Managing a Sustainable Supply Chain”
(Harvard Business School Case)
1. If you were the CEO of McDonald’s how would you prioritize sustainability relative to other supply chain goals (e.g., ensuring food safety and managing costs?)
Sustainability and corporate social responsibility have taken an important role in decision making today. It is no longer the effort of a few people or interest groups trying to make a change. It has grown exponentially stronger and it is now creating consciousness and awareness across industries around the world. As time goes by, more and more companies are incorporating “green” initiatives. They are either driven by external forces, and sustainable and responsible demands from their stakeholders, or they are starting to realize the potential that is sometimes hidden when incorporating sustainable initiatives.
Companies are increasingly adopting management standards, reporting and labeling systems that help them regulate the social and environmental impacts of their business activities. Maximizing returns and managing costs is no longer the only priority. Companies are now constantly faced with issues that demand that upper management and CEOs across the world take a more “responsible” role. In some other cases, these same companies come to realize that there are other benefits associated with this practice and some companies even use it as a source of competitive advantage. But as with everything related to running a business, these initiatives also require significant resources and it may not be easy to determine how to prioritize strategic goals.
And it is not only the companies themselves that are the target of constant scrutiny. Social responsibility goes much further than to the branches of a specific company and they tend to encompass a much broader spectrum. These demands are creating additional pressures to include the company’s suppliers and the suppliers of those...