Resources, Conservation and Recycling 111 (2016) 42–52

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Resources, Conservation and Recycling

journal homepage: www.elsevier.com/locate/resconrec

Full length article

Supply chain social sustainability for developing nations: Evidence

from india
Venkatesh Mani a , Angappa Gunasekaran b,∗ , Thanos Papadopoulos c , Benjamin Hazen d ,
Rameshwar Dubey e
a
Post Graduate Department of Management Studies (PGDMS & RC), Siddaganga Institute of Technology (SIT), Tumkur, Bangalore, Karnataka 572103, India
b
Department of Decision and Information Sciences, Charlton College of Business, University of Massachusetts Dartmouth, North, Dartmouth, MA
02747-2300, USA
c
Kent Business School, University of Kent, Kent, ME4 4TE, United Kingdom
d
Department of Operational Sciences, Air Force Institute of Technology, 2950Hobson Way, Wright-Patterson AFB, OH 45433-7765, USA
e
Symbiosis Institute of Operations Management, Constituent of Symbiosis International University, Plot No. A-23, Shravan Sector, CIDCO, New Nashik,
422008, India

a r t i c l e i n f o a b s t r a c t

Article history: Economic, environmental and social aspects of sustainability have been shown to span beyond organi-
Received 11 September 2015 zational boundaries, indicating the importance of managing sustainability initiatives across the supply
Received in revised form 6 April 2016 chain. Although scholars and practitioners focus a great deal of attention toward economic and environ-
Accepted 6 April 2016
mental sustainability in supply chains, less attention is paid to social aspects. This is unfortunate, because
social sustainability not only plays an important role in enabling other sustainability initiatives, but social
Keywords:
injustices in one echelon of a supply chain can lead to significant losses for firms across the chain. Social
Social sustainability
issues have been especially problematic in developing nations, where abusive labor practices continue to
Supply chain sustainability
Developing nations
negatively affect trading partners. This research seeks to disambiguate supply chain social sustainability
Qualitative research in developing nations by uncovering relevant dimensions of social sustainability and resultant outcomes.
Using semi-structured interview data collected from supply chain executives in Indian manufacturing
companies, this research uncovers dimensions of social sustainability in terms of not only the focal firm,
but also first-tier suppliers and customers. Each of these dimensions is then associated to potential per-
formance outcomes. The findings not only provide a baseline for future research, but help practitioners
understand where to focus their attention to enhance social sustainability in their supply chains.
© 2016 Published by Elsevier B.V.

1. Introduction can social sustainability practices help to enhance other aspects

of sustainability, but all three aspects are needed to create a truly
Due to strict regulations, increased consumer awareness, and sustainable organization (Ashby et al., 2012; Pagell and Wu, 2009;
pressure from communities and NGOs, organizations are compelled Seuring and Müller, 2008).
to adopt sustainable supply chain management (SCM) practices. Some have conducted research on how firms can enhance
Sustainability encompasses economic, environmental and social social sustainability when working with an upstream or down-
aspects, and transcends intra- and inter-organisational boundaries; stream partner (Seuring and Muller, 2008; Carter and Easton, 2011;
thus, sustainability initiatives are of direct concern to SCM applica- Gimenez and Tachizawa, 2012). However, there is limited under-
tions (Bai and Sarkis, 2010). Efforts toward advancing economic and standing regarding how social sustainability can be addressed
environmental sustainability have received the greatest amount of across both a firm and its immediate upstream and downstream
attention in the literature and in practice. However, social sustain- partners. Furthermore, although there are many studies regarding
ability has seen less attention. This is unfortunate because not only developed nations (Carter and Jennings, 2000, 2004; Ciliberti et al.,
2008; Lu et al., 2012), less attention has been given to developing
nations, where social norms differ greatly (Ashby et al., 2012). Some
∗ Corresponding author. advocate for developing and conserving human resources and how
E-mail addresses: [email protected] (A. Gunasekaran), such efforts can help enhance competitiveness (Sodhi, 2015). In this
[email protected] (T. Papadopoulos), [email protected] research, we examine social sustainability in developing nations
(B. Hazen), [email protected] (R. Dubey).

http://dx.doi.org/10.1016/j.resconrec.2016.04.003
0921-3449/© 2016 Published by Elsevier B.V.
 V. Mani et al. / Resources, Conservation and Recycling 111 (2016) 42–52 43

with regard to first-tier suppliers, the focal firm, and first-tier cus- chasing Social Responsibility and Logistics Social Responsibility,
tomers, and seek to link social sustainability efforts to performance which encompass social issues such as diversity, philanthropy,
outcomes. As such, this research contributes to the literature by safety, and human rights in the supply chain. Similarly, studies by
way of: Whooley (2004) and Maloni and Brown (2006) propose the impor-
tance of safety, diversity, equity, human rights and labour practices
1. Identifying dimensions of supply chain social sustainability (in in the supply chain, whereas other scholars describe similar means
terms of suppliers, focal firm, and customers) in developing through which such social issues can be addressed in the sup-
nations; ply chain (Clarkson, 1995; Strong, 1997; McWilliams and Siegel,
2. Exploring outcomes of supply chain social sustainability in 2001; Guinée et al., 2011; Macombe et al., 2013; Sala et al., 2013;
developing nations; Martínez-Blanco et al., 2014). Chin and Tat (2015) have identified
employee diversity practices in Malaysian manufacturing compa-
nies and their relationship to sustainability. Table 1 provides an
The remainder of this article is structured as follows. In the next
overview of the dimensions of social sustainability that have been
section, we briefly review the literature on social sustainability. In
described in the literature.
section three, we describe the research setting and methodology. In
A comprehensive literature review on social sustainability sug-
section four, we present the findings regarding the dimensions of
gests various measures being used in different geographic locations
supply chain social sustainability. Outcomes of social sustainability
(Table 1). It is also challenging to identify universal dimensions
are then described in section five, and the discussion of implication
and measures because of lack of conceptual clarity (Omann and
of the research are presented in section six. Section seven concludes
Spangenberg, 2002; Gugler and Shi, 2009). Especially in developing
the paper and reports limitations of the research, and additional
nations, Gopal and Thakkar (2015) argued that there is no concep-
research needs.
tual clarity in specific dimensions related to social sustainability,
especially in the manufacturing and operations domain. Therefore,
2. Social sustainability in the supply chain supply chain managers do not have a clear idea of the relevant social
issues and how these issues can be measured and managed (Gopal
Sustainability can be defined as meeting today’s needs with- and Thakkar, 2015; Mani et al., 2015). In an attempt to define rele-
out compromising the needs of future generations (Bruntland vant issues related to social sustainability, the majority of scholars
Commission, 1987). By way of contextualizing this definition, cor- have taken the buyer’s perspective or focused on cases of MNCs
porate sustainability can be described as meeting the needs of that have developing country suppliers. For instance, Yu (2008),
today’s direct and indirect stakeholders (such as shareholders, in the study of Reebok and their Chinese suppliers, suggest that
employees, customers, regulatory bodies and society in large) the major barriers to implementing social sustainability relate to
without compromising its ability to meet the needs of future stake- the buyer’s intentions to maximise profitability and reduce costs,
holders. Social sustainability addresses how social issues can be competition between suppliers regarding cost reduction, and lack
managed in a way that ensures long-term survival of the orga- of governmental rules that enforce labour laws. Lim and Phillips
nization. These social aspects should not be limited only to the (2008) in their analysis of Nike’s suppliers in Korea and Taiwan
internal operations of the focal firm, but also extended to the inter- suggest that collaboration and order quantity incentives enabled
organizational level to include upstream and downstream trading the implementation of relationships between MNC’s in developed
partners, and also to the broader societies in which it operates or countries and developing countries’ suppliers. Tencati et al. (2008)
otherwise affects (Carter and Rogers, 2008). suggests that collaboration and a supportive rather than impos-
To further discuss social issues in the supply chain, one needs ing mode of governance is required to further build innovative
to understand: to whom does a firm need to be socially respon- partnerships and a demand-driven educational agenda for social
sible, and what issues must be addressed? Further, one needs sustainability. Ehrgott et al. (2011) and Gimenez and Tachizawa
to understand how these issues are addressed across the supply (2012) call for more research into social sustainability from the
chain (Wood, 1991). Stakeholder theory explains how managers perspective of the developing country suppliers given that codes
have fiduciary duties to the corporation, shareholders and stake- of conduct and certifications from third-parties is very challenging
holders (Donaldson and Preston, 1995). Sodhi’s (2015) stakeholder and there are differences related to the socio-cultural, technolog-
resource based view (SRBV), building on resource based view (RBV), ical, and market environment of developing countries. Huq et al.
advocates that SRBV is a “framework to inform the decision-makers (2014) investigated the adoption of social sustainability practices
of the importance of building and utilizing not only their own orga- by suppliers in developing countries and the enablers and imped-
nizations dynamic resources, routines and capabilities but also by iments to social sustainability. They proposed labour intention as
developing those of the company’s stakeholders thereby improv- an important enabler of social sustainability and highlighted the
ing their respective utilities as well” (Sodhi, 2015). The firm needs differences in requirements between the western and develop-
to be socially responsive to all stakeholders to achieve sustainable ing countries’ codes of conduct and cultural and socio-economic
advantage (Frooman, 1999; Freeman, 2004; Campbell, 2007; Sodhi, context. As realized via this literature review, there is a need for
2015). research to investigate social sustainability in developing countries
Scholars emphasize that being socially responsible means inte- from the perspective of the focal firm, first-tier suppliers, and cus-
grating ethical principles in supply chain practices (Husted and tomers. This research seeks to fill this need, and also relate these
Allen, 2000; Hemingway, 2005), or operationalizing fair trade dimensions to tangible outcomes.
principles (Strong, 1997). However, Carter and Jennings’ (2004)
research suggests that a focus on ethics alone is a necessary but
insufficient means toward achieving social responsibility. Other 3. Methodology
social issues, particularly those surrounding employee working
conditions, have emerged (Emmelhainz and Adams, 1999). Sup- 3.1. Research setting
plier development issues through minority enterprises and their
importance for social sustainability have been identified (Krause We focus our investigation on India. India is rated the fourth
et al., 1999). In addition, research by Carter and Jennings (2002, most preferred manufacturing destination in terms of competi-
2004), Carter (2005), and Carter and Easton (2011) propose Pur- tiveness (Deloitte Report, 2013), and the Indian government seeks
 44
Tables 1
Supply chain social sustainability dimensions identified in the literature.
Country Industry Reference Adequate Diversity Philanthropy Safety Equity Human Creation Wages Labour Poverty Health Hunger Ethics Child and Procurement Education
housing practices/non- Rights of practices and bonded from minority opportunities
discrimination employ- hygiene labour suppliers
ment
opportu-
nities
√ √ √ √ √ √ √
United States Conceptual paper Poist (1989)
√
United States Manufacturing Carter et al. (1999)
√ √

V. Mani et al. / Resources, Conservation and Recycling 111 (2016) 42–52

United States Apparel Industry Emmelhainz and Adams
(1999)
√ √ √ √ √
United States Consumer Products Carter and Jennings (2000)
√ √ √ √ √ √ √ √ √ √ √ √
United Nations Division of United Nations UNDSD (2001)
Sustainable Development Guidelines
√ √ √ √
United States Consumer Products Carter and Jennings (2002,
2004)
√ √ √ √
Europe Manufacturing Industry Whooley (2004)
√ √ √ √
United States Manufacturing Industry Carter (2005)
√ √ √
South Africa Manufacturing Industry Hens and Nath (2005)
√
United States Nike corporation Zadek (2004)
√ √ √
Canada Canadian Oil firms Bansal (2005)
√ √ √ √
United States Food Industry Maloni and Brown (2006)
√ √ √
Europe Analytical research Kortelainen (2008)
conducted on the data of
20 European union
countries
√ √ √ √
United States Manufacturing supply Hutchins and Sutherland
chains (2008)
√ √ √
Canada World economic forum Vachon and Mao (2008)
reports
√ √ √ √ √ √
Denmark IKEA Corporation Andersen and Skjoett-Larsen
(2009)
√ √
United States and Canada 10 global corporations Pagell and Wu (2009)
√ √ √ √
Hong Kong Construction Industry Wong et al. (2010)
√ √ √ √
Sweden Manufacturing Leire and Mont (2010)
√ √
Global corporations Based on sustainability Tate et al. (2010)
reports
√ √ √
United Kingdom UK’s food industry Yakovleva et al. (2012)
√ √ √
Germany H&M and Verner Frang Kogg and Mont (2012)
√ √ √ √ √
United Kingdom British Aerospace Gopalakrishnan et al. (2012)
Systems
√
China Manufacturing Lu and Lee (2012)
√
United Kingdom Oil and gas supply chains Yusuf et al. (2013)
√ √ √ √ √ √ √ √ √ √ √ √
India Electrical and Cement Mani et al. (2014)
manufacturing
√ √ √
India Fireworks Industry Kumar et al. (2014)
√ √ √ √ √ √ √ √ √ √ √ √
India Cement and Mani et al. (2015)
Pharmaceutical
√
Malaysia Manufacturing Chin and Tat (2015)
 V. Mani et al. / Resources, Conservation and Recycling 111 (2016) 42–52 45

to create a conducive atmosphere for manufacturing. In pursuit represent leading Indian companies that have revenues exceeding
of this, the National Manufacturing Competitive Council (2013) one billion US dollars.
has identified several enablers to manufacturing competitiveness,
including sustainability. Furthermore, India’s corporate regulator, 3.3. Data analysis
the Stock Exchange Board of India (SEBI), has issued a mandate to
all listed companies to comply and publish a business responsibility Immediately after each interview, a detailed summary was pre-
report (BRR) along with their financial reporting. This reinforces the pared, listing the main points specified by each respondent. When
government’s desire for higher levels of sustainability. However, there were conflicts in the accounts of the participant, follow up
there are only 80 Indian organizations that currently comply with phone calls were made for clarification. After the interviews were
sustainability reporting requirements as specified by the Global transcribed, the interview and archival data were examined more
Reporting Initiative’s (GRI) 2014 report. The companies that com- closely to identify themes (Strauss and Corbin, 1994).
ply to these requirements are global corporations and have their To enhance internal reliability, each interviewer was accom-
extended operations in India. Therefore, social sustainability in panied by a scholar with a background outside of supply chain
India has yet to be fully understood. sustainability (Miles and Huberman, 1994). Both the interviewer
and additional scholar were asked to independently record and
3.2. Data collection transcribe each interview. Examination of these accounts across all
27 interviews uncovered only minor deviations of clerical nature,
We chose a qualitative approach based on the exploratory suggesting reliability.
nature of our research, and our desire to uncover cause-effect To enhance external validity − the degree to which the results
relationships (Glaser and Strauss, 1967; McGrath, 1982). We can be generalized outside the research setting (Yin, 2013; Auramo
employed semi-structured interviews to collect data. Positioned et al., 2005) − this research used participants that represent several
as an alternative to completely unstructured interviews or, in con- sectors in the manufacturing industry. In addition, we provided the
trast, close-ended questioning, semi-structured interviews help in respondents with their transcribed interview reports and findings
achieving internal validity by ensuring that responses are measured to obtain feedback as to the representativeness and validity of the
comparably across all interviewees (Weller and Romney, 1988), data (Yin, 2013).
yet allow for enough variation in responses to tease out important
information (Miles and Huberman, 1994). A pre-test was conducted 4. Dimensions of supply chain social sustainability
to assess the validity of the interview protocol, followed by a pilot
test with supply chain managers. All pre-test participants repre- 4.1. Supplier social sustainability dimensions
sented different firms in the sample frame (described below), and
did not serve as participants for the main study. A semi-structured A comprehensive list of social sustainability dimensions and
questionnaire for pilot test was sent to supply chain managers rep- associated issues is presented in Table 2, where the frequency of
resenting different segments of the Indian Industry. The managers each issue is also provided.
were chosen based on two criteria, that is, having over 10 years Activities such as hiring locals, female workers, marginalized
experience in the supply chain and sustainability, and representa- people, handicapped people and minorities were emphasized by
tion of a specific industry. Data collected from the interviews was participants as being important elements of supplier social sustain-
triangulated with additional data sources (i.e., company reports, ability. Other aspects such as not denying privileges and rights to
popular press, additional members from the same company) to anybody based on gender, religion, caste, race, age and nationality
determine how well participants in the sample frame could accu- were combined and labelled under “equity.” Carter and Jennings
rately answer the questions posed to them. After making minor (2004) and Chin and Tat (2015) describe the importance of gender
adjustments to the interview protocol, we concluded that the pro- diversity for supply chain sustainability and performance (Hutchins
tocol (Appendix A) and sample frame were appropriate for this and Sutherland, 2008; Yakovleva et al., 2012). Problems with
study. equality are even more widespread in Indian supply chains, being
The sample frame consists of top supply chain executives in amplified further down the supply-side of the supply chain (tier 2,
India. We sought to include the most knowledgeable and respected 3, etc.) as smaller companies have a tendency not to comply with
executives to participate. Thus, our sample frame consists of invited equity-based standards and regulations.
delegates or speakers in past years at either the INFORMS Soci- Participants also discussed issues related to safety, health and
ety of Operations Management Conference or the Indian Institute hygiene conditions, sanitation, and clean drinking water in suppli-
of Management’s Biennial Supply Chain Management Conference. ers’ workplaces, referred to as “health and safety.” Female worker
Participant information was provided by the organizing commit- safety was seen as most important because of the increasing inci-
tees of both conferences, and potential participants were contacted dents reported by media. Human issues related to safety have also
and given a brief overview of the study. A total of 96 executives been highlighted (Carter and Jennings, 2000; Ciliberti et al., 2008;
were initially contacted based on their experience and reputation, Rajak and Vinodh, 2015). Finally, issues related to clean drinking
industry sector, and company revenue. Specifically, the manufac- water and sanitation were emphasised.
turing industry in India is classified by IBEF (2012) into basic goods, Participants stressed the importance of rejecting products sus-
capital goods, intermediate goods, and consumer goods sectors, pected of being made with sub-standard or hazardous materials
and participants were chosen to equally represent these sectors and sanctioning suppliers’ unethical practices such as bribery, coer-
so to enhance generalizeability. A total of 55 potential participants cion and pollution to the environment. These factors comprise the
responded to our initial solicitation. Interview appointments were “ethics” dimension of supplier social sustainability (Carter, 2000;
scheduled at the two aforementioned conferences, which were held Chardine-Baumann and Botta-Genoulaz, 2014). Ethics in develop-
in December 2014. Participants were also asked to bring relevant ing countries is defined in a broader sense to encompass not just
archival data and other documentation regarding social sustain- adhering to socially desirable standards, but also abiding by the
ability efforts in their supply chain. We achieved saturation after 27 (often lawful) standards of developed nations.
interviews and thus ended data collection at that time. As shown Many participants described a variety of unsafe and unhygienic
in Appendix B (participant demographics), participants have 20 or working conditions at supplier locations and the importance of
more years of experience in managing supply chain functions and labour rights. Yet another important aspect was child and bonded
46 V. Mani et al. / Resources, Conservation and Recycling 111 (2016) 42–52

Table 2
Dimensions of supplier social sustainability.

Dimension Explanation Frequency (n = 27)

Equity • Hiring locals, women, handicapped, marginalized, minorities 10

• Promoting every employee equally based on merit 15
• Not denying any rights and privileges to employee because of their age, sex, race, community, religion and nationality 11

Health and Safety • Ensuring safety at work place 8

• Ensuring health and hygiene 11
• Ensuring clean drinking water and sanitation 8
• Ensuring women’s safety in the workplace 6

Ethics • Avoiding sub-standard materials in manufacturing 7

• Usage of non-hazardous materials 11
• Not engaging in unethical practices (Bribery, coercion, pollution) 8

Labour rights • Ensuring appropriate labour working conditions 7

• Right to associate to any union/group 5
• Protecting labour rights 10

Child and bonded labour • Prohibition of child and bonded labours 21

Wages • Paying reasonable wages to employees 11

• Not using sweatshop labour 9

Education • Educating and training employees for skill enhancement and development 17

Society • Helping to develop local suppliers (supplier’s supplier) 7

• Philanthropic activities 8

Regulatory responsibility • Supplier compliance to local regulations 9

labour. Many managers suggested that child and bonded labour or development of local suppliers, supporting local communities
must be prohibited. A manager explained: for building schools and colleges and training centres, training
Participants also described how “sweat shops” are still often and educating the local youth for gaining employment. Others
used. In practice, suppliers in smaller towns were using sweat shop discussed the importance of constructing primary health centres,
labour, paying below average wages and providing sub-standard hospitals and conducting health camps and building toilets for
working conditions. The managers emphasized payment of mini- better health and hygiene in the society. The importance of con-
mum wages as a way to retain employees and sustainability. This structing community centres for social well-being, and extending
was echoed by a supply chain manager: support for sustainable farming was also discussed as means to
The role of education in the form of training and skill enhance- improve sustainability in the community and society. Further, man-
ment was frequently discussed by supply chain managers. Such agers discussed the importance of establishing portable drinking
training includes safety, health and hygiene, acquisition of new water facilities to the communities because many workers have
skills and career advancement. Scholars (Poist, 1989; Andersen and no access to pure drinking water and toilets. Yet another activ-
Skjoett-Larsen, 2009; Sureeyatanapas et al., 2015) have empha- ity includes extending employment opportunities for eligible local
sized the influence of employee education initiatives on supplier youth, in response to past demonstrations by activists accusing
and supply chain performance. However, in developing countries, major corporations for not helping the youth. Although issues such
investment into education is yet be addressed, as it involves more as adequate housing, health and hunger, creation of employment
monetary investment on suppliers. Here, the suppliers are primar- opportunities has been discussed in developed nations (Poist, 1989;
ily required to invest into training the employees in health and Whooley, 2004; Leire and Mont, 2010; Yakovleva et al., 2012), other
hygiene habits. issues such as providing assistance to sustainable farming, estab-
The interviewees emphasized purchasing from minority lishment of primary health centres, toilets, and drinking water
and female-owned enterprises to enhance social sustainability. facilities were unique to developing nations. There was also more
Although issues look similar in developed and developing coun- discussion of employee education in the form of “training for career
tries, suppliers in developing countries differ in practising such development” or “training for organizations effectiveness” for sus-
activities. tainability.
Other supply chain managers discussed supplier philanthropy The participants also underlined issues such as compliance to
practices that are specific to geographic location, such as renovating health and safety regulations. Others referred to the manufacturer’s
temples, and offering donations to primary schools in contributing moral responsibility in protecting contract labour although they
to social supplier performance. Although philanthropic contri- do not fall under their pay rolls. In addition, some suggested that
butions were discussed by Hutchins and Sutherland (2008) and firm hygiene resulted in improved employee health and hygiene.
Clarkson (1995), this study corroborates research suggesting that The majority of managers pointed out the importance of corpo-
philanthropy measures differ in developing countries (Gugler and rate interest in adopting female safety measures in the work place.
Shi, 2009). This is consistent with our earlier discussion pertaining to sup-
plier social issues where female safety was prioritized. A manager
suggested:
4.2. Focal firm (manufacturer) social sustainability Although some scholars advocate best practices related to
safety, safe movement of products to facilities, and social sustain-
Dimensions related to manufacturer sustainability were limited ability, our research finds that social issues related to safety and
to those specific to the focal firm and its immediate environment. A health vary in developing countries.
list of the dimensions emerging from the data is provided in Table 3. When referring to the ethical aspects of social sustainability,
Participants emphasized social sustainability activities such as participants emphasized not using hazardous and sub-standard
buying from female-owned enterprises, buying from local suppliers
 V. Mani et al. / Resources, Conservation and Recycling 111 (2016) 42–52 47

Table 3
Dimensions of manufacturer sustainability.

Dimension Explanation Frequency

(n = 27)

Society • Buying from women owned minority enterprises 8

• Buying from local suppliers 11
• Extending help to local communities in building schools, colleges and training centres 15
• Training and education for local youth for gaining employment 9
• Local supplier development 11
• Extending entrepreneurial activities for local unemployed youth 8
• Construction of primary health centres, hospitals and conducting health camps and building toilets for health and hygiene 12
• Construction of community centres for social well-being of people. 16
• Extending help in sustainable farming 5
• Construction of potable drinking water facilities for communities 6
• Employment for eligible local youth 4

Health and Safety • Complying with OHSAS 18000 certification for occupational safety and health 19
• Ensuring of safety, health and hygiene for contract labours 9
• Ensuring women’s safety at workplace 19
• Maintaining hygiene and availability of potable water 21

Ethics • Not allowing employees to engage in any unethical practices that include bribing, insider trading pollution, and whistleblower policy 19
• Not using hazardous substances in manufacturing 16
• Not using sub- standard materials in production. 11

Equity • Hiring and promoting equity between male and female 15

• Ensuring diversity in hiring and promotion 20
• Non-discrimination based on age, gender, income, race, community, nationality, religion, and geography. 8

Labour rights • Non appointment of sweatshop workers 19

• Encouraging human rights and right to associate with unions 11

Philanthropy • Offering donations to education institutions, NGO’s, and religious organizations 15

• Construction and renovation of schools and colleges and educational institutions 11

Child and bonded • Prohibition of child and bonded labourers in manufacturing operations 12
labour

Wages • Providing the salaries that properly and fairly reward them for their work. 12

Education • Imparting training and education for skill development and promotion 10

Housing • Construction and extending subsidies to employee housing 10

materials for production, and not allowing employees to engage prohibition of child and bonded labour in channels. In developing
in any unethical practices such as bribing, coercion, and pollution. countries such as India, child and bonded labour is most prevailing
Equal opportunities and gender diversity in hiring and promotion in channel partners.
were also highlighted. A manager suggested: Participants emphasized the importance of using non-
Our data suggest many firms enhance social sustainability via hazardous materials that potentially hurt or damage the health of
involvement in philanthropic activities such as construction and customers, grouped under ‘health and safety’. Participants pointed
renovation of schools and colleges, donations to educational insti- out issues including assurance of friendly packaging, usage of non-
tutions, NGO’s and religious organizations. A supply chain manager toxic materials in packaging, appropriate product labelling, and
explained: ensuring customer health and safety during product usage. Addi-
Many managers discussed child and bonded labour issues, sug- tionally, issues of setting up customer feedback and grievances’
gesting that prohibition of child and bonded labours is their top mechanisms were discussed. Managers stressed the need for
priority. A manager argued: healthcare insurance for channels employees and the link to sup-
Finally, participants discussed extending entrepreneurial activ- ply chain performance. Gender diversity in hiring and promotions
ities for unemployed youth and construction of primary health of channel employees was also emphasized (Yakovleva et al., 2012).
centres, conducting health camps, and building toilets to sup- A supply chain manager explained:
port health and hygiene in the surrounding area. Similarly, others Training the channel employees for skill development and
discussed issues such as extending employment opportunities to career advancement was discussed and emphasized. Many man-
unemployed youth, construction of drinking water facilities, and agers felt that training programs impacted on employee retention
extending help in sustainable farming. Although contextual in and sustainability.
nature, companies may prioritise the issues based on need and local
demand. 5. Outcomes of supply chain social sustainability

4.3. Customer social sustainability Each outcome in terms of measures, related dimensions and
their frequencies can be found in Table 5. The frequencies indi-
A list of the dimensions that emerged regarding customer social cate, to some degree, the general importance of social sustainability
sustainability is provided in Table 4. As anticipated, many of the practices and their relevance to business performance.
customer-facing issues are similar to those seen in both supplier- Managers stressed that suppliers’ social sustainability led to
and firm-facing issues. In the context of this study, the customer supplier performance, measured in terms of timely delivery, reduc-
primarily denotes business to business customers, yet some par- tion in errors and less agitations, thereby creating trust, and a
ticipants were able to elaborate upon dealing with end-consumers. hassle-free operational environment for the suppliers. As one man-
Our data suggest the importance of protecting human rights, and ager remarked:
48 V. Mani et al. / Resources, Conservation and Recycling 111 (2016) 42–52

Table 4
Dimensions of customer social sustainability.

Dimension Explanation Frequency(n = 27)

Human rights • Protection of human rights in channels 13

• Prohibition of child and bonded labour in channels 17

Health and Safety • Ensuring health care and insurance programs for channel employees 9
• Non usage of hazardous materials in products thereby protecting consumers. 11

Equity Gender diversity in hiring and promotions in channel employees 15

Society Hiring sales and marketing workforce locally 15

Education Educating and training the channel employees for skill development 10

Table 5
Supply chain social sustainability outcomes and measures per dimension (supplier, manufacturer, and customer).

Outcomes and related measures Frequency

Supplier Social Sustainability Supplier performance: timely delivery, reduction in errors and less agitations 9
Increase in stakeholder trust: hassle-free operational environment for the suppliers 5
Organizational learning: cooperation between suppliers and buyers 8
Supply chain performance: production quality and timely meeting of buyers requirements 19

Manufacturer Social Sustainability Operational performance: ‘efficiency’, quality products and reliability 15
Productivity: improved facilities 11
Corporate social performance: reliable suppliers, productivity, cooperative relationships with suppliers and customers 15

Customer Social Sustainability Corporate image: Good perception among stakeholders, positive impression by employees and society 10
Customer relationship and commitment: employee learning, and increased cooperation in relationship. 8
Customer performance: increased sales, increased loyalty, and increment in customer perception. 17

The whole process reduces an operational risk at the company focus is not on connecting different aspects (activities) of supplier,
while organisational learning increased. The adoption of socially manufacturer, and customer social sustainability to outcomes and
sustainable practices minimises workers’ agitation and increases measures.
suppliers’ production quality and ability to meet of buyers’ require- With regards to supplier sustainability, our findings are in line
ments. with Carter and Jennings (2002, 2004) who established the rela-
Firm social sustainability brought operational performance, tionship between supplier sustainability measures with mediating
by means of ‘efficiency’, quality products and reliability, which roles of organizational learning and trust and discussed social
increased the facility productivity and corporate social perfor- sustainability outcomes such as productivity, buyers’ trust, learn-
mance. A manager defined corporate social performance as: ing and supply chain performance. However, Carter and Jennings’
Our data suggest that addressing customer social issues results research focused solely on suppliers and how purchasing func-
in enhancing the corporate image through building good percep- tion adopts social responsibility measures, whereas our research
tion and positive impression among stakeholders. By adopting findings suggest a view of supply chain sustainability involving
social sustainability sustainable customer relationship and com- suppliers, the focal firm, and customers. Furthermore, our research
mitment through learning and increased cooperation are built, acknowledges the importance of ethical behaviour displayed by
which enhance customer life time value and new customer acqui- suppliers since we proposed ethical activities towards achieving
sition. A manager remarked: corporate sustainability (Lu et al., 2012). We also emphasize that
ethical issues are relevant to social supply chain sustainability in
developing nations, contrary to Carter and Jennings (2000). Our
6. Discussion and implications research is consistent with Mani et al. (2015) and their social
sustainability dimensions but we are enhancing their study by
This research provided a nuanced approach to examining supply proposing outcomes of adopting social sustainability measures
chain social sustainability by firstly, investigating the social sustain- in developing countries. Therefore, we correspond to the call for
ability dimensions of supplier, focal firm, and customer; secondly more research into social sustainability within developing coun-
by mapping social issues to dimensions and social sustainability tries (Ehrgott et al., 2011; Gimenez and Tachizawa, 2012).
outcomes and measures per dimension; and thirdly, by examin- With regards to manufacturer social sustainability, the major-
ing the dimensions and outcomes of social sustainability within ity of activities in this research were predominantly related to
developing countries. company’s corporate social responsibility activities towards its
Our study contributes to the social aspect of sustainability stakeholders and firm performance (McWilliams and Siegel, 2001;
which has not been at the forefront of sustainability, compared to Mackey et al., 2007; Ciliberti et al., 2008). Our research lays a
economic and environmental sustainability (Dillard et al., 2009; groundwork for further discussion on the synergy between social
Yawar and Seuring, 2015). A discussion on the dimensions of social and environmental sustainability (e.g. Golini et al., 2014), and iden-
sustainability is challenging, given that it is related to a firm’s influ- tifies the different dimensions, aspects, and measures of supply
ence on individuals and society well-being (Geibler et al., 2006; chain social sustainability focusing on developing nations and how
Lindgreen et al., 2009). Even when the focus is on the social aspects these contribute to productivity and corporate social performance.
of sustainability, studies emphasise on e.g. “customer health and This paper suggests various activities related to customer social
safety, customer comfort”, “ethical production”, “product acces- sustainability and related outcomes. Our findings correspond to
sibility, and contribution to society” (Lindgreen et al., 2009), the
 V. Mani et al. / Resources, Conservation and Recycling 111 (2016) 42–52 49

research by Ganesan et al. (2009) who established the relation- inclusion as a “BRIC” nation. Nonetheless, future research could
ship between customer sustainability performance and corporate test or expand our findings using data from additional developing
image. This study brought new insights into the social sustainability (and perhaps other BRIC) nations. Future studies could also further
phenomenon and suggested a more integrated and comprehensive explore the relationship between social sustainability and business
view of supply chain social sustainability that includes suppliers, performance. Moreover, improving the understanding of the rela-
manufacturers, and customers. tionship between the social and the environmental dimension is an
Our research identifies and investigates the social dimensions important area of study that has seen little attention in the litera-
relevant to suppliers, focal firm, and customers of the manufac- ture. We hope that this study can be used to help inform such future
turing supply chain in developing countries. It corresponds to the research. Confirmatory quantitative research could also examine
need expressed by scholars (Gopal and Thakker, 2015) for concep- the validity of the proposed multidimensional social sustainabil-
tual clarity in social sustainability dimensions in manufacturing ity constructs via factor analysis using large-scale survey data. To
and operations. Our paper goes beyond the studies of Yu (2008) this end, further examination of the impact or importance of each
and Lim and Phillips (2008) in that it does not focus on MNCs and of the identified dimensions is warranted. Finally, the outcomes
their developing country suppliers, but links social issues to social and measures associated with each social sustainability dimension
sustainability dimensions, outcomes, and measures in companies, were reported. Future research could further validate these and
their suppliers, and their customers, all based in developing coun- their proposed relationships.
tries. We agree with Tencati et al. (2008), in that we highlight the
role of cooperation as a measure of organizational learning, which
we propose as an outcome of supplier social sustainability. Finally,
we contribute to the implementation of social sustainability liter- Acknowledgements
ature (Huq et al., 2014) by offering a framework/path from social
issues to social sustainability outcomes (related to its implementa- The authors are most grateful to three anonymous reviewers for
tion) and measures within developing countries. their extremely constructive and helpful comments which helped
This research could help the supply chain community in devel- to improve the presentation of the paper considerably.
oping nations to understand the different dimensions and activities
that constitute social supply chain sustainability since, because of
the novelty of social sustainability in manufacturing supply chains,
managers are not aware of social issues and their relation to social Appendix A. Interview protocol
sustainability dimensions, outcomes, and measures (GRI Mumbai
Declaration, 2014). This research also guides managers in their Introduction
efforts to nurture human capital. Hence, our research has practical
implications in that it offers suggestions that can be used by sup- We are here to discuss the issues related to social sustainabil-
ply chain managers and decision makers to understand and adopt ity in the supply chain (supplier, manufacturer, and customer). I
social sustainability. would like to start by saying there are no right or wrong answers,
or cause for disagreement in views. I am interested to get both pos-
itive and negative comments; and both can be very useful. I am
7. Conclusions and limitations trying to capture your perspectives on social sustainability in your
organization’s supply chain.
This research identified various social issues and dimensions
related to manufacturing supply chains in developing countries
such as India. These social issues in the supply chain are unique
and different from developed economies. This research discusses Questions
various social issues by addressing how firms can continue to pre-
serve human resources, potentially enhancing sustainability and 1. Can you please tell me about your corporate culture regarding
differentiating them from competitors. Additionally, the research social sustainability? Do your sustainability practices filter across
also uncovers the outcomes of such social sustainability adoption in your supply chain?
terms of how it reflects on business processes. This research con- 2. Based on your experience as a supply chain manager, how do
tributes to the literature on social supply chain sustainability by you define social sustainability in the supply chain?
providing insights on the different social issues and dimensions, 3. What are some specific activities that you consider to lead
outcomes, and measures of supply chain social sustainability in to social sustainability in the supply chain? (Supplier-related, in-
developing countries. The resulting social sustainability dimen- house operations-related, customer-related)
sions are pertinent to manufacturing supply chain, and act as 4. What do you think could be enablers and impediments to
guiding tool for the supply chain managers who intend to build adoption of social sustainability practices?
socially responsive supply chains in developing nations. Moreover,
outcomes and measures of social sustainability were also discussed.
This research has some limitations. We used data gathered from
a number of corporate executives in India. However, the sample What are the outcomes of your social sustainability activities?
size is not large, and the participant demographics (in terms of
firm size, top management role, and year of experience) do not [Note: These questions served as initial prompts, and follow-up
vary widely and can be source of bias. We sought to enhance gen- questions were asked in every interview, as appropriate, to capture
eralizability by selecting participants across several industries, and greater detail]
also hope that coming through the ranks over several years had
provided participants with varied experiences at different levels
and at different organization. Nonetheless, future research should
follow up using different sample frames. We posit that India is Appendix B. Participant demographics
representative of many developing nations, as evidenced in its
50 V. Mani et al. / Resources, Conservation and Recycling 111 (2016) 42–52

No. Designation/Position Industry Experience managing Revenues (US Dollars)

sustainability in SCM

1 Associate Vice President, Leading telecom company Over 25 Years >$10 Billion
Supply Chain and Operations based out of Bangalore
(Fortune 500)
2 Vice President, Supply Chain Global automotive company Over 30 Years >$10 Billion
Operations based out of Bangalore
(Fortune 500)
3 Head, Supply Chain Planning & Global electric company based Over 21 Years >$10 Billion
Warehousing out of Vadodara, Gujarat
(Fortune 500)
4 Director of Operations Dutch-based food and Over 25 Years >$10 Billion
beverages company, operating
out of Pune
5 Manager of Supply Chain A leading home appliances Over 20 Years >$10 Billion
Operations company based out of
Bangalore (Subsidiary of U.S.
corporation)
6 Director, Supply Chain India’s leading fertilizer Over 30 Years >$5 Billion
company at Gurgaon
7 Deputy General Manager India’s leading private Over 25 Years >$10 Billion
petroleum manufacturer,
based out of Mumbai
8 General Manager, A leading motorcycle Over 30 Years >$10 Billion
Sustainability manufacturer based out of
south India
9 Head, Operations Manufacturer of IT products Over 20 Years >$10 Billion
based out of Bangalore
10 Sr. Manager Electrical power systems Over 20 years >$5 Billion
Supply Chain Management manufacturer, Haridwar
11 President, Operations Leading IT manufacturer, based Over 25 Years >$10 Billion
out of Chennai
12 Vice President A global IT corporation, Over 20 Years >$10 Billion
Chennai
13 President Electrical and electronics Over 30 Years >$5 Billion
products manufacturer based
out of Tumkur
14 General Manager India’s leading heavy electrical Over 20 Years >$10 Billion
and electronics company based
out of Bangalore
15 Associate General Manager, A leading hydroelectric power Over 25 Years >$10 Billion
Operations generation company,
Dehradun
16 Head, Supply Chain Operations A Japanese photocopier and Over 20 Years >$10 Billion
printer manufacturer
operating out of Gurgaon,
Delhi (Fortune 500)
17 Vice President, CSR and A leading steel manufacturer, Over 30 Years >$10 Billion
Sustainability Bangalore
18 General Manager- India’s leading tobacco & Over 22 Years >$10 Billion
Supply chain management packaged food manufacturer,
Bangalore
19 Chief Executive Officer Herbal drug manufacturer Over 20 Years >$5 Billion
based out of Bangalore
20 Associate General Manager, A leading farm equipment Over 30 Years >$5 Billion
Sustainability manufacturer, Chennai
21 Senior General Manager, A state owned petroleum Over 25 Years >$10 Billion
Operations company, Chennai
22 President, Supply Chain A sea food company based out Over 20 Years >$5 Billion
of Hyderabad
23 Senior Manager, Supply Chain India’s fourth largest cement Over 20 Years >$10 Billion
Operations company, Mangalore
24 General Manager, Operations A leading pharmaceutical Over 25 Years >$5 Billion
company based out of Bombay
25 Chief Executive Officer A leading watch manufacturer Over 20 Years >$5 Billion
based out of Bangalore
26 General Manager, Operations A state owned soaps and Over 30 Years >$5 Billion
detergents manufacturer based
out of Bangalore
27 Head, Supply Chain and Leading business technology Over 25 Years >$10 Billion
Operations manufacturer based out of
Bangalore
 V. Mani et al. / Resources, Conservation and Recycling 111 (2016) 42–52 51

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