The Economic Value of a Sustainable Supply Chain

The economic rationale to operate a global supply chain in a sustainable manner is developed. Arguments are made based on marketing, finance, and production theories that by engaging in socially responsible behavior the firm will increase sales, decrease costs, reduce financial risk, and increase profits which ultimately will increase returns to the firm’s shareholders. A model is developed of the mechanism by which modern production methods such as lean production and quality management result in sustainable corporate behavior which, in the long run, translates into higher stock valuations. The production effects cause marketing and financial risk effects that are complementary, and all three channels of influence synergistically result in higher stock values in the model. These effects also provide important benefits to other stakeholders of the firms including employees, customers, the environment, and the community. An important ethical issue in global supply chains is working conditions in foreign plants often leading to allegations of sweatshop labor conditions. This issue is used to illustrate how lean production practices can affect consumers, employees, and financial risk. Conclusions from the sweatshop labor issue are shown to apply to other sustainability issues as well

Linking Vertical and Horizontal Markets for Innovations at Grassroots:Sustainability Imperative Sustainability Imperative

The supply chain management is at the core of globalising world. Today the large corporations are able to source materials from all around the world and sell it in the most interior parts of the developing and developed world. With the increase in oil prices, this model of globalisation is coming under strain. But there are some other challenges also facing the dominant globalisation model. The call to large corporations to look for the fortune at the bottom of the economic pyramid implied dipping into the limited purchasing power of the economically poor people. Assumption was that given the cultural bias in favour of poor emulating the lifestyle of the richer people (.Sanskritisation.), the possibility of selling products and services at affordable prices to the poor were immense. It did not matter if the market for locally produced goods and services got suppressed, creating a constraint for the growth of above model. Apart from the logistical issues in meeting scattered, small and uncertain demand in rural areas, the ethical and efficiency issues also did not get addressed. In this paper, I am challenging the viability of current model of globalisation. To me, unless sufficient space is created in global markets for grassroots products and services, the present model is just not sustainable. I would like to first discuss the emerging innovations at grassroots level which can help us think about new models for moulding markets at local, regional and global level. Later, one can better appreciate the logistical implications of integrating horizontal and vertical markets. Finally, I would like to speculate about the future shape of distributed, modular manufacturing for meeting local as well as global needs.

Ethical sourcing : an analysis of the literature and implications for future research

The purpose of this study is to present a rigorous, focused review on how this field of ethical sourcing research has grown and evolved over the decades, providing implications for future research. We combine two research methodologies in this study: a systematic literature review and a citation network analysis. The former is used as a scientific tool to select the most relevant ethical sourcing articles, while the latter is then applied as a research technique to analyse these selected articles. Such a combined approach allows for a rigorous investigation into this field of research in a more scientific and objective way. Based on this approach, we identify (1) distinctive features of ethical sourcing studies such as growth trends and content issues; (2) important articles that have played a significant role in developing this field; (3) evolutionary paths that show how its knowledge has been created and transferred; (4) emerging trends that have received growing attention in the recent literature; (5) main research areas that underlie the entire ethical sourcing studies; and (6) major implications that need to be pursued in future research. The results of this study provide not only the current status of the literature but also the patters of evolution in this field of research, thus contributing to the existing literature

Ethical supply chains: analysis, practices and performance measures

Ethics has been studied in numerous disciplines and its application to various practices has been investigated over the years such as in medicine and law. This has been relatively recently extended into the business arena, and has become a matter of growing interest for many companies. It has led to questions concerning what constitutes ethical behaviour, to what extent ethical practices should be adopted and what benefits a company may derive from its adoption. There are numerous processes involved in the transformation of a product from source to consumer, and these must be managed to produce an optimal balance of business requirements, specifically profitability, and a consideration of the wider impacts they may have or make. The supply chain has become vital to organisational success that companies now compete as supply chains rather than as individual entities. Therefore the ethical conduct of the supply chains has also begun to be scrutinised, both from an internal business performance perspective, and from the increasing concerns held by the numerous stakeholders of the organisation. In light of these developments, this paper explores the notion of ethics as it applies to supply chains. It also examines supply chain ethical practices and demonstrates that there is an empirical relationship between ethical practices and performance. The results show that ethical practices have positive impacts on the performance of the supply chain. Copyright © 2014 Inderscience Enterprises Ltd

Corporate Social Responsibility in Supply Chains of Global Brands: A Boundaryless Responsibility? Clarifications, exceptions and implications

Corporate social responsibility (CSR) is increasingly becoming a popular business concept in developed economies. As typical of other business concepts, it is on its way to globalization through practices and structures of the globalized capitalist world order, typified in Multinational Corporations (MNCs). However, CSR often sits uncomfortably in this capitalist world order, as MNCs are often challenged by the global reach of their supply chains and the possible irresponsible practices inherent along these chains. The possibility of irresponsible practices puts global firms under pressure to protect their brands even if it means assuming responsibilities for the practices of their suppliers. Pressure groups understand this burden on firms and try to take advantage of the situation. This paper seeks to challenge the often taken-for-granted-assumption that firms should be accountable for the practices of their suppliers by espousing the moral (and sometimes legal) underpinnings of the concept of responsibility. Except where corporate control and or corporate grouping exist, it identifies the use of power as a critical factor to be considered in allocating responsibility in firm-supplier relationship; and suggests that the more powerful in this relationship has a responsibility to exert some moral influence on the weaker party. The paper highlights the use of code of conducts, corporate culture, anti-pressure group campaigns, personnel training and value reorientation as possible sources of wielding positive moral influence along supply chains

Ethical Fashion Africa Project Update

This document is part of a digital collection provided by the Martin P. Catherwood Library, ILR School, Cornell University, pertaining to the effects of globalization on the workplace worldwide. Special emphasis is placed on labor rights, working conditions, labor market changes, and union organizing.FLA_Ethical_Fashion_Africa_Update.pdf: 317 downloads, before Oct. 1, 2020

Ethical rooms for maneuver and theirprospects vis á vis the current ethical food policies in Europe

In this paper I want to show that consumer concerns can be implemented in food chains by organizing ethical discussions of conflicting values that include them as participators. First, it is argued that there are several types of consumer concerns about food and agriculture that are multi-interpretable and often contradict each other or are at least difficult to reconcile without considerable loss. Second, these consumer concerns are inherently dynamic because they respond to difficult and complex societal and technological situations and developments. For example, because of the rising concern with global warming, carbon dioxide absorption of crops is now attracting public attention, which means that new requirements are being proposed for the environmentally friendly production of crops. Third, there are different types of consumers, and their choices between conflicting values differ accordingly. Consumers use different weighing models and various types of information in making their food choices. Changing food chains more in accordance with consumer concerns should at least take into account the multi-interpretable, dynamic, and pluralist features of consumer concerns, for example, in traceability schemes. In discussing usual approaches such as codes, stakeholder analysis, and assurance schemes, I conclude that these traditional approaches can be helpful. However, in cases of dynamic, pluralistic, and uncertain developments, maintaining some pre-existing evaluating scheme or some clear cut normative hierarchy, such as codes or assurance schemes, can be disastrous in undermining new ethical desirable initiatives. Instead of considering ethical standards and targets as fixed, which is done with codes and schemes, it is more fruitful to emphasize the structure of the processes in which ethical weighing of relevant consumer concerns get shaped. The concept of ¿Ethical Room for Maneuver¿ (ERM) is constructed to specify the ethical desirable conditions under which identification and weighing of paramount values and their dilemmas can be processed. The main aims of the ERM are making room in all the links of the food chain for regulating and implementing the relevant consumer concerns by (1) balancing and negotiating, (2) supporting information systems that are relevant and communicative for various consumer groups and (3) organizing consumer involvement in the links of the food chain. The social and political context of agriculture and food production, particularly in Europe, gives ample opportunity for implementing several types of Ethical Rooms for Maneuver. Finally, I discuss several types of Ethical Rooms for Manoeuvre in the food chains that can be communicated by means of specific traceability schemes to less involved stakeholders with the potential consequence that the stakeholders will be motivated to be more involve

Ethical Implications of Predictive Risk Intelligence

open access articleThis paper presents a case study on the ethical issues that relate to the use of Smart Information Systems (SIS) in predictive risk intelligence. The case study is based on a company that is using SIS to provide predictive risk intelligence in supply chain management (SCM), insurance, finance and sustainability. The pa-per covers an assessment of how the company recognises ethical concerns related to SIS and the ways it deals with them. Data was collected through a document review and two in-depth semi-structured interviews. Results from the case study indicate that the main ethical concerns with the use of SIS in predictive risk intelli-gence include protection of the data being used in predicting risk, data privacy and consent from those whose data has been collected from data providers such as so-cial media sites. Also, there are issues relating to the transparency and accountabil-ity of processes used in predictive intelligence. The interviews highlighted the issue of bias in using the SIS for making predictions for specific target clients. The last ethical issue was related to trust and accuracy of the predictions of the SIS. In re-sponse to these issues, the company has put in place different mechanisms to ensure responsible innovation through what it calls Responsible Data Science. Under Re-sponsible Data Science, the identified ethical issues are addressed by following a code of ethics, engaging with stakeholders and ethics committees. This paper is important because it provides lessons for the responsible implementation of SIS in industry, particularly for start-ups. The paper acknowledges ethical issues with the use of SIS in predictive risk intelligence and suggests that ethics should be a central consideration for companies and individuals developing SIS to create meaningful positive change for society

Examining green production and its role within the competitive strategy of manufacturers

Purpose: This paper reviews current literature and contributes a set of findings that capture the current state-of-the-art of the topic of green production. Design/methodology/approach: A literature review to capture, classify and summarize the main body of knowledge on green production and, translate this into a form that is readily accessible to researchers and practitioners in the more mainstream operations management community. Findings: The existing knowledge base is somewhat fragmented. This is a relatively unexplored topic within mainstream operations management research and one which could provide rich opportunities for further exploration. Originality/value: This paper sets out to review current literature, from a more conventional production operations perspective, and contributes a set of findings that capture the current state-of-the-art of this topic