Investigating corporate social responsibility in supply chains: a SME perspective

This paper analyzes the practices adopted and difficulties experienced by Small and Medium-sized Enterprises (SMEs) to transfer socially responsible behaviors to suppliers that operate in developing countries. In particular, a multiple case study was conducted on five Italian socially responsible SMEs. It was found that companies use different strategies as well as diverse management systems and tools to address Corporate Social Responsibility (CSR) issues along their supply chains (SCs). The paper is innovative mainly since few are the existing studies that investigate the CSR practices adopted by SMEs in the SC. Furthermore, it is argued that our research can be helpful to SME managers willing to deal with CSR issues along their SCs, especially when developing countries are involved.     

Influences, practices and opportunities for environmental supply chain management in Nova Scotia SMEs

Executives are increasingly paying attention to the importance of supply chain management [Lambert DM, Cooper MC. Issues in supply chain management. Industrial Marketing Management 2000;29(1):65–83; Hagelaar GJLF, van der Vorst JGAJ. Environmental supply chain management: using life cycle assessment to structure supply chains. International Food and Agribusiness Management Review 2002;4:399–412]. The management of the supply chain can be a central aspect of a company's competitive advantage [Preuss L. Rhetoric and reality of corporate greening: a view from the supply chain management function. Business Strategy and the Environment 2005;14:123–139]. SCM also offers considerable opportunities to reduce a company's environmental impact. The supply chains of three small and medium enterprises (SMEs) operating in the Burnside Industrial Park in Nova Scotia, Canada were investigated to explore the opportunities to improve environmental performance of SMEs linked in supply chains. This study confirmed that time and, to a lesser degree, financial resources to address solid waste and energy issues are the greatest limiting factors. Small suppliers, and even to a certain degree medium-sized enterprises, have difficulties in allocating resources to initiatives that are not viewed as directly related to their core function, namely manufacturing the product or providing the service. This study clearly demonstrated that opportunities exist to reduce greenhouse gas emissions and solid waste. Although, the benefits that would be gained from the implementation of any of the individual actions in the supply chains explored in this study are individually small, the cumulative benefits that could be achieved among supply chains and within industrial parks are substantial, given the number of small- and medium-sized enterprises.     

Strategy development in small and medium sized enterprises for sustainability and increased value creation

Sustainability strategies create many synergistic effects for SMEs working collaboratively, as well as systemic benefits for the commons. After setting forth the business case for sustainable SMEs, and considering SME sustainability advantages in contrast to MNEs, this paper discusses several different incentives for SMEs to optimize sustainability: (1) becoming valuable sustainable investment targets for larger firms; (2) creating highly competitive networks of sustainable SMEs in market spaces where large enterprises are less successful; (3) becoming highly efficient suppliers in global supply chains through sustainable practices.While several successful models of the sustainable SME are evolving, it may be that networks of SMEs will become essential for addressing the systemic problems that underlie industrial ecology, enterprise resilience, and global supply chain sustainability. SMEs represent the majority of all enterprises, and rapidly evolving communication technologies allow for various routes of network formation.     

An exploration of measures of social sustainability and their application to supply chain decisions

Sustainability recognizes the interdependence of ecological, social, and economic systems – the three pillars of sustainability. The definition of corporate social responsibility (CSR) often advocates ethical behavior with respect to these systems. As more corporations commit to sustainability and CSR policies, there is increasing pressure to consider social impacts throughout the supply chain. This paper reviews metrics, indicators, and frameworks of social impacts and initiatives relative to their ability to evaluate the social sustainability of supply chains. Then, the relationship between business decision-making and social sustainability is explored with attention initially focused on directly impacting national level measures. A general strategy for considering measures of social sustainability is proposed, and a variety of indicators of CSR are described. Several of these indicators are then employed in an example to demonstrate how they may be applied to supply chain decision-making.     

Organising corporate social responsibility in international product chains

This article focuses on how companies can efficiently implement corporate social responsibility in international product chains by taking into account the particularities of their supply chain relationships. The way in which companies can organise chain responsibility will depend on both the diversity and the complexity of the product chain, the power of the company in the chain and the level of ambition set. On the basis of these four factors, a step-by-step plan has been developed to offer guidance to companies in choosing their own appropriate way of organising chain responsibility. In developing this plan, use was made of the experiences of 12 companies who participated in the programme entitled ‘CSR in an international context’ organised by CSR Netherlands.     

Environmental supply chain dynamics

This paper investigates the circumstances under which “environmental supply chain dynamics” (ESCD) emerge. ESCD are a phenomenon where environmental innovations diffuse from a customer firm to a supplier firm. Its relevance is based on the argument that systemic approaches are needed to understand the environmental implications of industrial systems, of which supply chains are a key component. Furthermore, buyer–supplier relationships play a critical role in the decision-making processes of most suppliers, which in turn has the potential to stimulate environmental change within the supply chain. Based on case studies in the British and Japanese food retail sector and the British aerospace industry, it will be shown that ESCD emerge if there is a channel leader with sufficient channel power over their suppliers, technical competencies, and are themselves under specific environmental pressure.     

Environmental indicators for small and medium enterprises in the Philippines: An empirical research

Environmental indicators allow a firm to make measurements related to its environmental performance. In practical terms, they can be used to form a measuring, benchmarking and monitoring tool to track environmental performance for small and medium enterprises (SMEs).Within an Environmental Management System (EMS), environmental indicators can be used to check if a firm has met the targets it is required to set for itself. It can also be used in firms that have not yet implemented an EMS. The use of an Environmental Indicators System (EIS) is thus recommended for SMEs, many of which do not have an EMS, in order to enhance their environmental performance. As noted in A Guide to Corporate Environmental Indicators published by the Federal Environment Ministry (Bonn) and the Federal Environmental Agency (Berlin), three categories of environmental indicators can be developed, depending on whether they describe: (1) a company's environmental impact (environmental performance); (2) the management's environmental activities; or (3) the external condition of the company's environment.The objective of this paper is to present how environmental indicators were established and implemented for Philippine SMEs and to show that the indicators significantly correlate with the environmental performance of the SMEs. In order to test this hypothesis, a survey-questionnaire was designed and administered among SMEs covering six industrial sectors in the Philippines. Based on the survey responses, a Gap analysis between the environmental performances of SMEs and state-of-the-art companies was performed. The Gap analysis showed that environmental indicators were indeed able to capture the features of actual environmental performance.Further, a structural equation model was proposed and validated. It yielded a significant linkage between the environmental indicators and environmental performance.     

Environmental impact of future milk supply chains in Sweden: a scenario study

The objective of this study was to analyse the environmental impact of future supply chains for dairy products. A scenario technique was chosen because scenarios can yield information about the environmental consequences of certain lines of action or developments in a system. To quantify the effects of future systems, a mathematical model of the milk supply chain was constructed and used to simulate possible scenarios. The model was based mainly on life cycle assessment (LCA) methodology. The results show that any consideration of the environmental effects of the milk supply chain must consider the entire chain. The amount of packaging materials used is an important factor, as is the transportation of the dairy products to households.     

Corporate environmental responsibility in the supply chain

A continuing trend in outsourcing increases the complexity of supply chains. Global supply chains extend over numerous echelons of countless companies. In parallel, the company-internal view on corporate environmental responsibility is being challenged as customers and legislation alike broaden a company's environmental responsibility to include organisations' upstream as well as downstream in the supply chain. Therefore, the aim of this study was to examine corporate environmental responsibility beyond corporate boundaries, i.e. in the supply chain. A cross-industrial study based on 16 case studies in Finnish trans-national corporations sheds light on various dimensions of corporate environmental responsibility upstream and downstream of product and process supply chains. Conclusions were drawn for corporate environmental responsibility as well as for the role of supply chain management in extending environmental demand over several echelons and diverse industries.     

A life-cycle framework to analyse business risk in process industry projects

The chemical and related process industries are particularly exposed to high environmentally related costs arising from normal operation and accidents, not only of their own processes but also other processes in their supply chains. A methodology (Process environmental risk assessment—PERA) is presented for the assessment of all such risks during the design of new processes. This can be seen as a project-centred risk assessment that seeks potential problems along the whole supply chain. Each activity, resource use or waste source along the supply chain represents a potential interaction between the supply chain and the environment. These potential interactions are identified systematically using a life-cycle based assessment. To assess the risk to the project or process supply chain arising from those interactions the relevant stakeholders must be identified. Their likely response can then be considered and ranked according to the risk it poses. The methodology facilitates the management and communication of risk, and is illustrated by application to some aspects of the manufacture of PVC. The method could equally be applied to the assessment of existing processes.     

Making resources work more efficiently – the importance of supply chain partnerships

State and federal governments in Australia have implemented a range of assistance programs for manufacturing industries to become more resource efficient and reduce waste. While many of these programs focus on Cleaner Production at single sites, an increasing number of assistance programs are offered across supply chains. Sustainability Victoria, a Victorian government authority, supports projects that focus on resource efficiencies across supply chains in key industry sectors.In this study, tools were adapted and utilised to identify efficiency potentials and losses across supply chains in the timber furniture manufacturing and the food industry sector. In this respect, waste generation and value loss due to inefficient use of critical materials within the processes were estimated from purchase and waste handling data. Primary companies were chosen to undertake efficiency trials that could demonstrate value gain across the supply chain.This study describes the realisation of greater efficiencies in material usage when engaging proactively with supply chain partners immediately adjacent to the primary company. Demonstration trials confirmed that through a more integrated approach among supply chain partners the potential in using materials more efficiently and design processes can lead to enhanced productivity without compromising environmental burden. Hence, the study describes targeted resource efficiency, recycling and process optimisation opportunities as identified in the supply chain trials on timber furniture manufacturing and food industries.     

From a literature review to a conceptual framework for sustainable supply chain management

Academic and corporate interest in sustainable supply chain management has risen considerably in recent years. This can be seen by the number of papers published and in particular by journal special issues. To establish the field further, the purpose of this paper is twofold. First, it offers a literature review on sustainable supply chain management taking 191 papers published from 1994 to 2007 into account. Second, it offers a conceptual framework to summarize the research in this field comprising three parts. As starting point related triggers are identified. This allows putting forward two distinct strategies: (1) supplier management for risks and performance, and (2) supply chain management for sustainable products. It is evident that research is still dominated by green/environmental issues. Social aspects and also the integration of the three dimensions of sustainability are still rare.Both practitioners in companies and academics might find the review useful, as it outlines major lines of research in the field. Further, it discusses specific features of sustainable supply chains as well as limitations of existing research; this should stimulate further research.     

Stepwise environmental product declarations: ten SME case studies

The lack of reliable communication tools is anticipated to become an important barrier to design and sell products with improved environmental performance. In this paper, environmental product declarations, EPDs, and in particular a Stepwise EPD approach is investigated as a means to overcome the communication barrier. The experiences of ten European SMEs who have tried to use Stepwise EPDs for market communication and as a basis for eco-design are described and discussed. The experiences suggest that Stepwise EPDs based on life cycle assessment can be a cost-efficient tool to improve the environmental performance of products. For normal marketing activities the Stepwise EPDs were disappointing. Using the underlying LCA as a platform for in-depth communication with selected parties in the supply chain showed more promise.     

Why do firms engage in environmental management? An empirical study in China

There are increasing pressures being put on firms, from a number of different sources, such as governmental regulation, community participation and market demand, to engage firms in environmental initiatives. These factors play different roles at various development periods. Government regulation was the major pressure, initially. However, community participation and market demand have become more and more important. Thus a better understanding of the determinant factors that play a role in engaging firms to take environmental management initiatives may help policy makers develop more effective environmental policies. Using data collected from 89 firms in Wujin county of Jiangsu Province, China, this paper developed an index system to evaluate the corporate environmental management performance. Furthermore, we used econometric methodology to identify the main factors that probably shape corporate environmental management performance, including both external pressures and firm characteristics. The results showed that pressures from supply chain, customers, and communities played positive roles in engaging firms to improve environmental management performance. However, the pressure from the regulatory system did not implicate positive effect on environmental management performance when basic compliance is not an issue in the region anymore. The results also showed that firms with larger scale will be more active in engaging in environmental management initiatives. Finally, our results suggest that: (a) regulation's stimulation may be reduced as long as firms have complied with requirements of local environmental standards and other environmental laws; (b) policy makers should pay more attention to market and information instruments; (c) more financial and technical support should be provided to encourage small- and medium-sized enterprises (SMEs) to improve environmental performance.     

Implementation of cleaner production in small and medium-sized enterprises

The aim of this article is to analyse whether it is possible for an external group to act as a catalyst when trying to make small and medium-sized enterprises (SMEs) adopt a cleaner production concept. At Linköping University, Sweden, nine SMEs cooperated in a cleaner production project that uses the University and the County Administration as catalysts. This article is based on a survey that evaluated the project. The survey shows that the SMEs did modify their products and processes after taking part in the project. They were especially successful in changing their products. Why products were changed to a larger extent than processes is not fully understood. Maybe this was done as a part of introducing a preventive environmental care system. Most SMEs did, as a part of introducing an environmental care system, introduce an environmental policy and an educational programme. The SMEs also experienced lower costs and better cooperation with the authorities. A reason for this is the good cooperation between the three participants of the project. In general, the SMEs did not think that they had gained marketing benefits. This attitude could have been different if more SMEs from the same value chain (supplier-producer-wholesalers-customer) had been involved.     

Screening of climatic impacts on a country’s international supply chains: Japan as a case study

Industrial activities are linked through international supply chains, and the impacts that one country experiences can easily influence other countries. Climate change has made it essential for countries to review their supply chains and to prioritize introducing concrete adaptation actions. Therefore, this study aims to demonstrate a method of screening imported products that are highly vulnerable to the impacts of climate change by assessing all imported products in a consistent manner throughout the global supply chain to support a country’s adaptation strategy planning. The study focuses on the potential impacts on land use and human health of climate change effects such as floods and heat waves. Japan was selected for a detailed analysis of its imports. A life-cycle assessment technique was applied to evaluate imported products through their supply chains. In Japan’s case, land use results show that agricultural products imported from the United States of America (US) are highly vulnerable to climate change impacts. In relation to imported meat products, feed production processes are most vulnerable. The human health results show in addition to agricultural imports, electronics and textile imports are also vulnerable. The study recommends that the relevant stakeholders impacted by these products scrutinize their supply chains. Especially, Japan is recommended to collaborate with the US, China, and Southeast Asian countries for increasing resilience to climate change. The results include uncertainties due to limitations of data availability and methodology; however, this method is also applicable to assessing the global trade activities of any country and to supporting global adaptation strategies.     

A recursive ecological indicator system for the supply chain of a company

This paper proposes the concept of cumulative eco-intensity with which environmental or sustainability indicators are related to the added value of economic activities. The intensities are passed on recursively from supplier to supplier and thus make it possible to include upstream and downstream effects along the supply and waste disposal chain. The process is applied to whole companies and (by contrast with LCA) not to individual products. At comparatively low expenditure for the individual companies, it allows vertical comparisons along the value-adding chain and horizontal comparisons among companies or production locations. This provides a decision-making aid for a company seeking to fulfil its ecological or sustainability responsibility in the entire production and supply chains.     

Bio-energy supply chains and stakeholders

What are the management challenges and opportunities of bio-energy chains for both running their business efficiently and effectively and fostering the relationships with most relevant external stakeholders? This question is approached by systematically reviewing papers at the interface of bio-energy and supply chain or logistics issues. The review conducted as content analysis is based on an analytic framework that conceives bio-energy chains between challenges and benefits of bio-energy production with simultaneous internal supply chain management and external stakeholder management needs. Smartly designed and operated bio-energy projects hold promising potentials of contributing to sustainable development by both mitigating climate change and strengthening adaptation capabilities. Our analysis distils specific strategies and success factors for tapping this potential on two levels: On a supply chain level, individually adapted and designed supply chain systems relying on trustful information exchange, cooperation and relational governance safeguard profitability while holding adverse ecological and social impacts of operation down; they allow, for instance, minimising costs and emissions, implementing new technologies, and coping with environmental uncertainties such as crop failures and volatile prices. On a stakeholder level, governments as key actors for designing the future legal framework of bio-energy are primary targets for lobbying activities of bio-energy representatives. Respective arguments may focus on economic development and job generation. By minimising its adverse impacts on society and eco-systems and by communicating these efforts credibly, bio-energy warrants its superiority over fossil energy systems. Involving NGOs and residents in early stages of bio-energy projects via transparent two-way communication considerably increase societal acceptance.     

Improving enterprise competitive advantage with industrial symbiosis: case study of a smeltery in China

Industrial symbiosis, a subfield of industrial ecology, focuses on transforming the waste of one firm into the valuable input of another, which improves the competitive advantages of supply chain by reducing production cost and improving environmental performance. Considering the specific situation where there are so many state-owned big company groups in China, this paper utilizes the ideas of constructing an industrial symbiosis among different firms, and does a case study on applying the concept into the inner relationships' reconstruction among different production systems in a big state-owned smeltery in South-west China. Three kinds of approaches are explored: 1) recycling and reusing the release; 2) concentrating and abstracting metals from the residues; 3) extending the product chain for value-added products. The results show that it can effectively improve the competitive advantage of the enterprise in terms of decreasing production cost and improving environmental performance.