Introduction - Strategies for Addressing Social and Environmental Challenges
Addressing environmental and social sustainability concerns in supply chains has become increasingly important for organizations as customers, regulators, and stakeholders are placing greater emphasis on sustainability (Mani, Gunasekaran, and Delgado, 2018). Overcoming social and environmental issues requires a long-term and comprehensive approach that involves collaboration with multiple stakeholders, including customers, suppliers, NGOs, and governments. Companies that prioritize sustainability, social responsibility, and ethics are more likely to build trust and loyalty among their stakeholders, which can lead to long-term success and impact.
This report aims to discuss the key theories and practices related to addressing sustainability concerns in supply chains with the help of case examples such as Nike, Unilever, Walmart, Cococ-Cola, and IKEA (Mani et.al 2018). The report will explore the different approaches and frameworks used by organizations such as to accomplish sustainability in their supply chains. The report also highlights some of the challenges faced in implementing sustainable supply chain management practices. These are just a few examples of the different approaches that organizations may take, and there is no one-size-fits-all solution. The most effective approach will depend on a company's goals, values, and operating context, and may need to be adapted over time in response to changing circumstances.
Grab The Best Academic Assistance In Just One Click
Environmental and social sustainability-related concerns in their supply chains with key theory and theory in terms of practice
Organizations can address environmental and social sustainability concerns in their supply chains by adopting practices that promote sustainability, such as sustainable procurement, green supply chain management, supplier engagement, and ethical sourcing.
Figure 1 Sustainability in the supply chain
These practices are underpinned by key sustainability theories, such as the triple bottom line, life cycle assessment, stakeholder theory, and corporate social responsibility. By implementing these practices, organizations can improve their sustainability performance and contribute to a more sustainable future.
Theory
Practice
Triple Bottom Line One of the key theories related to sustainability is the triple bottom line (TBL), which focuses on three key aspects: economic, social, and environmental. The economic aspect relates to financial performance, while the social aspect includes social responsibility and ethical behavior. Finally, the environmental aspect involves reducing environmental impacts and promoting sustainability (Ahmadi, Kusi-Sarpong and Rezaei, 2017).
Sustainable Procurement
Organizations can address environmental and social sustainability concerns in their supply chains through sustainable procurement practices. Sustainable procurement involves the procurement of goods and services that promote sustainability and social responsibility (Ghadimi, et.al 2016).
For example, an organization can work with suppliers that use sustainable materials or adopt sustainable manufacturing processes. This will help to reduce environmental impacts and promote sustainability.
Stakeholder Theory Stakeholder theory suggests that organizations should take into account the interests of all stakeholders, including customers, employees, suppliers, and the environment when making decisions.
Supplier Engagement
Organizations can address sustainability concerns in their supply chains by engaging with their suppliers. This involves working with suppliers to ensure that they adopt sustainable practices and reduce their environmental impact.
For example, an organization can work with suppliers to implement energy-efficient manufacturing processes or reduce waste.
Corporate Social Responsibility Corporate social responsibility (CSR) is a theory that suggests that organizations have a responsibility to act in a way that benefits society as a whole, rather than just focusing on financial performance.
Ethical Sourcing
Ethical sourcing is a practice that involves the procurement of goods and services from suppliers that operate in a socially responsible and ethical manner (Sodhi and Tang, 2018).
This can involve working with suppliers that have fair labor practices, promote diversity and inclusion, and use sustainable materials.
Social and environmental issues
Social and environmental issues are pressing challenges that face society today. The interconnected nature of these issues means that they cannot be addressed in isolation. Social and environmental issues are pressing challenges that require urgent attention (Nakamba, Chan, and Sharmina, 2017). Addressing gender issues, health, and safety, pollution, and recycling/reuse is critical for creating a more equitable, healthy, and sustainable society. Individuals, organizations, and governments must work together to tackle these issues and create a more just and sustainable future for all.
In this response, this literature review focuses on gender issues and health and safety as two social issues, and pollution and recycling/reuse as two environmental issues.
Gender issues refer to inequalities and discrimination based on gender, which can manifest in different ways, including unequal access to education, employment, and opportunities. Gender inequality can also lead to other forms of discrimination, such as violence against women and girls. Addressing gender issues is crucial for creating a fairer and more equitable society (Golicic, Lenk and Hazen, 2020).
Health and safety issues are related to the risks and hazards that workers and individuals face in different settings, such as workplaces, homes, and public spaces. Health and safety hazards can result in physical harm, illness, and long-term health effects. Ensuring the health and safety of individuals is a fundamental human right and is critical for creating safe and healthy communities.
Pollution is a major environmental issue that refers to the release of harmful substances into the environment, such as air, water, and soil. Pollution can result in a range of adverse impacts, including climate change, respiratory problems, and damage to ecosystems. Addressing pollution is essential for protecting human health and the environment.
Recycling and reuse refer to efforts to reduce waste and promote resource conservation by recycling and reusing materials. Recycling and reusing materials can help to reduce the amount of waste sent to landfills and conserve natural resources. These efforts are critical for creating a more sustainable and circular economy (Arslan, 2020).
Organizational case examples
The large organizations that have implemented sustainable supply chain practices:
Nike: Nike has implemented a program called the "Manufacturing Index," which monitors the environmental and social impact of its suppliers. The company also works with suppliers to improve labor practices and reduce carbon emissions.
Unilever: Unilever has implemented a sustainable sourcing program, which aims to ensure that all of its raw materials are sustainably sourced by 2020. The company also works with suppliers to reduce environmental impact and promote social responsibility.
Walmart: Walmart has implemented a sustainability index, which measures the environmental and social impact of its suppliers. The company also works with suppliers to improve labor practices, reduce carbon emissions, and promote sustainable packaging.
Figure 2 Walmart sustainability index
Coca-Cola: Coca-Cola has implemented a program called "PlantBottle," which uses renewable materials to create its packaging (Perez, 2015). The company also works with suppliers to reduce water usage and promote sustainable agriculture.
IKEA: IKEA has implemented a sustainable sourcing program, which aims to ensure that all of its products are sustainably sourced by 2020. The company also works with suppliers to reduce carbon emissions, promote sustainable materials management, and improve labor practices.
The examples provided above demonstrate that many organizations are taking proactive steps to tackle environmental and social sustainability concerns in their supply chains. These companies recognize that their environmental impact and social responsibility are critical factors that can affect their reputation and bottom line, and they are taking action to reduce their environmental footprint, promote social responsibility, and ensure the sustainability of their operations (Nassar, et.al 2020).
In calculation to the companies mentioned on top of, there are many other examples of organizations that are working to promote sustainability in their supply chains. For example, H&M has implemented a sustainable sourcing program, which aims to ensure that all of its products are sustainably sourced by 2030. The company also works with suppliers to reduce carbon emissions and improve labor practices.
Another example is Patagonia, which has implemented a supply chain transparency program that allows customers to trace the origins of the materials used in its products. The company also works with suppliers to promote fair labor practices and reduce environmental impact.
These examples demonstrate that there is no one-size-fits-all advance to sustainability in the supply chain. Each organization must take a holistic approach, looking at the entire lifecycle of its products and processes and working to minimize their impact on the environment and society. This requires collaboration with suppliers, customers, and other stakeholders to develop innovative solutions and ensure that sustainability goals are met throughout the complete supply chain (Nassar, et.al 2020).
Ultimately, sustainability in the supply chain is not just a nice-to-have, but a critical component of business success in the 21st century. Organizations that fail to address sustainability-related concerns in their supply chains risk losing the trust of customers, investors, and other stakeholders and may struggle to compete in an increasingly competitive and socially-conscious marketplace.
Critical discussion
The issues that are typically associated with the companies mentioned are related to sustainability, social responsibility, and ethics. Here is a discussion of some of the main issues and examples of how these companies have addressed them with the companies that have made significant efforts to address the issues of sustainability, social responsibility, and ethics. However, there is still more work to be done, and these issues remain a significant challenge for businesses worldwide (Giannakis and Papadopoulos, 2016).
Sustainability: This refers to the aptitude of a corporation to operate in an environmentally friendly manner, without compromising the aptitude of future generations to meet their own needs (Pagell and Wu, 2017). Nike, for example, has set a goal to achieve zero waste in its supply chain by 2025. The company has also committed to using 100% renewable energy in its owned or operated amenities by 2025. Similarly, Unilever has set a goal to achieve net-zero emissions from its products by 2039, and Walmart has set a goal to achieve 100% renewable energy by 2035.
Social Responsibility: This refers to a company's responsibility to operate in a manner that benefits society, including its employees, customers, and the wider community (Pagell and Wu, 2009). Coca-Cola, for example, has faced criticism for its use of water in regions where water is scarce. In response, the company has committed to replenishing 100% of the water it uses in its products and operations. Additionally, Coca-Cola has committed to investing in the economic empowerment of women, to empower 5 million women entrepreneurs by 2020.
Ethics: This refers to a company's commitment to conducting business ethically and transparently (Mani, Jabbour, and Mani, 2020). IKEA, for example, has faced criticism for its use of forced labor in its supply chain. In response, the company has implemented a series of measures to address the issue, including conducting audits of its suppliers and working with non-governmental organizations to identify and address instances of forced labor. Additionally, IKEA has implemented a Code of Conduct for suppliers that outlines its expectations for ethical behavior.
Organizations can overcome various issues by adopting different strategies and approaches. Some possible ways that companies can address the issues they face are:
Sustainability: According to Montabon, Pagell, and Wu, 2016 to overcome sustainability issues, companies can adopt various strategies such as reducing waste, energy conservation, and promoting renewable energy.
Social Responsibility: Companies can overcome social responsibility issues by prioritizing the well-being of their employees, customers, and the communities they operate in. This can involve providing fair and safe working conditions, supporting community development programs, and engaging in ethical practices such as responsible sourcing and supply chain management (Miemczyk, and Luzzini, 2018).
Ethics: To overcome ethical issues, companies need to prioritize transparency, accountability, and integrity. They can establish and enforce ethical codes of conduct for employees, suppliers, and other stakeholders.
Differences in organizational approaches
There are several differences in organizational approaches that companies may take depending on their goals, values, and operating context. Some key differences include:
Centralization vs. Decentralization: Centralized organizations tend to have a hierarchical structure with decision-making power concentrated at the top. Decentralized organizations, on the other hand, distribute decision-making power more widely among employees or teams (Badri, Boudreau-Trudel, and Souissi, 2018). Centralized organizations may be better suited to situations where standardization and control are important, while decentralized organizations may be more adaptable and responsive to changing circumstances.
Figure 3 Difference between centralized and decentralize approach
Mechanistic vs. Organic: Mechanistic organizations are characterized by formal rules and procedures, a clear hierarchy, and a focus on efficiency and productivity. Organic organizations, on the other hand, are more flexible, adaptive, and focused on innovation and creativity. Mechanistic organizations may be better suited to stable and predictable environments, while organic organizations may be better suited to rapidly changing environments (Seuring and Müller, 2008).
Bureaucratic vs. Entrepreneurial: Bureaucratic organizations prioritize stability, predictability, and adherence to established procedures. Entrepreneurial organizations, on the other hand, prioritize innovation, risk-taking, and creativity. Bureaucratic organizations may be better suited to situations where standardization and control are important, while entrepreneurial organizations may be better suited to situations where agility and innovation are needed.
Collaborative vs. Competitive: Collaborative organizations prioritize cooperation, teamwork, and shared goals. Competitive organizations, on the other hand, prioritize individual achievement, performance, and recognition (as cited by Carter and Rogers, 2008). Collaborative organizations may be better suited to situations where coordination and cooperation are essential, while competitive organizations may be better suited to situations where individual motivation and achievement are important.
How organizations could overcome the issues
To overcome social and environmental issues, organizations can adopt various strategies and approaches depending on the specific issue they are facing. Here are some possible ways that companies can address specific social and environmental issues:
Child Labour: Companies can overcome child labor by implementing strict policies and procedures to prevent child labor from occurring in their supply chains. This can involve conducting regular audits and inspections, providing training to suppliers and workers, and establishing a grievance mechanism for workers to report any abuses. Companies can also collaborate with NGOs and other stakeholders to promote awareness and advocacy for child labor issues.
Gender Issues: Companies can overcome gender issues by promoting diversity and inclusion within their workforce and supply chains. This can involve setting targets and goals for increasing the representation of women in leadership positions and prioritizing equal pay and benefits. Companies can also support women's empowerment programs, such as training and education initiatives, and promote gender equality more broadly through advocacy and awareness-raising efforts.
Health and Safety: Companies can overcome health and safety issues by prioritizing the well-being of their employees and customers. This can involve implementing strict health and safety protocols, such as providing personal protective equipment, regular training, and emergency response plans. Companies can also establish grievance mechanisms for workers to report any health and safety concerns, and conduct regular audits and inspections to ensure compliance.
Modern Slavery: Companies can overcome modern slavery by implementing strict policies and procedures to prevent forced labor from occurring in their supply chains. This can involve conducting due diligence on suppliers and contractors, implementing strict labor standards and ethical sourcing practices, and engaging with stakeholders such as NGOs and trade unions to promote awareness and advocacy for modern slavery issues.
Emissions Reductions: Companies can overcome emissions reductions by setting targets and goals for reducing their greenhouse gas emissions and promoting the effect of renewable energy. This can involve investing in energy efficiency measures, such as using energy-efficient lighting and appliances and transitioning to low-carbon transportation options. Companies can also engage with stakeholders such as governments, NGOs, and customers to promote awareness and advocacy for climate change issues.
Waste Reductions: Companies can overcome waste reductions by implementing circular economy principles, such as reducing waste, reusing and recycling materials, and promoting sustainable production practices. This can involve establishing take-back programs for products and packaging, designing products for recyclability, and investing in waste reduction technologies such as composting and biodegradation.
Pollution: Companies can overcome pollution by implementing strict environmental management practices, such as using cleaner production technologies, monitoring and reporting on emissions and waste, and conducting regular environmental audits and inspections. Companies can also engage with stakeholders such as governments, NGOs, and customers to promote awareness and advocacy for environmental issues.
What firms are doing differently to tackle the issues?
The companies are taking a holistic and comprehensive approach to address social and environmental issues, prioritizing sustainability, social responsibility, and ethics in their business practices. They are also collaborating with multiple stakeholders to drive systemic change and address complex challenges.
Nike: Nike has made sustainability a core part of its business strategy, and the company also works with suppliers to improve working conditions and wages for workers in its supply chain and has established a grievance mechanism for workers to report any concerns. In addition, Nike has launched initiatives to promote gender equality and diversity within its workforce.
Unilever: Unilever prioritizes social responsibility, promoting fair and safe working conditions for workers in its supply chain and launching initiatives to promote gender equality and diversity. Unilever has also established partnerships with NGOs and other stakeholders to promote sustainable development and address social and environmental challenges.
Walmart: Walmart has implemented ethical sourcing practices, such as requiring suppliers to adhere to strict labor standards and environmental regulations, and has launched initiatives to promote diversity and inclusion within its workforce (Harrison, 2019).
Coca-Cola: Coca-Cola has established a comprehensive sustainability program, setting goals to reduce its environmental footprint and promote sustainable sourcing practices. Coca-Cola has also implemented ethical labor practices, such as prohibiting forced labor and child labor in its supply chain and has launched initiatives to promote gender equality and women's empowerment. In addition, Coca-Cola has established partnerships with NGOs and other stakeholders to promote sustainable development and address social and environmental challenges.
IKEA: IKEA has implemented ethical sourcing practices, such as requiring suppliers to adhere to strict labor standards and environmental regulations, and has launched initiatives to promote gender equality and diversity within its workforce. IKEA has also established partnerships with NGOs and other stakeholders to promote sustainable development and address social and environmental challenges.
Conclusion
The report concludes that Addressing environmental and social sustainability-related concerns in supply chains requires a crucial understanding of the challenges and opportunities faced by organizations. By recognizing the differences in organizational approaches and the challenges faced, organizations can implement effective and sustainable practices that benefit their business, society, and the environment.
The report summarized that addressing environmental and social sustainability-related concerns in supply chains is crucial for organizations to not only mitigate risks but also create a positive impact on society and the environment. The literature review has highlighted various frameworks and approaches that organizations can adopt to achieve sustainability in their supply chains. However, it is significant to note that there are differences in organizational approaches and challenges faced by organizations in implementing sustainable supply chain management practices. Organizations should aim to overcome these challenges through collaboration, transparency, and innovation. By doing so, they can make long-term value for their stakeholders and contribute to a more sustainable future.
References
Ahmadi, H.B., Kusi-Sarpong, S. and Rezaei, J., 2017. Assessing the social sustainability of supply chains using Best Worst Method. Resources, Conservation, and Recycling, 126, pp.99-106.
Arslan, M., 2020. Corporate social sustainability in supply chain management: a literature review. Journal of Global Responsibility, 11(3), pp.233-255.
Badri, A., Boudreau-Trudel, B. and Souissi, A.S., 2018. Occupational health and safety in the industry 4.0 era: A cause for major concern? Safety Science, 109, pp.403-411.
Carter, C. R., & Rogers, D. S. (2008). A framework of sustainable supply chain management: moving toward new theory. International Journal of Physical Distribution and Logistics Management, 38(5), 360–387.
Ghadimi, P., Azadnia, A.H., Heavey, C., Dolgui, A. and Can, B., 2016. A review on the buyer-supplier dyad relationships in sustainable procurement context: past, present and future. International journal of production research, 54(5), pp.1443-1462.
Giannakis, M. and Papadopoulos, T., 2016. Supply chain sustainability: A risk management approach. International Journal of Production Economics, 171, pp.455-470.
Golicic, S.L., Lenk, M.M. and Hazen, B.T., 2020. Global meaning of supply chain social sustainability. Production Planning & Control, 31(11-12), pp.988-1004.
Harrison, V., 2019. Legitimizing private legal systems through CSR communication: a Walmart case study. Corporate Communications: An International Journal.
Mani, V., Gunasekaran, A. and Delgado, C., 2018. Enhancing supply chain performance through supplier social sustainability: An emerging economy perspective. International Journal of Production Economics, 195, pp.259-272.
Mani, V., Jabbour, C.J.C. and Mani, K.T., 2020. Supply chain social sustainability in small and medium manufacturing enterprises and firms’ performance: Empirical evidence from an emerging Asian economy. International Journal of Production Economics, 227, p.107656.
Miemczyk, J. and Luzzini, D., 2018. Achieving triple bottom line sustainability in supply chains: The role of environmental, social and risk assessment practices. International Journal of Operations & Production Management, 39(2), pp.238-259.
Montabon, F., Pagell, M., & Wu, Z. (2016). Making sustainability sustainable. Journal of Supply Chain Management, 52(2), 11–27.
Nakamba, C.C., Chan, P.W. and Sharmina, M., 2017. How does social sustainability feature in studies of supply chain management? A review and research agenda. Supply Chain Management: An International Journal.
Nassar, S., Kandil, T., Er Kara, M. and Ghadge, A., 2020. Automotive recall risk: impact of buyer-supplier relationship on supply chain social sustainability. International Journal of Productivity and Performance Management, 69(3), pp.467-487.
Pagell, M., & Wu, Z. (2009). Building a more complete theory of sustainable supply chain management using case studies of 10 exemplars. Journal of Supply Chain Management, 45(2), 37–56.
Pagell, M., & Wu, Z. (2017). Business implications of sustainability practices in supply chains. In Y. Bouchery, C. J. Corbett, J. C. Fransoo, & T. Tan (Eds.), Sustainable Supply Chains. A Research-Based Textbook on Operations and Strategy. (pp. 339–354). Springer.
Perez, B., 2015. The power of sustainability to create shared value: Coca-Cola demonstrates that doing good is good for business. Journal of Brand Strategy, 3(4), pp.310-315.
Seuring, S., & Müller, M. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of Cleaner Production, 16, 1699–1710.
Sodhi, M.S. and Tang, C.S., 2018. Corporate social sustainability in supply chains: a thematic analysis of the literature. International Journal of Production Research, 56(1-2), pp.882-901.
