A leading multinational company recently faced backlash from both consumers and investors after reports revealed that one of its suppliers was engaging in environmentally harmful practices. Although the company itself adhered to ethical sourcing, it had not actively monitored its supply chain for compliance with sustainability standards. Which of the following actions would be most aligned with corporate social responsibility (CSR) principles to prevent similar issues in the future?
1
Reducing the number of suppliers to focus on only the most cost-effective partners.
2
Increasing marketing spend to highlight the company’s existing sustainability initiatives.
3
Implementing a comprehensive supplier evaluation system that includes environmental impact assessments and ethical audits.
4
Outsourcing the CSR responsibility to a third-party consulting firm.
5
Reducing product prices to compensate for the negative publicity caused by the issue.