The rationale for responsible supply chain management and stakeholder engagement

Abstract

Purpose Firms are increasingly resorting to responsible supply chain management as they align their economic success with socially-responsible initiatives in their value chain. This contribution suggests that there are opportunities for global corporations who are keen on integrating responsible practices into their business operations. It is in their interest to report about their responsible supply chain management, social performance and sustainable innovations to their stakeholders. Design/methodology/approach This review paper identifies future research avenues in the promising areas of responsible procurement and global supply chain management. Findings

The corporations’ differentiated strategies as well as their proactive engagement in responsible supply chain management can lead them to achieve a competitive advantage in the long term. the low‐cost producers may be neglecting the marketplace stakeholders, including suppliers, distributors among others. Moreover, the smaller businesses’ could not be in a position to follow responsible procurement practices as they may lack the scarce resources to do so. Originality/value

This paper raises awareness about the integration of socially responsible behaviours and sustainable practices in business operations. It contends that a responsible supply chain management necessitates an improved relationship with suppliers and distributors in the value chain. This stakeholder engagement with ultimately create value to the businesses themselves.