Abstract
The rise of global supply chains as well as attention to the Triple Bottom Line provides organizations with new conditions and strategy paradoxes to be dealt with when it comes to sustainability in supply chain management. This study of a large multinational organization with a strong Triple Bottom Line focus provides a comprehensive analysis of the use of control and governance mechanisms in supply chain context. Through the Levers of Control framework, the application of these mechanisms both internally and across organizational boundaries is shown. The interplay between levers helps in dealing with the in itself paradoxical nature of Triple Bottom Line goalsetting. The results show that the “softer” elements of the Triple Bottom Line, i.e., People and Planet, are approached with the lever associated with the beliefs system, which in turn enforces the boundary and interactive control systems. Ultimately, applying the Levers of Control in supply chain context might contribute to pursuing a holistic approach of sustainable supply chain management.
Highlights
Chains have expanded all around the globe, and while this globalized context brings many opportunities for multinational corporations (MNCs), it brings challenges related to environmental pressure and risks of social misconduct [1]
Findings of this study show that a supply chain director should use a balanced combination of control and governance practices, which is achievable through the application of the different levers of the levers of control (LOC) framework across the supply chain
This study focused on how the use of control and governance practices in the context of Sustainable Supply Chain Management (SSCM) influences the Triple Bottom Line (TBL) performance of a multinational organization
Summary
Chains have expanded all around the globe, and while this globalized context brings many opportunities for multinational corporations (MNCs), it brings challenges related to environmental pressure and risks of social misconduct [1]. The topic brings new strategy paradoxes to the table [2] and shows a refinement of the conditions with which a contemporary organization must deal [3], as well as new challenges for management when it comes to the question of how to achieve these goals within this greater context of the supply chain. Globalization has led to increased complexity and uncertainty of production processes and supply chains. When it comes to ethical and sustainable sourcing, a MNC might have control over its first tier suppliers, but what happens further upstream in the supply chain is not always clear and visible. 14 What are the major social and environmental sustainability issues your firm is facing with your supply chains?. 19 What kind of feedback has [organization] received from the suppliers concerning the social and environmental requirements? 18 How do you communicate your requirements to your suppliers? How do you ensure that these requirements are correctly interpreted by your suppliers? How much freedom do they get to do so on their own?
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