IDEAS home Printed from https://ideas.repec.org/a/gam/jresou/v9y2020i1p7-d309061.html
   My bibliography  Save this article

Social Sustainability Dilemma: Escape or Communicate? Managing Social Risks Upstream of the Bioenergy Supply Chain

Author

Listed:
  • Elena Fedorova

    (Faculty of Technology Energy and Environmental Engineering Research Unit, University of Oulu, P.O. Box 4300, 90014 Oulu, Finland)

  • Kirsi Aaltonen

    (Faculty of Industrial Engineering and Management, University of Oulu, P.O. Box 4300, 90014 Oulu, Finland)

  • Eva Pongrácz

    (Faculty of Technology Energy and Environmental Engineering Research Unit, University of Oulu, P.O. Box 4300, 90014 Oulu, Finland)

Abstract

Supply chain risk management has been well researched over the years. However, management of social risks in bioenergy supply chains has been studied less in contemporary research. The ability of bioenergy companies to identify, properly address, and communicate social sustainability has become crucial for many global producers. In order to meet current EU’s energy and climate targets, the development of sustainable bioenergy production is vital. However, over last decade, research of bioenergy production supply chains has indicated that upstream areas of global bioenergy production systems are vulnerable in terms of social sustainability risks. The main objective of this research was to demonstrate how the socially sustainable supply chain practices in bioenergy supply chains can help a production company manage social risks and resources-use related conflicts upstream of the supply chain. These practices can be applied in the process of negotiation between bioenergy producers, local authorities, and communities for creating win-win situations for all parties while planning new bioenergy production systems. This study pays special attention to social sustainability risks at the upstream of the supply chain in countries of raw material origin. Use of social sustainability practices intends to help identify, assess, and address social risks of supply chain activities for bioenergy companies. Moreover, such practices aim at supporting companies and their stakeholders in making right choices and preparing effective strategies ahead of time. We based our research on empirical evidence and offer solutions to multi-national bioenergy production companies on how to manage social risks, allowing them to make the right decisions and necessary adjustments before entering potential markets. Our findings show that even avoidance of market entrance can carry sustainability-related social risks for both the company and the local communities. We suggest that although the financial element plays an important role in decision-making, the no-go decision often means missed opportunities for local communities to improve their respective sustainability states.

Suggested Citation

  • Elena Fedorova & Kirsi Aaltonen & Eva Pongrácz, 2020. "Social Sustainability Dilemma: Escape or Communicate? Managing Social Risks Upstream of the Bioenergy Supply Chain," Resources, MDPI, vol. 9(1), pages 1-17, January.
    • Handle: RePEc:gam:jresou:v:9:y:2020:i:1:p:7-:d:309061
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2079-9276/9/1/7/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2079-9276/9/1/7/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gold, Stefan & Schleper, Martin C., 2017. "A pathway towards true sustainability: A recognition foundation of sustainable supply chain management," European Management Journal, Elsevier, vol. 35(4), pages 425-429.
    2. Kanchan Das & Reza S. Lashkari, 2015. "Risk readiness and resiliency planning for a supply chain," International Journal of Production Research, Taylor & Francis Journals, vol. 53(22), pages 6752-6771, November.
    3. Gadema, Zaina & Oglethorpe, David, 2011. "The use and usefulness of carbon labelling food: A policy perspective from a survey of UK supermarket shoppers," Food Policy, Elsevier, vol. 36(6), pages 815-822.
    4. Karthikeyan Natarajan & Petri Latva-Käyrä & Anas Zyadin & Suresh Chauhan & Harminder Singh & Ari Pappinen & Paavo Pelkonen, 2015. "Biomass Resource Assessment and Existing Biomass Use in the Madhya Pradesh, Maharashtra, and Tamil Nadu States of India," Challenges, MDPI, vol. 6(1), pages 1-15, May.
    5. Brusset, Xavier & Teller, Christoph, 2017. "Supply chain capabilities, risks, and resilience," International Journal of Production Economics, Elsevier, vol. 184(C), pages 59-68.
    6. Giannakis, Mihalis & Papadopoulos, Thanos, 2016. "Supply chain sustainability: A risk management approach," International Journal of Production Economics, Elsevier, vol. 171(P4), pages 455-470.
    7. Mani, Venkatesh & Gunasekaran, Angappa & Delgado, Catarina, 2018. "Enhancing supply chain performance through supplier social sustainability: An emerging economy perspective," International Journal of Production Economics, Elsevier, vol. 195(C), pages 259-272.
    8. Hannes Hofmann & Christian Busse & Christoph Bode & Michael Henke, 2014. "Sustainability‐Related Supply Chain Risks: Conceptualization and Management," Business Strategy and the Environment, Wiley Blackwell, vol. 23(3), pages 160-172, March.
    9. Chanthawong, Anuman & Dhakal, Shobhakar, 2016. "Stakeholders' perceptions on challenges and opportunities for biodiesel and bioethanol policy development in Thailand," Energy Policy, Elsevier, vol. 91(C), pages 189-206.
    10. Klassen, Robert D. & Vereecke, Ann, 2012. "Social issues in supply chains: Capabilities link responsibility, risk (opportunity), and performance," International Journal of Production Economics, Elsevier, vol. 140(1), pages 103-115.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. André Luiz Romano & Luís Miguel D. F. Ferreira & Sandra Sofia F. S. Caeiro, 2021. "Modelling Sustainability Risk in the Brazilian Cosmetics Industry," Sustainability, MDPI, vol. 13(24), pages 1-26, December.
    2. Guoqing Zhao & Shaofeng Liu & Carmen Lopez & Yi Wang & Haiyan Lu & Jinhua Zhang, 2024. "Identification, establishment of connection, and clustering of social risks involved in the agri-food supply chains: a cross-country comparative study," Annals of Operations Research, Springer, vol. 338(2), pages 1241-1282, July.
    3. Vivek Soundararajan & Miriam M. Wilhelm & Andrew Crane, 2021. "Humanizing Research on Working Conditions in Supply Chains: Building a Path to Decent Work," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(2), pages 3-13, April.
    4. Mani, Venkatesh & Jabbour, Charbel Jose Chiappetta & Mani, Kavitha T.N., 2020. "Supply chain social sustainability in small and medium manufacturing enterprises and firms’ performance: Empirical evidence from an emerging Asian economy," International Journal of Production Economics, Elsevier, vol. 227(C).
    5. Mahdi Bashiri & Benny Tjahjono & Jordon Lazell & Jennifer Ferreira & Tomy Perdana, 2021. "The Dynamics of Sustainability Risks in the Global Coffee Supply Chain: A Case of Indonesia–UK," Sustainability, MDPI, vol. 13(2), pages 1-20, January.
    6. Papanagnou, Christos & Seiler, Andreas & Spanaki, Konstantina & Papadopoulos, Thanos & Bourlakis, Michael, 2022. "Data-driven digital transformation for emergency situations: The case of the UK retail sector," International Journal of Production Economics, Elsevier, vol. 250(C).
    7. Rui Guo & Zhenyong Wu, 2023. "Social sustainable supply chain performance assessment using hybrid fuzzy-AHP–DEMATEL–VIKOR: a case study in manufacturing enterprises," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 12273-12301, November.
    8. Venkatesh, V.G. & Zhang, Abraham & Deakins, Eric & Mani, Venkatesh, 2021. "Antecedents of social sustainability noncompliance in the Indian apparel sector," International Journal of Production Economics, Elsevier, vol. 234(C).
    9. Shafiee, Mohammad & Zare-Mehrjerdi, Yahia & Govindan, Kannan & Dastgoshade, Sohaib, 2022. "A causality analysis of risks to perishable product supply chain networks during the COVID-19 outbreak era: An extended DEMATEL method under Pythagorean fuzzy environment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    10. Asterios Stroumpoulis & Evangelia Kopanaki & George Karaganis, 2021. "Examining the Relationship between Information Systems, Sustainable SCM, and Competitive Advantage," Sustainability, MDPI, vol. 13(21), pages 1-21, October.
    11. Md. Rayhan Sarker & Md. Abdul Moktadir & Ernesto D. R. Santibanez-Gonzalez, 2021. "Social Sustainability Challenges Towards Flexible Supply Chain Management: Post-COVID-19 Perspective," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(2), pages 199-218, December.
    12. Manel Elmsalmi & Wafik Hachicha & Awad M. Aljuaid, 2021. "Prioritization of the Best Sustainable Supply Chain Risk Management Practices Using a Structural Analysis Based-Approach," Sustainability, MDPI, vol. 13(9), pages 1-15, April.
    13. V.G. Venkatesh & Abraham Zhang & Eric Deakins & Venkatesh Mani, 2021. "Antecedents of social sustainability noncompliance in the Indian apparel sector," Post-Print hal-04455594, HAL.
    14. Mariana Toussaint & Pablo Cabanelas & Alicia Blanco‐González, 2021. "Social sustainability in the food value chain: An integrative approach beyond corporate social responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 103-115, January.
    15. Lartey, Theophilus A. & Amankwah-Amoah, Joseph & Danso, Albert & Adomako, Samuel & Khan, Zaheer & Tarba, Shlomo Y., 2021. "Environmental sustainability practices and offshoring activities of multinational corporations across emerging and developed markets," International Business Review, Elsevier, vol. 30(5).
    16. Geyi, Dan’Asabe Godwin & Yusuf, Yahaya & Menhat, Masha S. & Abubakar, Tijjani & Ogbuke, Nnamdi J., 2020. "Agile capabilities as necessary conditions for maximising sustainable supply chain performance: An empirical investigation," International Journal of Production Economics, Elsevier, vol. 222(C).
    17. Shafiq, Asad & Ahmed, Muhammad Usman & Mahmoodi, Farzad, 2020. "Impact of supply chain analytics and customer pressure for ethical conduct on socially responsible practices and performance: An exploratory study," International Journal of Production Economics, Elsevier, vol. 225(C).
    18. Shashi & Piera Centobelli & Roberto Cerchione & Myriam Ertz, 2020. "Managing supply chain resilience to pursue business and environmental strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1215-1246, March.
    19. Siemieniako, Dariusz & Kubacki, Krzysztof & Mitręga, Maciej, 2021. "Inter-organisational relationships for social impact: A systematic literature review," Journal of Business Research, Elsevier, vol. 132(C), pages 453-469.
    20. Sharfuddin Ahmed Khan & Muhammad Shujaat Mubarik & Simonov Kusi‐Sarpong & Syed Imran Zaman & Syed Hasnain Alam Kazmi, 2021. "Social sustainable supply chains in the food industry: A perspective of an emerging economy," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 404-418, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jresou:v:9:y:2020:i:1:p:7-:d:309061. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.