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Where The Problems Are

The document discusses a study of supply networks for three multinational corporations. The study found that many suppliers were violating the standards expected of them by the multinational corporations. Problems were discovered in every country studied, including a lack of environmental and safety practices and policies.

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Subhan Ahmad
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35 views

Where The Problems Are

The document discusses a study of supply networks for three multinational corporations. The study found that many suppliers were violating the standards expected of them by the multinational corporations. Problems were discovered in every country studied, including a lack of environmental and safety practices and policies.

Uploaded by

Subhan Ahmad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Where the Problems Are

To understand the situation and develop ideas for tackling it, we conducted a study of three supply
networks. Each was headed by an MNC considered to be a “sustainability leader”—one in the
automotive industry, one in electronics, and one in pharmaceuticals and consumer products. (For
the specific selection criteria, see the “About the Research” sidebar.) We also studied a
representative set of each MNC’s suppliers—a total of nine top-tier and 22 lower-tier suppliers,
based variously in Mexico, China, Taiwan, and the United States. What we discovered was that
many were violating the standards that the MNCs expected them to adhere to. The hoped-for
cascade effect was seldom occurring.

About the Research


We focused our study on three “exemplary” multinational corporations that met five selection
criteria: (1) They were ...

We found problems in every country we studied. In Mexico we visited five lower-tier suppliers; all
lacked environmental management systems, and four lacked procedures for handling red-flag
social problems such as sexual harassment, retaliation by supervisors, and hazardous labor
conditions. At three of the companies, temporary workers made up nearly 50% of the workforce,
and turnover rates sometimes reached 100%, making it difficult to implement viable
environmental, health, and safety programs. In China and Taiwan we visited 10 lower-tier
suppliers, all of which had marginal environmental practices, dangerous working conditions, and
chronic overtime issues. In the United States we studied seven lower-tier suppliers and found that
three had high concentrations of airborne chemicals and a lack of systematic accident reporting.

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