| Abstract: | Companies continue to build greater sustainability and transparency in their supply chains to increase their business value and to respond to greater stakeholder pressures and expectations to increase sustainability and transparency. As company supply chains have grown and expanded, which presents increased challenges for building greater transparency, it is possible that the use of subcontractors in supply chains has also increased. The amount and impact of subcontracting conducted in supply chains may be of greater concern to certain companies and/or sectors than others, and it may have an important impact on their sustainability efforts. This article assesses the extent to which supplier codes of conduct apply to the use of subcontractors and include a requirement for suppliers to obtain prior company approval or authorization before subcontractors conduct work. Based on a review of more than 50 supplier codes of conduct, the companies that are highlighted in this article for including this requirement are primarily in the apparel/footwear, food, pharmaceuticals, and/or retail sectors. The article asserts that supplier codes of conduct that include requirements for suppliers to protect and safeguard confidential business information could be strengthened to further protect the company's products, integrity, and reputation/brand and increase its competitiveness and resilience by also including a requirement of prior approval or authorization of a supplier's use of subcontractors. |
