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Compliance guide

Ethical Sourcing Policy Template

An ethical sourcing policy (also called ethical procurement) sets out how your business buys responsibly, choosing suppliers that meet your standards on labour, ethics and the environment. This guide gives you a template and sample commitments.

Get a compliance document->See the template

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Key takeaways

  • An ethical sourcing policy governs how you buy; a supplier code of conduct governs how suppliers behave. They work together.
  • It's a key control for modern slavery due diligence in your supply chain.
  • It signals to large customers and portals that your procurement is responsible.
  • Adapt the template below, or get a broader ESG/CSR document from ESG Complete.

What is an ethical sourcing policy?

An ethical sourcing policy is an internal document that defines the social, environmental and ethical criteria you apply when selecting and managing suppliers. It turns your values into purchasing decisions.

Ethical sourcing policy template structure

  1. Purpose & scope, what the policy covers and who it applies to.
  2. Sourcing principles, the standards suppliers must meet (labour, modern slavery, safety, environment, ethics).
  3. Supplier selection, how ethical criteria factor into choosing suppliers.
  4. Due diligence, how you assess and monitor suppliers, including higher-risk ones.
  5. Non-compliance, what happens when a supplier falls short.
  6. Review, ownership and review cycle.

Sample commitment

"We give preference to suppliers who demonstrate fair labour practices, environmental responsibility and a commitment to eliminating modern slavery from their operations and supply chains."

How to put it into practice

A policy only works if it shapes real purchasing decisions.

  1. 1

    Define your criteria

    Decide the standards suppliers must meet to win your business.

  2. 2

    Build it into selection

    Add ethical criteria to your supplier onboarding and tender scoring.

  3. 3

    Assess higher-risk suppliers

    Use a short questionnaire for suppliers in higher-risk categories or regions.

  4. 4

    Review and improve

    Re-check key suppliers periodically and update the policy annually.

Need the full compliance set?

ESG Complete produces a portal-ready ESG/CSR statement covering your sustainability, social-responsibility and sourcing commitments, accepted by Felix, Avetta and CM3.

Sustainability Statement (CSR / ESG)

ESG, CSR and anti-slavery in one compliant PDF, built for supplier portals. (AU$499 inc GST)

Get started->

Modern Slavery Statement

A standalone, portal-ready Modern Slavery Statement for vendors who only need this one document. (AU$159 inc GST)

Get started->

Frequently asked questions

What's the difference between ethical sourcing and a supplier code of conduct?+
An ethical sourcing policy governs how your business buys; a supplier code of conduct sets the standards suppliers must meet. They're complementary documents.
Does ethical sourcing help with modern slavery compliance?+
Yes. Responsible procurement and supplier due diligence are central to managing modern slavery risk in your supply chain.
Is this template free?+
Yes. The structure is free to adapt. For a broader, portal-ready ESG/CSR document, ESG Complete can help for AU$499.

Related guides

Supplier Code of Conduct Template->The standards you ask suppliers to meet.Modern Slavery Policy Template->Your internal anti-slavery rulebook.Modern Slavery Risk Assessment Template->Assess supply-chain risk.Create your ESG statement->Portal-ready PDF, usually within the hour.