ESCP CEO Carmel Giblin on Building Resilience Ethically

As supply chains become increasingly complex and global scrutiny of ethical practices intensifies, procurement teams face mounting pressure to move beyond traditional compliance approaches.

While supplier audits have long been the standard method for assessing risk and ensuring standards, leading organisations are discovering that true transformation requires a more comprehensive strategy.

Speaking to Procurement Magazine, Carmel Giblin, President & CEO of the Ethical Supply Chain Program (ESCP), shares her expertise on building resilient, ethical supply networks.

Drawing from over two decades of experience helping brands improve supply chain transparency, Carmel explores why traditional audits alone fall short and outlines practical approaches for creating lasting positive change.

Please introduce yourself and your role

I’m Carmel Giblin, President & CEO of the Ethical Supply Chain Programme (ESCP); a  global non-profit that exists to create a better life for supply chain workers worldwide. I’ve been working to help brands improve supply chain transparency and stability for more than 20 years, with previous roles including CEO of SEDEX and Head of Corporate Responsibility at Sky.  

At ESCP, I’m responsible for ensuring that we meet our member community’s needs and that we deliver on our guiding vision to protect workers. Most recently, this has included advising members on the latest regulatory and tariff changes and working closely with procurement and sourcing teams looking to diversify their supplier base. 

I believe that ensuring workers are safe and that their rights are respected is not just a moral obligation – it is good for business, creates huge opportunities and, critically, makes for a more secure supply chain.

What are the main limitations of traditional supplier audits and why must procurement teams go beyond them to achieve lasting improvements? 

Traditional audits used in isolation can have a limited impact. While they are often the first port of call to examine suppliers’ practices and identify risk, this is only the beginning in terms of achieving greater oversight and delivering lasting impact. The true value comes when actions informed by the audit findings are taken. 

To facilitate this, organisations need to change the mentality of ‘let’s just pass the audit’ to a more positive experience which adds value to suppliers and their buyers. By requiring non-compliances to be remediated, standards are improved and this has a positive impact across productivity, employee retention and more.

As part of this, and to ensure that issues don’t recur, organisations also need to understand the root cause of any issues. This is an area where we work very closely with our members. As part of our supplier certification process, for example, we’ll carry out a progress visit where we work with teams on the ground to identify what might be causing an issue and provide advice on how it can be addressed. 

Finally, it’s important that audits reach every area of the business, including cleaning, security and logistics. These are often delivered by third-party suppliers who may be further down your supply chain, but who still pose some risk. As part of your supplier oversight strategy, map exactly who is in your supply chain – you can then work to deliver supplier capability programs that take suppliers on the journey with you. This might include communicating your code of conduct or providing suppliers with targeted development plans based on the outcome of audits and assessments.

Can you share examples of how remediation and worker wellbeing initiatives have delivered measurable positive change within supply chains? 

One example I often share relates to excessive working hours. When we discussed this issue with management and workers across several factories, we were able to understand that a leading cause for workers leaving employment is childcare issues.

One of the ways we have worked to combat this is via our Family-Friendly Factory Programme which helps factory workers access safe and accessible childcare, all while solving labour shortage issues. Since its introduction, the program has positively impacted the lives of more than 32,000 children.

It’s also had a hugely positive impact on retention, with 93% of employees at participating factories citing childcare facilities and support as a reason to continue working there. 

How do programmes focused on gender equality and effective grievance channels contribute to building a more ethical and resilient supply chain? 

They are incredibly important, especially when you consider that women tend to make up a larger percentage of the workforce in manufacturing environments – amongst ESCP members, that number is around 65%. When organisations promote equality in the workplace, they improve workplace culture and that impacts the attraction and retention of talent. We also see improvements in financial performance and productivity. 

Giving workers a channel to raise concerns and have their questions answered is also incredibly valuable and is becoming even more significant due to regulations such as CSDDD (Corporate Sustainability Due Diligence Directive). At ESCP, we have operated a Worker Helpline for 15 years.

Accessible to more than 10 million workers, it has been used in a variety of ways – from people accessing it to get more information about factory policies and regulations to more serious complaints about management attitudes, withheld wages and to report the use of child labour. We’ve even had people suffering from loneliness use it as a source of human interaction.

Data from the ESCP Helpline data is also used to design and deploy training, to address emerging and repeat issues and to build supplier capability. Client teams can view the number of calls made by workers, understand their nature, view the number of calls escalated and export Helpline data for internal analysis. This is making a huge difference when enabling better communication between management and workers and reducing the risk of workplace or supply chain disruption.  

What practical steps can procurement leaders take to embed transparency and accountability throughout supply networks?

Communicate with your suppliers on your expectations and help them access resources to build their capability. Ultimately, you want your suppliers to own their compliance performance. 

By creating a culture of trust and respect, you can encourage suppliers to tell you when something is wrong without fear of commercial consequences and ensure there are no surprises or escalated crises further down the line. Implementing a grievance channel can be a great way to encourage this and promote a culture of transparency and accountability. 

In your view, how does moving beyond audits and embracing broader ethical initiatives impact an organisation’s reputation and long-term sustainability?  

Moving beyond audits improves business performance, increases resilience and supports supply chain stability. Labour or environmental non-compliances can have significant legal and reputational consequences, as well as causing supply chain disruption. When a supplier takes accountability for their ESG performance however, they become a supplier of choice and someone you can depend on.