Editing Supply chain management (section)

==Sustainability and social responsibility in supply chains==
Supply chain networks are integral to an economy, but their health is dependent on the well-being of the environment and society.<ref>{{Cite journal|last1=Mahmoudi|first1=Amin|last2=Deng|first2=Xiaopeng|last3=Javed|first3=Saad Ahmed|last4=Zhang|first4=Na|title=Sustainable Supplier Selection in Megaprojects: Grey Ordinal Priority Approach|url=https://onlinelibrary.wiley.com/doi/abs/10.1002/bse.2623|journal=Business Strategy and the Environment|year=2021|volume=30|issue=1 |language=en|pages=318–339|doi=10.1002/bse.2623|bibcode=2021BSEnv..30..318M |s2cid=224917346|issn=1099-0836}}</ref> [[Supply chain sustainability]] is a business issue affecting an organization's supply chain or logistics network, and is frequently quantified by comparison with SECH ratings, which address social, ethical, cultural, and health footprints. These build on the triple bottom line incorporating economic, social, and environmental aspects.<ref>Khairul Anuar Rusli, Azmawani Abd Rahman and Ho, J.A., Green Supply Chain Management in Developing Countries: A Study of Factors and Practices
in Malaysia. Paper presented at the 11th International Annual Symposium on Sustainability Science and Management (UMTAS) 2012, Kuala Terengganu,
9–11 July 2012. [http://fullpaperumtas2012.umt.edu.my/files/2012/07/BE03-ORAL-PP-278-285.pdf See publication here]. {{Webarchive|url=https://web.archive.org/web/20130511022044/http://fullpaperumtas2012.umt.edu.my/files/2012/07/BE03-ORAL-PP-278-285.pdf |date=2013-05-11 }}</ref><ref>Berthold, K. R., [https://web.archive.org/web/20200507140146/https://journals.seagullpublications.com/ijeer/assets/paper/IJ0320191826/f_IJ0320191826.pdf Supply Chain Management: A Descriptive Conception], ''International Journal for Empirical Education and Research'', 2019, accessed 24 August 2023</ref> The more commonly used ESG terminology represents Environment, Social and Governance. Consumers have become more aware of the environmental impact of their purchases and companies' ratings and, along with [[non-governmental organization]]s (NGOs), are setting the agenda, and beginning to push for transitions to more sustainable approaches such as [[organic farming|organically grown]] foods, [[anti-sweatshop]] labor codes, and locally produced goods that support independent and small businesses. Because supply chains may account for over 75% of a company's [[carbon footprint]], many organizations are exploring ways to reduce this and thus improve their profile.

For example, in July 2009, [[Wal-Mart]] announced its intentions to create a global sustainability index that would rate products according to the environmental and social impacts of their manufacturing and distribution. The index is intended to create environmental accountability in Wal-Mart's supply chain and to provide motivation and [[infrastructure]] for other retail companies to do the same.<ref>{{cite web|url=http://retailindustry.about.com/b/2009/07/20/u-s-green-retailing-update-will-wal-mart-profit-from-high-supply-chain-standards-while-its-own-environmental-standards-are-low.htm|title=Fun Facts About the Supply Chain and Logistics That Put Cereal On Your Table|access-date=26 July 2017|archive-date=12 April 2014|archive-url=https://web.archive.org/web/20140412173949/http://retailindustry.about.com/b/2009/07/20/u-s-green-retailing-update-will-wal-mart-profit-from-high-supply-chain-standards-while-its-own-environmental-standards-are-low.htm|url-status=dead}}</ref>

It has been reported that companies are increasingly taking environmental performance into account when selecting suppliers.  A 2011 survey by the [[Carbon Trust]] found that 50% of multinationals expect to select their suppliers based upon carbon performance in the future and 29% of suppliers could lose their places on 'green supply chains' if they do not have adequate performance records on carbon.<ref>{{cite web|url=http://www.carbontrust.com/news/2011/11/indirect-carbon-emissions-and-why-they-matter|title=Indirect carbon emissions and why they matter | publisher =Carbon Trust|date=7 Nov 2011|access-date=28 Jan 2014}}</ref>

In addition to environmental concerns, increased globalization within global supply chains challenges human rights and worker exploitation risks within multinational corporations including forced labor and modern slavery. Textiles, agriculture, and manufacturing are some of the industries with significant labor exploitation risks.<ref>{{cite web|author=Lehr, Amy. |year=2020|title=Enforcing the Ban on Imports Produced by Forced Labor in Xinjiang|publisher=Center for Strategic and International Studies|url= https://www.jstor.org/stable/resrep37633}}</ref> There are many different methods governments, corporations, and NGOs use to prevent labor exploitation, including corporate social responsibility,<ref>Deibel, Tayla Ucaryilmaz. 2022. “Corporate Social Responsibility in the Legal Framework of Global Value Chains.” ''Law and Development Review'' 15 (2): 329-356.</ref> export controls,<ref>Kim, Heejin. 2021. “Global Export Controls of Cyber Surveillance Technology and the Disrupted Triangular Dialogue.” ''The International and Comparative Law Quarterly'' 70 (2): 379-415.</ref> import bans,<ref>[[Daniel C. K. Chow|Chow, Daniel C. K.]] 2013. "How China Uses International Trade to Promote its View of Human Rights." ''The George Washington International Law Review'' 45 (4): 681-726</ref> and monitoring labor standards.<ref>Brause, Alberto., Qin, Fei., Locke, Richard. 2007. “Does Monitoring Improve Labor Standards? Lessons from Nike.” ''ILR Review'' 61, (1): 3-31.</ref><ref>Koekkoek, Marieke., Marx, Axel., Wouters, January 2017. “Monitoring Forced Labour and Slavery in Global Supply Chains: The Case of the California Act on Transparency in Supply Chains.” ''Global Policy'' 8 (4): 522-529.</ref>

The US [[Dodd–Frank Wall Street Reform and Consumer Protection Act]], signed into law by President Obama in July 2010, contained a supply chain sustainability provision in the form of the Conflict Minerals law. This law requires SEC-regulated companies to conduct third party audits of their supply chains in order to determine whether any tin, tantalum, tungsten, or gold (together referred to as ''[[conflict minerals]]'') is mined or sourced from the [[Democratic Republic of the Congo]], and create a report (available to the general public and SEC) detailing the due diligence efforts taken and the results of the audit.<ref>{{cite journal |last1=Zhang |first1=Han |last2=Aydin |first2=Goker |last3=Heese |first3=Hans Sebastian |year=2023 |title=Curbing the usage of conflict minerals: A supply network perspective |journal=Decision Sciences |volume=54 |issue=5 |pages=535–553 |doi=10.1111/deci.12580 |doi-access=free }}</ref> The chain of suppliers and vendors to these reporting companies will be expected to provide appropriate supporting information.

Incidents like the [[2013 Savar building collapse]], with more than 1,100 victims, have led to widespread discussions about [[corporate social responsibility]] across global supply chains. Wieland and Handfield (2013) suggest that companies need to audit products and suppliers and that supplier auditing needs to go beyond direct relationships with first-tier suppliers. They also demonstrate that visibility needs to be improved if supply cannot be directly controlled and that smart and electronic technologies play a key role to improve visibility. Finally, they highlight that collaboration with local partners, across the industry and with universities is crucial to successfully managing social responsibility in supply chains.<ref>Andreas Wieland and Robert B. Handfield (2013), The Socially Responsible Supply Chain: An Imperative for Global Corporations, ''Supply Chain Management Review'', Vol. 17, No. 5.</ref> Recent research proposes a two-phase approach for auditing multitier supply networks.<ref>{{cite journal |last1=Zhang |first1=Han |last2=Aydin |first2=Goker |last3=Parker |first3=Rodney |year=2022 |title=Social Responsibility Auditing in Supply Chain Networks |journal=Management Science |volume=68 |issue=2 |pages=1058–1077 |doi=10.1287/mnsc.2020.3950}}</ref> Under this strategy, buyers first audit and drop noncompliant suppliers and then proceed to audit and rectify the remaining ones; when auditing an upper tier, the approach recommends selecting the "least valuable unaudited supplier" as the next candidate for auditing.