Mapping Social Sustainability In Supply Chain Processes: A Literature Review by
Ha H. Ta Ph.D. Student Department of Marketing & Logistics College of Business Administration Georgia Southern University P.O. Box 8154 Statesboro, GA 30460 Phone: (504) 638-2786 Email:
[email protected] and
Monique L. Ueltschy Murfield, Ph.D. Assistant Professor Department of Marketing & Logistics College of Business Administration Georgia Southern University P.O. Box 8154 Statesboro, GA 30460 Phone: (912) 478-5746 Email:
[email protected]
Council of Supply Chain Management Professionals Educators’ Conference 2013 Submitted as: Extended Abstract
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Mapping Social Sustainability in Supply Chain Processes: A Literature Review INTRODUCTION Sustainable supply chain management (SSCM) includes the social sustainability, economic viability and environmental sustainability of a firm’s supply chain, and has important implications for firms’ survival and long-term development (Carter and Rogers 2008). The business world has witnessed many examples of companies’ failures for neglecting social issues, such as Enron’s collapse after the scandal of business ethics, Nike customers’ boycott as a result of abusive labor practices (Porter and Kramer 2006), and recent issues of workers’ health at Apple’s suppliers (Winter and Knemeyer 2013). The consequences of disregarding social sustainability can be exorbitant to a firm’s bottom line, detrimental to its customer goodwill, and even result in its demise. Benefits of achieving social sustainability include cost reduction, productivity improvement, and sources of potential competitive advantage such as improved firm reputation, innovation, or differentiation (Carter and Rogers 2008). Despite its importance, social sustainability remains underdeveloped in both practice and literature. Organizations continue the struggle to define and understand social sustainability, not to mention use it strategically to attain a competitive advantage (Porter and Kramer 2006). Additionally, research on social aspects of SSCM is lacking (Ashby et al. 2012). A lack of a clear definition and conceptualization further exacerbates the situation. As supply chain management involves integration across firms and functions (Lambert, García-Dastugue, and Croxton 2005), companies are held responsible for practices of their supply chain members (Roberts 2003). Because “a company is no more sustainable than its supply chain” (Krause et al. 2009) social sustainability should be incorporated into the management of supply chain processes. However, this integrated view remains unexplored in extant literature.
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To further understand social sustainability in a supply chain context, this paper aims to address the following research question: How has the integration of social sustainability in supply chain processes been addressed in previous research? The paper makes two contributions. First, it defines and operationalizes supply chain social sustainability. Second, using the supply chain process framework developed by the Global Supply Chain Forum (GSCF) (Lambert et al. 2005), this paper explores how social sustainability has been and should be integrated into supply chain processes, identifying gaps in current supply chain research. DEFINING SUPPLY CHAIN SOCIAL SUSTAINABILITY Researchers have addressed social sustainability at the macro-society, organizational and supply chain level. The central theme is that social sustainability denotes the remaining element dedicated to “people” and human society after taking economic and environmental dimensions out of the sustainable framework. Social sustainability, as such, entails minimizing the impact of businesses on human society, improving the quality of life for various stakeholders and increasing long-term social development (Mohr, Webb, and Harris 2001). Supply chain social sustainability is one dimension of SSCM. As defined by Carter and Rogers (2008, p.368), SSCM is “the strategic, transparent integration and achievement of an organization’s social, environmental, and economic goals in the systemic coordination of key inter-organizational business processes for improving the long-term economic performance of the individual company and its supply chains.” The social dimension of SSCM deals with aspects of supply chain processes that “affect human safety, welfare and community development” (Klassen and Vereecke 2012, p.103). Incorporating the existing literature and adapting Carter and Rogers’ (2008) definition, this paper defines supply chain social
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sustainability as the integration and achievement of social goals in the management of supply chain processes to improve quality of life for stakeholders and the community at large. Due to its complex and ambiguous nature, researchers have proposed a variety of indicators to assess social sustainability. Adapted from Labuschagne, Brent, and Van Erck (2005), Table 1 provides a summary of literature on social sustainability’s indicators, ranging from the societal level to corporate level. Common indicators across the literature are grouped into four subsets presented in Figure 1. Specifically, employment practices, referred to as internal human resources (Labuschagne et al. 2005) or labor practices (i.e. GRI; ISO 26000), concern any aspects of employment inside the walls of the firm (Reimann et al. 2012). In contrast, community relations refer to social activities beyond boundaries of the firms (Reimann et al. 2012). Ethics refer to firms’ behaviors to engage in fair business practices (Caroll 1979), and more broadly to “behaviors that are in accordance with accepted principles of right or good conduct in the context of a particular situation” (ISO 26000). Finally, product responsibilities refer to the effects of products and services on customers and society (GRI 2002). METHODOLOGY A structured literature review was conducted to identify common themes and key gaps across existing research. Figure 2 summarizes this process, which resulted in 78 articles included in the analysis. The articles were then classified based on content and keywords into the four above-mentioned social sustainability dimensions (Figure 1) and eight supply chain processes (which are discussed next and shown in Table 2). MAPPING SOCIAL SUSTAINABILITY IN SUPPLY CHAIN PROCESSES Among five supply chain management frameworks identified in extant literature, the GSCF framework and the Supply Chain Operations References (SCOR) framework are the most 3
prominent (Lambert et al. 2005). However, due to the limited scope of the SCOR model, for example, a lack of a customer-oriented interface and research and product development activities, this paper adopts the GSCF supply chain process framework for our literature review analysis (see Table 2). Tables 3 and 4 present results of the literature analysis across the social sustainability dimensions and supply chain processes. The predominance of articles examined aspects related to supplier relationship management and manufacturing flow management, which also holds true for research in general sustainability (Winter and Knemeyer 2013). Although Winter and Kneymeyer (2013) found sustainability research to be largely focused on the returns management process, results of this systematic review suggest social sustainability research focuses largely on order fulfillment. This difference is due to the fact that the environmental aspect of the returns management process, including reverse logistics, has gained considerably more attention in supply chain research than the social aspect of sustainability. Finally, most social sustainability research reviewed focused on employment practices, ethics and community relations, with product responsibilities largely neglected. These findings highlight significant gaps in extant literature. In particular, all four dimensions should be addressed in research related to customer service (CS) and customer relationship management (CRM) processes. Specifically, given customers are likely to pay attention to the employment practices of a firm and its supply chain (Emmelhainz and Adams 1999), and customers also exert pressure on firms to take the interest of community and general society into account (Carter and Jennings 2004), researchers should examine effects of the employment practices and community relations dimensions on CS and CRM processes. Additionally, research has found that the ethical upholding in firms within a supply chain is not only driven by top managers’ and employees’ values, but also by customer pressure (Carter and
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Jennings 2004). Therefore, ethics of firms in a supply chain are likely to affect their customer relationships, and should be further incorporated into future research in these areas. Finally, CS and CRM processes are linked to the product responsibilities dimension, as problems with product safety or product quality can induce severe harm to customers and the society (Roth et al. 2008). CONCLUSION AND IMPLICATIONS FOR FUTURE RESEARCH Given the continuing growth of research and managerial interest in the integration of social sustainability and supply chain management, and the lack of research specifically dedicated to social sustainability, this type of work is valuable to assess the current state of the domain and identify opportunities for future research. As proposed throughout the paper, a number of research opportunities are awaiting future inquiry. A downstream focus on social sustainability and the aspects of supply chain management related to the product responsibilities are fertile areas for future research. Additionally, papers that systematically address multiple supply chain processes and multiple social sustainability dimensions are called for given their shortage in extant literature (see Table 5). Specifically, future research might consider the following research questions:
What drives or inhibits social sustainability considerations within each supply chain process? Does supply chain social sustainability result in improved performance? What factors may affect supply chain social sustainability evaluation? Do these factors differ across cultures?
The findings and identified research opportunities from this work are intended to instill some interest among researchers to conduct future research in supply chain social sustainability and help companies and society address this important issue.
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TABLE 1 SOCIAL SUSTAINABILITY INDICATORS PROPOSED BY CURRENT FRAMEWORKS Criteria Framework and subthemes
UNCSD (2001) Global Reporting Initiative (2002) Wuppertal Indicators (Spangenberg and Bonniot 1998) Dow Jones Sustainability index (Knoepfel 2001)
Society
Company Security/ Basic needs/ Justice
Equity
Health & Education
Housing/ Living condition
x
x
x
x
x
x
x
x
x
x
x
x
x
ISO 26000 (2010)
x
x
x
Sachs (1999)
x
x
x
Population/ Human rights/
Community development
x
x
Dillard et al (2009) Proposed framework
x
x
x x
x
x
x
Philanth ropy
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Human Rights
x
x
x x
Ethics
Product responsibi lity /R&D
Macro social perfor mance
x
x
x
Bansal (2005) Labuschagne et al. (2005)
x
Health and safety
x
Caroll (1979) Carter &Jennings (2002, 2004)
Labor practices (diversity, equity)
x
x x
Stakeholder participa tion
x
x
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x x
x
x
x
x
x
x
x
x
x
x
x
x
x x
x
TABLE 2 EIGHT SUPPLY CHAIN PROCESSES OF THE GSCF FRAMEWORK
Supply chain management process 1. Customer relationship management 2. Customer service management 3. Demand management
4. Order fulfillment
5. Manufacturing flow management 6. Supplier relationship management 7. Product development and commercialization 8. Returns management
Description Provides the structure of how relationships with customers are developed and maintained Provides the firm’s face to customers, a single source of customer information Balance the customers’ requirements with supply chain capabilities, forecasting and synchronizing Includes all activities necessary to define customer requirements, design a network, integrates firm’s functions to meet customer requests while minimizing the total delivered cost Deals with making the product and establishing manufacturing flexibility Provides the structure for how relationships with suppliers are developed and maintained Provides the structure for developing new products and getting them to the market jointly with customers and suppliers Manages all activities related to returns, reverse logistics, gatekeeping and avoidance
(Adopted from Lambert et al. 2005)
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TABLE 3 MAPPING SOCIAL SUSTAINABILITY RESEARCH TO SUPPLY CHAIN PROCESSES
Supply chain business processes (Lambert et al. 2005)
Employment practices
Dimensions of social sustainability Community Product relations Ethics responsibilities
Social sustainability -Other1
Customer relationship management
1
1%
2
3%
1
1%
0
0%
0
0%
Customer service management
2
3%
2
3%
1
1%
0
0%
0
0%
Demand management
0
0%
1
1%
0
0%
0
0%
0
0%
Order fulfillment management
12
15%
4
5%
2
3%
0
0%
1
1%
Manufacturing flow management
18
23%
5
6%
1
1%
4
5%
0
0%
Supplier relationship management
24
31%
20
26%
23
29%
3
4%
2
3%
Product development and commercialization
5
6%
1
1%
0
0%
3
4%
0
0%
Returns management
1
1%
2
3%
1
1%
1
1%
0
0%
Supply chain-Other2
6
8%
4
5%
3
4%
2
3%
6
8%
1
Papers that address social sustainability at a general level and do not specify any dimensions (e.g. literature review) are classified into this group.
2
Papers that address social sustainability at a general supply chain level and do not specify any processes (e.g. literature review) are classified into this group.
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TABLE 4 LITERATURE ADDRESSING SOCIAL SUSTAINBILITY IN SUPPLY CHAIN PROCESSES Supply chain business processes (Lambert et al. 2005)
Dimensions of Social Sustainability Employment practices
Ethics
Customer relationship management
Miao, Cai, and Xu 2012
Adivar et al. 2010; Miao, Cai, and Xu 2012
Miao, Cai, and Xu 2012
Customer service management
Ciliberti, Pontrandolfo, and Scozzi 2008; Pagell and Gobeli 2009
Adivar et al. 2010; Ciliberti et al. 2008
Ciliberti et al. 2008
Order fulfillment management
Manufacturing flow management
Product responsibilities
Adivar et al. 2010
Demand management
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Community relations
Social sustainabilityOther3
Brown 1996; Brown, Willis, and Prussia 2000; Ciliberti et al. 2008; De Koster, Stam, and Balk 2011; Garver, Williams, and Taylor 2008; Hamprecht et al. 2005; Miao, Cai, and Xu 2012; Pagell and Gobeli 2009; Pullman, Maloni, and Carter 2009; Rinehart and Ragatz 1996; Suzuki 2007 Autry and Daugherty 2003; Brown 1996; Brown, Willis, and Prussia 2000; Costa and Miralles 2009; De Koster, Stam, and Balk 2011; Gimenez, Sierra, and Rodon 2012; Hall and Matos 2010; Hamprecht et al; 2005; Min 2007; Kathuria and Davis 2001; Khazanchi, Lewis, and Boyer 2007; Kleindorfer, Singhal, and Wassenhove 2005; Pagell and Gobeli 2009; Parast and Adams 2012; Sato 2012; Rinehart and Ragatz 1996; Pullman et al; 2009; Reuter et al; 2010
Adivar et al. 2010; Ciliberti et al. 2008; Miao, Cai, and Xu 2012; Quak and De Koster 2007
Ciliberti et al. 2008; Miao, Cai, and Xu 2012
Adivar et al. 2010; Gimenez, Sierra, and Rodon 2012; Hall and Matos 2010; Parast and Adams 2012; Reuter et al. 2010
Reuter et al. 2010
Quak and De Koster 2007
De Ron 1998; Kleindorfer, Singhal, and Wassenhove 2005; Parast and Adams 2012; Reuter et al. 2010
Papers that address social sustainability at a general level and do not specify any dimensions (e.g. literature review) are classified into this group.
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4
Supplier relationship management
Andersen and Larsen 2009; Bai and Sarkis 2010; Baskaran, Nachiappan, and Rahman 2012; Carter 2005; Carter and Jennings 2002; Carter and Jennings 2004; Ciliberti, Pontrandolfo, and Scozzi 2008; Ciliberti et al. 2009; Emmelhainz and Adams 1999; Gallear, Ghobadian, and Chen 2012; Hamprecht et al. 2005; Jiang, Baker, and Frazier 2009; Keating et al. 2008; Klassen and Vereecke 2012; Lee and Kim 2009; Lu, Lee, and Cheng 2012; Miao, Cai, and Xu 2012; Miemczyk, Johnsen, and Macquet 2012; Pagell and Gobeli 2009; Pullman, Maloni, and Carter 2009; Reuter et al. 2010; Santos, Svensson, and Padin 2013; Spence and Bourlakis 2009; Walker and Brammer 2009; Walker and Brammer 2012; Whitfield and Landeros 2006
Adivar et al; 2010; Bai and Sarkis 2010; Carter 2005; Carter, Auskalnis, and Ketchum 1999; Klassen and Vereecke 2012; Carter and Jennings 2002; Carter and Jennings 2004; Hall and Matos 2010; Herlin and Pazirandeh 2011; Keating et al. 2008; Lee and Kim 2009; Miao, Cai, and Xu 2012; Miemczyk, Johnsen, and Macquet 2012; Preuss 2009; Santos, Svensson, and Padin 2013; Reuter et al. 2010; Spence and Bourlakis 2009; Walker and Brammer 2009; Walker and Brammer 2012
Arnold, Neubauer, and Schoenherr 2012; Bai and Sarkis 2010; Baskaran, Nachiappan, and Rahman 2012; Carter 2002a; 2000b; 2004; 2005; Carter and Jenning 2004; Gallear, Ghobadian, and Chen 2012; Goebel et al. 2012; Hill et al. 2009; Joo et al. 2010; Lee and Kim 2009; Lu et al. 2012; McCracken and Callahan 1996; Miao, Cai, and Xu 2012; Miemczyk, Johnsen, and Macquet 2012; Moberg and Speh 2003; Motwani, Kumar, and Mohamed 1998; Pagell, Wu, and Wasserman 2010; Pitman and Sanford 1994; Reuter et al. 2010; Spence and Bourlakis 2009; Turner, Taylor, and Hartley 1994
Bai and Sarkis 2010; Keating et al. 2008; Klassen and Vereecke 2012
Product development and commercialization
Billington and Davidson 2012; Flint et al. 2005; Kathuria and Davis 2001; Kleindorfer, Singhal, and Wassenhove 2005; Pagell and Gobeli 2009
Adivar et al. 2010
Returns management
Ciliberti et al. 2008
Adivar et al. 2010; Ciliberti et al. 2008
Ciliberti et al. 2008
De Ron 1998
Supply chain-Other4
Castka and Balzarova 2008; De Brito, Carbone, and Blanquart 2008; Reade 2009; Santos, Svensson, and Padin 2013; Shub and Stonebraker 2009; Svensson 2009
Castka and Balzarova 2008; Maon, Lindgreen, and Vanhamme 2009; Santos, Svensson, and Padin 2013; Svensson 2009
Arnold, Neubauer, and Schoenherr 2012; Castka and Balzarova 2008; Svensson 2009
Castka and Balzarova 2008; Svensson 2009
Gimenez, Sierra, and Rodon 2012
De Ron 1998; Kleindorfer, Singhal, and Wassenhove 2005; Zailani et al. 2012
Ashby, Leat, and Hudson-Smith 2012; Gopalakrishnan et al; 2012; Matos and Hall 2007; Tate, Ellram, and Kirchoff 2010; Vasileiou and Moris 2006; Winter and Knemeyer 2013
Papers that address social sustainability at a general supply chain level and do not specify any processes (e.g. literature review) are classified into this group.
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TABLE 5 SCOPE OF SUPPLY CHAIN SOCIAL SUSTAINABILITY RESEARCH
Social sustainability dimensions Single dimension Multiple dimensions
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Supply chain processes Multiple processes 8 10% 10 12%
Single process 37 45% 9 11%
Holistic5 5 6% 9 11%
Papers that address social sustainability at a general supply chain level and do not specify any processes (e.g. literature review) are classified into this group.
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FIGURE 1 A FRAMEWORK OF SUPPLY CHAIN SOCIAL SUSTAINABILITY
Supply chain social sustainability
Employment practices
Community relations
(Labuschagne et al. 2005)
(Labuschagne et al. 2005)
Ethics (e.g. Carroll 1979, ISO 26000)
- Diversity (e.g.
- Fair trading practices (e.g. antitrust and pricing policies, dubious sales inducements, deceits; foreign bribery) (e.g. Carter
Carter and Jennings 2002)
- Employment equity (job security, career development, fairness of compensation) (e.g. Bansal 2005)
- Healthcare and safety (e.g. Dillard et al. 2009)
- Philanthropy (e.g. Carter and Jennings 2002)
- Community development and involvement: education, healthcare, infrastructure (e.g.
2000a)
Product responsibilities (e.g. GRI 2002)
- Research and development (e.g. Labuschagne et al. 2005
- Product design (e.g. Linton, Klassen, and Jayaraman 2007)
- Product quality and safety (e.g. GRI 2002)
- Other ethical behaviors (ISO
Daily and Huang 2001; Wilkinson, Hill, and Gollan 2001)
26000)
- Human rights (e.g. Emmelhainz and Adams 1999)
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FIGURE 2 THE LITERATURE REVIEW PROCESSS Step 1: Select time horizon 1993-2013
Step 2: Select journals 9 journals based on 2 criteria:
Pertain to operations, logistics or general supply chain management Rated on the ABS ranking 2010 report
Step 3: Search process within selected journals
Use truncated search terms (resulted in 482 papers): social sustainability, social, ethic, fair trade, employment/workforce/human resource/employee, community, philanthropy, human rights
Step 4: Filter process
Step 4a: Check overall relevance based on title and abstracts (resulted in 149 papers) Step 4b: Check relevance based on whole paper content (addressing social dimension or any of it indicators) (resulted in 78 papers)
Step 5: Classification process
Classify based on research methods Classify based on content and keywords into 4 identified social sustainability dimensions and 8 supply chain processes of the GSCF framework
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