What is a Responsible Supply Chain?

Abstract

The paper introduces the concept of responsible supply chain based on two dimensions, the core processes of a supply chain and the concept of corporate social responsibility (CSR). It is suggested that a responsible supply chain is achieved through manifested core values of the supply chain actors, strategies, and tactics. The paper further discusses the individual supply chain actors' responsibility in securing a responsible supply chain beyond the actors' direct control. A conceptual model and a definition of a responsible supply chain are offered. Our model not only provides structure to the extant research but also develops new constructs and relationships that improve the conceptualization of the responsible supply chain. The paper is based on a review of 81 research articles published between 2000 and 2010 in which elements of CSR and supply chain processes are included. Keywords:Corporate social responsibility, Ethics, Global sourcing, Strategy, Supply chain management IntroductionIncreasing competition is pushing multinational enterprises (MNEs) in the developed countries to outsource to countries with lower labor costs (Lim & Phillips, 2007). In this strategy, companies try to produce a cheaper final product and improve their competitiveness by sub-contracting part or all of their production to producers in countries with lower labor costs. Thus, supply chains are becoming increasingly global and complex. Companies and governments in countries with lower labor costs in Eastern Europe, Asia, Latin America and Africa are increasingly dependent on this globalization in order to sustain economic growth. This trend has become an important driver of corporate strategies that has the potential to benefit all sides. Almost concurrently, corporate social responsibility (CSR) and related concepts like business ethics have been brought to the fore by non-governmental organizations, governments, and multilateral institutions partly as a result of the concern about limiting the negative effects of companies on society and the environment. For example the United Nations has established the "Global Compact", which is a set of principles aimed at achieving CSR (UN, 2011). As Smith (2007) argues in the case of Nike, the scale of production leads to the use of a large number of suppliers spread in countries whose policies Nike cannot control. However, in spite of the company initially claiming that it could not be expected to influence the CSR practices of its suppliers, it later was forced to act, leading to the establishment of internal values, strategies, and code of conduct with suppliers to ensure responsibility. The case of Nike exemplifies the ongoing challenges facing MNEs that are increasingly globalizing their supply chains to meet the changing competition as well as to enter growing emerging markets (Lim & Phillips, 2008).The responsible supply chain can be approached from two sets of literature -the CSR and the SCM literature. The CSR literature deals with a variety of responsibility issues and can b...

The Wicked Character of Sustainable Supply Chain Management: Evidence from Sustainability Reports

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Organizing for Sustainable Development

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