Sustainability reporting is quickly becoming a given in the corporate world, but in many instances, neglecting to communicate less-than-perfect results means companies fall short of benchmarking actual progress.
In a recent fireside chat, Suzanne Ellingham, event director of responsible sourcing trade shows Source Fashion and Source Home & Gift, noted that it is rare for companies to disclose when they fail to meet targets on schedule. Instead, unattained goals are ignored in favor of introducing new objectives. However, the better plan of action would be total transparency.
“It’s really about choosing the thing that you can make a difference on, committing to it, being transparent about it, and then not having it disappear from your company report 12 months later,” Ellingham told Sourcing Journal’s sourcing and labor editor Jasmin Malik Chua. “If you’ve met it, celebrate it. And if you haven’t met it, celebrate the fact that you will meet it next year.”
A recently released report from Source Fashion, Source Home & Gift and Insider Trends, titled “Good or Good Enough,” dives into the topic of accountability and responsibility. What separates the “good” companies from those who are just “good enough” is proactivity and progress. “There are some amazing businesses out there and some amazing leaders in this space that are trying to push the dial and genuinely doing great stuff,” said Ellingham. “And then there are the people who are doing the minimum.” She added that sometimes the latter will lay out goals but not prioritize them or commit, while their peers are willing to undergo business-wide transformations to meet targets.
Transparency is crucial in building trust with consumers. Vague claims don’t cut it and can break down consumer confidence in a brand. Instead, the ideal should be realistic, measurable goals with consistent, publicized assessments.
Despite the advantages of clear statements, some companies are still skittish about making specific reports and goals because of the expectations that follow. “People are worried about saying things because they don’t necessarily believe that they’re capable of following through on those promises,” said Ellingham. “We speak to enough people within fashion to know that the intention to make those changes is absolutely there. But it’s a difference between walking the walk and talking the talk.”
How companies manufacture and who they partner with can change global communities for the better. To scale up impact to enact “radical change,” companies can band together, and Ellingham has seen large competitor retailers willing to collaborate. This can move the needle in areas like country-wide wastewater management practices. “It’s incredibly difficult for one company to transform supply chains, but a few of them working together could probably make some significant changes,” said Ellingham.
Watch the video to hear how companies can improve transparency, goal setting and reporting.
Click here to learn more about Source Fashion, running Jan. 18-20 in London.
