Sustainable procurement

Introduction
Trade & CSR
Sustainable procurement from developing countries

Introduction
What distinguishes KIT from well-known fair trade organizations like Fair Trade and Max Havelaar in their approach to sustainable business, including procurement, is the fact that KIT does not focus so much on certified or labelled fair trade products, but rather tries to influence the mainstream market by promoting sustainable trade and business partnerships between conventional (buying) companies and small-scale farmers or producers. The institute is also involved in setting up pro-poor business ventures.

Trade & CSR
In the Netherlands KIT is participating in several networks involved in Corporate Social Responsibility (CSR) and sustainable trade/business. In this regard, KIT has signed the ‘Initiatief Duurzame Handel’ (Sustainable Trade Initiative), initiated by the Ministry of Foreign Affairs and participates in the knowledge sharing network of NEVI (a Dutch Procurement Initiative).

Sustainable procurement from developing countries
Companies are interested in doing business with small-scale suppliers because they can assure quality and traceability in the supply chain. It is also advantageous for small-scale farmers because they get a better price for their products when they supply directly to the purchaser, in accordance with the latter’s quality standards and product specifications. KIT’s role is to make the parties find each other, reduce transaction costs, mitigate risks, and promote joint investments in upgrading the supply chain. Based on these real-life business cases KIT is involved in action research aimed at achieving sustainable procurement from the poor, in which a win-win situation for both suppliers in developing countries as well as buyers and consumers in developed countries is being established. KIT is working on guidelines for sustainable pro-poor procurement and sustainable pro-poor businesses in developing countries.