Social sustainability in the supply chain: Construct development and measurement validation

Research on social sustainability in developing countries has recently gained importance for both academics and practitioners. Studies in the supply chain management field take either a supplier or a manufacturer perspective that address predominantly corporate social responsibility (CSR) issues referring to the internal stakeholders. Our research integrates the literature on supplier, manufacturer, and customer responsibility and proposes the concept of supply chain social sustainability (SCSS) that refers to addressing social issues within the overall (upstream and downstream) supply chain. Furthermore, we develop and empirically validate scales for measuring SCSS using in-depth interviews and a survey in the Indian manufacturing industry. Our results suggest that SCSS consists of six underlying dimensions, namely equity, safety, health and welfare, philanthropy, ethics, human rights, in a 20-item valid and reliable scale. We discuss the implications of the findings for research and practice and suggest future research avenues.     

Sustainable development of global supply chains—part 1: sustainability optimization framework

In global industry supply chains, environmental sustainability optimization addresses the overall consumption of resources and energy, the reduction of carbon emissions and generated waste to name a few. In this paper, we propose a holistic sustainability optimization framework for strategic network design of industry supply chains under consideration of economic, social as well as ecologic objectives. The framework is flexible to incorporate multiple sustainability indicators, alternative sustainability optimization strategies as well as a variety of internal and external industry-specific factors which impact the sustainability of the entire industry supply chain in the long-term. The core of the framework is an end-to-end closed-loop value chain model consisting of process, transport and product-in-use modules. For the first time, the product-in-use impact (“use” vs. “make”) is integrated in one network design approach. In addition, the model fully closes the loop from sourcing of raw materials via manufacturing towards reverse value chain steps such as disposal and recycling. Finally, we propose the minimize-time-to-sustainability approach as new optimization strategy for long-term network design problems focusing on minimizing the time, industry supply chain structures need to transform into sustainability steady states for all defined sustainability indicators such as CO₂e emissions, costs or social indicators based on defined target values. In part 2 of this paper the application of the optimization framework to the European automotive industry is shown.     

Sustainable development of global supply chains—part 2: investigation of the European automotive industry

In global industry supply chains, environmental sustainability optimization addresses the overall consumption of resources and energy, the reduction of carbon emissions and generated waste to name a few. In the second part of this paper, we apply the sustainability optimization framework developed in part 1 to the European automotive industry supply chain. Numerical experiments based on empirical industry data show the impact of optimization strategies on overall costs and emissions in the industry and the possible long-term development of the industry supply chain including the relocation of production capacities, the choice of transportation modes and the potential change towards lower emission products such as electric vehicles. In addition we demonstrate how the novel optimization strategy of minimizing the time-to-sustainability is applied and how it creates transparency of the feasibility of different sustainability targets, e.g. reduction targets for greenhouse gas emissions. Specifically, the minimum time is determined the industry would need to achieve the pre-defined targets. Related optimization results create new insights and provide decision support for policymakers and industry in developing sustainability strategies and specific targets.     

Industrial Ecology and Competitiveness

In the emerging field of industrial ecology one of the unsettled questions is the degree to which design for the environment, closing energy and materials loops, and other industrial ecology concepts apply at the firm level. In this article we examine this issue with a particular focus on whether industrial ecology can guide company strategy and efforts to enhance competitiveness.
We conclude that industrial ecology thinking will often be useful for firms seeking to improve their resource productivity and thus their competitiveness. The systems perspective that industrial ecology promotes can help companies find ways to add value or reduce costs both within their own production processes and up and down the supply chain. But industrial ecology cannot always be counted upon to yield competitive advantage at the firm level. In some cases, the cost of closing loops will exceed the benefits. In other cases, regulatory requirements do not fully internalize environmental costs, and thus polluting firms may gain temporary or permanent cost advantages relative to companies that attempt to eliminate all emissions. Finally, because industrial ecology focuses attention on materials and energy flows, it may not optimize other variables that contribute to competitiveness within the corporate setting.     

Collaborative fractal-based supply chain management based on a trust model for the automotive industry

In the supply chain of the automotive industry, where the procurement ratio of parts from partners is very high, the trustworthiness of partners should be considered during supply chain optimization. In this paper, to deal with the trust issue related to collaboration and reduce the computational load in production planning, we develop a collaborative fractal-based supply chain management framework for the automotive industry. In our framework, the relationships between the participants of a supply chain are modeled as a fractal. Each fractal has a goal model and generates a production plan of its participants based on the goal model. The goal model of each fractal is developed from an operational perspective to consider the trust value of participants during production planning. A fuzzy trust evaluation model is used to evaluate the trust value in terms of numerical value. To validate the developed framework in the automotive industry, simulations are conducted. The results of the simulations indicate that our framework can be useful in generating precise production plans.     

Economic Profits Enhance Trust,Perceived Integrity and Memory of Fairness in Interpersonal Judgment

Does money lead to trust in personality and intention of others? Humans have a strong tendency to judge the intention of others from their sequent behaviors. In general, people trust others who behave fairly, but not always. Here we show that judgments of both intentional aspects and memory of intentional behavior are automatically influenced by unintentional benefits from the behaviors of others. We conducted a reward-manipulated and repeated trust game by using real participants interacting with moving image partners on a computer screen. The participants assessed likability, trustworthiness, and perceived integrity of the partners in pre- and post-game questionnaires. The results of judgments of all three dimensions and the memory of frequency of each partner''s fair behavior (sharing) were strongly influenced by profitability in the trust game, even though all partners shared 75% of the profit and participants were told that profitability was randomly assigned to each partner. Furthermore, these effects were moderated by the gender of the participants: males were more sensitive to monetary profits than were females. The results reveal that humans automatically trust, approve the integrity of, and recall well the fair behavior of others who provide affectively positive outcomes such as monetary profits. We call this phenomenon the “affect ripple effect”.     

Life Cycle Attribute Assessment

Practitioners of life cycle assessment (LCA) have recently turned their attention to social issues in the supply chain. The United Nations life cycle initiative's social LCA task force has completed its guidelines for social life cycle assessment of products, and awareness of managing upstream corporate social responsibility (CSR) issues has risen due to the growing popularity of LCA. This article explores one approach to assessing social issues in the supply chain—life cycle attribute assessment (LCAA). The approach was originally proposed by Gregory Norris in 2006, and we present here a case study. LCAA builds on the theoretical structure of environmental LCA to construct a supply chain model. Instead of calculating quantitative impacts, however, it asks the question “What percentage of my supply chain has attribute X?” X may represent a certification from a CSR body or a self‐defined attribute, such as “is locally produced.” We believe LCAA may serve as an aid to discussions of how current and popular CSR indicators may be integrated into a supply chain model. The case study demonstrates the structure of LCAA, which is very similar to that of traditional environmental LCA. A labor hours data set was developed as a satellite matrix to determine number of worker hours in a greenhouse tomato supply. Data from the Quebec tomato producer were used to analyze how the company performed on eight sample LCAA indicators, and conclusions were drawn about where the company should focus CSR efforts.     

Medical fund took off like a rocket,but will budget bring it down to earth?

In 18 months the Canadian Medical Discoveries Fund (CMDF) has attracted investments worth $180 million to spend on biotechnology and medical research. Although eight initial investments totalled only $9.7 million, Dr. Cal Stiller, chair and CEO of the fund''s management corporation, says there are many good Canadian-based technology firms and research projects that merit investment. Examples include a London, Ont., firm that is bringing a 3-D ultrasound-imaging system to market, and world-class genetics research at the University of Ottawa. However, the federal government recently changed tax rules for venture-capital funds, making them less attractive to investors. How will this affect the effort to build a health-research industry in Canada?     

Sustainability governance service providers: the role of third-party product certification in facilitating corporate life cycle management

Purpose

This article aims to analyze the role that third-party product sustainability certifications play in supply chain sustainability governance and hence the impact that they may have on facilitating corporate life cycle management (LCM). Particular emphasis is given to exploring the extent to which such schemes allow firms to outsource the work of communication, motivation, enablement, and control of sustainability-related information and performance upstream in the supply chain.

Methods

The research design is based on a comparative case study methodology. The corporate practices of sourcing the sustainability certified products in the food retailing and textile sectors are compared, to explain when third-party product sustainability certification reduces the corporate need to engage in collaborative relationships with suppliers, thereby reducing efforts associated with implementation of corporate life cycle management.

Results and discussion

In our study, we found evidence that affirms the role of third-party product sustainability certification in reducing corporate necessity to actively engage with coordination of sustainability issues upstream in the supply chain. However, we also identified a range of factors—the intention of the buying company, the supply chain context, and the design of the certification scheme—that influence the extent, to which third-party product sustainability certification replaces the corporate need for additional work to facilitate supplier compliance. Some of these factors, e.g., the design of the certification scheme, are new and have been underexplored in the supply chain management and value chain governance literature yet.

Conclusions

Our findings suggest that corporate LCM practitioners should consider third-party sustainability certification as an instrument for the transfer of significant life cycle information along the supply chain and as a tool to facilitate corporate life cycle management. The extent to which third-party product sustainability certification would be able to facilitate corporate life cycle management depends not only on whether certification requirements are based on the LCA studies but also on the market scope of the certification schemes, the scope of the certification requirements, and the architecture of the certification management services. If these parameters are aligned with corporate ambitions and allow buyers to fully outsource the work associated with communication, motivation, enablement, and control of sustainability-related information and supplier performance, the life cycle management can be exercised by companies by simply choosing to procure sustainability certified products.

     

Know Thy Neighbor: Costly Information Can Hurt Cooperation in Dynamic Networks

People need to rely on cooperation with other individuals in many aspects of everyday life, such as teamwork and economic exchange in anonymous markets. We study whether and how the ability to make or break links in social networks fosters cooperate, paying particular attention to whether information on an individual''s actions is freely available to potential partners. Studying the role of information is relevant as information on other people''s actions is often not available for free: a recruiting firm may need to call a job candidate''s references, a bank may need to find out about the credit history of a new client, etc. We find that people cooperate almost fully when information on their actions is freely available to their potential partners. Cooperation is less likely, however, if people have to pay about half of what they gain from cooperating with a cooperator. Cooperation declines even further if people have to pay a cost that is almost equivalent to the gain from cooperating with a cooperator. Thus, costly information on potential neighbors'' actions can undermine the incentive to cooperate in fluid networks.     

A gene‐based evolutionary explanation for the association between criminal involvement and number of sex partners

Abstract

Empirical research has revealed a positive relationship between number of sex partners and involvement in antisocial behaviors. Most attempts to explain this association have taken an evolutionary perspective and argued that the same traits (e.g., impulsiveness, shortsightedness, and aggressiveness) that are related to a large number of sex partners are also related to criminal involvement However, there is also reason to believe that the covariation between sex partners and crime behaviors can be partially explained by a common genetic pathway, where genes that are related to sex partners are also related to antisocial conduct. We test this possibility by using data from the National Longitudinal Study of Adolescent Health (Add Health). Specifically, we examine whether variants of the dopamine transporter gene (DAT1) are associated with number of sexual partners and with adult criminal behavior. The results of our analyses reveal two broad findings. First, and in line with prior research, we find that there is a strong positive association between sex partners and antisocial behavior. Second, DAT1 explains variation in both number of sexual partners and in criminal conduct for males. We speak to the implications of our findings.     

Using life cycle sustainability assessment to trade off sourcing strategies for humanitarian relief items

Purpose

While interest in supply chain sustainability has risen over the past few years in academic and business worlds, very little research has been conducted on sustainability in humanitarian supply chains, specifically. This study aims to contribute to the development of the field by conducting a life cycle sustainability analysis (LCSA) of sourcing scenarios for a core relief item in a humanitarian supply chain.

Methods

This paper is structured according to the LCSA framework developed by Guinée et al. (Environ Sci Technol 45(1):90–96, 2011). The relief item analyzed is a kitchen set supplied by a UN agency. Environmental, social, and economic impacts of two sourcing scenarios for a kitchen set are mapped: one international and one local. Sources of data include interviews, company records, and online databases. Results are analyzed using the ReCiPe method to assess environmental impact and the United Nations Environmental Programme (UNEP)/Society of Environmental Toxicology and Chemistry (SETAC) guidelines to assess social impact.

Results and discussion

We show how LCSA can be used to map the sustainability of two sourcing scenarios for kitchen sets in a humanitarian supply chain along triple bottom line dimensions. We report findings on sourcing scenarios for distribution to two refugee camps in Kenya: one from a supplier in India and one from a supplier in Kenya. We use an environmental life cycle analysis (LCA), a social LCA, and a life cycle costing (LCC) to analyze differences and similarities. We find that local sourcing is preferred over international sourcing on two out of the three sustainability dimensions—environmental and social impacts. Humanitarian organizations may further use this paper as a guideline to develop their own sustainability assessments of supply chain scenarios.

Conclusions

The results of our study provide a fresh, sustainability-focused perspective on the debate over international vs. local procurement. This paper is the first to apply LCSA to a humanitarian context. It also addresses a void in the sourcing literature by determining the sustainability impacts of different sourcing strategies. The study evaluates only two sourcing options and also uses a limited number of data sources.

     

An Entangled Model for Sustainability Indicators

Nowadays the challenge for humanity is to find pathways towards sustainable development. Decision makers require a set of sustainability indicators to know if the sustainability strategies are following those pathways. There are more than one hundred sustainability indicators but they differ on their relative importance according to the size of the locality and change on time. The resources needed to follow these sustainability indicators are scarce and in some instances finite, especially in smaller regions. Therefore strategies to select set of these indicators are useful for decision makers responsible for monitoring sustainability. In this paper we propose a model for the identification and selection of a set of sustainability indicators that adequately represents human systems. In developing this model, we applied evolutionary dynamics in a space where sustainability indicators are fundamental entities interconnected by an interaction matrix. we used a fixed interaction that simulates the current context for the city of Cuernavaca, México as an example. We were able to identify and define relevant sets indicators for the system by using the Pareto principle. In this case we identified a set of sixteen sustainability indicators with more than 80% of the total strength. This set presents resilience to perturbations. For the Tangled Nature framework we provided a manner of treating different contexts (i.e., cities, counties, states, regions, countries, continents or the whole planet), dealing with small dimensions. This model provides decision makers with a valuable tool to select sustainability indicators set for towns, cities, regions, countries, continents or the entire planet according to a coevolutionary framework. The social legitimacy can arise from the fact that each individual indicator must be selected from those that are most important for the subject community.     

A Sustainable Building Promotes Pro-Environmental Behavior: An Observational Study on Food Disposal

In order to develop a more sustainable society, the wider public will need to increase engagement in pro-environmental behaviors. Psychological research on pro-environmental behaviors has thus far focused on identifying individual factors that promote such behavior, designing interventions based on these factors, and evaluating these interventions. Contextual factors that may also influence behavior at an aggregate level have been largely ignored. In the current study, we test a novel hypothesis – whether simply being in a sustainable building can elicit environmentally sustainable behavior. We find support for our hypothesis: people are significantly more likely to correctly choose the proper disposal bin (garbage, compost, recycling) in a building designed with sustainability in mind compared to a building that was not. Questionnaires reveal that these results are not due to self-selection biases. Our study provides empirical support that one''s surroundings can have a profound and positive impact on behavior. It also suggests the opportunity for a new line of research that bridges psychology, design, and policy-making in an attempt to understand how the human environment can be designed and used as a subtle yet powerful tool to encourage and achieve aggregate pro-environmental behavior.     

Short term,long term: An unexpected confound in human-mating research

Here I report that, when partnered people judge the facial attractiveness of potential mates for a short- and a long-term relationship, the order in which the two conditions are presented biases responses in a systematic manner. Women and men display symmetrical biases. Women find men less attractive as new long-term partners if they have first imagined them as one-night stands. Men find women less attractive as one-night stands if they have first imagined them as new long-term partners. On a total sample of over 3000 individuals from different studies, I show that both biases are robust and replicable in partnered people and neither is found in singles. Alas, so far no study has statistically controlled the effect of the order in which participants consider the two types of relationships. Whatever their interpretation, these biases are capable of producing spurious or inconsistent associations and mislead us when we compare studies that on the surface appear similar—most notably, direct and conceptual replications.     

The Structure and Evolution of Buyer-Supplier Networks

In this paper, we investigate the structure and evolution of customer-supplier networks in Japan using a unique dataset that contains information on customer and supplier linkages for more than 500,000 incorporated non-financial firms for the five years from 2008 to 2012. We find, first, that the number of customer links is unequal across firms; the customer link distribution has a power-law tail with an exponent of unity (i.e., it follows Zipf''s law). We interpret this as implying that competition among firms to acquire new customers yields winners with a large number of customers, as well as losers with fewer customers. We also show that the shortest path length for any pair of firms is, on average, 4.3 links. Second, we find that link switching is relatively rare. Our estimates indicate that the survival rate per year for customer links is 92 percent and for supplier links 93 percent. Third and finally, we find that firm growth rates tend to be more highly correlated the closer two firms are to each other in a customer-supplier network (i.e., the smaller is the shortest path length for the two firms). This suggests that a non-negligible portion of fluctuations in firm growth stems from the propagation of microeconomic shocks – shocks affecting only a particular firm – through customer-supplier chains.     

The good, the bad, and the rare: memory for partners in social interactions

For cooperation to evolve via direct reciprocity, individuals must track their partners' behavior to avoid exploitation. With increasing size of the interaction group, however, memory becomes error prone. To decrease memory effort, people could categorize partners into types, distinguishing cooperators and cheaters. We explored two ways in which people might preferentially track one partner type: remember cheaters or remember the rare type in the population. We assigned participants to one of three interaction groups which differed in the proportion of computer partners' types (defectors rare, equal proportion, or cooperators rare). We extended research on both hypotheses in two ways. First, participants experienced their partners repeatedly by interacting in Prisoner's Dilemma games. Second, we tested categorization of partners as cooperators or defectors in memory tests after a short and long retention interval (10 min and 1 week). Participants remembered rare partner types better than they remembered common ones at both retention intervals. We propose that the flexibility of responding to the environment suggests an ecologically rational memory strategy in social interactions.     

Your Resting Brain CAREs about Your Risky Behavior

Background

Research on the neural correlates of risk-related behaviors and personality traits has provided insight into mechanisms underlying both normal and pathological decision-making. Task-based neuroimaging studies implicate a distributed network of brain regions in risky decision-making. What remains to be understood are the interactions between these regions and their relation to individual differences in personality variables associated with real-world risk-taking.

Methodology/Principal Findings

We employed resting state functional magnetic resonance imaging (R-fMRI) and resting state functional connectivity (RSFC) methods to investigate differences in the brain''s intrinsic functional architecture associated with beliefs about the consequences of risky behavior. We obtained an individual measure of expected benefit from engaging in risky behavior, indicating a risk seeking or risk-averse personality, for each of 21 participants from whom we also collected a series of R-fMRI scans. The expected benefit scores were entered in statistical models assessing the RSFC of brain regions consistently implicated in both the evaluation of risk and reward, and cognitive control (i.e., orbitofrontal cortex, nucleus accumbens, lateral prefrontal cortex, dorsal anterior cingulate). We specifically focused on significant brain-behavior relationships that were stable across R-fMRI scans collected one year apart. Two stable expected benefit-RSFC relationships were observed: decreased expected benefit (increased risk-aversion) was associated with 1) stronger positive functional connectivity between right inferior frontal gyrus (IFG) and right insula, and 2) weaker negative functional connectivity between left nucleus accumbens and right parieto-occipital cortex.

Conclusions/Significance

Task-based activation in the IFG and insula has been associated with risk-aversion, while activation in the nucleus accumbens and parietal cortex has been associated with both risk seeking and risk-averse tendencies. Our results suggest that individual differences in attitudes toward risk-taking are reflected in the brain''s functional architecture and may have implications for engaging in real-world risky behaviors.     

An Examination of the Generalizability of Motor Costs

Most approaches to understanding human motor control assume that people maximize their rewards while minimizing their motor efforts. This tradeoff between potential rewards and a sense of effort is quantified with a cost function. While the rewards can change across tasks, our sense of effort is assumed to remain constant and characterize how the nervous system organizes motor control. As such, when a proposed cost function compares well with data it is argued to be the underlying cause of a motor behavior, and not simply a fit to the data. Implicit in this proposition is the assumption that this cost function can then predict new motor behaviors. Here we examined this idea and asked whether an inferred cost function in one setting could explain subject’s behavior in settings that differed dynamically but had identical rewards. We found that the pattern of behavior observed across settings was similar to our predictions of optimal behavior. However, we could not conclude that this behavior was consistent with a conserved sense of effort. These results suggest that the standard forms for quantifying cost may not be sufficient to accurately examine whether or not human motor behavior abides by optimality principles.     

Sustainability guidelines and forest market response: an assessment of European Union pellet demand in the southeastern United States

Woody biomass from the southeast United States is expected to play an important role in meeting European Union renewable energy targets. In crafting policies to guide bioenergy development and in guiding investment decisions to meet established policy goals, a firm understanding of the interaction between policy targets and forest biomass markets is necessary, as is the effect that this interaction will have on environmental and economic objectives. This analysis increases our understanding of these interactions by modeling the response of southern US forest markets to new pellet demand in the presence of sustainability sourcing or harvest criteria. We first assess the influence of EU recommended sustainability guidelines on the forest inventory available to supply EU markets, and then model changes in forest composition and extent in response to expected increases in pellet demand. Next, we assess how sustainability guidelines can influence the evolution of forest markets in the region, paying particular attention to changes in land use and forest carbon. Regardless of whether sustainability guidelines are applied, we find increased removals, an increase in forest area, and little change in forest inventory. We also find annual gains in forest carbon in most years of the analysis. The incremental effect of sustainability guideline application on forest carbon and pellet greenhouse gas (GHG) balance is difficult to discern, but results suggest that guidelines could be steering production away from sensitive forest types inherently less responsive to changing market conditions. Pellet GHG balance shows significant annual change and is attributable to the complexity of the underlying forest landscape. The manner by which GHG balance is tracked is thus a critical policy decision, reinforcing the importance and relevance of current efforts to develop approaches to accurately account for the GHG implications of biomass use both in the United States and European Union.