Essay About Distinct Stages And Supply Chain Responsibility

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from the Stanford Global Supply Ghain Management
Forum suggests that better measurement systems, new
models, and greater emphasis on the social side of the
equation can help to advance supply chain responsibility
to the next level.
Weve Come a Long Way
The Forum recently reviewed the SER practices found in
the supply chains of 20 leading companies. (See accompanying
sidebar on “About the Research.”) Looking
across the entire value chain, we examined what social
and environmental activities those companies have
implemented within their product design and development
(including end-of-life), sourcing, manufacturing/
operations, and logistics areas.
One way to understand where we are today is to think
of SER supply chain activities along a continuum that has
three distinct stages, as depicted in Exhibit 1. We describe
companies at the first stage as Good Gitizens”–they
make an effort to comply with existing rules and regulations.
Although vigilant in their efforts to follow the rules,
most dont attempt to move beyond the status quo. The
hallmark of this stage is a strong emphasis on compliance.
Over time. Good Gitizens may expand and improve their
responsibility activities to the point that they reach the
second stage: what we label “Movers and Shakers.” At this
stage, supply chain managers are focused on increasing the
scope of their SER initiatives and modifying their existing
EXHIBIT 1
Supply Chain SER Continuum
* Comply with SER rules
and generally accepted social
norms (e.g., do things the same).
* No attempt to go beyond
status quo.
* Home Depot expects first tier
suppliers to “provide a safe and
healthy work environment.”
* Procter & Gamble requires
suppliers to comply with existing
environmental regulations.
* Expand scope of SER activities
and improve SER practices
(e.g., do things better).
* Improve SER practices. Go
beyond current regulations, but
do not implement structural
changes.
* Hewlett-Packard expanded
scope of code of conduct to
include all direct