Ethics and Green Innovation in Supply Chain Management

Introduction

Today, supply chain management has assumed new importance and relevance as global supply networks are challenged on multiple fronts. Against this backdrop, there is a corresponding need to ensure ethical supply chain management practices. To gain some new insights into this growing need, this paper provides a review of two selected peer-reviewed articles concerning ethics in supply chain management. First, a synthesis of the authors' positions is followed by an evaluation of the accuracy of the information they present. Second, an analysis of any discernible biases or instances of faulty reasoning is followed by an assessment of the extent to which the respective authors agree. Finally, the paper presents a summary of the reviewed articles and important findings concerning ethics in supply chain management.

Synthesis of the Two Articles

The authors of both articles make the point that supply chain managers at all levels are well situated to take advantage of the multiple opportunities available to improve their environmental and ethical approach to doing business. In addition, although not specifically stated, the authors also agree that far too many supply chain practitioners are reluctant to pursue novel and innovative supply chain practices, since doing so would require moving outside their routine and comfort zone, and because of uncertainty about what environmentally ethical practices actually involve. In sum, both articles generally describe various strategies to help supply chain managers gain a better understanding of the terms and innovative approaches that define environmentally ethical supply chain practices.

Given the need to remain competitive in an increasingly globalized marketplace, the constraints described above regarding the uptake and implementation of environmentally responsible business practices are understandable — but they also overlook the multiple benefits and opportunities that accrue from environmentally ethical supply chain practices. For example, a study by Wong et al. (2020) notes that there are two primary types of green innovation relevant to supply chain management: green process innovation and green product innovation. According to Wong and his associates, "Green product innovation uses cleaner materials and product technologies to (re)design products and packaging. Green process innovation uses green sourcing, production and logistics technologies without changing the product design" (2020, p. 4589).

Although both types of "green" practices carry environmentally ethical implications, green process innovation stands out as having the greatest potential impact on developing more efficient supply chain operations. This outcome suggests that supply chain managers would be interested in anything that could save them time and money; however, the fact that green process innovations also represent an important environmental and ethical solution for supply chain ethics is equally significant, even if it is not always fully recognized as such. In this regard, Wong et al. point out that "Green process innovation is defined as the modifications made to manufacturing processes and systems in an effort to ensure energy savings, pollution prevention, and waste recycling" (2020, p. 4590).

While green process innovations do not always have a corresponding direct benefit to consumers, all of the planet's eight billion people will realize some indirect benefits by virtue of cleaner supply chain operations. Wong et al. concede that a narrow view of supply chain operations may exclude both types of green processes; yet each type carries its own environmental benefits that, while difficult to quantify, nonetheless represent significant contributions to reducing the carbon emissions believed to be responsible for accelerating climate change. As Wong et al. (2020) conclude, "While the term 'manufacturing processes and systems' can be viewed narrowly as green production, we widen the scope of green process innovation by considering green or ethical sourcing and green logistics" (p. 4590).

Likewise, a study by Shadab et al. (2021) cites the need to improve the efficiency of supply chain operations in order to reduce companies' carbon footprints. Similar to the key points made by Wong et al. (2020), Shadab et al. (2021) also emphasize that it is possible to improve the efficiency of virtually any supply chain by integrating relevant social, economic, and environmental concerns. While the Wong et al. (2020) study focused primarily on strategies to reduce the environmental impact of supply chain operations through changes to supporting processes, Shadab et al. (2021) assessed the impact of congested points along the supply chain to identify opportunities for improvement. In other words, both articles maintain that ethical supply chain operations require a view toward eliminating waste and streamlining the supply network to reduce logistical costs and fossil fuel emissions.

Evaluating the Accuracy of Information Presented

The information presented in the Wong et al. (2020) study was fully supported by a comprehensive and systematic review of the relevant peer-reviewed literature. The theoretical framework and methodology were described in sufficient detail to make the results both reliable and valid. In addition, the Wong et al. (2020) study used a robust sample of 1,000 firms in Hong Kong drawn from the Dun & Bradstreet database to develop their hypotheses and justify their findings. The authors are also meticulous in reporting the results of their statistical analyses through tabular and graphic means.

Although the Shadab et al. (2021) study relied on complex mathematical formulas to generate and support its findings, the authors also employed an empirical sample of 100 real-world businesses competing in the resin and polymers sector in Iran to apply their statistical methodology. In addition, Shadab et al. (2021) provide extensive tabular and graphic interpretations of their data analyses to facilitate understanding and applicability to supply chain operations.

Conclusion

The research was consistent in showing that supply chain managers in organizations of all sizes and types are well situated to contribute to the bottom line and improve their brand by reducing the environmental impact of their supply chain operations and supporting processes. Both articles reviewed above provided strategies for this purpose that are applicable to many supply chain operations, and both emphasized the need for continuous improvement. Finally, the research was also consistent in showing that there are multiple ways supply chain managers can enhance the efficiency of their operations, provided that they perform their due diligence and remain vigilant for opportunities for improvement.