Page 45 - The European Business Review

WR FXVWRPHUV 'HÀQLWLRQV RI VXVWDLQDEOH VXSSO\ Recognising responsibilities, making investments, and improving
chains usually add the requirement to address
the “triple bottom line” of economic, environ- performance must be encouraged. But supply chain sustainability
mental, and social performance. 'HÀQLWLRQV is not about best efforts; it is about staying within thresholds.
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based on the triple bottom line, however,
DUH LQVXIÀFLHQW EHFDXVH WKH\ GR QRW SODLQO\ include suppliers, manufacturers, distributors,
distinguish sustainable supply chains from retailers, and consumers. Product end-of-life
unsustainable ones. considerations, such as reuse, recycling, and
To do this, explicit references to the “limits GLVSRVDO DUH DOVR FRQVLGHUHG 7R UHÁHFW WKH
and demands placed on economic, environ- potential complexity of the relationships in
mental, or social resources, at the sectoral, local, the chain, the focus is on networks, rather than
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regional, or global level” are required. The limits dyadic relationships. Moreover, the double-
and demands on resources are the basis for iden- headed arrows indicate that sustainable supply
tifying sustainability thresholds. Thresholds can FKDLQV PXVW FRQVLGHU IRUZDUG DQG UHYHUVH ÁRZV
represent upper limits, such as for atmospheric between players.
greenhouse gases (GHGs), or lower limits, such The focal company can be located anywhere
as for living wages. 5 along the supply chain. This company is respon-
Staying within thresholds is fundamen- sible for determining the key sustainability
tally what sustainability is about. A sustainable thresholds for its supply chain. Economic
supply chain operates “within the thresholds WKUHVKROGV FRXOG IRU H[DPSOH IRFXV RQ SURÀW-
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imposed by nature and society”. To remain ability or competitive practices. Environmental
viable, a supply chain must also operate within thresholds could focus on water consumption
economic thresholds imposed by the compa- or GHG emissions. Social thresholds could
Q\·V VWDNHKROGHUV 7KLV GHÀQLWLRQ LV EDVHG RQ focus on workplace safety or living wages. 5
the embedded view, which recognises that all Different supply chains could have different
supply chain activities take place in the context relevant thresholds.
of broader society, which is itself nested within To be clear, a supply chain is only sustainable
the natural environment. 7 LI LW RSHUDWHV ZLWKLQ DOO RI LWV GHÀQHG WKUHVKROGV
Figure 1 depicts the embedded view of Recognising responsibilities, making invest-
sustainable supply chains. In the middle of the ments, and improving performance over time are
ÀJXUH LV D JHQHULF VXSSO\ FKDLQ 7KH NH\ SOD\HUV all commendable and these types of proactive

Figure 1: The Embedded View of Sustainable Supply Chains

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