What can be done to improve social performance in the supply chain
Technology has changed the way society and individuals communicate. What used to be hidden years ago behind long distances and language differences easily becomes news via 24-hour cable channels and videos captured using cell phones and broadcast over the internet. As a result, a broader range of customers and non-governmental organizations (NGOs) gain access to more information about what happens within supply chains, those networks of companies that products go through – from raw material extraction to manufacturing to consumer retailing – before distribution. Thus, companies are held accountable and need to ensure that issues like poor worker conditions in suppliers’ facilities are addressed. Concerns include the use of sweatshop labor, the provision of safe working conditions, and the payment of a living wage to their employees.
[This research paper has been reproduced with permission of the authors, professors of IE Business School, Spain http://www.ie.edu/]