Supply Chain: The Insights You Need from Harvard Business Review

13 A MORE SUSTAINABLE SUPPLY CHAIN

by Verónica H. Villena and Dennis A. Gioia

In recent years a rising number of multinational corporations (MCNs) have pledged to work only with suppliers that adhere to social and environmental standards. Typically, these MNCs expect their first-tier suppliers to comply with those standards, and they ask that those suppliers in turn ask for compliance from their suppliers—who ideally ask the same from their suppliers. And so on. The aim is to create a cascade of sustainable practices that flows smoothly throughout the supply chain, or, as we prefer to call it, the supply network.

It’s an admirable idea, but it’s been hard to realize in practice. Many of the MNCs that have committed to it have faced scandals ...