Today, most Multinational Corporations (MNCs) are eager to install sustainable standards not just within their own but also within their supply chain operations. While the two pillars of
sustainability, economic and environmental, are well researched within this field of business, the third pillar, social sustainability (SSS)lags behind within the researchers' focus. However, because of recent social scandals within the supply chain operations of Multinationals, an investigation targeting social sustainability and its effective implementation within the supply chain would provide important insights into such yet neglected field of research.
This thesis tries to tackle this issue and analyses whether MNCs extent their SSS practices to suppliers in regulatory distant countries the same way as they do within countries close to their home market. The thesis intends to fill the research gap which exists around SSS and provides valuable insides into how consistent MNCs are in extending SSS practices among their supplier network.
On the basis of telephone interviews and company data, the thesis analyses the social sustainability efforts of The Otto Group, the second largest online retailer in the world. The two methods to monitor suppliers' compliance that are examined in this thesis are assessment and collaboration.
Results show, that Multinationals should not rely on either one of these two monitoring methods, but should combine them, using Assessment only as first step, and Collaboration as second. Since assessment usually provides the buyer solely with a snapshot of the current situation at suppliers' site, collaboration as second step provides the relationship with a more mutual character. Frequent non-compliance of parties, the buyer and the supplier, emphasise that collaboration and therefore mutual controlling processes are necessary. In case the business relationship between buyer and supplier does involve operations in risky, low
regulated countries, these findings are even more highlighted.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Nike as example for the transition of a MNC towards SSS.
- Increasingly complex supplier structures
- International development of MNCs
- Imperatives for MNCs to expand internationally.
- Problems associated with expansion of MNC........
- Increased exposure of MNCs ....
- Literature review
- Definition of social sustainability.
- Social sustainability and performance.
- Corporate financial performance.
- Corporate social performance...
- SSS within the supply chain of MNCs
- Context of SSS within the supply chain. _
- Implementation process.
- Institutional social guidelines
- The International Labour Organisation (ILO)
- Organisation for Economic Co-operation and Development (OECD) Guidelines on Multinationals........
- The Fair Labour Association (FLA).....
- United Nations (UN) - Global Compact (GC).
- Individual social guidelines - codes of conduct.
- Sustainable risk management of MNCs as competitive advantage
- Tools to monitor supplier's adherence: assessment versus collaboration
- Influence of the regulatory environment on SSS of MNCS
- Methodology..
- The Otto Group - A case study about social sustainability and its effective implementation within a MNC...
- The Otto Group..
- Company overview.
- Company history
- The Otto Group and social sustainability
- Vision from the top
- Top management and its influence on SSS.
- The Otto Group's SSS organisation.
- Extensive audit system
- The Otto Group's codes of conduct
- The Otto Group's social programme..
- Assessment - Collaboration of suppliers..........\li>
- The Otto Group's supply chain management in low regulated markets.....
- Social Officers.......
- Classification system.....
- Lessons learned.........
- Conclusion....………………………
- Round up...
- Future analysis.
- Limitations
- The importance of social sustainability in the supply chains of MNCs
- The impact of regulatory environments on the implementation of SSS practices
- The effectiveness of different monitoring methods for ensuring supplier compliance
- The role of collaboration between MNCs and suppliers in promoting SSS
- The application of SSS principles in the context of global supply chains
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis aims to examine the extent to which Multinational Corporations (MNCs) implement social sustainability (SSS) practices consistently across their supply chains, particularly when operating in countries with different regulatory environments. It focuses on whether MNCs apply the same level of SSS standards to suppliers in countries close to their home market compared to suppliers in regulatory distant countries. The research intends to contribute to the understanding of SSS implementation within the supply chain of MNCs and provide insights into the effectiveness of different monitoring methods. Key themes and objectives of the thesis include:Zusammenfassung der Kapitel (Chapter Summaries)
The introduction sets the context for the research by highlighting the growing importance of SSS in MNC supply chains. It uses the example of Nike to illustrate the transition of MNCs towards integrating SSS practices. The chapter also explores the complexities of global supply chains and the challenges associated with extending SSS standards to suppliers in various regulatory environments.
Chapter 2 delves into the international development of MNCs, examining the drivers behind their global expansion. The chapter discusses the challenges and risks associated with this expansion, particularly regarding the increased exposure of MNCs to diverse regulatory frameworks and social issues within their supply chains.
Chapter 3 provides a comprehensive literature review, defining SSS and its implications for corporate performance. The chapter examines the role of SSS within the supply chain, exploring the various contexts and implementation processes. It also analyzes key institutional social guidelines and individual codes of conduct that influence the development of SSS practices. Furthermore, the chapter examines the effectiveness of different tools used to monitor supplier adherence to SSS standards, comparing assessment and collaboration methods.
Chapter 4 outlines the methodology employed in the research, providing a detailed explanation of the data collection and analysis methods used in the case study. The chapter outlines the specific focus of the research, which examines the case of The Otto Group.
Chapter 5 presents a case study of The Otto Group, the second largest online retailer in the world, examining its approach to social sustainability and its implementation within the company's supply chain. This chapter delves into the company's history, organizational structure, and its vision for SSS. It explores the company's extensive audit system, including its codes of conduct and social programs. This chapter also analyzes the effectiveness of the Otto Group's assessment and collaboration methods for monitoring supplier compliance. The chapter concludes by exploring the lessons learned from the case study, highlighting key insights and recommendations for the implementation of effective SSS strategies.
Schlüsselwörter (Keywords)
The keywords of this thesis include: social sustainability, supply chain, Multinational Corporations (MNCs), regulatory environment, assessment, collaboration, monitoring methods, codes of conduct, corporate social responsibility, and case study. These terms represent the core concepts and focus areas of the research, highlighting the primary themes and concepts discussed throughout the text. The research centers on examining the relationship between social sustainability and the effectiveness of different monitoring methods for ensuring compliance within MNC supply chains. The case study of The Otto Group provides a valuable framework for understanding the practical application of these concepts in a real-world setting.- Quote paper
- Constantin Beyer von Morgenstern (Author), 2012, Social Sustainability Practices within the Supply Chain of Multinational Corporations, Munich, GRIN Verlag, https://www.grin.com/document/206260
