Ethical Sourcing and Retail Procurement: Insights from Italy’s Agricultural Sector

Purpose: Food retailers are increasingly held responsible for their societal impacts. So far, literature addressing the challenges of sustainable production and consumption sustainable development goal (SDG 12) has predominantly focused on environmental conditions in production. Social conditions, related to work environment and inclusive and sustainable economic growth (SDG 8), have received less attention. The aim of this case project was to identify factors that the food retail sector may influence to improve working conditions in upstream agricultural value chains. Design/Methodology/Approach: An empirical study, based on a large European food retail enterprise’s procurement of processed vegetables from Italy, served as the empirical case. It is presented through the lens of the social practice theory (SPT), where the use of materials, meanings, and competence provides a foundation for understanding ethical sourcing. Findings: This study highlights how conventional commercial beliefs and mainstream sourcing strategies appear to constrain factors essential for ethical sourcing. Implications are captured in understandings of retailers’ need to optimize their procurement context to support buying associates in achieving sustainable development. Practical Implications: The practical implications of this study suggest that food retailers need to rethink their procurement strategies to foster ethical sourcing within agricultural value chains. By focusing on long-term relationships with suppliers, emphasizing social value alongside financial value, and understanding chain-specific conditions, retailers can create a more sustainable and inclusive supply chain. Ultimately, these changes can lead to improved working conditions in upstream agricultural value chains, benefiting workers and contributing to the broader goals of SDG 8 and SDG 12.