Sign in / Sign up

Albert Vilario Alonso Follow

Consultant in Corporate Social Responsibility, Sustainability, Reputation and Corporate Communicatio
Jul ; = min read

ISO 20400, a guide to responsible

purchasing.

Photo by Levi Morsy on Unsplash

Note: this article was first published in Spanish and can be found here.

Last March, the new ISO 20400 was launched for the integration of
sustainability in the purchasing processes, as we commented a few weeks
ago in Responsible buying: general state, trends, and
implementation.

The standard has been modeled during a process that began in September
2013, counting with the participation of nearly 40 countries around the
world and has been based on the British Standard (BS) 8903 published in
2010.

The structure of the standard is similar to the BS8903 although the latter
has three sections while the ISO has four. In addition, it also incorporates
other developments in sustainability such as the UN Guiding Principles on
Human Rights and Business.

Responsible purchasing management:

essential at the present time.
Whether the reason for the implementation of the responsible purchasing is
really by ethical determination of the company, for less voluntary reasons,
or for any other reason, there are a number of benefits that just to enjoy
them is well worth the effort to perform a responsible purchasing
management, and the use of ISO 20400 is a very good way to achieve that
management.

Technically it is a guideline, not a standard of requirements, so it is not

certifiable, but it is always possible to carry out evaluations in those
organizations that use the standard in order to check their conformity and
make recommendations for improving the purchasing processes. Also, ISO
20400 will complement the ISO 26000 Social Responsibility which is also
an uncertifiable guide.

Like many other ISOs, the 20400 is a norm applicable to any type of
organization, public and private, and of any size and geographic location
having, in this case, the objective of being understood by any stakeholder
involved or affected by the decisions of the purchasing processes.

Basics and vectors of the guide.

The general outline of the guide is quite similar to that of others in the ISO
family.

It is composed of 4 main sections: understanding the fundamentals on

which the standard is based, integrating sustainability into procurement
policies and strategies, organizing the purchasing function towards a
sustainable model, and integrating sustainability in the procurement
process.

Within its foundations, ISO 20400 defines responsible purchasing as

the one that has the most positive environmental, social and economic
impacts, and bases the principles of such purchasing on accountability,
transparency, ethical behavior, respect for the interests of the stakeholders,
respect for Human Rights, innovative solutions, integration or continuous
improvement, among others.

The reasons for implementing responsible purchasing may be different for

different organizations, so it is necessary to define the objectives and
goals of each organization in a way that is aligned with those motivations
and policies.

As examples of vectors that can push a company to the implementation

of responsible purchasing, ISO 20400 proposes some of them:

Responding to customer sustainability demands.

Improvement or creation of a competitive advantage.

Stimulation of innovation.

Responding to stakeholder demands.

Compliance with laws and regulations.

Business risk management.

Security in supply chains.

Increased investor confidence.

Increased employee productivity and motivation.

Improvement of relations with suppliers.

Creation of economic value.

Personal leadership of a manager of the organization.

Top management: key, as always.

The need for top management to be involved in the implementation of ISO
20400 is just as important as in any other management system that we
want to carry out, and so the guide reminds us.

It also makes clear the differences between the three roles that can be
given in terms of accountability in these processes, that is to say, one who
can be asked for explanations for the development of a sustainable
purchasing strategy, one that is responsible for executing that said process
strategy, and one that acts only as support when carrying out what is
programmed.

Risk analysis is here to stay.

As it happens with the new version of ISO 9001: 2015, the 20400 also takes
into account the analysis of risks and opportunities (in this case
concerning sustainability) and its treatment, when it comes to managing the
processes of the organization.

In addition to the risk analysis supported by a multidisciplinary team, ISO

20400 proposes using other techniques such as:

Life cycle approach: consisting of analyzing the sustainability

impacts associated with all stages of the life of a product from the cradle
to the grave.

Life cycle costing: consisting of considering all the costs incurred

during the life of a product or service, the amounts of which can be
monetized in different ways.

Grievance mechanisms.
For stakeholders (especially the most vulnerable ones) to communicate
their problems, complaints or suggestions to the organization, the standard
proposes the creation of grievance mechanisms that, in order to be
effective, should:

Be based on dialogue and mediation.

Be endowed with legitimacy.

Be accessible and easy to understand.

Protect those who complain about possible threats.

Follow clear and known procedures.

Be equitable giving equal information to the parties involved.

Be transparent.

Be a source of continuous learning.

Those mentioned so far are only a few of the highlights of the new ISO
20400, but there are many other interesting ones such as those related to
the whole process of defining specifications, selecting suppliers,
realizing and managing procurement contracts, etc..

Sustainability Purchasing Csr Corporate Responsibility Supply Chain

Albert Vilario Alonso Follow

Consultant in Corporate Social Responsibility, Sustainability, Reputation and
Corporate Communication,and integration of people with disabilities.

Never miss a story from Albert Vilario Alonso, when you sign
GET UPDATES
up for Medium. Learn more