The impact of global supply chains on environmental sustainability and labor rights.

Introduction

Global supply chains (GSCs) have become a cornerstone of the modern economy, influencing trade, investment, and production patterns worldwide. This interconnected system has significant implications for environmental sustainability and labor rights, particularly in low- and middle-income countries. Understanding these impacts is crucial for developing effective governance strategies that promote both economic and social well-being.

Key Insights

Environmental Sustainability

Environmental Impact of GSCs: The expansion of GSCs has led to increased environmental degradation due to the extensive transportation and production processes involved. This includes higher carbon emissions and resource depletion .

Labor Rights

Role of Host Country Governments: The protection of labor rights in GSCs is heavily dependent on the alignment of incentives between participating firms and host country governments. Effective labor rights protection requires strong local political will and governance.
Private Governance and Labor Conditions: Private voluntary standards have been implemented to govern labor relations within GSCs. However, these standards often face limitations and tensions with buyers' purchasing practices, leading to uneven improvements in labor conditions.
Social Upgrading: The fragmented nature of GSCs has resulted in uneven social upgrading, where some workers experience improved labor conditions while others do not. The role of global buyers is crucial in this differentiation.

Conclusion

Global supply chains significantly impact both environmental sustainability and labor rights. On the environmental front, GSCs contribute to increased carbon emissions and resource depletion. Regarding labor rights, the effectiveness of protections is contingent on the alignment of incentives between firms and host country governments, as well as the limitations of private governance standards. Addressing these challenges requires a synergistic approach that combines private, public, and social governance to ensure sustainable economic and social upgrading.

The impact of global supply chains on environmental sustainability and labor rights.

Summary

Introduction

Key Insights

Environmental Sustainability

Labor Rights

Conclusion

Sources and full results

Workers’ rights in global value chains: possibilities for protection and for peril

Global supply chains can improve working conditions and procedural rights for workers in low- and middle-income countries, but success depends on aligning the incentives of participating firms and host country governments.

Global Supply Chain Dynamics and Labour Governance: Implications for Social Upgrading

Global supply chains impact social upgrading in developing countries, with private governance playing a limited role and global buyers playing a role in labor conditions differentiation.

Linking supply chain strength to sustainable development: a country-level analysis

Supply chain strength is positively linked to environmental performance, corporate environmental practices, and social sustainability at the country level.

Green supply chains and global competitiveness of companies

Green supply chains improve sustainability, supply continuity, and long-term business efficiency, while reducing environmental impacts.

Companies’ contribution to sustainability through global supply chains

Companies adopting sustainable-sourcing practices in supply chains are limited in scope and focus mainly on labor rights and compliance with national laws, with consumer and civil society pressure increasing adoption.

A systematic review of sustainable supply chain management in global supply chains

Sustainable supply chain management in global supply chains involves configurations and governance mechanisms, with greater connections between firms and multi-tier suppliers being key to improved sustainability outcomes.

Do supply management and global sourcing matter for firm sustainability performance? An international study

Sustainable supply chain management improves a company's sustainability performance, while traditional supply management fosters its adoption, with global sourcing playing a moderating role.

Global supply chains in the pandemic

The Covid-19 pandemic's impact on GDP growth was primarily due to global supply chains, with trade insuring countries from pandemic-induced labor supply disruptions.

The science of sustainable supply chains

Better data, decision-support tools, and incentives are needed to predict and prevent unsustainable practices in supply chains.

Enhancing supply chain performance through supplier social sustainability: An emerging economy perspective

Supplier social sustainability practices positively impact supply chain performance in emerging economies, with buyer commitment and investment playing a moderating role.

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