This March 2020, Harvard Business Review published a study on how complex working with suppliers to adhere to sustainability standards can become.
Listen to how they explored three supply networks headed by multinational companies considered to be “Sustainability Leaders”, all three from different industries: automotive, electronics and pharmaceuticals & consumer goods.
The findings? A common pattern on lack of supplier’s environmental management systems and procedures, retaliation and poor and dangerous labor conditions.
The problems? Multinationals demands exceed the capacity of their suppliers, they also know little on their suppliers beyond tier 1.
Moreover, lower-tier suppliers lack of equipment and expertise and are often located in countries where regulations are not enforced.
So what are the best practices of these MNC to promote sustainability?
Read or listen to the article and share your thoughts!
Source: H.Villena Veronica, A.Gioia Dennis, ” A more Sustainable Supply Chain”, Harvard Business Review, March 2020.