Supply Chain Sustainability

Canadian companies are sourcing from suppliers in developing and emerging economies in order to take advantage of lower wages in developing countries. These sourcing practices contribute to the economic and social development, and create higher standards of living for millions of people.

However, widespread concerns about poor social and environmental conditions in companies’ supply chains have recently emerged. Failure to address suppliers’ environmental, social and governance performance can create significant operational and reputational risks that are threatening to undermine any potential economic gains from moving into these markets.

This situation is helping define a new type of competence that will differentiate the successful companies in their ability to respond to the global market demands. The companies that incorporate sustainability issues into the company’s sourcing and purchasing practices through the creation of effective and efficient suppliers' development programs will benefit from a new and sustainable competitive advantage.

www.clemson.edu