Achieving Visibility
With the growing presence of regulatory bodies and scope of technology, wrongdoing can be found almost instantly. For this reason, corporations need visibility on their suppliers’ business practices. Organizations have the obligation to not only act in their best interests, but also the best interests of the community and environment. When wrongdoing is exposed, on top of jeopardizing that business it also puts all partners and collaborators in a position of scrutiny. ESG credentials are imperative for corporations to accurately asses the risk factor or credibility of whomever they choose to partner with.
ESG data can go as far to analyze not only tier-one suppliers, but also tier two and three. Although a corporation may not be directly with the tier-two or three suppliers, their business activities can still very directly affect the business, so having all the available information would be helpful. ESG data is a significant factor that contributes to corporations gaining the visibility they desire. The data is drawn from various sources like news releases, company reports, and websites to give organizations a comprehensive understanding of who they are getting into business with if they choose to do so.
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