Supply Chain Sustainability at Gsk

4373 Words Jun 25th, 2016 18 Pages
INTRODUCTION

In our report, we will be discussing on one of the major driving force for the long-term profitability and competitiveness of a firm, i.e. Sustainable Supply Chain Management. This has become one of the most recognized strategic goals by the leading global organizations in the world. Sustainability in Supply Chain Management refers to the fact that organization should not only fulfill the wants and expectations of their stakeholders, but also avoid actions that reduce the ability of the interested parties, including the future generations to meet their needs.
In order to elaborate, how a leading global organization takes Sustainable Supply Chain Management as a strategic goal, we have prepared our report on GSK’s
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In a nutshell, a sustainable supply chain is one that includes measures of profit and loss as well as social and environmental dimensions. Such a conceptualization has been referred to as the triple bottom line—financial, social, and environmental performance (Elkington 1994, 1998; Kleindorfer, Singhal, and Wassenhove 2005). Therefore, for a company to pursue sustainability they cannot pursue financial or social initiatives in a vacuum. Instead, it is strongly recommended that supply chain managers link environmental, social, and financial goals within a broader strategy to ensure the business pursues sustainability rather than philanthropy. Business success can no longer be measured by only financial performance, as other aspects are critical to long-term success. Researchers such as Markley and Davis (2007) discuss how businesses should not just be measured by traditional financial measures, but also by their social/ethical and environmental performance. These concepts revolve around the idea that companies managed and evaluated using the triple bottom line may have a better likelihood of long-term success.
Most of the research done on Supply Chain Management looks at it from a`one-dimensional perspective, looking at it as one of the three pillars of sustainability: social, economic and environmental, also known as the Triple Bottom Line view. Geldermann et al. (2007b) argues that an appropriate innovation and technology
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