Incorporating sustainability into supply management in the automotive industry – the case of the Volkswagen AG |
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| Affiliation: | 1. Volkswagen AG, Group Research, Environmental Strategy, Letterbox 1774/3, 38436 Wolfsburg, Germany;2. Supply Chain Management Center, Institute of Business Administration, Carl von Ossietzky-University Oldenburg, Uhlhornsweg, D-22111 Oldenburg, Germany;1. Institute of Systems Sciences, Innovation and Sustainability Research, University of Graz, Merangasse 18/I, 8010 Graz, Austria;2. MAGNA Steyr Engineering AG & Co KG, Graz, Austria;1. Chair of Logistics Management, University of St.Gallen, Dufourstr. 40a, St. Gallen, Switzerland;2. School of Business, Worcester Polytechnic Institute, 100 Institute Road, Worcester, MA 01609-2280, USA;1. Ca’Foscari University of Venice, Department of Management, Venice, Italy;2. US Army Corps of Engineers Research and Development Center, Concord, MA, USA;3. Ca’Foscari University of Venice, Department of Environmental Sciences, Informatics and Statistics, Italy;4. Carnegie Mellon University, Pittsburgh, PA, USA;1. Department of Mechanical Engineering, National Institute of Technology, Kurukshetra 136119, India;2. Department of Mechanical Engineering, Faculty of Engineering and Technology, Jamia Millia Islamia University, New Delhi 110025, India;1. Center for Engineering Operations Management, Department of Technology and Innovation, University of Southern Denmark, Odense M , Denmark;2. Department of Production Engineering, National Institute of Technology, Tiruchirappalli, India |
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| Abstract: | Companies are perceived as important actors in the drive for sustainability. Linked to this, and in response to increasing demands from various stakeholder groups, companies start to look at their supply chain to enhance their overall sustainability profile. Two major triggers can be identified: (1) focal companies are held responsible for environmental and social problems caused by their suppliers, which become more and more important as (2) an increasing share of value is created at the supplier level. In response to such demands, companies have to find ways to incorporate environmental and social aspects into their supply (chain) management. Therefore, environmental and social standards are integrated into supply management by amending the purchasing processes. This paper presents one approach to integrate social and environmental standards into supply policy and supply management at the Volkswagen AG, a focal company of the automobile industry. Therefore, required changes of the sourcing and supply structures were identified during an action research project, and possible options adaptable for company internal integration are shown. |
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