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Lecture 9: Sustainability (Social and Ecological Issues in Selected Supply…

- - - - Rana Placa (Slide 6)
      - Alternatives (Slide 7)
      - Campaigns promoting sustainability (Slide 8)
  - - - Phosphorus is one of the main ingredients of fertilizers.
      - Maximum reached in 2023
      - CO2-equivalent Emissions from Producing Different Types of Food
      - Total Water Footprint
    - - Animal Welfare
      - Biotechnology
      - Health and Security
      - Labor and Human Rights
      - Fairtrade
      - Environment
      - Community
      - Procurement
  - - - Raw Material (Slide 20)
        
        Raw Material Extraction:
        
        Scarce
        Resources
        
        Toxic
        Chemicals
      - Consumption (Slide 22)
        
        Digital Divide - Technology infrastructure
        
        Energy
        Consumption
      - Production (Slide 21)
        
        Global “Race to
        the Bottom”
        
        Young, Flexible,
        Female
        
        “Union-Free”
        ones
      - Disposal (Slide 23)
        
        Mountains of
        Rubbish
        
        Illegal
        Exports
        
        Scrapping in
        the South
  - - - Raw Material HealthyStuff.org (2012)
        
        Level of Toxic Chemicals in the iPhone 5
      - Production
        CNET (2012)
        
        Riots, Suicides, other Issues in Foxconn’s iPhone Factories
      - Consumption
        iFixit (2012)
        
        Complex design makes it impossible to replacing components in the Iphone
      - Disposal
        CNET (2012)
        
        The Environmental
        Pitfalls at the End of an iPhone’s Life
- - - - Synergies and Conflicts between the
        Pillars of the Triple Bottom Line
        (Slide 34)
    - - Legal: First, there are supply chains that operate within legal limits and comply with agreed-upon contractual requirements. All partners in these supply chains must follow, for example, established legal, building, and environmental standards. These supply chains focus on doing what is legally required. Legal requirements for supply chains continue to evolve.
      - Ethical: Next come ethical supply chains. These focus on how organization ought to behave. All supply chain partners might be expected to exceed legal minimums through, for example, compliance with a code of conduct or adhering to broader voluntary principles, such as fighting corruption. Ethical supply chains expect all partners to honorable conduct their business.
      - Responsible: Third, there are supply chains that operate responsibly. Partners in these supply chains are committed to continual improvement, considering stakeholder interests, and making positive contributions in their communities. This could, for example, include implementing efficiency-oriented improvements or investing in capacity-building initiatives in local communities. Responsible supply chains focus on making things better. Supplier-assessment questionnaires often focus on what suppliers are doing with respect to these issues.
      - Sustainable: Last are sustainable supply chains. These require that all partners behave legally, ethically, and responsibly. However, they must also consider how their actions are situated in the broader sustainability context. A supply chain is sustainable only if its activities can be supported by nature and society over the long term. This is what the other strategies miss. Sustainable supply chains focus on doing what lasts by operating within established thresholds that recognize the limits of environmental and social resources in varying contexts.
    - - Instrumental Logic:
        
        How can a supply chain benefit from addressing environmental
        or social issues?
        
        One construct, sustainability, influences another, economic
        performance, e.g. profits.
        
        Economic performance is the goal, not sustainability!
        
        What can existing firms do to reduce their harm while
        increasing their profits?
        
        Research usually conducted from the perspective of a focal
        firm, not supply chain.
      - Ecologically Dominant Logic:
        
        How can a supply chain become sustainable?
        
        When trade-offs are inevitably encountered, the priority is the
        environment, then society and only then profits.
  - - - Substitutable products carry very different amounts of CO2.
      - It is not the product itself, but its supply chain that has a negative
        environmental impact (“CO 2 rucksack” of the product).
      - Note: Margarine can be much worse than butter, if it is made from
        rainforest-killing palm oil rather than from sun flowers.
  - - - Responsibility of an organisation for the impacts of its decisions and activities on the environment and society that...through transparent and ethical behaviors (ISO (2010))
        
        ...contributes to sustainable development including health and the welfare of society
        
        ....takes into account the expectations of the stakeholders
        
        ...is in compliance with law and consistent with international norms of behaviour
        
        ...is integrated throughout the organisation and practiced in its relationship.
      - Social Responsibility Core Subjects, ISO 26000
        Holistic and interdependence approach
        
        Human Rights
        
        Labour Practices
        
        The Environment
        
        Fair Operating Practices
        
        Consumer Issues
        
        Community involvement and development
        
        Organisational Governance
- - - - Tier 1
        Suppliers
      - Tier 2
        Suppliers
      - Products
      - Auditing Products instead of Suppliers: Questionnaire sent to suppliers usually contain questions like:
        
        “Does your organisation have an environmental policy in place?”
        
        “Does your organisation have an environmental management system (EMS) in place?”
        
        It has been criticized that such questions lead to bureaucracy, as they are taking a lot of time from both parts while adding little transformative value to the real environmental impacts of the products.
        An alternative question for suppliers could be about the product:
        “Send me the environmental product declaration (EPD) of your product and your plan to radically improve it”.
    - - Upstream
        Suppliers to
        Your Enterprise
      - Downstream
        Supply Chain
        to Customers
      - Activities Using
        Electronic
        and Smart Technologies
    - - Across Your
        Industry
      - With Local
        Partners
      - With
        Universities
  - - - Fair Wear Foundation
        “Fair Wear Foundation (FWF) is an independent, non-profit
        organisation that works with companies and factories to improve
        labour conditions for garment workers..”
        Slide 69