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The purpose of this paper is to present an analysis of the academic literature addressing Sustainable Supply Chain Management (SSCM) practices in developing countries. A systematic literature review method was adopted; selected papers were reviewed from 2000 to 2016 that matched our inclusion criteria. Common themes across the literature were identified covering four factors regarding the adoption of SSCM: drivers, barriers, mechanisms and outcomes. A conceptual model integrating these factors and based on institutional theory was advanced to explain the adoption of sustainability practices along supply chains in developing countries. The paper concludes by identifying gaps in the literature that require further research on this topic, particularly for the context of developing countries. To the best of our knowledge this is the first paper reviewing the existing research on SSCM in developing countries that includes both social and environmental dimensions.

Private investments to address environmental issues are perceived as a powerful engine of sustainability. For the agri-food sector, multiple instruments have been developed to green supply chains. Yet little is known about the underlying process and conditions under which green sourcing concerns lead to the adoption of specific sustainability instruments among agri-food companies. This study: i) offers a synthesis of the most commonly used instruments agri-food companies adopt to promote sustainability in their supply chains; ii) proposes an analytical framework to elucidate how those decisions are made, based on the competitive environment in which firms operate—with respect to location of their raw materials, technologies available to their suppliers, leverage over upstream suppliers, and end-markets’ characteristics; and iii) presents seven case-studies illustrating the decision-making process leading to the adoption of a specific instrument by a particular company. Companies that do not have sustainable technologies available to improve their environmental practices but operate in highly sensitive places are better off taking their operation somewhere else. But companies with available cleaner technologies, effective law enforcement and control over the supply chains, as well as a brand to protect, can capitalize on their environmental efforts by introducing strict standards, such as third-party certifications. Enforcement of social and environmental regulations at countries of origin is a key factor that deters companies form adopting very strict standards, even if they have a brand value to enhance. The multiplication of private labels and initiatives are, in most cases, not driven by a desire to disorient the consumer, but rather by a careful consideration of the complex conditions under which agri-food supply chains operate. With minor adaptations, the framework could be applied to other economic sectors that have environmental impacts, from mining and energy-generating industries, to apparel, and electronics.

The globalization of food systems has created new challenges for sustainability governance. Voluntary certification schemes, or eco-labels, have emerged as the primary mechanism to improve production practices in complex commodity supply chains. However promising, these programs are difficult to assess in practice, and evidence of their effectiveness is mixed. In the oil palm sector, the Roundtable on Sustainable Palm Oil (RSPO) has become the standard for sustainable production but there has been no evaluation of whether certification actually improves social and environmental practices on farms. To our knowledge, this study provides the first farm-level assessment of certification programs in the oil palm sector by focusing on RSPO and Organic (IFOAM) certified smallholders in Magdalena, Colombia. We conducted field surveys to evaluate management practices using a case-control pair-wise matching approach and non-parametric tests to assess outcome variables between certified and non-certified groups. We found evidence for better environmental practices among certified producers including the substitution of synthetic fertilizers with organics, less agrochemical use, and larger areas of farms being set-aside for conservation. Socio-economic outcomes were mixed, with certified producers paying higher wages, but employing fewer workers due to lower yields. Price premiums were an important motivation for smallholders to both join and remain in certification schemes. In the degraded oil palm landscapes of Colombia and elsewhere in Latin America, certification standards could be improved by including provisions for increased habitat restoration on plantations and smallholder plots. We find that certification is making progress but is not a panacea for transforming the industry. Going forward, new strategies should be sought in tandem with certification to overcome smallholder informality, enhance inclusion, and capture more value in sustainable supply chains.