chain and how that can be achieved in a manner that is acceptable and achievable by all parties.
