Multi-stakeholder initiatives in sustainable supply chains: Putting sustainability performance in context

Abstract

The purpose of this article is to explore the role of multi-stakeholder initiatives (MSIs) in sustainable supply chains. I argue that MSIs are needed to help establish and institutionalize the natural and social thresholds in which a sustainable supply chain must operate. While a multitude of MSIs relevant to supply chains already exist, they do not yet adequately address sustainability thresholds. Building on theory and literature, I elaborate on four interrelated roles for MSIs in this area: (1) providing learning platforms, (2) developing standards, (3) developing enforcement mechanisms, and (4) issuing labels and certifications. All four roles emphasize the need for supply chains to operate within the thresholds set by nature and society. Staying within thresholds is what distinguishes between sustainable and unsustainable supply chains. The four roles form part of a broader conceptual framework outlining a way forward for MSIs in sustainable supply chains. Different MSIs could address one or more of these roles. I argue that all MSIs must be developed with special attention to their input and output legitimacy. Stakeholders from both within and beyond the supply chain must be involved in developing and implementing a MSI for it to be viewed as legitimate. I note that the conceptual framework presented here is a starting point. It would benefit from further testing and refinement. For example, future work could add further specificity to the four roles I discuss. Future research could also focus on integrating economic thresholds for sustainable supply chains into the framework.