Supplier Relationships in the Context of the Sustainable Development Requirements for Production Companies

Purpose: The article presents the assumptions of the concept of sustainable development, with particular emphasis on the requirements for entrepreneurs. It then describes the importance of building sustainable relationships between production enterprises and their suppliers, and which methods are used to maintain these relationships. The next section combines the previously described issues and proposes the inclusion of environmental aspects resulting from suppliers' activities in the assessment and selection of contractors. Analyse methods to assess and qualify suppliers and develop a concept to build relationships with contractors based on their environmental impacts. Design/Methodology/Approach: The methods described in the literature for assessing and qualifying suppliers and the legal requirements related to sustainability were analysed. The concept of enriching supplier assessment procedures with questions on environmental impacts was then developed. Findings: Regulatory requirements related to sustainability impose the need to examine environmental impacts throughout the life cycle of a product as part of ESG reporting. This requires knowledge of the environmental aspects present in suppliers and contractors. Practical Implications: The proposed approach to supplier qualification and assessment can be applied to any company. The article provides information on current legal requirements related to sustainability and provides an overview of supplier assessment methods. Originality/Value: The inclusion of sustainability questions and the selection of suppliers also on the basis of environmental impacts influences the promotion of environmentally friendly behaviour throughout the product life cycle. It also improves the flow of information and facilitates compliance with legal requirements related to ESG reporting.