The article in the url link below appeared recently in a special insert in the NYT titled ‘Business of Green.’ The supplement focused mostly on the business benefits of environmental sustainability by cutting costs within the firm, but this article extends the sustainability logic into a firm’s supply chain (Issues: Auditing CSR, p94; Country of Origin, p223):
“Call it Phase 3 of the greening of corporate America. Companies have turned to alternative energy, bought hybrid fleets and otherwise tried to clean up their own acts. Many have helped customers go green by stocking green products, selling carbon offsets along with airline tickets or offering electricity from renewable resources for those willing to pay extra. Now they are looking at their supply chain as the next frontier for combating climate change.”
Proactive efforts on in-house sustainability are one thing; setting a high bar and then expecting the same level of commitment from your suppliers is another level of implementation of a social responsibility perspective:
“In September, Wal-Mart announced a pilot program with suppliers of seven common items -- DVDs, toothpaste, soap, milk, beer, vacuum cleaners and soda -- to measure and reduce the amount of energy used in making and distributing them. In marketing and store displays, Home Depot gives preferences to its EcoOptions line of environmentally friendly products, and the company has said it would favor suppliers that came up with a new category of green product, like a recyclable power tool.”
There are a number of interesting questions that emerge from this debate: How many firms are really thinking about this issue at this stage? What are the benefits for those firms that make these demands of their suppliers and what costs to those that do not? And, How far down the supply chain can firms realistically be held responsible for actions over which they have no direct operational control? Most important, perhaps, is ensuring that the demands firms place on their suppliers regarding costs (i.e., as low as possible) do not conflict with expectations regarding sustainability policies, which often involve an upfront investment (CSR Business Plan of Action—Short Term: Awareness Creation: Measurement and Rewards, p71).
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
For Suppliers, the Pressure Is On
By CLAUDIA H. DEUTSCH
1558 words
7 November 2007
The New York Times
Late Edition - Final
1
http://www.nytimes.com/2007/11/07/business/businessspecial3/07Supply.html
