Institute for Supply Management and the Ethisphere Institute Join Forces to Launch the Supplier Risk Index
FOR RELEASE: May 5, 2014
Index will allow companies to measure beyond first tier suppliers and determine practices in risk, ethics and sustainability.
Las Vegas, NV — May 5, 2014 — The Ethisphere Institute, an independent center for research, best practices and thought leadership in corporate ethics and compliance, and the Institute for Supply Management® (ISM®), a professional association for procurement and supply chain management practitioners and their organizations worldwide, have partnered to develop the Supplier Risk Index, an online resource for organizations to survey the practices among their suppliers and their supplier's suppliers. The ISM Services business unit has worked closely with Ethisphere to align the Supplier Risk Index with the needs of procurement and supply chain professionals.
"The Supplier Risk Index will enable companies, and specifically our membership organizations, to be more proactive in their approach to supplier due diligence," said ISM Services President, Bill Michels, CPSM, C.P.M., MCIPS. "ISM Services will be able to equip companies with a comprehensive survey of risk, ethics, and sustainability indices, providing unprecedented insight into their supply chains and enable companies to determine a risk profile that can better align supply chain practices with key business strategies."
Capable of surveying an organization's entire supply chain, the Supplier Risk Index identifies risks and grades organizations based on self-reported practices to help companies mitigate key risks and protect their reputations in a cost-effective and measurable way. The data gathered is comparable by the host organization and can be a useful tool for suppliers when shared during new business opportunities.
"As the global market continues to expand, organizations are increasingly putting their reputations in the hands of their suppliers," said Ethisphere CEO, Timothy Erblich. "As a recognized thought leader in the space with 100 years of experience and insight, ISM is the ideal partner to develop a resource to further support supply chain practitioners in aligning their suppliers with their business practices."
"Shire Pharmaceuticals is committed to best practices in supply chain and adding further clarity around the practices of our suppliers below the first tier," said Shire Pharmaceuticals' VP Global Procurement, Bill Dempsey. "We applaud an initiative like the Supplier Risk Index."
"As a global leader in real estate services operating in more than 75 countries, we engage thousands of vendors around the globe on behalf of our clients, who count on us to take a leadership role analyzing our partner and supplier relationships," said Jones Lang LaSalle's Global General Counsel, Mark Ohringer. "We are proud to be an early adopter of the Supplier Risk Index, which we believe is reducing enterprise risk and differentiating us from our competition."
To learn more about the Supplier Risk Index, visit: http://www.instituteforsupplymanagement.org/education/SupplierRiskIndex.cfm.
Demo and Webcast
The Supplier Risk Index will be available to demo at the ISM2014 conference in Las Vegas on May 5 and 6.
We invite you to join us on Wednesday, May 28 at 1:00 p.m. ET for a demo: "Managing Ethics, Sustainability and Risk in the Supply Chain". ISM Services and Ethisphere will review the online tool and present the business case for host and supplier organizations. Learn more or register here: https://cc.readytalk.com/r/uq0irvpo20cl&eom.
Supply Chain Issue of "Ethisphere Magazine"
ISM CEO, Tom Derry will be the Guest Editor of the Q3 edition of Ethisphere Magazine focused on Supply Chain Issues.
Institute for Supply Management® (ISM®) is the first supply management institute in the world. Founded in 1915, ISM's mission is to enhance the value and performance of procurement and supply chain management practitioners and their organizations worldwide. By executing and extending its mission through education, research, standards of excellence and information dissemination — including the renowned monthly ISM Report On Business® — ISM maintains a strong global influence among individuals and organizations. ISM is a not-for-profit educational association that serves professionals with an interest in supply management who live and work in more than 90 countries. ISM offers the Certified Professional in Supply Management® (CPSM®) and Certified Professional in Supplier Diversity® (CPSD®) qualifications.
The Ethisphere® Institute is an independent center of research, best practices and thought leadership that promotes best practices in corporate ethics and compliance and enables organizations to improve governance, mitigate risk, and enhance relationships with employees, business partners, investors and the broad regulatory community. Ethisphere evaluates and benchmarks compliance and governance programs, honors superior achievement through its World's Most Ethical Companies'™ recognition program, and publishes Ethisphere Magazine. Ethisphere is also the leading provider of independent verification of corporate ethics and compliance programs that include: Ethics Inside® Certification, Compliance Leader Verification™ and Anti-Corruption Program Verification™.