Supplier codes of conduct: Company authorization of subcontractors

Companies continue to build greater sustainability and transparency in their supply chains to increase their business value and to respond to greater stakeholder pressures and expectations to increase sustainability and transparency. As company supply chains have grown and expanded, which presents increased challenges for building greater transparency, it is possible that the use of subcontractors in supply chains has also increased. The amount and impact of subcontracting conducted in supply chains may be of greater concern to certain companies and/or sectors than others, and it may have an important impact on their sustainability efforts. This article assesses the extent to which supplier codes of conduct apply to the use of subcontractors and include a requirement for suppliers to obtain prior company approval or authorization before subcontractors conduct work. Based on a review of more than 50 supplier codes of conduct, the companies that are highlighted in this article for including this requirement are primarily in the apparel/footwear, food, pharmaceuticals, and/or retail sectors. The article asserts that supplier codes of conduct that include requirements for suppliers to protect and safeguard confidential business information could be strengthened to further protect the company's products, integrity, and reputation/brand and increase its competitiveness and resilience by also including a requirement of prior approval or authorization of a supplier's use of subcontractors.     

Company engagement with supply chains to protect biodiversity and rare,threatened, and endangered species

Future global megatrends project a population increase of 2 billion people between 2019 and 2050 and at least 1–2 billion people added to the global middle class between 2016 and 2030. In addition, 68% of the world's population is projected to be living in urban areas by 2050. With these projected large population increases and shifts, demand for food, water, and energy is projected to grow by approximately 35, 40, and 50%, respectively, between 2010 and 2030. In addition, between 1970 and 2014 there was an estimated 60% reduction in the number of wildlife in the world and an estimated net loss of 2.9 billion birds, or 29%, in North America between 1970 and 2018. Loss of species populations and number of species is interconnected with reduced health of biodiversity and ecosystems. Human activity has been the main catalyst for these substantial declines primarily through impacts on habitats. These losses are accelerating. Since a company's supply chain environmental impacts are often as great or greater than its own direct environmental impacts, it may be prudent for companies to engage with their supply chains to protect and enhance habitats and biodiversity and protect rare, threatened, and endangered species. As one example, companies may have opportunities and strategic reasons to include requirements in their supplier codes of conduct and supplier standards for suppliers to protect biodiversity and rare, threatened, and endangered species, as well as additional requirements to expand or enhance habitats and ecosystems to increase biodiversity. This article follows one pathway that companies could pursue further and with greater speed—to engage with their supply chains to strengthen supplier codes of conduct to protect biodiversity and rare, threatened, and endangered species. The importance of forests, private land, and landscape partnerships is discussed as means to protect much more of the planet's biodiversity and rare, threatened, and endangered species. Lastly, the article identifies examples of opportunities for companies to more formally incorporate biodiversity into their business, supply chain, and sustainability strategies.     

Building Greater Sustainability in Supply Chains

Challenges companies face and tools they use to identify and reduce their environmental footprints across their supply chains     

CSR in metallurgy sector in Greece: A content analysis

Corporate Social Responsibility (CSR) has become one of the most widespread business topics among the academic community. Various issues like environmental pollution, economic crisis, corruption, poverty are of major importance these days and besides governments and policy makers responsibility it is obvious that corporations are also part of these problems. In Europe the last 15 years, governments, NGOs, small and large enterprises are making an effort to establish in their business CSR strategies so as to become more competitive and innovative in the global market. The research presents the way 8 Greek companies from the metallurgy sector publish CSR activities and which dimensions of CSR are more common among Greek companies. The companies were selected according to a study of ICAP Group about CSR and Leading Employers in Greece. The findings reveal how Greek companies during the economic crisis make their effort to be more active especially on environmental issues, human resources, health and safety and contribution to local communities. The results of their efforts are controversial as far as their CSR strategy concerns.     

Risk management is part of good management

As the use of hazard and risk assessments becomes more commonplace, the need for and importance of an overall risk management system become apparent. Such a system allows companies to prioritize both their efforts to identify and understand risks and their allocation of resources to manage and control risks. In the future, the most effective risk management systems will be integrated into other business processes and management systems, to ensure that their value as well as their costs are recognized and measured by line operations. For example, chemical and petrochemical companies such as BP Exploration, Monsanto, and Union Carbide are improving on well-established risk management systems by increasing their businesses' involvement in and ownership of the process. This article summarizes the key elements of a risk management system and uses the lessons learned by various companies to define best existing and emerging practices.     

Building audits into tqem measurement systems at P&G

This article discusses an approach to building environmental compliance audits into an effective TQEM measurement system. With this approach, companies can move their existing programs from just “meeting the law” to being viewed as “leaders in environmental excellence.” The benefit of this change is that local communities are more likely to allow their environmental leaders the operating flexibility that minimizes cost and the necessary permits for expansion.     

Privatization and Europeanization: The Changing Context of Water Supply in Britain and France

This paper examines changes in the provision of water services, and in particular drinking water supply, in two Member States of the European Union, Britain England and Wales and France, by considering the impact of the twin processes of water service privatization and the Europeanization of environmental regulatory regimes. The paper demonstrates that in two nations with very different water service traditions, the articulation of these processes has led to profound shifts not only in management style but also in the perception of drinking water supply as a service to consumers. The British and French models are compared as are their responses to these twin processes. It is argued that while the British model has proved more responsive to the exigencies of European Union environmentalstandards,this has been at the expense of public confidence. In France, the existence of a well established traditional management style is, potentially, under greater long term threat from the growth of private water companies and the increasing importance of European legislation.     

The Diverse Values and Motivations of Vermont Farm to Institution Supply Chain Actors

Farm to institution (FTI) efforts aim to increase the amount of locally produced foods, typically fruits and vegetables, served by institutions such as schools, colleges, hospitals, senior meal sites, and correctional facilities. Scholars have cited these efforts as contributing to public health and community-based food systems goals. Prior research has found that relationships based on shared values have played a critical role in motivating and sustaining FTI efforts. We review previous studies, discussing values that motivate participation, and affect practices and relationships in FTI supply chains. We use semi-structured interviews to better understand supply chain actors’ values and motivations and how they affect behaviors, with the aim of informing efforts to increase the scope and effectiveness of FTI efforts. All participants are currently engaged in FTI efforts. We find a mix of social and economic values were present for farmers, distributors, and buyers. Our implications focus on the importance of shared values and relationships, the benefit of local food for businesses along the supply chain, and the potential of non-school institution markets as entry points for farmers.     

Women and community water supply programmes: An analysis from a socio-cultural perspective

Community water supply programmes are seen as instrumental in achieving the goal of ‘safe’ water for all. Women, a principal target group of these programmes, are to be benefited with greater convenience, enhanced socio‐cultural opportunities and better health for themselves and their families, provided through improved water facilities. Water supply programmes largely consist of three essential components, namely: technology, people and institutions. Although such programmes are intended to benefit women members of local communities, scant attention is paid to the impacts of the socio‐cultural context of the community on these programmes. This article explores the influence of social and cultural intricacies on the implementation of community water supply programmes, and assesses their effectiveness. The article offers important lessons for the design and implementation of this type of programme. It concludes that the local socio‐cultural context sets the stage for programme implementation, being a dynamic factor that determines actual access to water sources, more so than mere physical availability, which is often used as a criterion for programme performance. The article stresses the urgent need to integrate socio‐cultural factors as a fourth dimension in designing community water supply programmes, and suggests practical measures for enhancing the effectiveness of such programmes.     

Incorporating Agroforestry Approaches into Commodity Value Chains

The productivity of tropical agricultural commodities is affected by the health of the ecosystem. Shade tolerant crops such as coffee and cocoa benefit from environmental services provided by forested landscapes, enabling landscape design that meets biodiversity conservation and economic needs. What can motivate farmers to apply and maintain such landscape approaches? Rather than rely on a proliferation of externally funded projects new opportunities are emerging through the international market that buys these commodities. As part of their growing commitment to sustainable supply chains, major companies are supporting agroforestry approaches and requiring producers and traders to demonstrate that the source of their commodities complies with a set of principles that conserves forested landscapes and improves local livelihoods. The paper presents examples of international companies that are moving in this direction, analyzes why and how they are doing it and discusses the impact that has been measured in coffee and cocoa communities in Latin America and Africa. It particularly considers the role of standards and certification systems as a driver of this commitment to promote profitable operations, environmental conservation and social responsibility throughout the coffee and cocoa value chains. Such approaches are already being taken to scale and are no longer operating only in small niches of the market but the paper also considers the limitations to growth in this market-based approach.     

Company Engagement in Community‐Based Water Resource Projects: Improving Water Security

Companies have been increasing their focus on issues related to water availability and, more broadly, to water security. After focusing on reducing water use and/or increasing water efficiency in their operations, and then looking more broadly to understand their exposure to water‐related business risks, companies are beginning to look to their suppliers and their customers, as well as their local communities, to identify opportunities to create shared value. This article provides summaries of how several companies are engaging in community‐based water resource projects beyond their fence lines.     

Private and public interests in water and energy

Based on empirical evidence from developed, transition and developing countries, the article looks at how the introduction of private operators’ interests into the water supply/sanitation and energy sectors may conflict with public interests in socio‐economic, environmental and political dimensions. Case studies are used to illustrate the dynamics of these interactions, covering phenomena such as unsolicited proposals, misrepresentation and corruption; the exploitation of established positions by taking advantage of asymmetry of information and negotiating capacity in relation to public authorities; and exit from contracts or concessions when acceptable profitability cannot be attained. This experience indicates that the introduction of private companies into these sectors creates the permanent possibility of conflict between private and public interests. The services are too vital both socially and economically to rely on corporate self‐regulation, and countries lack effective capacity to regulate such corporations. The authors conclude that policies relying on corporate activity in these sectors are unnecessarily risky, and that policy development should focus on building strong public sector institutions to provide these services.     

Transforming time into money using water: A participatory study of economics and gender in rural India

When water supply improvements are coupled with opportunity to create income through micro–enterprises, time released from water collection is converted into income earned. This brings several benefits: reduced drudgery, higher household income, and, consequently, greater women's empowerment through changing gender relations within the household. This article documents the performance of one such scheme in Banaskantha District in the state of Gujarat in India, one of poorest districts in the state and the country. Here, due to the efforts of the Self–Employed Women's Association (SEWA), an Indian NGO, poor women are reaping the social and economic benefits of a government–run regional piped water supply scheme, a project funded by Dutch bilateral aid, focusing on women's development. If government policy–makers took the cue and formulated programmes and schemes that combined these two aspects, viz., actions that release time for rural women from daily chores (e.g., collecting water, fuel wood and fodder)and opportunities for sustainable micro–enterprises to convert time saved into income, this could become a reliable route out of rural poverty into gender–sensitive sustainable development.     

Transparency in global sustainability governance: to what effect?

ABSTRACT

Transparency in environmental governance is no longer an uncontroversial answer to problems of accountability and effectiveness. How to design effective transparency systems and in what policy contexts they are effective remain contested issues. This special section, consisting of this introduction and four research articles, interrogates complex and potentially conflicting links between transparency, accountability, empowerment and effectiveness in environmental governance. Building on existing literature and the four contributions, we discuss persisting diversity in varieties of transparency, the evolving dynamics of commodity chain transparency, and the consequences of emerging novel forms of digitalized transparency. As we show, the contributions to this special section interrogate in novel ways the transformative potential of transparency, through shedding light on the performative effects of transparency in ever more complex environmental governance contexts. These contexts may include, inter alia, the growing ubiquity of traceability in transnational commodity chains, the need for ever more anticipatory (ex-ante) forms of environmental governance, and an ever-broadening quest for digitally monitored environments. In particular, the impacts of the real-time ‘radical’ transparency engendered by use of novel digital technologies remain under-analyzed in the sustainability domain. We conclude by raising several critical concerns that deserve further scientific research and policy debate.     

LCA in Japan: A survey of current practices and legislative trends and comparison to the United States

Interviews were carried out with Japanese firms and environmental agencies regarding their current practices regarding life-cycle assessment (LCA). The results of this informal survey are compared with an executive survey of U.S. Fortune 500 companies. The findings show that Japanese LCA activity has increased rapidly over the past four years with several government agencies involved in LCA. Private industry has also founded LCA forums and recycling centers. The primary Japanese LCA interests include use in ecodesign and ecolabeling with the main environmental efforts focused on design for environment. Solid waste was identified as the most significant current environmental problem in Japan, in contrast to the United States where atmospheric and liquid discharges are ranked equally important. Neither the Japanese nor EPA plan to use LCA as a regulatory tool. This article summarizes several LCA case studies performed in Japan and lists the agencies involved in LCA development, ISO 14000, and ecoauditing/ecolabeling. Some recent Japanese legislation affecting LCA is also reviewed.     

Black and Smelly Waters: how citizen-generated transparency is addressing gaps in China’s environmental management

ABSTRACT

Information communication technologies (ICTs) generate new forums for transparency via governance-by-disclosure initiatives designed to improve environmental management and policy. Data generated by these programs are a means to empower citizens, narrowing the accountability gap between governments and people and enhancing public service. There is little empirical evidence, however, that supports the theory that citizen-generated data can be used to improve the accountability of local government officials. Citizen-led transparency efforts are emerging in China, as the country undergoes an information revolution that has brought ICTs to near ubiquity. We evaluate the transformative potential of a new ICT initiative, the ‘Black and Smelly Waters’ program, which China’s government launched to help enforce local government water remediation efforts. Many examples of citizen-generated transparency are grassroots initiatives, yet the Black and Smelly Waters program is distinct in its top-down structure. An empirical evaluation of preliminary data illuminates Black and Smelly Waters’s early successes and challenges as a means to generate transparency and accountability. We discuss these findings and propose a broad application of this new type of disclosure to reshape environmental management in China.     

From Trust to Trustworthiness: Why Information is not Enough in the Food Sector

The many well-publicized food scandals in recent years have resulted in a general state of vulnerable trust. As a result, building consumer trust has become an important goal in agri-food policy. In their efforts to protect trust in the agricultural and food sector, governments and industries have tended to consider the problem of trust as merely a matter of informing consumers on risks. In this article, we argue that the food sector better addresses the problem of trust from the perspective of the trustworthiness of the food sector itself. This broad idea for changing the focus of trust is the assumption that if you want to be trusted, you should be trustworthy. To provide a clear understanding of what being trustworthy means within the food sector, we elaborate on both the concept of trust and of responsibility. In this way we show that policy focused on enhancing transparency and providing information to consumers is crucial, but not sufficient for dealing with the problem of consumer trust in the current agri-food context.     

Corporate social responsibility, partnerships, and institutional change: The case of mining companies in South Africa

Internationally and in South Africa, mining companies are increasingly referring to corporate social responsibility (CSR) and partnerships in terms of the business case, or the expectation that being responsible and collaborating with stakeholders is good for profits. Based on a case study of platinum and chrome mining in South Africa, this article argues that the business case is circumscribed by companies’ institutional context. In the past, mining companies’ dominant interpretation of CSR has been in terms of charitable donations and support to good causes. These efforts have not alleviated the contribution of mining companies to growing social problems around the mines, primarily because they have not impacted on core business practices and have not contributed to necessary cross‐sectoral collaboration. Recently, however, there has been an important transition involving the broadening of the interpretation of CSR and increasing commitment to these issues amongst corporate leadership. Though market‐based incentives have contributed to this, the key driver has been the State's legislated transformation programme premised on State sovereignty over mineral resources. Hence, while the interrelationship between companies and their institutional context has, in the past, brought about a vicious cycle of irresponsibility and minimal collaboration, this cycle may be reversed into a virtuous one, driven in particular by the State. The broader implication is that references to a business case for CSR and partnerships cannot be relied upon independently of continued efforts at shaping the public sector context of companies.     

Perspectives on corporate social responsibility in the chemical sector: A comparative analysis of the Mexican and South African cases

In recent years, the debate on corporate responsibility has shifted from a focus on environmental management towards a broader concept of corporate social responsibility (CSR). This article examines the chemical industry's approach to CSR from the perspective of two emerging economies: Mexico and South Africa. The global chemical industry was one of the first to respond to public concerns about environmental pollution, toxic waste and human health by adopting an industry‐wide code of practice, known as Responsible Care. This article examines the extent to which the chemical industry has responded to the broader debate on CSR. On the basis of a comparative case study, this article argues that the response to social issues by Mexican and South African chemical companies has tended to be limited to the ‘community awareness and emergency response’ (CAER) or community dialogue component of the international voluntary management framework, Responsible Care. Similarities and differences in regulatory and institutional conditions, as well as different levels of civil society engagement, reveal additional limitations for CSR, beyond that of the Responsible Care framework. This article argues that the socio‐political context influences the extent to which companies embrace CSR, especially in emerging economies, and highlights several challenges for the chemical industry in moving forward on CSR: credibility, stakeholder engagement, value‐chain accountability, disclosure and transparency. Reflecting on these challenges, the authors conclude by recommending a renewed focus on: (1) developing a broader set of CSR management practices beyond Responsible Care; (2) institutionalizing stronger accountability measures, such as reporting and verification; and (3) developing multi‐stakeholder partnerships that complement regulation and build public sector regulatory and guidance capacity.     

Making sense of environmental accounting

Much as Total Quality Management (TQM) has helped companies decrease waste and enhance value, environmental accounting offers an approach and a suite of tools that can help organizations improve both environmental quality and bottom-line business performance. Its focus is to bridge the world of finance and economics with the world of environmental management. Companies in all sectors have discovered that they can increase profits by meeting and even surpassing environmental regulations. Through environmental accounting, companies can discover more of these opportunities and, ideally, bring environmental concerns earlier into planning, decision making, and operations. This article introduces environmental accounting and some basic principles that should guide organizations' thinking on environmental accounting and environmental accounting systems. It also describes several different objectives for environmental accounting that imply different requirements and orientations. Although the focus of this article is on environmental accounting as an aspect of forward-looking management and decision making in companies, much of the discussion applies to nonprofits and government units as well.