Management of socioenvironmental factors of reputational risk in the beef supply chain in the Brazilian Amazon region

Abstract

Increased production of Brazilian beef has been associated with negative impacts in the Amazon region. Supply chain interventions are increasingly common to avoid social and environmental consequences in the area, but evidence about how companies have managed these efforts is scarce. The present study identified the main sources of reputational risks in Brazilian Amazon beef supply chains and the actions taken by slaughterhouses to manage these types of risk. A multiple case study was developed in Brazilian beef supply chains that have suffered consequences to their operations from consecutive actions of stakeholders that link meat production with deforestation and the worst practices of production in the Amazon region. Public agreements with stakeholders and the development of supplier management were used to identify reputational risks. The present study also describes the types of risk and how they are mitigated. Based on the results, the authors propose a set of risk management practices in the supply chains to manage risks through stakeholder engagement, use of government open data sources, and sharing information with direct suppliers.