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IMPACT SOURCING Q&A 

What is Impact Sourcing?
Impact sourcing is a business practice that involves hiring individuals from disadvantaged or low-income backgrounds to perform various outsourcing tasks, thereby providing them with job opportunities and skills development.

Which country is often considered the birthplace of impact sourcing?
The Philippines is often considered the birthplace of impact sourcing.

Impact sourcing companies typically hire workers from which demographic?
Impact sourcing companies typically hire workers from underserved or marginalized communities, including those with limited access to employment opportunities.

What is the primary goal of impact sourcing?
The primary goal of impact sourcing is to create positive social and economic impact by providing sustainable employment opportunities and skills development to disadvantaged individuals, but there are many other advantages.

How does impact sourcing contribute to sustainable development?
Impact sourcing contributes to sustainable development by reducing poverty, increasing access to education and healthcare, and promoting economic empowerment in disadvantaged communities.

Which industry sectors commonly engage in impact sourcing?
Industry sectors such as customer service, data entry, content moderation, and IT services commonly engage in impact sourcing.

Impact sourcing often targets individuals from underserved or marginalized communities. Can you give an example of such a community?
Examples of underserved or marginalized communities targeted by impact sourcing include rural populations, refugees, and people with disabilities.

What are the social and economic benefits of impact sourcing for workers and communities?
Social benefits include improved livelihoods, increased self-esteem, and access to better living conditions. Economic benefits include income generation and reduced dependence on social welfare.

How does impact sourcing differ from traditional outsourcing?
Impact sourcing differs from traditional outsourcing by placing a strong emphasis on providing employment and skills development opportunities to disadvantaged individuals, whereas traditional outsourcing primarily focuses on cost savings.

What role does technology play in facilitating impact sourcing initiatives?
Technology plays a crucial role in connecting workers to job opportunities, providing training, and enabling remote work, making it easier for impact sourcing initiatives to operate efficiently.

Can you name a few countries or regions where impact sourcing has gained significant traction?
Impact sourcing has gained significant traction in countries such as India, Kenya, South Africa, and the Philippines.

What are some of the challenges and barriers that impact sourcing initiatives may face?
Challenges may include access to technology, scalability, quality assurance, and the need for continuous training and support.

In terms of skills development, what opportunities does impact sourcing offer to workers?
Impact sourcing offers opportunities for workers to acquire valuable digital and soft skills, which can enhance their employability and future career prospects.

Which organizations or certifications help verify and promote ethical impact sourcing practices?
B Corps, Social Enterprise Certification, and organizations like the Global Impact Sourcing Coalition (GISC) promote and verify ethical impact sourcing practices.

True or False: Impact sourcing primarily focuses on cost savings for businesses.
False. Impact sourcing primarily focuses on social and economic impact for disadvantaged individuals and communities, rather than just cost savings, though a benefit to business can be cost savings.

What is the connection between impact sourcing and the United Nations Sustainable Development Goals (SDGs)?
Impact sourcing aligns with several UN SDGs, including Goal 1 (No Poverty), Goal 4 (Quality Education), Goal 8 (Decent Work and Economic Growth), and Goal 10 (Reduced Inequality).

How can consumers support companies that engage in impact sourcing?
Consumers can support such companies by choosing to purchase products or services from them and spreading awareness about their impact sourcing initiatives.

Name one famous company that has adopted impact sourcing as a part of its corporate social responsibility strategy.
One example is Microsoft, which has incorporated impact sourcing into its corporate social responsibility efforts.

What are some key metrics or indicators used to measure the success of impact sourcing initiatives?
Key metrics include the number of jobs created, income generated, skills development outcomes, and the overall positive impact on communities and individuals.

Learn more by visiting IAOP's Center for Social Impact.