Arizona State University (ASU) MGT302 Principles of International Business Exam 3 Practice

The meaning of 'ethical sourcing' is fundamentally about acquiring products in a responsible and sustainable manner. This encompasses various practices that ensure goods are produced with respect for human rights, fair labor practices, and environmental protection. Ethical sourcing goes beyond just minimizing costs or prioritizing local production; it requires a comprehensive approach that looks at the entire supply chain, encompassing the treatment of workers, the impact on the environment, and the overall sustainability of the production processes involved.

In ethical sourcing, businesses evaluate and consider the social, environmental, and economic implications of their sourcing decisions, choosing to work with suppliers who adhere to ethical standards and sustainable practices. This can include sourcing materials that are not environmentally damaging, ensuring fair wages for workers, and supporting communities where these products are sourced.