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Supply Chain Management and Business Sustainability Synergy: A Theoretical and Integrated Perspective

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  • Zabihollah Rezaee

    (300 Fogelman College Administration Building, Fogelman College of Business and Economics, The University of Memphis, Memphis, TN 38152-3120, USA)

Abstract

Global business organizations face the challenges of adapting proper sustainability strategies and practices to effectively respond to social, ethical, environmental, and governance issues while improving financial performance in creating value for their shareholders. Business sustainability enables the integration of financial economic sustainability performance and non-financial environmental, social, ethical, and governance sustainability performance dimensions into the corporate culture, supply chain management and business models in creating shared value for all stakeholders. Business literature has provided mixed evidence of the tension, and possible link, between financial and non-financial sustainability performance dimensions and sustainability theories have yet to sufficiently address this tension. This paper attempts to fill this void by shedding light on the link between various dimensions of sustainability performance, their integrated effect on creating shared value for all stakeholders and their implications for supply chain sustainability. This paper examines the synergy between business sustainability and supply chain management by presenting a framework consisting of sustainability theories, sustainability performance dimensions, sustainability shared value concept, and sustainability best practices. Companies can use the suggested framework in integrating both financial and non-financial sustainability initiatives into their supply chain sustainability from production design, purchasing and inbound logistics, and manufacturing process to distribution and outbound logistics.

Suggested Citation

  • Zabihollah Rezaee, 2018. "Supply Chain Management and Business Sustainability Synergy: A Theoretical and Integrated Perspective," Sustainability, MDPI, vol. 10(1), pages 1-17, January.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:1:p:275-:d:128081
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    9. Guo, Haidong & Wang, Shengyu & Zhang, Yu, 2021. "Supply interruption supply chain network model with uncertain demand: an application of chance-constrained programming with fuzzy parameters," LSE Research Online Documents on Economics 114936, London School of Economics and Political Science, LSE Library.
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    15. Rezaee, Zabihollah & Dou, Huan & Zhang, Huili, 2020. "Corporate social responsibility and earnings quality: Evidence from China," Global Finance Journal, Elsevier, vol. 45(C).
    16. Sebastian Kot, 2018. "Sustainable Supply Chain Management in Small and Medium Enterprises," Sustainability, MDPI, vol. 10(4), pages 1-19, April.
    17. Jingjing Hao & Haoming Shi & Victor Shi & Chenchen Yang, 2020. "Adoption of Automatic Warehousing Systems in Logistics Firms: A Technology–Organization–Environment Framework," Sustainability, MDPI, vol. 12(12), pages 1-14, June.
    18. Leibensperger, Carrie & Yang, Pan & Zhao, Qiankun & Wei, Shuran & Cai, Ximing, 2021. "The synergy between stakeholders for cellulosic biofuel development: Perspectives, opportunities, and barriers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    19. Manavalan Ethirajan & Thanigai Arasu M & Jayakrishna Kandasamy & Vimal K.E.K & Simon Peter Nadeem & Anil Kumar, 2021. "Analysing the risks of adopting circular economy initiatives in manufacturing supply chains," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 204-236, January.
    20. Aymen Sajjad & Gabriel Eweje & David Tappin, 2020. "Managerial perspectives on drivers for and barriers to sustainable supply chain management implementation: Evidence from New Zealand," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 592-604, February.
    21. Asta Meškuotienė & Paulius Kaškonas & Edita Raudienė & Justina Dobilienė & Benas Gabrielis Urbonavičius, 2022. "Calibration Periodicity of Fuel Tanks Assigned to Legal–Industrial Metrology: A Case Study," Sustainability, MDPI, vol. 14(16), pages 1-11, August.

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