Sustainable Supply Chain Management

This assignment delves into the concept of sustainable supply chain management. It reviews various academic articles and reports that discuss the drivers, frameworks, and practices associated with building sustainable supply chains. The focus is on understanding how companies integrate environmental, social, and economic factors into their supply chain operations to achieve long-term sustainability. The document also examines case studies like Tesco's ethical trading approach and Sunoco's corporate governance framework to illustrate real-world implementations of sustainable supply chain principles.

Sustainable Business
Practices
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
TASK ..............................................................................................................................................4
1) How ethics is embedded through strategic application of formal and relational corporate
governance mechanisms..............................................................................................................4
2) Measurable ways to evaluate the impact of ethics in the following areas-.............................8
3) Recommendation for organization needs to undertake to achieve competitive advantage as
an Eco-friendly social enterprise...............................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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Illustration Index
Illustration 1: Corporate Governance...............................................................................................6
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INTRODUCTION
In the present scenario, organisation focuses on sustainable business practices that ensure
minimal negative impact on the environment, society as-well-as economy. In addition to this,
companies who focus on sustainable practices mainly have progressive policies related with
environment and human rights (Brindley and Oxborrow, 2014). Sustainable development is
solicitous with the accomplishment of the existing needs through decreasing the depletion of
natural resources. In the present era, various sustainability issues are there which have significant
impact on the national practices and business operations. Current report will discuss how ethics
are embedded through the strategic application of corporate governance and identify measurable
ways in which businesses are benefited from corporate responsibility practices.
TASK
1) How ethics is embedded through strategic application of formal and relational corporate
governance mechanisms
Corporate governance mechanism broadly refers to the procedures and relations through
which organisation is controlled so that different participation or stakeholder within the
corporation may not engage in the unethical practices. Furthermore, it is also considered as the
process through which the organisational objectives and goals are set so that they may engage in
effective and ethical practices to preserve the society and market environment through their
practices. On the other hand, ethics are considered as set of principles that mainly regularise the
individual behaviour at the workplace that further assist them in conducting ethical activities that
are abided by the law (Schaper, 2012). Therefore, it is essential for the organisation to focus on
ethical perspective so that they can easily render adequate and effective services in the market.
The selected organisation, Tesco mainly focuses on ethical perspective within the
working environment. It shows that this giant supermarket is one of the active members of
Ethical Trading Initiatives as well. As the supermarket chain assists their suppliers in selling
quality foods and other products so that they can easily meet the strategic objective of the
organisation (Brocke, Seidel and Recker, 2012). Furthermore, through the Ethical Trading
Initiatives to can also focus on amending the working condition of their employees as well as
staff so that they can pursue in the ethical practices within the organization.
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With the strategic application of formal corporate governance, the organisation mainly
focuses on establishing the strategic direction for the Tesco (Boons and et.al., 2013). After it
would ensure that the direction activities are compliance with the standard and procedure or not
and the last step is executing the strategy as well as managing the risks. In addition to this, with
the applicability of formal corporate governance, Tesco employees and staff engage in the ethical
practices that would further support the giant organisation in contributing to meet the need of
social and market environment. The first step to the formal corporate governance mechanism is
to establish strategic direction that is Tesco has establishes that in the upcoming years they
would engage in sustainable supply chain through which they can engage in the ethical
perspective related with supplying of the products (Schoenherr, 2012).
Second step of the formal corporate governance mechanism is that management ensures
that its practices are compliance with the corporate policies as-well-as standards. Therefore, in
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Illustration 1: Corporate Governance
(Source: Corporate Social Responsibility, 2016)

order to compliance with the corporate policies, Tesco mainly engages in Ethical trading system
that is integrated with the procedures and operations of the giant firm. It supports in devising the
broader strategy with relation to corporate governance (Ageron, Gunasekaran and Spalanzani,
2012). The corporate objective or strategic direction of Tesco is to ensure that they must
formulate specialist ethical trading team or wide range of commercial staff within the supplying
team to ensure proper services. Last step of the corporate governance mechanism include
executing the strategy and managing risks. In order to ensure long term financial stability within
the organisation, it is essential for the Tesco management to manage the risks associated with the
implementation of strategy.
Furthermore, the formal corporate governance mechanism approach is mainly focuses on
four pillars that results in rendering ethical perspective within the Tesco. The ethical approaches
that are used by the supermarket chain mainly include values that is management ensure that
they can share ethical belief against the suppliers. Another ethical approach is monitoring that is
management of Tesco must ensure proper reviewing regarding the services and operations
occurring within the giant supermarket so that they may come to know about the employee
condition within the company supply chain (Our Ethical Trading Approach Supporting decent
labour standards in Tesco supply chain, 2014). In addition to this, for embedding ethical
practices within the organisation, they should also engage in the improvement activities in their
supplying chain so that they can easily deliver the products and goods to the ultimate suppliers.
The last approach used by the Tesco organisation is to ensure ethical perspective at the
workplace (Bryce, Flintsch and Hall, 2014). This mainly includes transparency regarding
corporate governance mechanism focus on the open session so that they can engage in rendering
ethical services. Furthermore, organisation must ensure proper working with the other employees
that encourages the ethical practices and range of agencies so that they can deliver quality
products and services to their ultimate customers.
All these ETI (Ethical Trading Initiatives) base code support Tesco in managing its
ethical practices and activities within the organisation (Bocken and et.al., 2014). With the
growing perspective of the international activities, it is essential for Tesco to strengthen its
ethical trading systems within the countries and region under which they are operating their
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services. Thus, it will also ensure fulfilment of the commitment towards customers and staff to
whom they render services in the supply chain.
Furthermore, the relational corporate governance mechanism include assessing different
components that are common norms and values, goal congruence, problem solving, bilateral
communication etc. gaining all these from the other organisation and implementing the gained
experience within the Tesco so that they can ensure rendering ethical services (Gold, Seuring and
Beske, 2010). Relational corporate governance mechanism mainly focuses on building trust for
the inter-organisational relation that enable proper control mechanisms and results in embedding
ethical perspective for attaining the overall strategic goals and objectives.
2) Measurable ways to evaluate the impact of ethics in the following areas-
a) Strategic and operational decision making
It is essential for the management to focus on practical implication of ethics within the
process of strategic and operational decisions within the Tesco. as addressing ethics within the
decision making will results in taking effective decisions for the organization so that they can
maintain its image within the retail industry (Werbach, 2011). In order to attain long term
success in the retail industry it is essential for Tesco for making ethical business decision that
further assist the company in gaining constructive reputation in the market through securing their
loyal shareholders. Furthermore enabling moral and ethics in the decision making process will
support the operation to conduct their activities in the proper framework. There are certain
ethical criteria that must be ensure while taking decisions for the organization that respecting and
preserving the rights of employees and staff within the organization so that staff can render
ethical consideration in the decision making process (Eccles and Krzus, 2010). Furthermore, the
they would also promote trust among their staff while providing or disclose them honest and
necessary information regarding the company so that they can take strategic and operational
decisions. In addition to this, for evaluating the impact of ethics within the strategic and
operational decision making it may be evaluated through the actions performed by their
employees and staff (Boons and et.al., 2013). The decision making process is implemented by
the staff and employees therefore, the effectiveness of ethical decision making is measured
through the activities and action performed by the staff within the Tesco. In addition to this, the
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impact of ethics in the decision making can also be evaluated through measuring the outcome of
their decision. As, with the ethical implication in the process must be measure through reviewing
the success of Tesco organization in the industry and through assessing the profitability margin
the organization (Khurana and Ricchetti, 2016). Moreover, the impact of ethics in the decision
making process can also evaluated through reviewing their operation activities and measuring the
issues and problem occur while rendering operation activities.
b) The interplay between ethical behaviour of front line employees and quality of service
The ethical behaviour of front line employees directly impact the quality of their services
within the organization and to the customers (Svensson and Wagner, 2012). In order to measure
the impact of ethics in behaviour of front line employees and quality of services Tesco
management must ensure taking proper feedback from the managerial authority as well as
customers. Ethics plays significant role in influencing the behaviour of employees as well their
services as it assists in rendering proper services to their customers so that customers get
satisfied with the merchandise and products provided by the Tesco (Neubert and Dyck, 2016).
With the help of taking feedback and response from the managerial authority or employer giant
organization basically measures the behaviour of their employees and staff in the supermarket as
they will outcome in rendering proper services to the customers. On the other hand, they can also
measure the impact of ethics through taking feedback from their customers those frequently
visits their stores for purchasing the grocery product. With the help of questionnaire they can
easily take response from their regular customers regarding quality of services provided by the
front line employees in the supermarket (Chen, 2014). In addition to this, if there is positive
feedback from the customers regarding the services and activities of front line employees then it
may results in ensuring the ethics plays significant role in satisfying the customers towards the
services and product of Tesco.
c) Employee satisfaction and turnover
In order to satisfy the employees and enhance the overall turnover of Tesco supermarket
it is essential to have ethical application within the procedure of organization. With the ethical
perspective within the Tesco it results in satisfying the employees as they will render ethical
activities in the premises that furthermore assist the organization in increasing their turnover
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ratio (Brindley and Oxborrow, 2014). In addition to this, employee satisfaction have direct
relation with the turnover of the company that is if employees are satisfied with the practices
within the Tesco and their ethical climate then it will directly assist in enhancing and increasing
the turnover of the organization that support them to become leading company within the retail
industry. There are several measurable ways through which Tesco can easily evaluate the impact
of ethics that is through measuring the profitability ratio of the company. Through assessing the
profitability margin they would measures the total income or profit gained by the organization in
the year through engaging in the ethical perspective (Gmelin and Seuring, 2014). Increasing
profitability ratio will support in reviewing that organization is engaged in the ethical practices
and perspective that further support the customers in purchasing their products and services. In
addition to this, employees satisfaction can also be measured through assessing their activities
that is if they are satisfied then they will get committed towards the organization and renders
ethical services that further assist them in satisfying their employees and staff (Seuring, 2013).
Moreover, employee satisfaction and turnover of the organization can also be measured through
assessing the activities that are performed by the employees and staff within the organization as
delivering adequate and quality services will assist them to get committed regarding the quality .
3) Recommendation for organization needs to undertake to achieve competitive advantage as an
Eco-friendly social enterprise
Social enterprise is that enterprise and organization that basically focuses on application
of different strategies that is mainly used to increase the amendment in the human and
environmental well-being. Governmental bodies has presented different legislation and
regulations that support the overall organization related with their sustainability that further
impact or affect their business operations (Schaper, 2012). In addition to this, in the present
environment natural resources are getting depleting with the increasing population day by day
therefore, it is not easy for the organization to have proper and adequate balance among both of
them. Therefore, this must be accomplished through using modern technologies that outcome in
maximizing the output through using minimum resources with enabling minimal wastage of the
resources. Furthermore, to command these situation the Tesco must engage in changing and
modifying their structures accordant with the improvement and modification which will outcome
in the gaining the profit and gross sales income of the retail organization (Brocke, Seidel and
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Recker, 2012). In order to sustain as eco-friendly social enterprise in the retail industry Tesco
need to undertake different activities that support the company in accomplishing and gaining
competitive advantage. Recycling packages and branding- In order to achieve competitive advantage as an eco-
friendly social enterprise it has been recommended that Tesco must engage in the
recycled packaging of their products and other food items so that they can easily avoid
the carbon emission rate from the organization. Using recycling packaging of the
products also reduces or lower the cost associated with the packaging. Moreover, the
company also focuses on the reusable plastic crates for delivering products to their stores
(Boons and et.al., 2013). In addition to this, to minimize or reduce the environmental
impact Tesco would also results in introducing the sustainable packaging of their local
products and organic fresh products. Green products and green growth- Another recommendation for the Tesco to achieve
competitive advantage as an eco-friendly social enterprise is through introducing green
products within the supermarket that is Tesco must engage in providing and serving
green products or organic products to the customers so that they can preserve the
environmental factor. Immense cut in rate of carbon emission, carbon labelling as well as
introduction of greener products are consider as the part of green growth that further
assist the Tesco in enabling sustainable practices that assist in gaining competitive
advantage (Schoenherr, 2012). For the future growth as eco-friendly social enterprise
Tesco focuses on testing the harvested freshwater to flush the toilets, renewable
combined heat and power etc. that will support the Tesco in attaining the greener growth. Green marketing- The companies in the present environment are mainly committed
towards overcoming the environmental issues that further assist in gaining competitive
advantage as eco-friendly social enterprise (Ageron, Gunasekaran and Spalanzani, 2012).
The concept of green marketing mainly ensure that engaging in the activities that
promote in protecting and conserving the environment and surrounding. The green
marketing within the Tesco mainly focuses on the three aspects that is advertising and
promoting the quality products, they must ensure fair dealing with the customers who
purchases our products and society and the last aspect is conserving ecological
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environment (Rashid and et.al., 2013). For green marketing Tesco must engage in
marketing campaigning that is associated with the protecting the environment from the
deterioration through preserving and conserving the natural resources. In addition to this
through enabling green marketing concept it is reviewed that Tesco will reduce the use
plastic bags and plastic products to avoid the carbon emission (Bryce, Flintsch and Hall,
2014). Thus, in future it will also results in increasing the ingestion of herbal merchandise
as compare to the processed products. Moreover, with the green marketing concept it
may also result in using bio-fertilizers as compare to using the chemical substance
fertilizers with the minimal usage of pesticides. Sustainable supply chain hub- In order to gain sustainability it is recommended to Tesco
that they must engage their suppliers through effective supply chain for achieving the
sustainability goals (Bocken and et.al., 2014). The main aim for enabling the sustainable
supply chain hub sis to reduce or lower the rate of CO2 emission within the dispersion
network of Tesco. It has been also assessed that Tesco must engage in improving their
centred distribution channel by reducing or obviating the number of transportation
journey that ultimately delivers the products to the stores. Furthermore, company can also
use the route software that will support the Tesco in reviewing their delivery schedule as
well as it also focus on reviewing the prearranged miles with the actual travelled so that
they can improve the transport operations (Gold, Seuring and Beske, 2010). Therefore, it
can be said that with implementing the sustainable supply chain hub Tesco can easily
ensure effective distribution network that lowers the carbon emission rate as well as
protect the environment through enabling low pollution.
 Focus on energy efficient design and technologies- in order attain competitive
advantage from their rival companies that is Sainsbury, Asda etc. Tesco is required to
focus on building or using the energy efficient standard within the premises so that they
can act as the eco-friendly social enterprise (Werbach, 2011). There are different
technologies that might be used within the future by Tesco to ensure sustainability that is
focussing on the energy boards under which Tesco focuses on installing the touch screen
energy boards that displays the areas within the stores. With the energy board it will also
overcome the need of large indefinite amount of paper data and information that mainly
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include all the detailed information regarding total energy consumed by the store (Eccles
and Krzus, 2010). Furthermore, in the future Tesco may also engage in clerestory lights
and hybrids framing that mainly use to reduce the affect of artificial light. Clerestory
lighting within Tesco ensure series of windows that are placed on the top of building that
permit natural light within the premises. Therefore, it reduces consumption of energy as
well as electricity.
CONCLUSION
The aforementioned report has concluded that to succeed in the competitive environment
organization must engage in the sustainable practices and activities that support the organization
to engage in the activities that protect the environment and surrounding resources. Moreover, the
report has also concluded that ethics is embedded through strategic application of formal and
relational corporate governance mechanism in the organization. In addition to this, certain
quantifiable recommendation are also provided to the Tesco that need to be undertaken by them
in order to gain competitive advantage as an eco-friendly social enterprise.
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REFERENCES
Books and Journals
Ageron, B., Gunasekaran, A. and Spalanzani, A., 2012. Sustainable supply management: An
empirical study. International Journal of Production Economics. 140(1). pp.168-182.
Bocken, N. M. P. and et.al., 2014. A literature and practice review to develop sustainable
business model archetypes. Journal of Cleaner Production. 65. pp.42-56.
Boons, F. and et.al., 2013. Sustainable innovation, business models and economic performance:
an overview.Journal of Cleaner Production. 45. pp.1-8.
Boons, F. and et.al., 2013. Sustainable innovation, business models and economic performance:
an overview.Journal of Cleaner Production. 45. pp.1-8.
Brindley, C. and Oxborrow, L., 2014. Aligning the sustainable supply chain to green marketing
needs: A case study. Industrial Marketing Management. 43(1). pp.45-55.
Brocke, J. V., Seidel, S. and Recker, J., 2012. Green Business Process Management: Towards the
Sustainable Enterprise (Progress in Is).
Bryce, J. M., Flintsch, G. and Hall, R. P., 2014. A multi criteria decision analysis technique for
including environmental impacts in sustainable infrastructure management business
practices. Transportation Research Part D: Transport and Environment. 32. pp.435-445.
Chen, R.J., 2014. An integrated sustainable business and development system: Thoughts and
opinions. Sustainability. 6(10). pp.6862-6871.
Eccles, R. G. and Krzus, M. P., 2010. One report: Integrated reporting for a sustainable
strategy. John Wiley & Sons.
Gmelin, H. and Seuring, S., 2014. Determinants of a sustainable new product
development. Journal of Cleaner Production. 69. pp.1-9.
Gold, S., Seuring, S. and Beske, P., 2010. Sustainable supply chain management and inter‐
organizational resources: a literature review. Corporate social responsibility and
environmental management. 17(4). pp. 230-245.
Khurana, K. and Ricchetti, M., 2016. Two decades of sustainable supply chain management in
the fashion business, an appraisal. Journal of Fashion Marketing and Management: An
International Journal. 20(1).
Neubert, M. J. and Dyck, B., 2016. Developing sustainable management theory: goal-setting
theory based in virtue. Management Decision. 54(2). pp.304-320.
Rashid, A. and et.al., 2013. Resource conservative manufacturing: an essential change in
business and technology paradigm for sustainable manufacturing. Journal of Cleaner
production. 57. pp.166-177.
Schaper, M. T., 2012. Making ecopreneurs: developing sustainable entrepreneurship. Gower
Publishing, Ltd..
Schoenherr, T., 2012. The role of environmental management in sustainable business
development: a multi-country investigation. International Journal of Production
Economics. 140(1). pp.116-128.
Seuring, S., 2013. A review of modeling approaches for sustainable supply chain
management. Decision support systems. 54(4). pp.1513-1520.
Svensson, G. and Wagner, B., 2012. Business sustainability and E-footprints on Earth's life and
ecosystems: generic models. European Business Review. 24(6). pp.543-552.
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Werbach, A., 2011. Strategy for sustainability. Strategic Direction.
Online
Our Ethical Trading Approach Supporting decent labour standards in Tesco supply chain. 2014.
[Pdf]. Available through:
<https://www.tescoplc.com/assets/files/cms/Resources/Trading_Responsibly/
Our_Ethical_Trading_approach.pdf>. [Accessed on 23rd May 2016].
Corporate Social Responsibility. 2016. [Online]. Available through:
<http://hesreport.sunocoinc.com/fw/main/corporate-governance-1024.html>. [Accessed on
23rd May 2016].
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