Measuring the impact of sourcing on the world’s workforce

This is an excerpt of the original article. It was written for the November 2019 edition of Supply Chain Management Review. The full article is available to current subscribers.

November 2019

We hear a lot about emerging technologies like artificial intelligence, machine learning and robotics. We hear less about one of the enabling technologies that makes the others possible:

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While it is almost a given that a company’s procurement decisions can contribute to poverty alleviation and inclusive growth around the world, a new group is actually doing something about it.

The Global Impact sourcing Challenge is the first business network to specifically focus on escalating impact sourcing as a way to increase employment and career development opportunities for disadvantaged workers. It is seen as the largest official commitment to “Sustainable Development Goals” outlined by the United Nations, as its main focus is on inclusive job creation.

“It is a great example of collaboration,” says Tim Hopper, responsible sourcing manager at Microsoft. “Through intentionally choosing impact sourcing, and increasing the number of impact worker jobs, companies are able to create social benefits on top of generating business value.”

Containing job erosion

According to the UN, roughly half of the world’s population still lives on the equivalent of about $2 a day, with global unemployment rates of 5.7%; having a job doesn’t guarantee the ability to escape from poverty in many places. This slow and uneven progress requires multinationals to rethink and retool their economic and social policies aimed at eradicating poverty.

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