Sustainable supply chain governance (SSCG) systems. A longitudinal analysis

Abstract

Due to processes of globalisation, the current world economy has become international in scope and organisation whereby firms have become linked together in ‘commodity’ or ‘supply chain’. In these supply chains the leading firms are predominately located in developed country while the production often takes place in developing countries in a unsustainable manner. To improve the impact of the production, initiatives were made by firms in ‘sustainable supply chain governance (SSCG) systems creating standards such as Fairtrade or Utz Certified. These systems differ from regular supply chains in their focus on environmental and social ethical goals, NGO involvement and third party compliance control. These systems are complex by nature and it is difficult to determine and analyze their final impact on sustainable development. This study therefore makes the assumption that a system can have a potential impact reduction: the governance system impact potential (GSIP). The value of the GSIP may vary as the standards of a SSCG are altered over the years. It is assumed that this variation can be explained by the different actor (civil society, government and market) activities surrounding an SSCG system. By creating a method for measuring the GSIP, this study tries to gain more insight in the GSIP fluctuations and possible explanations for the GSIP.