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In Recent Years A Rising

Many large multinational corporations require their direct suppliers to comply with social and environmental standards and encourage them to do the same with their own suppliers down the supply chain. However, this cascading approach has proven difficult to implement effectively, as evidenced by scandals involving Apple, Dell, HP, Nike and Adidas, whose suppliers violated standards despite being aware of them, such as subjecting employees to hazardous working conditions or dumping toxins. While creating a sustainable supply network is admirable, major companies continue facing embarrassment when indirect suppliers down the chain fail to comply with required standards.

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Subhan Ahmad
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45 views1 page

In Recent Years A Rising

Many large multinational corporations require their direct suppliers to comply with social and environmental standards and encourage them to do the same with their own suppliers down the supply chain. However, this cascading approach has proven difficult to implement effectively, as evidenced by scandals involving Apple, Dell, HP, Nike and Adidas, whose suppliers violated standards despite being aware of them, such as subjecting employees to hazardous working conditions or dumping toxins. While creating a sustainable supply network is admirable, major companies continue facing embarrassment when indirect suppliers down the chain fail to comply with required standards.

Uploaded by

Subhan Ahmad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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In recent years a rising 

number of multinational corporations have pledged to work only with


suppliers that adhere to social and environmental standards. Typically, these MNCs expect their
first-tier suppliers to comply with those standards, and they ask that those suppliers in turn ask for
compliance from their suppliers—who ideally ask the same from their suppliers. And so on. The
aim is to create a cascade of sustainable practices that flows smoothly throughout the supply chain,
or, as we prefer to call it, the supply network.

It’s an admirable idea, but it’s been hard to realize in practice. Many of the MNCs that have
committed to it have faced scandals brought about by suppliers that, despite being aware of
sustainability standards, have nevertheless gone on to violate them. Consider the embarrassing
scrutiny that Apple, Dell, and HP endured not long ago for sourcing electronics from overseas
companies that required employees to work in hazardous conditions, and the fallout that Nike and
Adidas suffered for using suppliers that were dumping toxins into rivers in China.

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