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Social sustainability in supply chain decisions: Indian manufacturers

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Abstract

The purpose of the paper is to assess the inclusion of social sustainability in the decisions of supply chain in multinational manufacturing organisations in India. Indian organisations are resorting to sustainability-based reporting for greater transparency and for creation of brand value for their organisations. There are tremendous economic upheavals and changes across the complete value chain, and thus, responsible business practices are becoming a necessity for the long-term survival of organisations. Sustainability, as a strategy, is responsible utilisation of resources and is reported through social, economic and environmental factors in an organisation. For sustainability as a strategy, there has to be a complete organisational inclusion and employee engagement through decision making at operational levels along the value chain. The research paper is an empirical study done through a survey using a structured questionnaire to collect information to evaluate decision criteria particularly for social sustainability, from the middle and top level executives in Indian manufacturing organisations. Multinational manufacturing organisations in India are trying to be more responsible because of mandated CSR policy, and thus, sustainability through social factors is getting more prominence. A multiple linear regression analysis is used to explain the correlation and inclusion of social factors on the decision-making process in the supply chain of multinational manufacturing organisations in India. This study reveals that decision making in the supply chain of multinational manufacturing organisations in India specifically in manufacturing industry is incorporating social sustainability. The study highlights that decision making involving social sustainability needs larger frameworks for organisational preference. While the study provides evidence of social sustainability-based practices in multinational manufacturing organisations in India, it does not deal with social sustainability practices. The study also has limitation as has been limited to organisations which follow sustainability practices and make disclosures through GRI framework.

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Authors and Affiliations

  1. Ansal University, Sector 55, Golf Course Road, Gurgaon, Haryana, 122003, India

    Amrinder Kaur & Puja Chhabra Sharma

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  1. Amrinder Kaur
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  2. Puja Chhabra Sharma
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Correspondence to Amrinder Kaur.

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Kaur, A., Sharma, P.C. Social sustainability in supply chain decisions: Indian manufacturers. Environ Dev Sustain 20, 1707–1721 (2018). https://doi.org/10.1007/s10668-017-9961-5

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