How to balance economic, environmental and social values in a sustainable supply chain management approach ?

Details

Supervisors

Blome, Constantin

Faculty

Louvain School of Management

Degree label

Master [60] en sciences de gestion

Abstract

Over the past two decades, the growing importance of sustainability in business practices has led companies to rethink their approach to supply chain management. Indeed, the supply chain has become a strategic point for achieving companies' sustainability objectives, as it covers processes ranging from the sourcing of raw materials to the delivery of finished products. Finding the right balance between the three dimensions of sustainability (social, environmental and economic) is essential to ensure that companies' activities have a positive long-term impact. This paper contains a theoretical section that defines all the key concepts related to sustainable supply chain management, as well as a practical section. In this part of the paper, the supply chain sustainability strategies of Unilever, Coca-Cola, Nestlé and PepsiCo were analysed and summarised. This analysis has shown that the strategies, objectives and actions implemented to improve the sustainability of their supply chains are very similar between the four companies. Indeed, elements such as greenhouse gas reduction, water management, waste reduction, respect for human rights and consumer health are present in the strategies of each company. Finding the optimal balance between the social, environmental and economic dimensions of sustainability is an extremely complex issue, depending on a multitude of factors both internal and external to companies. This optimal balance is therefore specific to each company and it would not be relevant to provide universal recommendations in terms of balance. This is why each company must build its own strategy and find its optimal balance, taking into account its objectives, constraints and socio-economic environment.