Ethical Sourcing: What It Is and How to Get Started with Sustainable Procurement
Ethical sourcing, sometimes referred to as sustainable procurement, refers to the process of obtaining goods, services, and/or raw materials in a way that prioritizes fairness, sustainability, and respect for people and the environment.
It’s about ensuring that the entire supply chain — from the extraction or production of materials to the final product — aligns with moral principles such as fair labor practices, environmental stewardship, and transparency. Companies and individuals adopt responsible sourcing practices to minimize harm, support human rights, and reduce ecological damage, often in response to growing consumer demand for sustainable procurement practices.
Getting Started with Ethical Sourcing
Implementing a responsible sourcing process is a multi-step process that requires diligence, research, and commitment. Here’s a comprehensive breakdown of how it’s done:
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Define Your Ethical Standards
Start by defining what matters most to you and your organization. Here at Arkay we are laser focused on our environment and how to minimize our impact on it. For instance, we are proud to have been awarded the Platinum level certification for three years in a row by EcoVadis, a level only 1% of invested companies worldwide achieve. We achieved these sustainability goals by concentrating on where we can do the most good environmentally and the steps needed to get there. To that end, we recommend writing clear sustainable procurement policies and an outline of your values such as the one below. It can serve as a roadmap to attaining them.
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Research Suppliers
It’s important to know who’s providing your materials, which frequently means looking beyond marketing messages. Annually, Arkay provides each of our suppliers with a Code of Conduct, in which we ask them to complete our Supplier Questionnaire, a Code that complements Arkay’s Sustainable Procurement Policy and Supplier Code of Conduct Agreement. Our Code of Conduct focuses on nine areas: Legal Compliance, Human Rights, Ethical Practices and Anti-Corruption, Labor Rights, Health and Safety, Environment, Freedom of Association, Communication, and Commitment to Product Safety, Product Traceability, Hazard Analysis and Risk Assessment (HARA) and good manufacturing practices (GMP), where applicable.
We review our suppliers closely to make sure they adhere to our criteria. It is imperative they adhere to local laws and regulations, not only in the United States, but globally, wherever we do business. It is also key for these companies to treat their employees well – engaging in any form of discrimination, harassment, or coercion is not tolerated.
We also are uncompromising regarding the ethical and anti-corruption practices of the suppliers we deal with. We will not be influenced by bribes, nor will we proffer any. Tolerance of this kind of activity will lead to an immediate end to any dealings whether internal or external. In our factory, the safety of our employees is inviolable and we expect the same from the businesses we engage with. This goes for environmental stewardship – as we take pride in our dedication to contributing to the health of our ecology, compliance by our suppliers is vital.
It may seem intuitive, but we vigorously check that our partners commit to product safety with clear and transparent evidence of their respective supply chains and any recalls, etc. All this is moot without communication. We emphasize the importance of clear communication to everyone involved, whether they are suppliers, vendors, or in-house employees and staff.
We are proud that the vendors and suppliers we regularly interact with are trustworthy and honor Arkay’s standards and guidelines.
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Verify and Audit
When applicable, we encourage conducting or commissioning independent audits of suppliers to ensure they’re “walking the walk.” This might involve site visits, interviews with workers, and/or reviewing records such as payrolls.
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Build Relationships
Ethical sourcing works best when companies partner with businesses who share their values. Long-term relationships encourage accountability and continuous improvement. If a supplier’s practices fall short but they’re willing to change, you can work with them to meet your standards. This collaborative approach is an effective driver of systemic change. By building these types of relationships, Arkay has enjoyed long and collaborative partnerships with INX Inks, Heidelberg, and Bobst, as well as Holmen Board and Paper, Packrite, and ITW Foils, to name a few.
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Prioritize Transparency
Make the supply chain visible—to yourself and to your customers. Publish sourcing lists, share audit results, or explain sustainable procurement decisions. In Arkay’s 2024 Sustainability Report we reported in detail on all of the above, knowing that our transparency builds trust and holds everyone accountable.
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Educate and Advocate
If you’re a consumer, learn about the industries you buy from and use your purchasing power to support ethical brands. If you’re a business, educate your team and customers about why this matters, amplifying the impact.
Sustainable Procurement in the Premium Packaging Industry
Producing sustainable packaging using responsible sourcing practices involves a number of steps to ensure sustainable procurement, fairness, and minimal environmental impact. Here’s a breakdown of what’s typically needed:
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Source raw materials responsibly
Most paper and cardboard comes from wood pulp, so it starts with forestry. To that end, we seek to work with forests managed under certifications like the Forest Stewardship Council (FSC), Programme for the Endorsement of Forest Certification (PEFC) or the Sustainable Forestry Initiative (SFI). These ensure trees are harvested sustainably—replanting happens, biodiversity is protected, and old-growth forests aren’t just razed to the ground. As an alternative, consider also using recycled paper or agricultural waste like straw or bamboo, which limits tree use altogether. For example, Arkay has used Kona Folding Box Board, which is manufactured by Monadnock Paper Mills and consists of a blend of fiber from reclaimed coffee bean bags and Forest Stewardship Council certified post-consumer waste. Specifying Kona Papers demonstrates responsible sourcing and our commitment to the reduction of waste to landfill.
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Labor practices matter
The people cutting trees, running mills, or processing pulp need fair wages, safe working conditions, and no forced or child labor. This means auditing suppliers and sticking to international standards like those from the International Labour Organization (ILO)
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Optimize the manufacturing process
Since pulp and paper production guzzle water and energy, optimize for efficiency by using closed-loop water systems to reduce waste and renewable energy like solar or hydro to power the mills. Because chemicals like bleach or dyes are often used, pick non-toxic, biodegradable options and manage waste to avoid polluting rivers or soil. Greenhouse gas emissions are an important consideration as well. Modern factories can cut CO2 by using carbon capture technology or burning less fossil fuel.
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Transportation
Minimize the carbon footprint by sourcing materials locally where possible and using efficient shipping such as rail instead of trucks or electric fleets. Arkay is fortunate to have our own trucks under the Arkay Logistics imprint which we use efficiently for local runs, reducing our carbon footprint.
In short, ethical sourcing is about intentional choices: to choose suppliers and methods that align with the broader good. It is a mix of research, accountability, and persistence that Arkay is proud to have subscribed to for over a century in business!
ASK ABOUT ARKAY’S ETHICALLY SOURCED PACKAGING SOLUTIONS
