sustainable management in emerging economy · sustainable management in emerging economy contexts...

Understanding how environmental and social sustaina bility drives profit

� How sustainable management pays off

� What the most effective sustainability measures are

� What you can learn from industry best-practice

Sustainable Management in Emerging Economy Contexts

Economicperformance

Environmentalperformance

Socialperformance

Results Summary

1

Professor Dr.

Lutz Kaufmann

SUSTAINABILITY – DOING WELL BY DOING GOOD

Socially and environmentally responsible management has advanced to the core of firms’ value propositions. Especially in emerging economy contexts, corporate sustainability has emerged as a strategic priority for business leaders across industries.

With this study, we have been able to not only gain a sound understanding of firms’ current social and environmental conduct but also to shed light on its effects and economic benefits.

This compendium provides a summary of the project results and covers both a firm-internal operations and supplier management perspective.

We would like to express our sincere thanks to all participants and interview partners who made this research possible, as well as to GöstaDreher, Christian Meermann, Philipp Morawietz, Roland Penner, JascharSaedi, Raimar Schmitt, Markus Theis, and Florian Wieser for their excellent support in the project.

Professor Dr.

Craig Carter

2

Executive summary

Approx. 70 % of all surveyed top executives consider sustainability efforts essential to long-term profitability

- For firms' purchasing strategies, purchasing heads rank environmental efforts as most important among sustainability initiatives

- Subsidiary CEOs in emerging economies consider social issues a priority

Firms with highest profitability show consistently higher efforts in social and environmental sustainability

Firms with high efforts in social and environmental sustainability show major competitive advantages, especially with regard to production efficiency, supplier management skills and attractiveness for employees

Amongst the industries covered in the study*, Consumer Goods companies engage most strongly in sustainability activities whereas Mechanical Engineering firms are the least engaged

*) Automotive, Chemicals and Pharmaceuticals, Consumer Goods, Electronics, Mechanical Engineering, Trade

3

While corporate sustainability is certainly one of the megatrends of the 21st century, a second major development increasingly shapes the global economy: Many Western firms seek to benefit from the cost advantages offered in emerging economies in Eastern Europe, Asia, and Latin America. Accordingly, a growing shift of both their operations and supplier base into these regions can be observed. As the cost advantages offered in emerging economies often come along with social and environmental standards below those of Western countries, firms face the question of what impact a social and environmental engagement beyond these standards has on their capabilities, stakeholder relationships, and ultimately on financial performance.

The following chapters provide answers to these questions, applying distinct operations and supplier management perspectives.

Economicperformance

Environmentalperformance

Socialperformance

4

Management of Operations in Emerging Economies

15

Management of Suppliersfrom Emerging Economies

4

Management of Operations in Emerging Economies

5

End-of-pipe filtering

Resource efficiency

Production input factors

Sustainability

Working conditions

Community development

Safetystandards

Environmental aspects

Social aspects

� Use of resource-efficient production technologies

� Highly effective filtering systems to reduce emissions

� High standards regarding use of environmentally friendly and energy-efficient input factors

Sustainability in firms‘ emerging economy operations can be defined as engaging in environmentally and socially responsible activities beyond mere compliance

� Supportive working conditions, attractive staff benefits as well as development programs

� Stringent monitoring of workplace safety, comprehensive safety trainings

� Active contribution to local communities, esp. with regard to improvement of living conditions (e.g., water supply and educational infrastructure)

6

Total sample: 213 subsidiaries in emerging economie s

8%

8%

24%

Automotive

25%MechanicalEngineering

Electronics

17%Chemicalsand Pharma-ceuticals

ConsumerGoods

18%

Other

The study is based on a diverse sample across industries, firm sizes, and countries

7% 33%Brazil

20%

China

26%India

Hungary14%

CzechRep.

11%

Verylarge

17%Large

28%

Medium

44%SmallIndustry

Country

Firm size*

*) Firm size (of group) by annual sales in EURSmall: up to 1 billion

Medium: > 1 billion up to 5 billion

Large: > 5 billion up to 20 billion

Very large: > 20 billion

7

Automotive, Mechanical Engineering, and Electronics industries place highest emphasis on working conditions and safety standards; community development less important

5.2Resourceefficiency

5.2End-of-pipefiltering

5.2Productioninput factors

5.8Employee workingconditions

4.7Communitydevelopment

5.8Safety standards

5.0

5.0

4.8

5.7

4.2

5.7

5.2

5.1

5.3

5.9

4.7

5.7

Automotive Mechanical Engineering Electronics

Self-assessment of engagement on scale 1 (lowest) to 7 (highest)

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8

Chemicals/Pharma and Consumer Goods industries place high emphasis on working conditions and safety; environmental aspects also important for Consumer Goods

5.3Resourceefficiency

5.3End-of-pipefiltering

5.1Productioninput factors

5.9Employee workingconditions

4.4Communitydevelopment

5.9Safety standards

5.7

5.7

5.4

5.7

4.8

5.9

4.8

4.8

4.9

5.5

4.4

5.5

Chemicals and Pharma Consumer Goods Other


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9

Subsidiary CEOs in emerging economies see sustainability, especially regarding social issues, as vital to long-term company success

Agree72%

Neutral16%

Disagree

12%

Regarding environmentalsustainability

Regarding socialsustainability

Our sustainability efforts are essential to our long-term profitability

Our sustainability efforts are critical to the survival of our company Agree 58%

Neutral24%

Disagree

18%

Agree

80%

Neutral12%

Disagree

8%

Agree63% Neutral19%

Disagree

18%

10

Financially successful firms do significantly more in terms of sustainability

4

5

6Resource efficiency

End-of-pipe filtering


Employee working conditions


Safety standards

Intensity of sustainability efforts –most profitable vs. least profitable companies

� Consistently higher efforts of more profitable firms across all sustainability dimensions

� Most profitable firms have a clearly higher commitment to community development activities (e.g. local water supply, education facilities) and environmental activities (end-of-pipe filtering and production input factors)

� For both groups, highest attention clearly attributed to provision of attractive working conditions and adherence to above-average safety standards

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33% companies with highest Return on Sales relative to their industry average

33% companies with lowest Return on Sales relative to their industry average

11

5

1 Production efficiencyFacilities that produce less waste and use resources more efficiently do not only excel from an ecological point of view. Resource efficiency can also lead to lower costs, higher quality, and more stable processes.

Company reputationThe perception of a company as environmentally and socially sustainable greatly helps to improve its overall reputation. This can result in a competitive advantage that is extremely difficult for competitors to replicate.

4 Attractiveness for employeesEmployees value supportive and pleasant working conditions and high safety standards. This can help to improve employee satisfaction and retention. What is more, employees increasingly develop a pride in working for leaders in the field of sustainability.

Innovation capacityEfforts to improve the social and environmental footprint can positively influence overall innovation capacity. This is due to the organizational learning effects resulting e.g. from handling complex environmental technology or collaborating cross-functionally in sustainability projects.

2 Support by communityEspecially in the context of emerging economies, support by local communities and authorities is critical to a company‘s success. Adopting an active position in terms of sustainability can enhance this kind of support, for instance if a license for building a new production facility is needed.

Sustainable management is connected to five decisive competitive advantages

3

12

Firms engaging strongly in environmental efforts benefit from a range of competitive advantages…

3,5

4

4,5

5

5,5

6

6,5

3,5

4

4,5

5

5,5

6

6,5

3,5

4

4,5

5

5,5

6

6,5

Productionefficiency

Companyreputation

Attractiveness for employees

Innovationcapacity


Support bycommunity

Companyreputation


Innovationcapacity


Support bycommunity

Companyreputation


Innovationcapacity

…resource efficiency …end-of-pipe filtering …production input factors

� Strong efforts in resource efficiency and sustainable production input factors are especially related to higher production efficiency and innovation capacity.

33% companies with strongest efforts in… 33% companies with lowest efforts in…

Support bycommunity

Self-assessment of competitive advantages on scale 1 (lowest) to 7 (highest)

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13

…which also holds true for social efforts

3,5

4

4,5

5

5,5

6

6,5


3,5

4

4,5

5

5,5

6

6,5

3,5

4

4,5

5

5,5

6

6,5

…employee working conditions …community development …safety standards


Support bycommunity

Companyreputation


Innovationcapacity


Support bycommunity

Companyreputation


Innovationcapacity


Support bycommunity

Companyreputation


Innovationcapacity

� Strong social efforts are especially related to higher attractiveness for employees.

!!!!!!!!

!!!!


14

The cases of Faber-Castell Brazil and Merck Thailand provide examples of outstanding sustainability management

Faber-Castell Brazil – environmental sustainability Merck Thailand – social sustainability

Under the leadership of its local CEO, Heinz Landau, the Thai subsidiary of the German Pharmaceuticals and Chemicals company Merck has defined “responsibility towards the society” as a cornerstone of its sustainability efforts. Partnering with the CARE Thailand / Raks Thai Foundation, Merck supports the development of local communities with three programs. For instance, the "Merck Community Caring and Action Partnership Program“ aims to coach communities in the Northern Mae Chaem region in the field of sustainable development, e.g., through making use of income opportunities within the community or giving better education to young people. The results are impressive: 88% of Merck Thailand’s employees confirm that the sustainability activities enhance their identification with the company; more than 75% of its customers perceive Merck as a very active company in terms of social sustainability.

Published with friendly permission of the companies

With a production of 2 billion pencils per year, the German pencil producer Faber-Castell possesses the biggest pencil plant in the world, which is located in the city of São Carlos, Brazil. In 1984, the company established a proprietary plantation of pine trees to ensure the local supply of wood in an environmentally responsible way. The plantation was accredited by the “Forest Stewardship Council” and reflects the company’s aspiration to be a leader in environmental matters. What is more, the plantation gives Faber-Castell a strategic advantage in terms of long-term, reliable supply. When the project was initiated, the company discerned a tendency towards lower quality and rising prices on the world market. Today, Faber-Castell is able to produce wood at comparatively low prices in constantly high quality, while at the same time preserving the environment.

15

Management of Suppliersfrom Emerging Economies

16

Environmental aspects

Social aspects

Supplier

selection

Supplier

monitoring

Supplier

development

Sustainable supplier management

Supplier selection

� Consciously seeking suppliers that are leaders in their industry regarding- environmental performance

(e.g., emission/waste levels)- workplace safety- working conditions

Supplier monitoring

� Regularly monitoring whether current suppliers still meet expectations regarding- environmental performance- social aspects

(for reasons of brevity not differentiated between working conditions and safety)

Supplier development

� Engaging in continuous efforts to coach suppliers regarding ways to improve - environmental performance- workplace safety- working conditions

Sustainability in firms‘ management of suppliers from emerging economies can be defined as engaging in environmentally and socially responsible activities beyond mere compliance

17

Total sample: 244 business units

6%

9%

15%

Automotive

19%Mechanicalengineering

Electronics13%

Chemicalsand Pharma-ceuticals

23%Consumergoods

Trade15%

Other

The study is based on a diverse sample across industries and firm sizes in Germany and the U.S.

56% Germany

44%USA

14%

Very large

21% Large

27%

Medium

38%Small

Industry

Country

Firm size*

*) Firm size (of group) by annual sales in EURSmall: up to 1 billion

Medium: > 1 billion up to 5 billion

Large: > 5 billion up to 20 billion

Very large: > 20 billion

18

In Automotive and Mechanical Engineering industries, supplier development is of primary importance; Electronics industry places highest emphasis on environmental selection criteria

4.8environment

4.7safety

4.7workingconditions

4.5environment

4.2social

5.0environment

4.8safety


4.0

3.6

4.5

4.4

3.6

4.2

4.3

4.3

5.0

4.6

4.8

4.8

4.6

3.8

4.8

4.3

Automotive Mechanical Engineering Electronics

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Sup

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rse

lect

ion

Sup

plie

rm

onito

ring

Sup

plie

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velo

pmen

t

!!!! = key insight

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In Consumer Goods and Trade industries, highest emphasis lies on selecting suppliers with sustainable working conditions; safety aspects dominate the Chemicals and Pharma sectors

4.8environment

5.0safety


4.9environment

4.3social

4.5environment

5.0safety


4.9

4.7

4.9

3.9

4.8

4.9

5.2

4.7

4.1

4.3

3.9

4.1

3.3

4.1

4.1

4.7

Chemicals & Pharma Consumer Goods Trade

4.4

4.8

4.4

4.3

4.2

4.2

4.6

3.5

Other

!!!!


!!!!

!!!!

!!!!!!!!

Sup

plie

rse

lect

ion

Sup

plie

rm

onito

ring

Sup

plie

rde

velo

pmen

t

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Purchasing heads see sustainability as vital to long-term company success, especially regarding environmental aspects

Agree67%

Neutral23%

Disagree

10%

Our sustainability efforts are essential to our long-term profitability

Our sustainability efforts are critical to the survival of our company

Agree 50%

Neutral

24%

Disagree26%

Agree64%

Neutral25%

Disagree

11%

Agree40%

Neutral

32%

Disagree28%

Regarding environmentalsustainability

Regarding socialsustainability

21


There is a strong link between sustainable supplier management and financial performance

3,5

4

4,5

5

5,5Supplier selection - environmental

Supplier selection - safety

Supplier selection - workingconditions

Supplier monitoring -environmental

Supplier monitoring - social

Supplier development -environmental

Supplier development - safety

Supplier development - workingconditions

� Higher efforts of more profitable firms across all sustainability dimensions

� Most profitable firms with clearly higher commitment to social aspects than other firms

� For both groups, lowest attention clearly attributed to developing suppliers regarding working conditions

Intensity of sustainability efforts –most profitable vs. least profitable companies

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33% companies with highest Return on Sales relative to their industry average

33% companies with lowest Return on Sales relative to their industry average

22

1 Supplier operational performanceSuppliers with strong environmental and social performance frequently also show superior general performance (e.g., quality and reliability). This is due to the fact that successful sustainability management requires strong control over production processes (e.g., input factors, technology) which in turn enables the company to perform well in operational regards.

2 Supplier strategic capabilitiesIf suppliers are able to implement sensible sustainability policies, they can be expected to possess further strategic strengths such as management skills and innovation capabilities – which can ultimately result in advantages for the buying company.

4 Supplier management skillsAssessing and developing suppliers in environmental and social terms often requires rich interaction and collaboration. This in turn can help to develop skills and insights that are generally helpful for managing suppliers from emerging economies.

3 Company reputationConsumers around the globe have become increasingly concerned not only about companies‘ sustainability within their operations, but also in their supply chain – prominent scandals lend plenty of evidence here. Therefore, company reputation is significantly determined by the social and environmental performance of a firm’s supplier portfolio.

Sustainable supplier management is connected to four decisive competitive advantages

23

Firms that engage strongly in sustainable supplier selection realize various advantages over their competitors

3,5

4,5

5,5

6,5

3,5

4,5

5,5

6,5

3,5

4,5

5,5

6,5

Supplieroperational

performance

Supplierstrategiccapabilities

Suppliermgmt.skills

…supplier selection - environment …supplier selection - safety …supplier selection - working conditions


Companyreputation

Supplier operational

performance


Suppliermgmt.skills

Companyreputation

Supplieroperational

performance


Suppliermgmt.skills

Companyreputation

!!!! !!!! !!!!

� Supplier selection regarding environment and safety especially related to superior strategic supplier capabilities (i.e. financial strengths, technical and innovation capabilities); supplier selection regarding working conditions especially related to high skills to manage suppliers from emerging economies.


24

This also holds true for social and environmental efforts in supplier monitoring…


3,5

4,5

5,5

6,5

3,5

4,5

5,5

6,5


Suppliermgmt.skills

…supplier monitoring - environment …supplier monitoring - social

Companyreputation


Suppliermgmt.skills

Companyreputation

Supplieroperational

performance

Supplieroperational

performance

� Supplier monitoring especially related to superior supplier management skills.


!!!! !!!!

25

…and in supplier development.

3,5

4,5

5,5

6,5

3,5

4,5

5,5

6,5

3,5

4,5

5,5

6,5


Suppliermgmt.skills

…supplier development - environment …supplier development - safety …supplier development - working cond.


Companyreputation


Suppliermgmt.skills

Companyreputation


Suppliermgmt.skills

Companyreputation

Supplieroperational

performance

Supplier operational

performance

Supplieroperational

performance

� Supplier development most clearly related to higher supplier management skills and to better strategic capabilities of suppliers (i.e. financial strengths, technical and innovation capabilities).


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A brilliant example for environmentally and socially sustainable supplier management is the German sports lifestyle company PUMA. With a straightforward sustainability strategy, the company proactively addresses the rising public pressure in this area, which has affected the textile industry – characterized by a high degree of production outsourcing to low-cost countries – since the early 1990s.

As early as 1993, PUMA developed a “Code of Conduct” for sustainable supplier relationships. Furthermore, PUMA introduced the “S.A.F.E.” concept (“Social Accountability and Fundamental Environmental Standards") that addresses the issues “human rights”, “production safety” and “ecological/social matters”. The transparency and quality of the concept is ensured through a complete accreditation by the “Fair Labor Association”.

One part of the program is yearly multi-stakeholder seminars with organizations like Greenpeace, Oxfam and the Clean Clothes Campaign. Apart from this, PUMA performs regular sustainability audits of its suppliers. These lead to evaluations which determine whether the supplier relationship will be maintained. The base for the audits is the “S.A.F.E.” handbook, which also serves as a tool for coaching the suppliers’employees on sustainability issues.

PUMA’s General Manager for Global Sourcing, Reiner Seiz, confirms that the S.A.F.E. program with its regular supplier audits made any violation of PUMA’s social requirements virtually impossible.

PUMA AG – sustainable supplier management

The case of Puma AG provides an example of outstanding sustainability supplier management

Published with friendly permission of the company

27

Recommendationsfor Managers

28

Recommendations for subsidiary managers in emerging economies

While subsidiary heads on average consider social efforts as even more important than environmental ones, the most profitable companies differentiate themselves especially through superior environmental activities (e.g., filtering of pollutants or choice of environmentally friendly input factors)

� Managers should consider that environmental efforts offer even more potential for differentiation than social efforts ( which are still important)

Findings show that companies excelling in environmental efforts (efficient production technology, choice of environmentally friendly input factors) also posses superior innovation capabilities and production efficiency

� When deciding on investments in environmental techn ology, managers should also consider positive spill-over effects on efficiency and innovation

Findings show that companies excelling in social efforts (working conditions, safety) have advantages in attracting and retaining qualified employees

� Managers should consider that their social engageme nt is closely related to their attractiveness as an employer

29

Recommendations for purchasing managers

While purchasing heads on average consider environmental efforts as even more important than social ones, the most profitable companies differentiate themselves especially through superior social activities (e.g., safety criteria in supplier selection or developing suppliers regarding working conditions)

� Purchasing managers should be aware that social eff orts offer even more potential for differentiation than environmental on es (which are still important)

Across all phases of supplier management, findings show that companies with high sustainability efforts (both in social and environmental regards) also possess higher general supplier management capabilities

� Purchasing managers should see sustainable supplier management as a way to increase interaction with suppliers and further dev elop their supplier management skills

Particularly regarding supplier selection, findings show that firms which strongly apply environmental and safety criteria are also more satisfied with the strategic capabilities of their suppliers (e.g., management, innovation)

� Purchasing managers should consider environmental a nd social performance of a supplier as an indicator of his general capabilitie s

30

Sustainability Self-AssessmentOperations and Supplier Management

31

You can use the scale from 1-7 to run a self-assess ment of your engagement in the respective areas.

⑦⑥⑤④③②①…extensively train our employees to adhere to environmental protection rules.

⑦⑥⑤④③②①…have filtering systems that meet at least the same standards as those in western countries.

⑦⑥⑤④③②①…are leaders in environmentally friendly waste management.

⑦⑥⑤④③②①…upgrade our filtering systems when better filtering technology becomes available.

In our operations, we…strongly agreeagree

somewhat agree

neither disagree nor agree

somewhat disagreedisagree

strongly disagree

End-of-pipe emission reduction

⑦⑥⑤④③②①…produce less waste than comparable facilities of our major competitors in this country.

⑦⑥⑤④③②①…are designed with strong focus on energy efficiency.

⑦⑥⑤④③②①…can easily compete with Western European plants regarding efficiency of operations.

⑦⑥⑤④③②①…are world-class regarding resource efficiency.

Our manufacturing facilities…strongly agreeagree

somewhat agree



strongly disagree

Production technology

The presented questions all refer to your activities in sustainable operations management at your local subsidiary.

Self-assessment: "Sustainable operations management in emerging economies"

32

⑦⑥⑤④③②①…have working conditions that are perceived as very attractive in this country.

⑦⑥⑤④③②①…get better pension benefits than they would at our major competitors in this country.

⑦⑥⑤④③②①…receive healthcare benefits that are above local standards.

Our employees…strongly agreeagree

somewhat agree



strongly disagree

Employee working conditions

⑦⑥⑤④③②①…consciously select environmentally friendly alternatives for energy supply.

⑦⑥⑤④③②①…apply environmental standards that are above the industry average.

⑦⑥⑤④③②①…see environmental friendliness as a key selection criterion next to price.

In selecting input materials, we…strongly agreeagree

somewhat agree



strongly disagree


⑦⑥⑤④③②①…we have world-class monitoring systems to detect safety-critical incidents.

⑦⑥⑤④③②①…we ensure that workplace safety meets at least western standards.

⑦⑥⑤④③②①…we have at least the same formal safety guidelines (e.g., protective clothing) as in Western Europe.

In our operations…strongly agreeagree

somewhat agree



strongly disagree

Safety standards in production

⑦⑥⑤④③②①…we commit resources to improve living conditions (e.g., healthcare, access to drinking water) …for the general public.

⑦⑥⑤④③②①…we cooperate with local organizations to make a contribution to community development.

⑦⑥⑤④③②①…we engage in environmental projects (e.g., reforestation).

⑦⑥⑤④③②①…we donate to local charity organizations.

In the local communities where we have facilities…strongly agreeagree

somewhat agree



strongly disagree


33

You can use the scale from 1-7 to run a self-assess ment of your engagement in the respective areas.

⑦⑥⑤④③②①...ensures that workplace safety at their locations meets at least Western standards.

⑦⑥⑤④③②①...asks potential suppliers to provide evidence of their own suppliers' safety standards.

⑦⑥⑤④③②①...ranks workplace safety as a key selection criterion (e.g., next to price or quality).

⑦⑥⑤④③②①...uses low accident rates as an integral selection criterion.

In selecting new suppliers from emerging economies, our company…strongly agreeagree

somewhat agree



strongly disagree

Supplier selection: safety aspects

⑦⑥⑤④③②①...consciously seeks suppliers that outperform their competitors regarding emission or waste levels.

⑦⑥⑤④③②①...ensures that potential suppliers themselves source from environmentally friendly sub-suppliers.

⑦⑥⑤④③②①...prefers suppliers that provide re-usable or recyclable packaging.

⑦⑥⑤④③②①...consciously seeks suppliers that are leaders in efficient and clean manufacturing.

⑦⑥⑤④③②①...ranks environmental soundness as a key selection criterion (e.g., next to price or quality).


somewhat agree



strongly disagree

Supplier selection: environmental aspects

The following questions refer to your approach of selecting new suppliers from emerging economies.

Self-assessment: "Sustainably managing suppliers from emerging economies"

34

⑦⑥⑤④③②①...ranks adequate working conditions at supplier sites as a key selection criterion (e.g., next to price).

⑦⑥⑤④③②①...ensures that potential suppliers apply high social standards in their own sourcing processes.

⑦⑥⑤④③②①...ensures that they pay their staff a salary that is clearly above the minimum wage in their country.

⑦⑥⑤④③②①...ensures that discriminatory practices do not exist within the supplier organization.


somewhat agree



strongly disagree

Supplier selection: working conditions at supplier sites

The following questions refer to the management of your existing suppliers from emerging economies.

⑦⑥⑤④③②①⑦⑥⑤④③②①...rank social/environmental aspects as key monitoring criteria (e.g., next to operational performance).

⑦⑥⑤④③②①⑦⑥⑤④③②①...regularly evaluate whether they keep up with the latest social/environmental standards.

⑦⑥⑤④③②①⑦⑥⑤④③②①...have a policy to phase out suppliers that no longer meet our social/environmental expectations.

⑦⑥⑤④③②①⑦⑥⑤④③②①...regularly monitor whether they still meet our social/environmental expectations.

strongly agree

strongly disagree

strongly agree

strongly disagree

In regard to our existing portfolio of suppliers from emerging economies, we…

Regarding environmentalaspects

Regarding social aspectsSupplier monitoring

⑦⑥⑤④③②①...make efforts (e.g., joint projects) to show them how they can use resources more efficiently.

⑦⑥⑤④③②①...make efforts (e.g., joint projects) to show them how they can reduce waste in manufacturing.

⑦⑥⑤④③②①...advise them on technology that makes their production cleaner.

In regard to our existing portfolio of suppliers from emerging economies, we…strongly agreeagree

somewhat agree



strongly disagree

Supplier development: environmental aspects

35

⑦⑥⑤④③②①...commit resources to coach them on how to improve safety standards.

⑦⑥⑤④③②①...make efforts (e.g., joint projects) to show them how to improve workplace safety.

⑦⑥⑤④③②①...coach them on developing effective safety guidelines.

⑦⑥⑤④③②①...share best practices regarding safe handling and shipping of products.

⑦⑥⑤④③②①...encourage them to continuously improve safety standards at their production sites.


somewhat agree



strongly disagree

Supplier development: safety aspects

⑦⑥⑤④③②①...show them how they can improve working conditions at their production sites.

⑦⑥⑤④③②①...encourage them to explicitly support their staff’s career development.

⑦⑥⑤④③②①...coach them on sensibly managing working and rest hours of their staff.

⑦⑥⑤④③②①...advise them about appropriate staff compensation (e.g., salary structures, employee benefits).


somewhat agree



strongly disagree

Supplier development: working conditions at supplie r sites

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