Achieving a socially responsible supply chain through assessment and collaboration

Piggy in the Middle: How Direct Customer Power Affects First-Tier Suppliers’ Adoption of Socially Responsible Procurement Practices and Performance

“…Similarly, in the sustainable supply chain field, writers regard power, especially of large multinational buyers, as key to the implementation of environmental (Mol 2015) or socially responsible procurement practices (Amaeshi et al 2008;Sancha et al 2016a). Studies have investigated how and why dependence impacts sustainable practice adoption in the supply chain, showing that highly dependent suppliers are more likely to adopt specific environmentally or socially responsible practices within their own firms (Awaysheh and Klassen 2010;Touboulic et al 2014).…”

“…However, some process-based practices, especially when helping suppliers attain certification, ensuring compliance and assisting in auditing, result in companies working together in a much more collaborative way (Hollos et al 2012;Pagell et al 2010). Due to the different relational types involved in the same socially responsible practices (Sancha et al 2016a), we chose the process-and market-based dichotomy rather than the arm's-length or collaborative dichotomy to capture the practice adopted rather than the relationship type.…”

“…One report claims that market-based socially responsible projects are twice as important as environmental projects for maintaining the reputation of a company (Brandlogic and CRD Analytics 2012). Additionally, general collaborative efforts with suppliers appear to enhance suppliers' social performance (Sancha et al 2016a). Wu and Pagell (2011) found positive outcomes from market-based socially responsible procurement practices, including collaborative new product and process development implementation between buyers and suppliers giving performance benefits to companies in the supply chain not only in the long term but also in the short term.…”

“…It is argued that in certain circumstances social and environmental factors should outweigh economic factors when synergy with economic performance cannot be obtained. For example, studies could investigate the trade-offs that occur between social and environmental sustainability performance and financial performance (Matthews et al 2016;Pagell and Shevchenko 2014;Sancha et al 2016a). Future research could explore how the adoption of socially responsible procurement practices impacts multiple types of performance and the synergistic or trade-off effects between these, for a more nuanced view.…”

Sustainable procurement portfolio management: a case study in a mining company

“…For companies: (i) Stronger economy (contributes to the market development for sustainable products/services, reduces energy and material costs which increase the funds available for other purposes); (ii) Healthier environment (reduction of waste, more efficiently use of raw materials); (iii) Increase in social welfare (promotes the development of local suppliers, support to suppliers who have a strong commitment to local communities and great social and environmental responsibility). For Sancha et al (2016), if companies aim to achieve a truly socially responsible supply chain (i.e., they need their suppliers to be sustainable), they need to collaborate with them. This need to develop different strategies stems from the inability to employ advanced relationships with all suppliers due to resource and external factors constraints.…”