Essay On Sustainable Supply Chain Management
Sustainable supply chain management is the strategic, transparent integration and achievement of an organization’s social, environmental and economic goals in the systemic coordination of key inter-organizational business processes for improving the long-term performance of the supply chains (Carter and Rogers, 2008).
Unethical activities such as discrimination and child labor can lead to considerable damage to the reputation, market share and competitiveness of the outsourcing firm. We can refer to many examples in practice that they demonstrate the importance of sustainability criteria in supplier selection. For example, Nike has been criticized for its workforce contracting with factories (known as Nike sweatshops) in countries such as China,
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Secondly, suppliers in emerging markets are faced the choice of ignoring their business and benefits if they wish to pursue sustainability and moral issues. Thus, what decision should suppliers make in this situation??? This question really forces us to think twice about suppliers’ responsibility. For example, they should pay the workers as much as they are concerned with the workers’ welfare while suppliers cannot do that as these suppliers are attracted by other companies due to cheap labor and operational costs. Another choice for suppliers to make is to fire these workers but the side-effects of this decision on workers’ life is so harmful as they possess no skills to save their lives. Lastly, it is questionable whether companies may ignore these beneficial suppliers and outsource from other countries which is not optimal decision as the operational cost will increase, dramatically.
Although we have found a huge amount of articles about sustainable supply chain management, sustainable supplier selection and sustainable outsourcing, based on our knowledge no scientific article dealing with how large companies, customers and suppliers would behave and what influence their behavior to select sustainable suppliers, products and implement sustainable practices,
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