Thinking about how your organization travels? A lot of sustainability buzzwords will arise: carbon accounting, ESG and, now, ethical sourcing. What does it mean, and why does it matter?
Ethical sourcing is just one of the phrases you’ll hear bandied about as you first begin approaching your company’s sustainable business travel. What it means to you will differ, as ethical sourcing, much like sustainability, is a spectrum. One company’s efforts could just scratch the surface of another company’s more comprehensive standards.
However, no matter how deep into standards you go, no matter how far you take your initiatives, ethical sourcing matters.
Here’s everything you need to know.
What is Ethical Sourcing?
Ethical sourcing is an umbrella term. According to IBM, it refers to a method of sourcing that “ensures suppliers and vendors meet certain ethical standards, such as upholding fair labor practices, making a positive social impact and practicing environmental sustainability.”
So, while ethical sourcing has a lot to do with sustainability and, one could argue, is impossible to extricate from sustainable travel, it’s not just sustainability. It goes much further. It also considers how a supplier or vendor treats its employees, communities, and anyone else touched by its operations.
Further, setting criteria for ethics from suppliers is a critical part of thinking about organizational success, not just bottom-line profits. This mode of defining success also looks at how an organization positively impacts people and the planet.
That said, ethical sourcing can be a little vague and up to interpretation. There are no standards, either universal, codified or legislative, that dictate whether or not an organization, supplier or vendor is ethical or unethical. However, certain behaviors would categorize a supplier or vendor as “unethical.” These behaviors include negatively impacting the environment, operating dishonestly and/or exploiting workers.
Ethical Sourcing in Travel
Given all of the above, you likely agree that ethical sourcing for your company sounds like a good idea. However, you can also likely agree that it is easier said than done.
You might know very little about your travel providers’ approach to balancing profit with people and planet, for example. You may have historically only been looking for the best services for the lowest prices. If you do newly seek out this type of information, you may find that some vendors and service providers are reluctant to share it. You may also struggle with defining what ethical sourcing looks like within your organization or getting the entire team on board. It may require sweeping changes to your systems of operation.
Challenges and obstacles aside, though, seeking out ethical suppliers can be well worth the efforts required. Additionally, luckily, one of the easiest places to start is with your organization’s travel. With so many travel providers realizing that more buyers, both business and leisure, want sustainable options, they’re delivering accordingly.
Here’s what to look for as you begin approaching your organization’s travel through an ethical sourcing lens.
What Does Ethical Sourcing Look Like in Air Transportation?
Ethical sourcing in air transportation looks like, on a very, very basic level, understanding an airline’s sustainability efforts and how the airline is (or isn’t) taking an eco-friendly approach to its operations. It’s also about taking a look at how an airline treats its employees, as well as how the airline conducts its own sourcing. For example, what fuel is it using? Where is it sourcing its in-flight food? How is it sourcing its flight crew’s uniforms?
This type of sourcing is becoming a greater concern to many airlines overall. As Procurement reported in early 2024, some airlines are actively attempting to achieve more sustainable travel and net-zero emissions through procurement efforts and supply chains. The publication used Delta as an example. It pointed to the airline’s strategies for new aircraft, single-use plastics and sustainable fuel.
What Does Ethical Sourcing Look Like in Ground Transportation?
Compared to air transportation, you have many more options for ethical sourcing in ground transportation.
Ethical sourcing in ground transportation starts with examining what options are available to you. For example, should your business Travelers take a rental car or train? Or what about public transportation to a meeting, work trip or conference?
The answer isn’t always as straightforward as it seems. While one might be technically more environmentally sustainable than the other, a different option might be more ethical overall when you look at things like labor practices and inventory sourcing.
Remember, this type of sourcing takes a holistic approach to sustainability. It’s not just about considering environmental factors but also about the impact on communities and employees.
What Does Ethical Sourcing Look Like in Hotels?
Hotels have ample opportunities for ethical sourcing, and luckily, many hotels are beginning to embrace ethical sourcing and procurement.
On your end as an Executive, you and your team might only choose to partner with hotels that are putting ethical sourcing first and displaying it through sustainability accreditations. The Sustainable Hospitality Alliance offers ample guidance as to what hotels can do to embrace responsible procurement, and looking at their recommendations can help you recognize those options as you choose where to stay. For example, the Alliance recommends that properties pursue 100% renewable energy, sustainably certified products, sustainably sourced foods, fair labor, and more.
The Impact of Establishing Sourcing Standards
While ethical sourcing can be complicated and seem overwhelming at times, the benefits are myriad.
As more and more regulations require you to take a look at your organization’s sustainability practices, and more and more employees likewise demand the same, you can’t afford not to begin thinking about sustainable travel. Check out JTB Business Travel’s ample resources on sustainable travel and get in touch today to learn how we can help you make your travel better for the planet, your people and your profits.