Socially Responsible supply chain

Greetings!!

This blog is an introduction about socially responsible supply chain practices, how it impacts the industry and its collaboration in the sustainable market. I'm Suriya kumar, pursuing MBA and specializing in operations management.

Why a social entreprise?

• Tranform a core businees activity into a responsibility
  
• Companies implement social supply chain and social procurement methods in their purchasing of goods and service and aim to maximize the profits to create a societal impact.
• Achieve environmental sustainability and social outcomes.
• To gain competitive advantage in their recruitment and retention of staff methods and brand reputation through its social supply chain practices
• Committed  to generate social and environment solution and use their profits to improve lives and tackle social problems
• Triple bottom line profits

"To prosper over time, every company must not only deliver financial performance but also show how it makes a positive contribution to society" - Laurence D. Fink, CEO of Blackrock

By encorporating social values in operations, supply chain and procurement we can achieve a sustainable future and many business benefits along with the social benefits.

3 pillars for social supply chain strategy

1. Enhance Reputation

• Fair and transparent trade practices 
• Operating with integrity
• Paying suppliers on time

       2. Mitigate key supply chain risk

• Zero contamination in landfills between waste and environment
• Modern slavery, bribe, corruption
  
• Carbon footprint reduction    

 3. Drive commercial value

• Achieve cost savings
• Innovation, diversity and creativity that an usual supply chain is not having 
• Collaboration with other social enterprise

The supply chain's impact in sustainability

 

Source: https://www.mckinsey.com/business-functions/sustainability/our-insights/starting-at-the-source-sustainability-in-supply-chains#

      The world is changing, to take steps for solving and viewing responsible sourcing as a great opportunity to strengthen supply chain, mitigate risks and develop trust in the market. 

    Many companies have started to concentrate more on social supply chain, for which they have challenging obstacles to face and overcome them.

Some of the companies which has started to implement social value in supply chain are

Nestle - Promote animal welfare, human rights, natural capital (source: https://www.nestle.com/csv/raw-materials)

Unilever - Sustainable farming practices (source: https://www.youtube.com/watch?v=kMlANrJMF-s&feature=emb_logo)

Intel - Mineral sourcing (source: https://www.intel.co.uk/content/www/uk/en/corporate-responsibility/responsible-minerals.html)

Hence the future is changing and more use of technology is implemented we have to strategize supply chains for aiming sustainability and maximizing benefits and make the supply chain socially responsible.