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Sustainability and social responsibility in supply chains
It is critical that organizations take steps to ensure that a supply chain is sustainable in the long run. It is essential that focus is given to minimizing cost as well as environmental damage. Organizations are increasingly incorporating eco-friendly alternatives into the Supply chain management process. Sustainability in supply chain is increasing becoming part of an organization’s long term strategic goals. A sustainable supply chain would offer several advantages such as reduction in running costs, opportunity creation, increase competitiveness, build on brand image, etc. For a sustainable supply chains to be successful it is important to have partnership among the various stakeholders in the supply chain. All stakeholders need to be committed and to reduce the cost and environmental impact of their operations.
Another important social responsibility in Supply Chain is concerned with making ethical decisions. There are many situations when an unethical decision can be made in the Supply chain process. Some instances of unethical behavior can include sales person giving unauthorized gifts to make sale, purchase manager misusing funds, etc. Most organizations have strict rules concerning these types of behavior and usually enforce a code of conduct which everyone needs to adhere to. Organizations having an international supply chain usually need to address additional set of ethical issues such as labour laws, cultural differences, etc. It is critical that ethics is enforced in supply chain for an organization to be successful in the long run.
