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Principle 1: Risk and Opportunity
Does this decision make sense for the business?
Decisions should take account of risks and opportunities linked to supply chains, including legal, regulatory, reputational, commercial, and resilience considerations. Where these risks and opportunities are linked to impacts on people, communities or the environment, they should be considered together with Principles 2 to 5.
1.1 Legal and Regulatory Considerations
Consider whether a decision could create legal or regulatory issues, including unfair purchasing or trading practices, misleading or unsupported claims, contractual disputes, liability risks, or failures to meet relevant laws, standards, or duties of care.
1.2 Trust and Reputation
Consider whether a decision could strengthen or weaken trust with customers, suppliers, workers, investors, regulators, or the wider public. Particular attention should be given to how decisions may be perceived by those affected and whether they align with stated commitments and values.
1.3 Resilience and Continuity
Consider how a decision may affect the long-term security, reliability, resilience, and continuity of supply chains. This includes considering dependencies, vulnerabilities, and the potential consequences of reducing sourcing options, suppliers, or regions.
1.4 Commercial Opportunity and Value Creation
Consider whether a proposed action could create opportunities for the business, such as strengthening supplier relationships, supporting innovation, improving resilience, enhancing customer trust, opening new markets, or creating long-term commercial value.
1.5 Practicality and Feasibility
Where alternatives are being considered, these should be realistic in terms of cost, quality, availability, reliability, and practicality. Decisions should take account of whether proposed actions can be implemented effectively and whether the expected benefits are achievable in practice.