Undiversity, inequity, and exclusion in supply chains: The unintended fallout of economic sanctions and consumer boycotts

Abstract

AbstractEconomic sanctions and consumer boycotts are common tools to punish organizations for undesirable behavior and attempt to coerce them to change their actions. However, these tools occasionally spill over beyond the intended recipients and affect guiltless supply chain members, jeopardizing the principles of diversity, equity, and inclusion in supply chains. This study identifies four channels through which sanctions and boycotts propagate through supply chains. In particular, supply chain members can be affected by direct relationships with targeted organizations, disruptions in accessing foreign markets, inability to access technology, and logistics failures. Potential solutions include mapping supply chains, proactive cooperation, network analysis, and shortening supply chains. While the work provides a general framework for research and practitioners, it also identifies areas for further studies, such as the role of new technologies and the effect of sanctions and boycotts on supply chain sustainability.