Subpolitics and sustainability reporting boundaries. The case of working conditions in global supply chains

2020 ◽  
Vol 33 (7) ◽  
pp. 1535-1567 ◽  
Author(s):  
Carla Antonini ◽  
Cornelia Beck ◽  
Carlos Larrinaga

PurposeThis paper explores the subpolitical role and main characteristics of a specific accounting technique, sustainability reporting boundaries. Its focus is on how the sett2ing of sustainability reporting boundaries affects the definition and distribution of social risks along the supply chain, particularly the risks related to working condition and human rights.Design/methodology/approachThe paper draws on Beck's (1986) exploration of the ways in which techno-economic spheres offer opportunities for the politicisation of new areas. It is argued that the sphere of sustainability reporting offers that opportunity for the politicisation of supply chains. Using the case of Inditex, the historical context of initiatives relating to the ready-made garment (RMG) industry at global, European and industry level as well as media coverage on the entity are analysed; this is correlated with the analysis of boundary setting in relation to sustainability reports, focusing specifically on working conditions.FindingsThe analysis suggests that accounting technologies that set contested boundaries are subpolitical, that is, defined outside traditional political processes. The paper finds that the way social risks are framed along the supply chain renders them invisible and impersonal and that the framing of these risks becomes endless as they are contested by different groups of experts. Setting sustainability reporting boundaries has subpolitical properties in producing and framing those risks, whilst is simultaneously limited by the inherent politicisation of such an exercise. The questionable legitimacy of sustainability reporting boundaries calls for the construction not only of discursive justifications but also of new possibilities for political participation.Research limitations/implicationsThe analysis is limited to working conditions along one organisation's supply chain.Originality/valueThe contribution of this paper is threefold: (1) It studies in-depth how working conditions in global supply chains are portrayed in sustainability reports. (2) It answers the call to study accounting technologies themselves, in this case sustainability reporting boundaries. (3) It extends Beck's work on global ecological dangers to working conditions in global supply chains to explore how sustainability reporting boundaries are subpolitically involved in the definition and distribution of social risks along the supply chain.

2017 ◽  
Vol 71 (4) ◽  
pp. 584-609 ◽  
Author(s):  
Sarah J Kaine ◽  
Emmanuel Josserand

While governance and regulation are a first step in addressing worsening working conditions in global supply chains, improving implementation is also key to reversing this trend. In this article, after examining the nature of the existing governance and implementation gaps in labour standards in global supply chains, we explore how Viet Labor, an emerging grass-roots organization, has developed practices to help close them. This involves playing brokering roles between different workers and between workers and existing governance mechanisms. We identify an initial typology of six such roles: educating, organizing, supporting, collective action, whistle-blowing and documenting. This marks a significant shift in the way action to improve labour standards along the supply chain is analysed. Our case explores how predominantly top-down approaches can be supplemented by bottom-up ones centred on workers’ agency.


Author(s):  
Bodo B. Schlegelmilch ◽  
Magdalena Öberseder

Despite all technological advances, global supply chains are always based on the interaction of people. And wherever people interact, a kaleidoscope of ethical issues emerges. While consumer demands and concerns have undoubtedly led to an increased awareness of unethical conduct in the supply chain, contravening forces, such as the relentless pressures for low cost products and the ease by which consumers are purchasing non-deceptive counterfeits, should also not be ignored. Many retailers are now embracing ethical issues by emphasising, for example, that they take care of the production methods and working conditions pertaining to the goods they offer.


2019 ◽  
Vol 27 (1) ◽  
pp. 130-147
Author(s):  
Tony Cragg ◽  
Tom McNamara ◽  
Irena Descubes ◽  
Frank Guerin

Purpose The purpose of this paper is to investigate how small manufacturing firms develop and manage relationships with global suppliers and distributors. In so doing the authors aim to contribute to knowledge about SMEs and supply chain management (SCM). Design/methodology/approach The authors conducted 12 in-depth case studies of SME final assemblers of machinery in the French farm equipment sector. Findings The most effective form of global supply chain governance used by successful SMEs is informal networks involving managers in similar complementary firms, which serve to concatenate links with foreign suppliers and distributors. Research limitations/implications The principal limitation of this research is that it is specific to one sector and therefore questions of transferability are raised. Practical implications The important implication for managers in manufacturing SMEs is that links with other complementary local firms in the same sector need to be developed, leveraged and valued. Originality/value The originality of this case research is that the authors draw on inter-organisational boundaries, power asymmetries and network governance to develop a conceptual framework for the study of SMEs and global supply chains. By focusing on the perceptions of boundary-spanning managers, the authors show how, in circumstances of demand uncertainty, soft network governance is an effective strategic choice.


2020 ◽  
Vol 40 (10) ◽  
pp. 1649-1660 ◽  
Author(s):  
Robert B. Handfield ◽  
Gary Graham ◽  
Laird Burns

PurposeUsing the constructal law of physics this study aims to provide guidance to future scholarship on global supply chain management. Further, through two case studies the authors are developing, the authors report interview findings with two senior VPs from two multi-national corporations being disrupted by COVID-19. This study suggests how this and recent events will impact on the design of future global supply chains.Design/methodology/approachThe authors apply the constructal law to explain the recent disruptions to the global supply chain orthodoxy. Two interviews are presented from case studies the authors are developing in the USA and UK – one a multi-national automobile parts supplier and the other is a earth-moving equipment manufacture. Specifically, this is an exploratory pathway work trying to make sense of the COVID-19 pandemic and its impact on supply chain scholarship.FindingsAdopting the approach of Bejan, the authors believe that what is happening today with COVID-19 and other trade disruptions such as Brexit and the USA imposing tariffs is creating new obstacles that will redirect the future flow of supply chains.Research limitations/implicationsIt is clear that the COVID-19 response introduced a bullwhip effect in the manufacturing sector on a scale never-before seen. For scholars, the authors would suggest there are four pathway topics going forward. These topics include: the future state of global sourcing, the unique nature of a combined “demand” and “supply shortage” bullwhip effect, the resurrection of lean and local production systems and the development of risk-recovery contingency strategies to deal with pandemics.Practical implicationsSupply chain managers tend to be iterative and focused on making small and subtle changes to their current system and way of thinking, very often seeking to optimize cost or negotiate better contracts with suppliers. In the current environment, however, such activities have proved to be of little consequence compared to the massive forces of economic disruption of the past three years. Organizations that have more tightly compressed supply chains are enjoying a significant benefit during the COVID-19 crisis and are no longer being held hostage to governments of another country.Social implicationsAn implicit assumption in the press is that COVID-19 caught everyone by surprise, and that executives foolishly ignored the risks of outsourcing to China and are now paying the price. However, noted scholars and epidemiologists have been warning of the threats of pandemics since the severe acute respiratory syndrome (SARS) virus. The pundits would further posit that in their pursuit of low-cost production, global corporations made naive assumptions that nothing could disrupt them. Both the firms the authors have interviewed had to close plants to protect their workforce. It was indicated in the cases the authors are developing that it is going to take manufacturers on average one month to recover from 4–6 days of disruption. These companies employ many thousands of people, and direct and ancillary workers are now temporarily laid off and face an uncertain future as/when they will recover back to normal production.Originality/valueUsing the constructal law of physics, the authors seek to provide guidance to future scholarship on global supply chain management. Further, through two case studies, the authors provide the first insight from two senior VPs from two leading multi-national corporations in their respective sectors being disrupted by COVID-19. This study is the first indication to how this and recent disruptive events will impact on the design of future global supply chains. Unlike the generic work, which has recently appeared in HBR and Forbes, it is grounded in real operational insight.


Author(s):  
Eugenia Rosca ◽  
Guido Möllering ◽  
Arpan Rijal ◽  
Julia Christine Bendul

Purpose The purpose of this paper is to explore mechanisms of supply chain inclusion in Base of the Pyramid (BOP) settings. It distinguishes micro-, small- and medium-sized enterprises (MSME)-led local supply chains on the one hand and multinational enterprises (MNEs)-led global supply chains on the other hand. This paper aims to answer the following research question: Which mechanisms of supply chain inclusion are employed empirically by MSMEs and how can these mechanisms influence social impact creation in MNE-led global supply chains? Design/methodology/approach A large-scale empirical study of MSMEs operating in BOP markets is performed and a cluster analysis conducted to systematically categorize supply chain inclusion. The cluster analysis and current literature yield theory-based implications for MNE-led global supply chains. Findings The cluster analysis reveals three meaningful clusters of supply chain inclusion in BOP markets and highlights two main aspects. They include direct vs indirect mechanisms of inclusion and diversity in supplier relationships with local organizations aimed at either “sourcing” local capabilities needed for inclusion or “outsourcing” the inclusion. Based on these aspects, two scenarios are proposed and evaluated for local-global supply chain symbiosis. Research limitations/implications This study aims to contribute to the existing literature with a more fine-grained understanding of the inclusion of BOP actors in local supply chains and by proposing alternative trajectories for global supply chain inclusion. Practical implications The findings outline several important decisions that managers need to make to include BOP actors in supply chain activities. Originality/value This paper contributes a novel, combined perspective of local supply chains (MSMEs) and global supply chains (MNEs).


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marlene M. Hohn ◽  
Christian F. Durach

PurposeFocusing on the apparel industry, this study extends current knowledge on how additive manufacturing (AM) may impact global supply chains regarding structures of interorganizational governance and the industry's social-sustainability issues.Design/methodology/approachFollowing an exploratory research design, two consecutive Delphi studies, with three survey rounds each, were conducted to carve out future industry scenarios and assess AM's impact on supply chain governance and social sustainability.FindingsThe implementation of AM is posited to reinforce existing supply chain governance structures that are dominated by powerful apparel retailers. Retailers are expected to use the increased production speed and heightened market competition to enforce faster fashion cycles and lower purchasing prices, providing a grim outlook for future working conditions at the production stage.Social implicationsAgainst the common narrative that technological progress increases societal well-being, this study finds that new digital technologies may, in fact, amplify rather than improve existing social-sustainability issues in contemporary production systems.Originality/valueThis article contributes to the nascent research field of AM's supply chain impact as one of the first empirical studies to analyze how AM introduction may impact on interorganizational governance while specifically addressing potential social-sustainability implications. The developed propositions relate to and extend the resource dependence and stakeholder perspectives on governance and social sustainability in supply chains. For managers, our results enrich the discussion about the potential use of AM beyond operational viability to include considerations on the wider implications for supply chains and the prevailing working conditions within them.


2021 ◽  
Vol 6 (2) ◽  
pp. 195-215
Author(s):  
Hannah Thinyane ◽  
Michael Gallo

State lockdowns and travel restrictions introduced in response to COVID-19 have limited the ability of frontline responders to conduct on-site visits and inhibited their efforts to assess working conditions and monitor for labour exploitation within global supply chains. These challenges have increased multinational corporations’ reliance on remote technologies to assist in their supply chain due diligence processes. Our research investigates the use of one such example, Apprise Audit, which is a digital solution used for worker interviews in social compliance auditing that was modified to enable remote data collection. Based on a series of interviews with implementing partners and industry experts, our research finds that Apprise Audit Remote helps to overcome the difficulties of gathering worker feedback in the presence of COVID related constraints. Using this work as a case study, we then further elaborate on the practical opportunities and limitations associated with ICT-enabled remote auditing.


2015 ◽  
Vol 5 (1) ◽  
pp. 1-7 ◽  
Author(s):  
Pankaj Kumar Medhi ◽  
Sandeep Mondal

Subject area Supply chain management (SCM). Study level/applicability Graduate students. Case overview In recent times, the world market of mobile phone is in a flux due to many phenomena of importance like strong emergence of smartphones, Nokia losing market share in all segments of market and fast technological and supply chain innovation by players like Apple and Google. Elements of SCM and the way technology is acquired have assumed a place of importance to compete in the global market. A new standard of innovation and SCM is emerging together as the rules of market dominance are re-written all-over again. Expected learning outcomes After completion of the case study, the students will understand: role of technological innovation in high-tech industry and global supply chains in changing the consumer behavior world over; the classic battle for market dominance with a new way of innovation management in technology and processes to create most efficient global supply chains; importance of SCM practices of collaboration like tighter partner integration, use of power asymmetry and contract by dominant players to create efficient supply chains; and how visionaries like late Steve Job are shaping the new era of technology. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email: [email protected] to request teaching notes.


2019 ◽  
Vol 15 (1) ◽  
pp. 131-148 ◽  
Author(s):  
Marcelo J. Alvarado-Vargas ◽  
Keith J. Kelley

Purpose Using a phenomenon known as the bullwhip effect, the authors explore why additional uncertainty in the marketplace can create severe disruptions in global supply chains (GSCs). The purpose of this paper is to analyze related risks in regional vs GSCs during low and high levels of uncertainty. The authors propose and discuss a number of potential implications alongside some tactics that may help mitigate disruptions in some cases before they become terminal problems for the supply chain sustainability. Design/methodology/approach Monte Carlo simulation is used to generate the conditions of uncertainty and various scenarios that may emerge to challenge GSCs. Vensim software is utilized as a tool for simulation purposes. The authors considered scenarios applicable to manufacturing and retail sectors specifically because of storability property of goods. Findings Regional supply chains, as opposed to global ones, are more stable and reliable (less risk of disruption) during low and high levels of uncertainty. During uncertain times, upstream suppliers are at greater risk in GSCs. Firms must make strategic decisions that will secure its supply chain functionality and assess the likelihood of such events since many firms entered emerging markets. Originality/value Building on internalization theory, it shows that risk and survival are components of decision making that are further complicated by supply chains now operating globally in emerging markets. The paper demonstrates with simulation that GSCs are riskier than regional supply chains in low and high levels of uncertainty, particular as it relates to the bullwhip effect. It also provides recommendations about supply chain restructure and investments in communication improvements to reduce the bullwhip effect in the supply chain.


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