Transparency Measures in Procurement for Sustainable Social Supply Chain

Transparency Measures in Procurement for Sustainable Social Supply Chain

Jiffy Jose, Syed Imran Ali
DOI: 10.4018/979-8-3693-5375-2.ch010
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Abstract

An organisation's long-term success is not only based on its bottom line but also its contribution to the people and the planet's future. Social concerns in the supply chain have been gaining prominence that has encouraged governments, policymakers, and non-governmental organisations. There is a need for governments and corporations to showcase high ethical standards and social responsibility. Transparency is a key element to showcase in procurement. Procurement is a critical part of any government or private organisation's activities, and procurement policies contribute a lot to the social sustainability of supply chains. Hence, a systematic literature review is adopted to summarise the body of knowledge regarding transparency measures in advancing social sustainability with a particular focus on procurement. Sixty-nine articles are extracted from the Scopus database from 2003-2023. The descriptive and thematic analyses have identified the transparency measures in social sustainability in the context of procurement and its impact on sustainable development goals.
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Introduction

Research Background

In the current economic settings, any organisation's long-term success is not only based on its bottom line but also its contribution to the people and the planet's future (Bubicz et al., 2019). Social concerns in the supply chain have been gaining prominence following the requisites defined by the World Commission on Environment and Development for Sustainable Development (WCED) and economic and environmental concerns (Barbosa-Póvoa et al., 2018). The United Nations Sustainability Development Goals (SDGs) adopted in 2015 have also encouraged Governments, Policymakers, non-governmental organisations (NGOs), Corporations and Manufacturers to focus on achieving the 17 SDGs envisaged by 2030.

Supply Chain Transparency Measures

Supply chain transparency is disclosing information to investors and consumers about its upstream operations and the products it sells (Sodhi & Tang, 2019). Mcgrath et al. (2021) have defined supply chain transparency as “the open sharing and disclosure of social and environmental information across and occasionally outside the supply chain, which includes the quality, quantity, understandability, and timeliness of this information”. Supply chain sustainability issues include human rights, abuse, disposal problems, and social and economic factors (Thorisdottir & Johannsdottir, 2019).

Various organisations and governments have enacted a plethora of legal acts and regulations to incorporate transparency measures to tackle problems of social sustainability, listed below to name a few: -

  • (a)

    Abolition of Modern Slavery Act 2015, United Kingdom

  • (b)

    United Kingdom Equality Act, 2010, United Kingdom

  • (c)

    Dodd-Frank Act, 2010, United States of America

  • (d)

    United Nations Guiding Principles on Business and Human Rights.

The application of sustainability in the management of an organisation is becoming imperative for its successful management. However, it is not an easy task, as sustainability measurement is complex and limited models exist to translate sustainability to the full extent (Bubicz et al., 2019). The scientific community avoids their usage because social indicators are subjective and complex to evaluate (Mota et al., 2018). However, more emphasis is now being placed on social sustainability measures to assess the impacts on supply chains and society. In the context of the study, we can define “Social sustainability” as “identifying business impacts, improving social quality, and building a sustainable society by proactively managing and identifying the ethical and social impact of procurement decisions on the community at large using various sustainability frameworks, implementing technology, and measuring and addressing various factors such as human rights, labour practices, health and safety, diversity and inclusion, and so on to achieve the Sustainable development goals”

Governments and corporations must showcase high ethical standards and social responsibility. Transparency is a critical element of showcasing a socially sustainable supply chain. Procurement is one of the key aspects that help in achieving sustainability goals. It has been deduced that there is a gap in the research activities, especially one that focuses on transparency measures to bring about social sustainability and that focuses on public and private procurement. This research attempts to fill this gap by answering the research questions that will enable organisations to implement procurement transparency measures effectively and target the achievement of social sustainability goals.

RQ 1. What is the state of research in transparency measures and social sustainability in supply chain management?

RQ 2. What are the current transparency measures and social sustainability levels in public procurement processes?

RQ 3. What is the role of transparency measures in supply chain social sustainability in achieving the SDG Goals of the United Nations?

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