Environment, Development and Sustainability

, Volume 19, Issue 6, pp 2253–2273 | Cite as

A proposed framework to assess upstream supply chain sustainability

  • Susana Garrido Azevedo
  • Helena Carvalho
  • Luís M. Ferreira
  • João C. O. Matias
Article
First Online:
Received:
Accepted:

Abstract

There are few methods that are suitable for assessing the sustainability of companies and supply chains in an integrated way, taking into consideration the economic, social and environmental dimensions. This paper proposes a framework for assessing the sustainability of individual companies and their corresponding upstream supply chain. The framework consists of a set of steps to evaluate the sustainability of both the individual company and their upstream supply chain. The linear aggregation technique is suggested to combine the set of indicators from the economic, environmental and social dimensions of sustainability into a unique value, giving rise to a composite index for the company and corresponding supply chain. The proposed framework represents a contribution in the area of index construction and could be used as a valuable component of sustainability reporting and sustainability management practices. It also represents an important benchmarking tool, offering managers the possibility of identifying the supply chain partners that are best and worst performers in terms of sustainability while at the same time making it possible to improve company performance. Managers can adjust their company’s behaviour according to their sustainability index score and improve economic, social and environmental performance.

Keywords

Sustainability Framework Composite index Supply chain 
This is a preview of subscription content, log in to check access.

Notes

Acknowledgments

The authors are pleased to acknowledge financial support from Fundação para a Ciência e a Tecnologia (UID/EMS/00667/2013) and FEDER/COMPETE (Grant UID/ECO/04007/2013).

References

  1. Advisen. (2013). From Compliance to Sustainability: Managing Multinational Environmental Exposures, White paper. http://www.advisenltd.com/wp-content/uploads/from-compliance-to-sustainability-managing-multinational-environmental-exposures-2013-12-9.pdf. Accessed 25 April 2016.
  2. Ahi, P., & Searcy, C. (2013). A comparative literature analysis of definitions for green and sustainable supply chain management. Journal of Cleaner Production, 52, 329–341.CrossRefGoogle Scholar
  3. Ahi, P., & Searcy, C. (2015). Assessing sustainability in the supply chain: A triple bottom line approach. Applied Mathematical Modelling, 39, 2882–2896.CrossRefGoogle Scholar
  4. Allen, M. (2016). Facilitating group collaboration and enhancing supply chain conversations. In M. Allen (Ed.), Strategic communication for sustainable organizations theory and practice (pp. 231–272). New York: Springer.CrossRefGoogle Scholar
  5. André, K., Simonsson, L., Swartling, A., & Linnér, B. (2012). Method development for identifying and analysing stakeholders in climate change adaptation processes. Journal of Environmental Policy and Planning, 14(3), 243–261.CrossRefGoogle Scholar
  6. Azevedo, S. G., Carvalho, H., Duarte, S., & Cruz-Machado, V. (2012). Influence of green and lean upstream supply chain management practices on business sustainability. IEEE Transactions on Engineering Management, 59(4), 753–765.CrossRefGoogle Scholar
  7. Azevedo, S. G., Govindan, K., Carvalho, H., & Cruz-Machado, V. (2013). Ecosilient Index to assess the greenness and resilience of the upstream automotive supply chain. Journal of Cleaner Production, 56, 131–146.CrossRefGoogle Scholar
  8. Barry, N., Urbel-Piirsalu, E., Anderberg, S., & Olsson, L. (2007). Categorising tools for sustainability assessment. Ecological Economics, 60(3), 498–508.CrossRefGoogle Scholar
  9. Berrah, L., & Clivillé, V. (2007). Towards an aggregation performance measurement system model in a supply chain context. Computers in Industry, 58(7), 709–719.CrossRefGoogle Scholar
  10. Boström, M., Jönsson, A. M., Lockie, S., Mol, A. P. J., & Oosterveer, P. (2015). Sustainable and responsible supply chain governance: Challenges and opportunities. Journal of Cleaner Production, 107, 1–7.CrossRefGoogle Scholar
  11. Brandenburg, M., Govindan, K., Sarkis, J., & Seuring, S. (2014). Quantitative models for sustainable supply chain management: Developments and directions. European Journal of Operational Research, 233(2), 299–312.CrossRefGoogle Scholar
  12. Carbon Disclosure Project (CDP). (2016). Catalyzing business and government action. https://www.cdp.net/en-US/Pages/About-Us.aspx. Accessed 29 March 2016.
  13. Carter, C. R., & Rogers, D. S. (2008). A framework of sustainable supply chain management: Moving toward new theory. International Journal of Physical Distribution and Logistics Management, 38(5), 360–387.CrossRefGoogle Scholar
  14. Chan, A. P., Yung, E. H., Lam, P. T., Tam, C. M., & Cheung, S. O. (2001). Application of Delphi method in selection of procurement systems for construction projects. Construction Management and Economics, 19(7), 699–718.CrossRefGoogle Scholar
  15. Chardine-Baumann, E., & Botta-Genoulaz, V. (2014). A framework for sustainable performance assessment of supply chain management practices. Computers and Industrial Engineering, 76, 138–147.CrossRefGoogle Scholar
  16. Christofi, A., Christofi, P., & Seleshi, S. (2012). Corporate sustainability: historical development and reporting practices. Management Research Review, 35(2), 157–172.CrossRefGoogle Scholar
  17. Cohen, J. R., Holder-Webb, L. L., Nath, L., & Wood, D. (2012). Corporate reporting of nonfinancial leading indicators of economic performance and sustainability. Accounting Horizons, 26(1), 65–90.CrossRefGoogle Scholar
  18. Dyllick, T., & Hockerts, K. (2002). Beyond the business case for corporate sustainability. Business Strategy and the Environment, 11(2), 130–141.CrossRefGoogle Scholar
  19. Epstein, M. J. (2003). The identification, measurement, and reporting of corporate social impacts: Past, present, and future. Advances in Environmental Accounting and Management, 2, 1–29.CrossRefGoogle Scholar
  20. Erol, I., Sencer, S., & Sari, R. (2011). A new fuzzy multi-criteria framework for measuring sustainability performance of a supply chain. Ecological Economics, 70(6), 1088–1100.CrossRefGoogle Scholar
  21. Esfahbodi, A., Zhang, Y., & Watson, G. (2016). Sustainable supply chain management in emerging economies: Trade-offs between environmental and cost performance. International Journal of Production Economics. doi: 10.1016/j.ijpe.2016.02.013.
  22. Faisal, M. N. (2010). Sustainable supply chains: A study of interaction among the enablers. Business Process Management Journal, 16(3), 508–529.CrossRefGoogle Scholar
  23. Geibler, Von, Kristof, K., & Bienge, K. (2010). Sustainability assessment of entire forest value chains: Integrating stakeholder perspectives and indicators in decision support tools. Ecological Modelling, 221(18), 2206–2214.CrossRefGoogle Scholar
  24. Gimenez, T., & Tachizawa, E. (2012). Extending sustainability to suppliers: A systematic literature review. Supply Chain Management: An International Journal, 17(5), 531–543.CrossRefGoogle Scholar
  25. Hahn, T., Preuss, L., Pinkse, J., & Figge, F. (2014). Cognitive Frames in corporate sustainability: Managerial sensemaking with paradoxical and business case frames. Academy of Management Review, 39(4), 463–487.CrossRefGoogle Scholar
  26. Harik, R., Hachem, W. E. L., Medini, K., & Bernard, A. (2015). Towards a holistic sustainability index for measuring sustainability of manufacturing companies. International Journal of Production Research, 53(13), 4117–4139.CrossRefGoogle Scholar
  27. Hassini, E., Surti, C., & Searcy, C. (2012). A literature review and a case study of sustainable supply chains with a focus on metrics. International Journal of Production Economics, 140(1), 69–82.CrossRefGoogle Scholar
  28. Hervani, A., Helms, M., & Sarkis, J. (2005). Performance measurement for green supply chain management. Benchmarking: An International Journal, 12(4), 330–353.CrossRefGoogle Scholar
  29. Hourneaux, F., Jr., Hrdlicka, H. A., Gomes, C. A., & Kruglianskas, I. (2014). The use of environmental performance indicators and size effect: A study of industrial companies. Ecological Indicators, 36, 205–212.CrossRefGoogle Scholar
  30. Hutchins, M. J., & Sutherland, J. W. (2008). An exploration of measures of social sustainability and their application to supply chain decisions. Journal of Cleaner Production, 16(15), 1688–1698.CrossRefGoogle Scholar
  31. Israel, D. (2009). Data analysis in business research: A step-by-step nonparametric approach. Beverly Hills: Sage Publications.Google Scholar
  32. Joung, C. B., Carrell, J., Sarkar, C., & Fenga, S. C. (2013). Categorization of indicators for sustainable manufacturing. Ecological Indicators, 24, 148–157.CrossRefGoogle Scholar
  33. Kang, S. M., Kim, M. S., & Lee, M. (2002). The trends of composite environmental indexes in Korea. Journal of Environmental Management, 64(2), 199–206.CrossRefGoogle Scholar
  34. Keating, B., Quazi, A., Kriz, A., & Coltman, T. (2008). In pursuit of a sustainable supply chain: Insights from Westpac Banking Corporation. Supply Chain Management: An International Journal, 13(3), 175–179.CrossRefGoogle Scholar
  35. Kogg, B., & Mont, O. (2012). Environmental and social responsibility in supply chains: The practise of choice and inter-organisational management. Ecological Economics, 83, 154–163.CrossRefGoogle Scholar
  36. Kovács, G. (2008). Corporate environmental responsibility in the supply chain. Journal of Cleaner Production, 16, 1571–1578.CrossRefGoogle Scholar
  37. Krajnc, D., & Glavič, P. (2005). How to compare companies on relevant dimensions of sustainability. Ecological Economics, 55(4), 551–563.CrossRefGoogle Scholar
  38. Labuschagne, C., Brent, A. C., & van Erck, R. P. G. (2005). Assessing the sustainability performances of industries. Journal of Cleaner Production, 13(4), 373–385.CrossRefGoogle Scholar
  39. Linstone, H. A., & Turoff, M. (1975). Introduction. In H. A. Linstone & M. Turoff (Eds.), The Delphi method: Techniques and applications (pp. 3–12). Reading, MA: Addison-Wesley.Google Scholar
  40. Linton, J. D., Klassen, R., & Jayaraman, V. (2007). Sustainable supply chains: An introduction. Journal of Operations Management, 25(6), 1075–1082.CrossRefGoogle Scholar
  41. Magness, V. (2008). Who are the stakeholders now? An empirical examination of the Mitchell, Agle, and Wood theory of stakeholder salience. Journal of Business Ethics, 83(2), 177–192.CrossRefGoogle Scholar
  42. Mitchell, R., Agle, B., & Wood, D. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. The Academy of Management Review, 22(4), 853–886.Google Scholar
  43. Montabon, F., Pagell, M., & Wu, Z. (2016). Making sustainability sustainable. Journal of Supply Chain Management, 52(2), 11–27.CrossRefGoogle Scholar
  44. Nardo, M., Saisana, M., Saltelli, A., & Tarantola, S. (2005). Tools for Composite Indicators Building. European Commision, Institute for the Protection and Security of the Citizen Econometrics and Statistical Support to Antifraud Unit.Google Scholar
  45. Overell, M., Chappie, L. J., & Clarkson, P. M. (2008). Environmental reporting in the Australian mining industry: Complying with regulation or meeting international best practice? Australian Business Law Review, 36(2), 137–154.Google Scholar
  46. Pava, M. L. (2007). A response to getting to the bottom of triple bottom line. Business Ethics Quarterly, 17(1), 105.CrossRefGoogle Scholar
  47. Penzenstadler, B., Femmer, H., & Richardson, D. (2013). Who is the advocate? Stakeholders for sustainability. 2nd International Workshop on Green and Sustainable Software (GREENS) (pp. 70–77), 20 May 2013, San Francisco, CA: IEEE.Google Scholar
  48. Pérez, V., Guerrero, F., González, M., Pérez, F., & Caballero, R. (2013). Composite indicator for the assessment of sustainability: The case of Cuban nature-based tourism destinations. Ecological Indicators, 29, 316–324.CrossRefGoogle Scholar
  49. Reynolds, M. A., & Yuthas, K. (2008). Moral disclosure and corporate social responsibility reporting. Journal of Business Ethics, 78, 47–64.CrossRefGoogle Scholar
  50. Rowe, G., & Wright, G. (1999). The Delphi technique as a forecasting tool: issues and analysis. International Journal of Forecasting, 15, 353–375.CrossRefGoogle Scholar
  51. Salvado, M., Azevedo, S., Matias, J., & Ferreira, L. M. (2015). Proposal of a sustainability index for the automotive industry. Sustainability, 7(2), 2113–2144.CrossRefGoogle Scholar
  52. Savino, M. M., Manzini, R., & Mazza, A. (2013). Environmental and economic assessment of fresh fruit supply chain through value chain analysis. A case study in chestnuts industry. Production Planning and Control, 26(1), 1–18.CrossRefGoogle Scholar
  53. Schalteger, S., & Burritt, R. L. (2014). Measuring and managing sustainability performance of supply chains. Review and sustainability supply chain management framework. Supply Chain Management: An International Journal, 19(3), 232–241.CrossRefGoogle Scholar
  54. Schmidt, M., & Schwegler, R. (2008). A recursive ecological indicator system for the supply chain of a company. Journal of Cleaner Production, 16(1658), 1664.Google Scholar
  55. Seuring, S. (2013). A review of modelling approaches for sustainable supply chain management. Decision Support Systems, 54, 1513–1520.CrossRefGoogle Scholar
  56. Seuring, S., & Gold, S. (2013). Sustainability management beyond corporate boundaries: From stakeholders to performance. Journal of Cleaner Production, 56, 1–6.CrossRefGoogle Scholar
  57. Seuring, S., & Muller, M. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of Cleaner Production, 16(15), 1699–1710.CrossRefGoogle Scholar
  58. Shafia, M. A., Mazdeh, M. M., Vahedi, M., & Pournader, M. (2011). Applying fuzzy balanced scorecard for evaluating the CRM performance. Industrial Management and Data Systems, 111(7), 1105–1135.CrossRefGoogle Scholar
  59. Siew, R. Y. J. (2015). A review of corporate sustainability reporting tools (SRTs). Journal of Environmental Management, 164, 180–195.CrossRefGoogle Scholar
  60. Singh, R. K., Murty, H. R., Gupta, S. K., & Dikshit, A. K. (2007). Development of composite sustainability performance index for steel industry. Ecological Indicators, 7(3), 565–588.CrossRefGoogle Scholar
  61. Singh, R., Murty, H., Gupta, S., & Dikshit, A. (2009). An overview of sustainability assessment methodologies. Ecological Indicators, 9(2), 189–212.CrossRefGoogle Scholar
  62. Smith, M. D. (2008). Stochastic frontier models with dependent error components. Econometrics Journal, 11, 172–192.CrossRefGoogle Scholar
  63. Taticchi, P., Tonelli, F., & Pasqualino, R. (2013). Performance measurement of sustainable supply chains: A literature review and a research agenda. International Journal of Productivity and Performance Management, 62(8), 782–804.CrossRefGoogle Scholar
  64. Tokos, H., Pintarič, Z. N., & Krajnc, D. (2012). An integrated sustainability performance assessment and benchmarking of breweries. Clean Technologies and Environmental Policy, 14(2), 173–193.CrossRefGoogle Scholar
  65. Tsoulfas, G. T., & Pappis, C. P. (2008). A model for supply chains environmental performance analysis and decision making. Journal of Cleaner Production, 16(15), 1647–1657.CrossRefGoogle Scholar
  66. Varsei, M., Soosay, C., Fahimnia, B., & Sarkis, J. (2014). Framing sustainability performance of supply chains with multidimensional indicators. Supply Chain Management: An International Journal, 19(3), 242–257.CrossRefGoogle Scholar
  67. Wang, Y., Lam, K., Harder, M. K., Ma, W., & Yu, Q. (2013). Developing an indicator system to foster sustainability in strategic planning in China: A case study of Pudong New Area, Shanghai. Ecological Indicators, 29, 376–389.CrossRefGoogle Scholar
  68. Wu, Y., Jing, H., & Songqing, L. (2011). The research of environmental costs based on activity based cost. Procedia Environmental Sciences, 10, 147–151.CrossRefGoogle Scholar
  69. Yakovleva, N., Sarkis, J., & Sloan, T. (2012). Sustainable benchmarking of supply chains: the case of the food industry. International Journal of Production Research, 50(5), 1297–1317.CrossRefGoogle Scholar
  70. Yang, G., Wang, Z., & Li, X. (2009). The optimization of the closed-loop supply chain network. Transportation Research Part E: Logistics and Transportation Review, 45(1), 16–28.CrossRefGoogle Scholar
  71. Yoon, K. P., & Hwang, C. L. (1995). Multiple attribute decision making: an introduction. Beverly Hills: Sage.CrossRefGoogle Scholar
  72. Wang S., Zhang, L., Zhifeng, L., Guangfu, L., & Zhang, H. C. (2005). Study on the performance assessment of green supply chain. In 2005 IEEE international conference on systems, man and cybernetics (Vol. 1, pp. 942– 947).Google Scholar
  73. Zhou, P., Ang, B. W., & Poh, K. L. (2006). Comparing aggregating methods for constructing the composite environmental index: An objective measure. Ecological Economics, 59(3), 305–311.CrossRefGoogle Scholar
  74. Zhou, P., Ang, B. W., & Poh, K. L. (2007). A mathematical programming approach to constructing composite indicators. Ecological Economics, 62(2), 291–297.CrossRefGoogle Scholar
  75. Zhou, L., Tokos, H., Krajnc, D., & Yang, Y. (2012). Sustainability performance evaluation in industry by composite sustainability index. Clean Technology Environmental. Policy, 14(5), 789–803.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media Dordrecht 2016

Authors and Affiliations

  • Susana Garrido Azevedo
    • 1
  • Helena Carvalho
    • 2
  • Luís M. Ferreira
    • 3
  • João C. O. Matias
    • 4
  1. 1.CEFAGE-UBI - Department of Business and EconomicsUniversity of Beira InteriorCovilhãPortugal
  2. 2.UNIDEMI-Department of Mechanical and Industrial EngineeringFaculdade de Ciências e Tecnologia da Universidade Nova de LisboaCaparicaPortugal
  3. 3.DEGEIUniversity of AveiroAveiroPortugal
  4. 4.Department of Electromechanical EngineeringUniversity of Beira InteriorCovilhãPortugal

Personalised recommendations