SCM Chpt. 13 -Sustainable Supply Chain Management-
Environmental Sustainability
Preservation of diverse biological systems that remain productive over time Deals with Pollution or Resource depletion issues
Ethics
Promoting a corporate culture that fosters truthful and fair conduct between all stakeholders
Financial Return
Raise capital, companies must provide investors and lenders with a competitive return on investment (ROI)
External Context
pertains to government and market-based influences.
Internal context
pressure to increase revenue and pay dividends to shareholders, mission statements, dominant strategies, organizational structures, decision-making procedures and operating systems within each business unit of a corporation
Reasonable care ethic
takes available measures to eliminate foreseeable risks either by designing out the risk or providing protection against the risk
Minimalist Ethic
views precautions as worthwhile simply to avoid liability
Transparency
Visibility. Companies that care about the info needs of others are transparent with them
Principles of Sustainability (9)
1) Ethics 2)Governance 3)Transparency 4)Business Relationships 5)Financial Return 6)Community Involvement and Economic Development 7) Value of Products and Services 8)Employment Practices 9)Protection of the Environment
Sustainability
Defined as meeting present needs without compromising the ability of future generations to meet their own needs
Employment Practices
Diverse workforce with competitive wages and ample time away from work creates a more productive workforce
Revenue
Financial Value can be created by lowering operating costs through the adoption of more energy- efficient technology
Good Works Ethic
Goes beyond what is legally required to take affirmative steps to discover potential hazards and proactively safeguard society against them
Payoffs that come with improving Sustainability performance (4)
1)Financial payoffs 2)Customer related payoffs 3)Operational payoffs 4)Organizational payoffs
"Cost- Oriented" Environmental Management
Considers environmental regulations as simply a cost of doing business
Protection of the Environment
All corporations must comply with applicable environmental laws
"Crisis- Oriented" Environmental management
Considers the purpose of management to protect and enhance business performance in terms of making more money
Business Relationships
Companies should treat all suppliers, Distributors, and partners fairly
Value of Products and Services
Companies typically state a general commitment to customer satisfaction
Governance
Concerns the conscientious execution of duties held by corporate board members and managers
Community Relations
Failure to operate a company sustainably can lead to stigma and lost trust from the community
Community Involvement and Economic Development
Improves the economic welfare of the community in which the company does business
Social Sustainability
Involves maintaing societies' long-term well- being
Performance Standard
Legal Compliance - Specifies the amount of permissible pollution
Design Standard
Legal Compliance - Specifies the type of technology necessary for the pollution source to be in compliance with the regulation
Ethical Responsibility
Sense of moral obligation to preserve life
