Responsible thoughts on responsible sourcing

The Profile Store team called Mala Chakraborti, Vice President Corporate Responsibility to talk about CSR in the Profile Store;

Hi Mala. 

You are dedicated to the ambitious CSR agenda at Atlas Copco. What risks do you see in regards to branded items in general?

You know, we are so conscious about our reputation and who we are as a company. When we are not there to discuss and represent our products, we need to make sure that everything that carries our brand lives up to the highest standards, whether that’s quality or creating value for our customers. At the same time, we don’t want products that carry our brand to pollute the environment. Products have to be sourced in a responsibly managed supply chain; this is built into the Atlas Copco brand. We need to be sure that people understand the entire thought process that went behind our products and that every step of the way has been taken care of. We want the best possible impact in every stage of the life cycle.

Are responsible sourcing activities of branded items relevant to Atlas Copco at all?

It has been increasing in importance over time, and today this is absolutely an essential factor. We want to see the responsibility extend as far in the supply chain as possible. For us, of course, it is very important to rely on our partners to take our ethical and environmental standards forward with their own suppliers. These aspects represent value and quality for the products that carry our brand. 

Social Responsibility was highlighted as a very important criteria for Atlas Copco when the Profile Store was launched 2011. How do you think the Profile Store has managed this task so far?

I have been very impressed. We often have conversations with suppliers that are smaller in scale than us and they can find these issues very intimidating. The truth is that they are. They are very tough problems that require time and dedication. I am very impressed in the way the Profile Store takes that responsibility and shows very genuine commitment, and works with it in the most constructive way. The Profile Store doesn’t do it as a ‘tick in the box’ for advertising, and this is what we aspire to do ourselves. I think the Profile Store is a fantastic example. 

One of the ideas with gathering all promotional items on the same platform is that processes to ensure responsible sourcing are consistent and covers the whole assortment, rather than having different approaches on a scattered base of suppliers; what are the challenges for Atlas Copco’s wide spread organization dealing with a variety of suppliers? 

That is a good question. There are different risks depending on the country. In one market we have labour concerns, in another, environmental laws are very weak and we need to constantly monitor corruption related issues. We try to build up this capacity among our suppliers, which is a difficult task because they might not have access to certain resources, people and infrastructure. It is a very dynamic topic. It needs to be more than a ‘tick in the box’, which is why reliable and dedicated suppliers are important.

Being very aware of the risks by having a strong risk profile and being very clear with tools, training and approach, we go by the UN global compact’s 10 principles, which we work into supplier engagements. I know that in several risky markets, like India and Indonesia, we invite suppliers for a day full of training and awareness creation, which we have to follow up with audits. This is a lot of work. 

Going back to the earlier question of why we care so much, that to me, that kind of commitment, that hard work creates peace of mind for our customers and for us when we look at our suppliers. 

Knowing how hard it is, I think the Profile Store does fantastic work.