Socially Responsible Procurement (L3M5)


Module purpose
On completion of this module, learners will be able to explain the concepts and implicationsof sustainability and Corporate Social Responsibility and recognise the potential environmental impact of procurement and supply operations.

Module aim(s)
Company reputation can be severely damaged if the organisation or one of its suppliers, is seen to be neglecting sustainability and corporate social responsibility. Similarly, against a background of increasing public and governmental concern for the environment, organisations have come under increasing pressure to reduce the environmental impact of their operations. This module is designed for those working in procurement and supply who should recognise the responsibility which they have for ensuring sustainable and socially responsible practices and the importance of the environmental impact of their decisions and approaches.

Next steps
Joining a CIPS qualification programme means you will join the largest Institute in the world for those working in procurement and supply. You can join as a member online today. Once you've become a CIPS member you can book your examinations online.

    Socially Responsible Procurement [L3M5]

    1.0  Understand the concepts of sustainability and Corporate Social Responsibility (CSR) 

    1.1  Explain the concept of sustainability and the practical implications for procurement and supply 

    • Meeting the needs of the present, without compromising the ability of future generations to meet their needs.
    • Adopting a broader range of decision-making criteria other than traditional economic criteria.
    • Extending procurement decision-making criteria away from just price and quality
    • Including environmental merits and social impacts of alternative solutions

    1.2  Explain the importance of Corporate Social Responsibility (CSR) 

    • Extension of corporate goals and decisions to include organisational objectives and financial measures of performance.
    • Promoting good corporate citizenship and responsibility for corporate action
    • Encouraging positive impact on all stakeholders
    • Social, economic and cultural diversity

    2.0  Understand the environmental impact of procurement and supply

    2.1  Describe the impact of environmental sustainability

    • Globalisation vs. green logistics
    • Public awareness
    • External pressure on organisations
    • International legislation and agreements

    2.2  Explain the environmental impact of transportation and storage 

    • Air pollution and atmospheric emissions
    • Carbon footprint calculation
    • Noise pollution
    • Accidents
    • Vibration
    • Land-take
    • Visual intrusion

    2.3  Explain the role of government in promoting environmental sustainability

    • Define sustainability
    • Define environmental impact
    • Greener modes of transport
    • Energy efficiency
    • Reducing emissions

    3.0  Know the implications of CSR for the procurement and supply function

    3.1  Identify procurement and supply processes and practices that the organisation may adopt to support CSR

    • Adoption of sustainable practices, standards and specifications in the supply chain
    • Consideration of the social impact of the organisation’s behaviours.
    • Design procurement processes to deliver positive social outcomes
    • Expanding reporting frameworks to include ecological and social performance
    • Defining organisational value for money to include social outcomes – such as the use of local labour and participation of disadvantaged and/or minority groups

    3.2  Describe the triple bottom line concept and how it should apply to procurement and supply

    • Three pillars of social responsibility such as:
      • People
      • Profit
      • Planet

    3.3  Describe the key metrics that can be used to measure and report on sustainability

    • Environmental – such as energy consumption, water consumption, greenhouse gas emissions, waste generation
    • Social – such as demographic trends, use of local labour, disadvantaged and/ or minority groups

    4.0  Understand methods to monitor Corporate Social Responsibility (CSR) in procurement and supply

    4.1  Describe the key methods that can be used to monitor CSR compliance

    • Discuss methods such as:
      • KPIs
      • Audits
      • Supplier appraisals
      • The use of regulatory frameworks

    View other modules

    Select a module below for more information:

    Procurement and Supply Environments (L3M1)Ethical Procurement and Supply (L3M2)Contract Administration (L3M3)Team  Dynamics and Change (L3M4)Socially Responsible Warehousing and Distribution (L3M6)

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