Company Member

Impact Sourcing And Why It Is Important

Written By:

Post Date – Update:

One of the new buzzwords that many people are talking about is Impact Sourcing. It is about looking at ways business decisions can help to alleviate worldwide poverty.

Impact Sourcing is part of the Business Process of outsourcing; it looks at how a company can employ socially and economically disadvantaged employees as their principal workers. Impact sourcing is about companies actively looking at making a difference or impact to help alleviate poverty. An advantage of Impact Sourcing is that vulnerable employees can usually earn more than they would in their present jobs; this extra income impacts their families and livelihood.

Table of Contents

What Is Impact Sourcing?

Impact sourcing is also also known as socially responsible outsourcing. Impact sourcing refers to the part of the business process outsourcing (BPO) that employs socially and economically disadvantaged people as principal workers within the business process.

For example, at Mondoro, we seek to work with companies that employ women or are owned or operated by women. We also seek to find people as our stakeholders who are smaller-scale businesses.

We do this as we feel this can significantly impact our sourcing, development, and our business model.

Impact sourcing is about companies finding workers from poor, vulnerable, or underutilized communities and having them perform lower or moderate-skilled work. This can include essential office work such as scanning documents, data entry, or other office work.

But it can also include seeking out and working with communities, countries, and companies that can help you have a global impact.

Impact sourcing has broad support among many people as they see this as a way to help alleviate poverty and help with the worldwide gap between the rich and poor. Impact sourcing is about how to help support core activities that will further support a reasonable, sustainable livelihood among poor and vulnerable populations of the world.

This is not just helping people who are living overseas or in another country, but it can also be about employing vulnerable people in your community.

Impact Sourcing And Poverty Alleviation

Impact sourcing is seen as one of the tools to help with poverty alleviation. It is shown to have the potential to create billions of jobs for the young, vulnerable, and those living in poverty. 

It is a relatively new way of thinking about poverty alleviation, so few studies have taken place about the effects of Impact Sourcing. But what many have seen is that Impact sourcing has had a positive impact on many aspects of the well-being of workers and their families.

A recent study has indicated that with proper Impact sourcing, many employees in this lower and vulnerable class have seen an income increase of anywhere from 40 to 200%. This, of course, has had a massive impact on their families and their daily lives.

For many of these families, it has been the difference between whether or not they can eat, have a place to live, and send their children to school. As I have said, many poor and vulnerable parents want their children to go to school; they realize that education is how their children can get out of poverty. 

But many of these same families, when they live below the poverty line, need their children to help work and earn an income.

Impact sourcing can help with this since if the parents can receive some training and get a higher-paid job, they can also help support their families better. Their children can also continue to attend school and get an education.

One of the aspects of Impact sourcing is that companies look at alternative areas for their sourcing. In other words, maybe they find workers or products in a smaller city or rural town. This often gives them a new pool of affordable and qualified workers than they find in the major cities.

Impact sourcing is not just about finding workers in major cities but also about finding qualified workers in smaller cities and towns. It may mean that a company may need to set up its operations in a smaller city or town than a larger one.

Challenges Of Impact Sourcing

There are still a lot of challenges with Impact Sourcing. The most obvious is whether or not these vulnerable and poor communities can perform the task as well as in other parts of the world.

In other words, a company may end up having to pay more for less work getting done. This, of course, cuts to the company’s bottom line and overall productivity and efficiency.

A company may not find the skills they need to locate in a smaller or a rural community. They may find that they need to import workers, and many of the workers they need to import may not want to live in those communities. This, of course, is a reality of Impact Sourcing.

From a product sourcing aspect, manufacturing and producing products in some rural areas may cost you more than making them where you presently are. It may cost you more to get in the raw materials, supplies, and other things that you need to effectively and efficiently produce your products.

Things such as shipping costs or transportation costs can also make the product less competitive even if you can produce a cheaper product; if your transportation cost is higher, it may end up being more expensive than if you produce it where you presently are.

Impact sourcing needs to make sense for the company. It will become an issue of cost, quality, and even the quantity they can receive. In the supply chain, especially those in the global supply chain, many variables can make a difference in whether Impact sourcing is worthwhile.

At Mondoro, we believe that every company should be socially responsible and look for ways to make a difference in the lives of the less fortunate. We strive to ensure that wherever it makes sense, we do it with Impact sourcing in mind.

The Value Of Impact Sourcing: Why Companies Should Embrace This Strategy

In the rapidly evolving world of business, Impact Sourcing is emerging as a transformative approach within the realm of Business Process Outsourcing (BPO). Beyond the traditional metrics of efficiency and cost-saving,

Impact Sourcing challenges companies to integrate social responsibility into their operational strategy.

Here’s why organizations should seriously consider adopting this approach:

Promoting Social Responsibility:

At its core, Impact Sourcing is about meaningful social change. Companies that employ economically and socially disadvantaged individuals are providing them with job opportunities and making a powerful statement about their commitment to societal well-being.

Economic Empowerment:

When integrated into Impact Sourcing models, Vulnerable employees often earn significantly more than they would in alternative jobs. This increased income has a ripple effect – it enhances the quality of life for these employees and their families, facilitating better access to education, healthcare, and other essentials.

Positive Brand Image:

In today’s age of information, consumers are more informed and discerning. They prefer affiliating with brands that prioritize ethical operations. Adopting Impact Sourcing can significantly bolster a company’s image, showcasing its dedication to making a real-world impact.

Employee Morale And Retention:

When a company’s workforce sees its employer making sincere efforts to alleviate poverty and empower the vulnerable, it can boost overall morale. A sense of purpose and pride can increase employee loyalty and reduce turnover.

Diverse Perspectives:

Hiring from a varied socio-economic background brings in diverse perspectives. This diversity can lead to innovative solutions, fostering organizational creativity and problem-solving.

Access To Untapped Talent:

A vast pool of untapped talent exists in disadvantaged communities. Impact Sourcing allows companies to access these skilled individuals who, under normal circumstances, might be overlooked.

Potential For Government Incentives:

Many governments offer incentives to companies that prioritize social initiatives, including tax breaks or grants. Impact Sourcing could potentially open doors to such benefits.

Building Stronger Communities:

By providing stable employment to those from disadvantaged backgrounds, companies build stronger, more resilient communities. This, in turn, can lead to more stable markets and a reduction in socio-economic disparities.


Beyond the social benefits, Impact Sourcing can also be cost-effective. The talent from disadvantaged sectors often comes at a competitive price, allowing companies to achieve operational excellence without compromising on quality.

Long-term Sustainability:

A company that intertwines its business goals with social responsibility is more likely to achieve long-term sustainability. Impact Sourcing aligns with the global push towards inclusive growth, ensuring that businesses remain relevant and in tune with global trends.

Impact Sourcing is not just a business strategy; it’s a movement. It nudges companies to look beyond profit margins and view success through a more holistic lens that values societal progress as much as fiscal growth.

In embracing this approach, businesses can be at the forefront of positive change, fostering a future where economic growth and social upliftment walk hand in hand.

Listen To Our Podcast About Impact Sourcing Unveiled – How Business Can Make A Global Difference Below or By clicking here.

If you are interested in seeing how Mondoro can help you – we would love to talk to you to see how we can help you.

Find out more about how Mondoro can help you create, develop, and manufacture excellent home decor and home furniture products – don’t hesitate to contact me, Anita. Check out my email by clicking here or become a part of our community and join our newsletter by clicking here.

Mondoro gives out a FREE Lookbook to anyone interested. You can receive a copy of our latest Lookbook by clicking here.

Listen to our Podcast called Mondoro Company LimitedYou can find it on all major podcast platforms. Try out to listen to one of our podcasts by clicking here. 

Subscribe to our Mondoro Company Limited YouTube Channel filled with great videos and information by clicking here.

What Are The Major Benefits Of Strategic Sourcing?

Never underestimate the proper use of the strategic sourcing process in your supply chain. Strategic sourcing is a significant benefit to all stakeholders within the supply chain. Strategic sourcing forces all stakeholders to look at the supply chain strategy in detail. Strategic sourcing helps to eliminate any potential risks or problems.

You can discover more by reading What Are The Major Benefits Of Strategic Sourcing? by clicking here.

Seven-Step Strategic Sourcing Process Explained

A seven-step strategic sourcing strategy process will help companies be successful when looking to procure a product or a commodity. If companies take the time to go through each of the seven steps, this will help them to ensure they are successful with their sourcing needs.

You can learn more by reading the Seven-Step Strategic Sourcing Process Explained by clicking here.

Anita Hummel
Follow Me

Share Our Post On: