Sodexo reveals firms to shed suppliers that fail to live up to their social values

Organisations that fail to impress on policies around the environment and diversity at greatest risk, according to new research from Sodexo.

The study found:
> Two thirds (66%) of business leaders say they have already started replacing suppliers in the last year that don’t live up to their diversity and inclusion values
> A similar proportion (65%) have over the last year said goodbye to organisations in their supply chain that do not align with their own environmental policies
> 71% believe that their customers care about their supply chain

UK business leaders are increasingly turning their backs on suppliers who fail to align with their social values, according to new research revealed today.

The survey, commissioned to mark the launch of Sodexo’s Social Impact Pledge 2021, highlights the profound effect the pandemic has had on procurement decisions, with the majority of respondents agreeing that the events of the last year had made it more important to consider environmental and diversity policies when selecting suppliers.

The research shows that, while UK businesses are understandably still placing a greater emphasis on factors such as cost, financial stability and cyber security at the procurement stage, social values are increasingly featuring in the decision-making process.

92% of those polled said they now vet suppliers on their social values and impact, and 75% warn they would be put off by a prospective supplier that did not publish information about their social values.

There is clearly, however, some cynicism around social value with almost three-quarters (73%) of the 250 UK business leaders polled agreeing or strongly agreeing that businesses often have a social value policy in place but don’t necessarily follow it. This demonstrates the importance of transparent social impact accounting – evidencing and reporting on achievements.

Encouragingly, a strong proportion of business leaders who responded to the survey made it clear that they are prepared to offer their suppliers support to help them improve their standing and become more closely aligned with their own social values. 47% said they are providing suppliers with education and training, 41% are providing financial support and 39% offer mentoring.

Sean Haley, Sodexo UK and Ireland Regional Chair, commented, “It is often said that you can tell a great deal about someone by the company they keep. This is also true for businesses. It is now clear that the ability to demonstrate a positive social impact is a non-negotiable.

“As this research clearly shows, it is a responsibility that extends beyond your own business to the organisations with which you choose to partner.

'While it can only be seen as a positive step that many businesses are becoming more demanding in areas such as environment and diversity, it is even more heartening to see how many are taking it upon themselves to help their suppliers do better.

'Business must be purpose-led and capable of directly improving the communities they serve.”

In February Sodexo, which employs around 30,000 people in the UK, launched its 2021 Social Impact Pledge which includes gifting up to 25% of its apprentice levy to SME suppliers ; enabling them to create 100 new apprenticeships; cutting food waste by 50% across all its sites by 2030; and ensuring 40% of the business’ spend is with SME and VCSE suppliers – above the Government’s own target of £1 in every £3.

In addition to Sodexo’s financial commitment to its SME and VCSE partners, the business has also pledged to provide professional skills-based mentoring and coaching to these organisations in its network.