Social and environmental supply-chain management: an overview

Abstract

What are major companies doing to address environmental and social issues in their supply chains? This article describes how companies are responding to pressures on their brand reputation and the effects of reputation on consumers, investors and employees. In some cases they need to work with suppliers to meet laws regarding environmental aspects of product design. It is often a huge task for a company to discover the extent of its supply chain and to identify the issues within it. This article describes the range of approaches being developed for driving and measuring improvements, some in co-operation with trade unions and pressure groups. Communication with interested parties, and giving assurance to them is critical. The future of environmental and social supply-chain management depends on whether external pressure on companies is maintained. Sustained pressure is likely to drive greater integration and co-operation along the supply chain. Suppliers will have to be able to supply their customers with greater assurance about their social and environmental performance, but should also be aware that good practice is a commercial strength which they should value in negotiations with their clients.