Addressing Deforestation in Global Supply Chains: The Industry Approach

Author(s):  
Sophia Carodenuto

<p>The winner of the International Statistic of the Decade is <strong>8.4 million </strong>– the number of football pitches deforested from 2000 to 2019 in the Amazon rainforest. The Royal Statistical Society selected this statistic to give a powerful visual to one of the decade’s worst examples of environmental degradation. Global food supply chains are the major driver behind this deforestation. As globalization has dispersed the production of goods around the world, global supply chains increasingly displace the environmental and social impacts of consumption in rich and emerging economies to distant locations. Grown predominantly in (sub)tropical ecosystems and consumed in industrialized economies, cocoa/chocolate represents the inherent transnational challenges of many of today’s highly prized foods. Chocolate’s distinct geographies of production and consumption result in forest loss and persistent poverty in places far from the immediate purview of consumers. Despite growing public awareness and media attention, most consumers of conventional cocoa/chocolate products are unable to know the precise origins of their chocolate due to its complex supply chain involving multiple intermediaries. Outside of niche chocolate products that carry significantly higher price tags, the average chocolate consumer buying a Mars bar or Reeses peanut butter cup remains in the dark about the social and environmental impacts of their purchases. In 2017, the global cocoa/chocolate industry responded by committing themselves to “zero deforestation cocoa,” whereby they aim for full supply chain traceability to ultimately end deforestation and restore forest areas in cocoa origins.</p><p>The problem that this research aims to address is that despite their continued proliferation, corporate zero deforestation supply chain initiatives have thus far had only modest success in reaching their stated aims (Lambin et al. 2018). As company pledges grow in number and magnitude, deforestation continues in many commodity production areas, especially in tropical forest areas (Curtis et al. 2018). Through a systematic review of company pledges. this research brings more understanding to what precisely the global cocoa industry is committing to, and how these pledged changes are meant to be rolled out in practice. This knowledge will improve accountability by bringing clarity to questions surrounding who is meant to do what and how along the bumpy road to zero deforestation cocoa. Further, this research will shed light on the lesser known actors in the cocoa supply chain: the intermediary cocoa traders often operating informally in cocoa origins though a case study in Côte d’Ivoire- the world’s number one cocoa exporter. As technological advancements in commodity traceability and forest monitoring reduce the perceived distance between cocoa producers and their downstream buyers, supply chain actors are forging new partnerships to reduce the climate footprint of chocolate. This research accompanies one of these innovative partnerships between cocoa farming and chocolate eating communities.</p><p>References</p><p>Curtis et al. (2018). Classifying drivers of global forest loss. Science, 361(6407), 1108-1111.</p><p>Lambin, et al. (2018). The role of supply‐chain initiatives in reducing deforestation. Nature Climate Change, 1. https://doi.org/10.1038/s41558‐017‐0061‐1, 109–116.</p><p> </p>

2017 ◽  
Vol 25 (4) ◽  
pp. 1-2
Author(s):  
John Chelliah

Purpose This paper aims to highlight the risks faced by companies through the use of child labor in their outsourced global supply chains. Design/methodology/approach This paper explores recent research and commentary on child labor in global supply chains. Findings This paper reveals the risk of brand damage to large organizations as a result of child labor inputs in their supply chains. Practical implications This study guides practitioners of human resources in advising management on strategic and tactical approaches in sanitizing supply chains of child labor. Social implications This paper draws attention to the risks associated with the presence of child labor in the supply chain and need for large companies to practice social responsibility beyond their borders. Originality/value The study demonstrates how child labor is not just an ethical issue but a legal one as well and how injustices suffered by children can through public awareness campaigns destroy brand value of the ultimate benefactor companies.


2017 ◽  
Vol 71 (4) ◽  
pp. 584-609 ◽  
Author(s):  
Sarah J Kaine ◽  
Emmanuel Josserand

While governance and regulation are a first step in addressing worsening working conditions in global supply chains, improving implementation is also key to reversing this trend. In this article, after examining the nature of the existing governance and implementation gaps in labour standards in global supply chains, we explore how Viet Labor, an emerging grass-roots organization, has developed practices to help close them. This involves playing brokering roles between different workers and between workers and existing governance mechanisms. We identify an initial typology of six such roles: educating, organizing, supporting, collective action, whistle-blowing and documenting. This marks a significant shift in the way action to improve labour standards along the supply chain is analysed. Our case explores how predominantly top-down approaches can be supplemented by bottom-up ones centred on workers’ agency.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Edgar Ramos ◽  
Andrea S. Patrucco ◽  
Melissa Chavez

Purpose Considering the unprecedented supply chain disruptions due to the COVID-19 pandemic, especially in the agri-food sector, the possession of dynamic capabilities (DCs) – particularly, the need for higher agility – seems to be the key to survival in highly uncertain environments. This study aims to use the dynamic capability view (DCV) theory to analyze how three key supply chain capabilities – organizational flexibility, integration and agility – should be combined to obtain the desired supply chain performance. Design/methodology/approach The authors designed a conceptual model in which the relationships between these three key capabilities and supply chain performance were hypothesized. The model was first tested through partial least square regression using survey data collected from 98 members of the Peruvian coffee supply chain. A fuzzy-set qualitative comparative analysis (fsQCA) was conducted to uncover how DCs could be combined in successful supply chain configurations. Findings The authors show that organizational flexibility is a driver of higher agility in agri-food supply chains, together with external and internal supply chain integration, that have a direct impact on agility, which positively affects supply chain performance. Higher levels of supply chain agility are necessary but insufficient to guarantee high performance, as sufficiency is reached when both integration (internal and/or external) and agility are present. Originality/value This study represents a pioneering attempt to apply the DCV theory to agri-food supply chains – characterized by many sources of uncertainty. All the DCs are included within the same model and the joint use of PLS regression and fsQCA provides evidence about the relationships between DCs and how they can empower agri-food supply to obtain the desired performance.


10.1068/a3717 ◽  
2005 ◽  
Vol 37 (5) ◽  
pp. 823-844 ◽  
Author(s):  
Brian Ilbery ◽  
Damian Maye

In this paper findings are presented from survey work conducted with producers of specialist livestock products in the Scottish–English borders. Using supply-chain diagrams, the paper highlights how specialist livestock businesses operate individual or customised supply chains. The heterogeneity of surveyed producer initiatives throws into question both the simple conceptual distinction drawn between the labels ‘conventional’ and ‘alternative’ and also what is meant by a ‘short’ food supply chain. The starting point of the specialist food chain is clearly not the point of production but rather a series of upstream supply links—as is found in conventional food chains. Likewise, ‘alternative’ producers are regularly obliged, or choose, to ‘dip in and out’ of different conventional nodes downstream of the business, such as abattoirs, processors, and wholesalers. In practice, delimitations between ‘alternative’ and ‘conventional’ food supply chains are often blurred and are better characterised as ‘hybrid spaces’.


2020 ◽  
Vol 7 (2) ◽  
pp. 383-418
Author(s):  
Robert C. Bird ◽  
Vivek Soundararajan

Global supply chains power 80% of world trade, but also host widespread environmental, labor, and human rights abuses in developing countries. Most scholarship focuses on some form of sanction to motivate supply chain members, but we propose that the fundamental problem is not insufficient punishment, but a lack of trust. Fickle tastes, incessant demands for lower prices, and spot market indifference force suppliers into a constant struggle for economic survival. No trust can grow in such an environment, and few sustainability practices can take meaningful root. Responding to multiple calls for scholarship in the supply chain literature, we propose a trust-building process by which supply chains can evolve from indifference and hostility to a relational partnership that produces joint investments in sustainable practices. The result is a supply chain that is more efficient, more humane, and embeds sustainability in the supply chain for the long-term.


2012 ◽  
Vol 6 (1-2) ◽  
pp. 27-33 ◽  
Author(s):  
Harry Bremmers ◽  
Bernd Van der Meulen ◽  
Zorica Sredojevi ◽  
Jo Wijnands

Recent price movements have put food supply chains under pressure. On the one side, upward price tendencies on commodity markets result in higher costs to processing firms. On the other side, these firms are confronted with a strong retail sector that is able to prevent compensation to protect consumers’ and own economic interests. Regulatory impediments of European law, especially with respect to foodstuffs, can adversely be utilized as barriers to protect the interest downstream the supply chain. The problem is that legal-economic instruments which can serve to smooth price volatility in supply markets can also opportunistically be used at the expense of the middlesection in food supply chains (i.e., mainly small and medium sized producers). The aim of this article is to identify the legal-economic mechanisms that effect price transfers in food supply chains in the European Union and define policy adjustments to improve pricing mechanisms, while safeguarding the interests of the processing industry. Policy alternatives to improve the smooth functioning of notably intermediate markets in food supply chains are the restructuring of competition law, improved processor information management and creating transparency of value added in the supply chain by means of labelling devices.


2021 ◽  
Vol 13 (19) ◽  
pp. 10573
Author(s):  
Muhammad Umar ◽  
Mark Wilson

This study builds on the extant literature of supply chain collaboration, specifically, vertical and horizontal collaboration, and examines how these capabilities influence the resilience of supply chains that experience regular natural disasters in rural communities, as their economic wellbeing relies heavily on the continuation of these supply chains. A multiple case study approach has been adopted to investigate the role of collaboration within food supply chains of two different South Asian regions. This context was selected because these regions are prone to regular natural disruptions, and these food supply chains also play a crucial role in the disaster relief process. The data revealed that effective communication, mutual dependence, information sharing, informal financial support, and trust are some of the components of supply chain collaboration that enhance the overall resilience of supply chains in natural disasters.


2021 ◽  
Vol 4 (2) ◽  
pp. 1100-1107
Author(s):  
Nguyen Van Phu

Climate change is one of the greatest threats to human beings, and agriculture is one of the fields that is most negatively affected by climate change. Farmers around the world and global food supply chains are impacted by the more extreme weather phenomena and increased damage of diseases and pests caused by climate change. Today, almost all agricultural enterprises and farms consider climate change a serious long-term risk for their production. Agricultural land systems can produce significant greenhouse gases (GHGs) by the conversion of forests to crop- and animal lands, and also through the weak management of crops and livestock. Around the world, cultivation and cattle production accounts for 25% of global GHG emissions (Javeline, ‎2014). However, under suitable conditions, agriculture can create environmental conditions that can help minimize pollution and the negative effects of climate change including carbon absorption by green plants in forests, and fields for watershed protection and biodiversity conservation. Sustainable agriculture helps farmers to adapt, maintain, and improve productivity without applying harmful techniques. In turn, this allows farms to manage and mitigate climate-related risks in their supply chains. The Sustainable Agriculture Network (SAN) has found new ways to incorporate smart climate cultivation methods into all farming practices to help farms and enterprises carry out agriculture sustainably.


2020 ◽  
Vol 3 (2) ◽  
pp. 196-202
Author(s):  
Siti Amalia ◽  
Dio Caisar Darma ◽  
Siti Maria

At the beginning of the emergence of Covid-19, there was panic buying in Indonesia which caused an unusual situation in supply management. Although the handling of this epidemic has entered a "new normal", the availability of stocks of electronics, automotive, pharmaceuticals, food, and others is running low and out of control, so supply chain management is needed. The purpose of this article is to try to see the extent of the transformation in supply and demand in Indonesia. With this in-depth literature, the supply chain model is likely to transform globally, given that many companies are confused about management being unable to cope with drastic changes in the market. The demand patterns over the past period indicate a shift from offline to online storefronts. Even though it has now entered a transition to a new normal and shopping outlets are slowly opening up, online shopping or demand patterns are predicted to last a long time. Therefore, supply chain actors, especially farmers, logistics entrepreneurs, and shipping services, inevitably have to be able to quickly adapt to changing patterns in Indonesia. There is an imbalance between the demand and supply sides. Food supply chains tend to be unique in comparison to the supply chains of other products and services.


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