Extending Sustainable Practices Beyond Organizations to Supply Chains

Many organizations are recognizing the strategic importance of sustainability in today’s new global business environment as a core capability and means to achieving competitive advantage. However, this cannot be achieved in isolation and requires an integrated approach involving supply chain members. This chapter highlights the dimensions and issues of sustainability in supply chains and establishes the need to realize the dynamics of a supply chain network and engage in collaborative efforts to embed sustainable practices at a broader level. We present an empirical case study of a wine supply chain by examining the value creation (economic dimension) at all stages in the supply chain, the information flow and communication between supply chain members in enabling a shared vision of ethical practices and corporate social responsibility (social dimension), and the environmental impacts in terms of greenhouse gas emissions at each phase of the chain operations. We also obtained empirical data from 1100 wine consumers on the value they perceived in the sustainable production of wine. The findings suggest that in order to reap commercial returns in a socially and environmentally sustainable way, organizations will have to proactively recognize relevant issues within the chain and establish appropriate strategies to address them.