This chapter uses the German supply chain act as a lens to examine the impact on corporate social responsibility (CSR) of China's belt and road initiative (BRI) and global supply chain management techniques. China's BRI seeks to improve infrastructure, trade, and investment links with various nations. This chapter describes the BRI and how it may alter global supply chains in ways that raise or lower risks and possibilities related to sustainability and human rights. The chapter analyzes China's potential to advance green and socially responsible business practices along the BRI. A novel Chinese interpretation of the German supply chain act and its potential application inside the BRI are discussed. The chapter highlights the importance of worker rights and environmental preservation as it addresses the potential of technologies like blockchain inside the BRI framework to improve transparency, accountability, and traceability. The chapter also emphasizes the financial advantages of ethical supply chain management.
Top1. Introduction
Supply chains have expanded in complexity and size as a result of globalization, and now frequently span multiple continents and involve numerous parties (Mangan & Lalwani, 2016). China's Belt and Road Initiative (BRI), a megaproject to improve regional integration and growth through infrastructure, commerce, and investment, is one key initiative with the potential to transform global supply chains. The BRI has the potential to significantly impact businesses all over the world due to China's central role in global supply networks (Butt & Ali, 2020).
The growing awareness of the need to include social responsibility and environmental sustainability into supply chain management strategies inspired this chapter. Consumers, governments, and non-governmental organizations (NGOs) are all putting pressure on businesses to show they support these values. This shift is mirrored in recent legislation like Germany's Supply Chain Act, which requires businesses to uphold human rights and environmental standards in their operations (Horner & Alford, 2019; Cauchois et al., 2017).
Given this context, this chapter's primary goal is to investigate the BRI's effects on international supply chains and the possibilities it offers for bolstering Corporate Social Responsibility (CSR) initiatives. In particular, the chapter hopes to educate readers about the BRI, assess the initiative's potential effects on international supply chains, and explore ways in which it might be utilized to advance ecologically and socially responsible business policies.
The chapter also aims to clarify the role of emerging technologies, particularly blockchain, in increasing supply chain transparency and explain how the principles of the German Supply Chain Act can be used within the BRI framework. By doing so, the chapter intends to provide useful information and advice to a wide audience, including policymakers, managers, researchers, and logistics, operations, and supply chain specialists. As advocates for a more environmentally and socially conscious global economy, we see this investigation as not only opportune but essential.
In 2013, Chinese President Xi Jinping introduced the BRI, a global development plan with lofty goals. The effort, widely regarded as the most extensive infrastructure undertaking of the 21st century, seeks to improve commercial, cultural, and governmental connections across a large swath of the globe by funding the construction of an extensive system of railroads, highways, pipelines, and power grids (Zreik, 2021).
'Belt' in BRI stands for 'Silk Road Economic Belt,' a network of land links that will link China to Central Asia, Eastern Europe, and Western Europe (Dave & Kobayashi, 2018). It's a tribute to the historical Silk Road, which allowed for a thriving flow of products and ideas between the East and West. The 'Road' element, in contrast, alludes to the '21st Century Maritime Silk Road,' a massive sea corridor linking China's coastal regions with Africa and the Mediterranean (Summers, 2016; El-Nemr, Canel-Depitre, & Taghipour, 2017).
Nearly two-thirds of the world's population and one-third of global GDP are represented by the roughly 70 countries involved in the BRI (Lin, 2022). The initiative's goals include boosting China's global standing and strategic might while simultaneously easing economic development and easing regional integration.
The BRI is more than just a physical construction project. It promotes all-around regional cooperation and growth by touching on such varied spheres as energy, trade, policy coordination, financial services, and interpersonal interactions. It could have a dramatic effect on cross-border trade and the structure of global supply networks. Because of these factors, the BRI has emerged as a central topic of discussion regarding the future of global supply chain operations, particularly in the areas of social responsibility and environmental sustainability.