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We consider the sourcing decisions of two competing firms with a potential responsibility violation risk from a supplier. There are two consumer segments in the market: socially and nonsocially conscious consumers. When a responsibility violation occurs, the socially conscious consumers will not purchase from any firm who sources from the risky supplier. To avoid this potential demand loss, the two firms can consider sourcing from a responsible but more expensive supplier. We develop game theoretical models to investigate the firms' optimal sourcing strategies and examine the effects of product line design and sourcing diversification on firms' incentives to source responsibly. Our study shows that when each firm adopts a single sourcing strategy, as the suppliers' cost difference increases, both of their sourcing choices deviate from the responsible supplier to the risky supplier. Moreover, we find that when the firm sourcing responsibly can determine whether to extend the product line to offer responsible and conventional products, product line design improves both firms' profits and induces them to source responsibly. Finally, we find that when each firm can choose between a single and a dual sourcing strategy, sourcing diversification can be potentially detrimental for both firms and prevent them from sourcing responsibly. [ABSTRACT FROM AUTHOR]

Decision on what consumer reactions (support or boycott) to promote is important for nongovernmental organizations and policymakers looking to influence firms' adoption of corporate social responsibility practices. We study how consumer reactions—paying more for certified products or boycotting in the event of responsibility violations—are effective in improving a firm's uptake of responsibility practices in the sourcing domain. We first build a stylized model to study how consumer reaction affects a firm's incentives toward responsible sourcing and find that only boycotting reactions by consumers reliably increases a firm's sourcing from responsible suppliers. We then include behavioral aspects to our stylized model to derive a more nuanced understanding of how consumer reactions affect responsible sourcing. Through behavioral experiments, we first show that a supporting consumer reaction induces a dual-sourcing bias in firms' sourcing decisions. We then develop a behavioral model of responsible sourcing, incorporating this dual-sourcing bias. Our analysis modifies the normative predictions of the stylized model by showing that a supporting reaction, irrespective of magnitude, always improves responsible sourcing if the boycotting reaction from the market is weak, and that promoting a boycotting reaction always improves responsible sourcing, irrespective of the product type. Our results lead us to a comprehensive and applicable insight for practice: in the supply chains of products with few brand substitutes, creating a supporting reaction in the market is the way to improve firms' responsible sourcing, and in supply chains of products with many brand substitutes, promoting a boycotting reaction among consumers will lead to more responsible sourcing. [ABSTRACT FROM AUTHOR]

ABSTRACT: Section 1502 of the Dodd–Frank Act requires SEC‐registered issuers to conduct supply chain due diligence and submit conflict minerals disclosures (CMDs) that indicate whether their products contain tantalum, tin, tungsten, or gold (3TG) sourced from the Democratic Republic of the Congo (DRC) or its neighboring countries (“covered countries”). Consistent with the reputational cost hypothesis, we find that heightened public attention to CMDs increases responsible sourcing. After Section 1502 takes effect, we find higher demand for 3TG products processed in certified smelters, decreased conflicts in covered countries’ mining regions relative to other regions, and reduced sensitivity of conflict risk to conflict minerals’ price spikes. Finally, we find that conflicts decrease in Eastern DRC territories with prevalent 3T (tantalum, tin, and tungsten) mines but increase in territories with prevalent gold mines. Overall, our findings highlight the real effects of enhanced supply chain transparency regulation.

The last decade has witnessed an urgency to adopt integrated and sustainable practices within construction manufacturing processes. With this in mind, this study examines individuals' experiences of the sector's uptake of BES 6001 to determine themes and propose methods for improving the process driving towards a sustainable future. Using a phenomenological methodology and a strategy for purposive sampling of architecture, engineering and construction industry professionals involved in the certification of products under the BES 6001 framework, semi-structured interviews (n = 6) were used to collect 'lived-experience' data. The key benefits of implementation include (a) management belief; (b) BES 6001 providing automated, transparent and accountable reporting; and (c) BES 6001 providing assurance to stakeholders. Meanwhile, the key barriers include (a) the complexity and cost of administration of the assessment; (b) access for small and medium-sized enterprises/small supply chain members being challenging; and (c) the perception of value. Based on the findings, the following recommendations are proposed: (a) there should be consultation and assessment of planned future revisions of the BES 6001 standard; (b) there should be analysis of evidence production for BES 6001 accreditation, with a view to provide in-depth support to organisations – such as a guidance manual or similar; and (c) a clear and integrated approach to responsible sourcing should be explored, considering multiple third-party accreditations. [ABSTRACT FROM AUTHOR]

Despite global uncertainties, Mexico has become the largest supplier to the United States, emphasizing its growing role in cultivating resilient supply chains. Nearshoring practices from Mexico and Canada to the U.S. present new production opportunities. Increasingly, U.S. consumers place a premium on sustainable consumption, so blue hydrogen plants must be sourced responsibly. This paper firstly goes beyond economic motivations, aiming to formulate a multi-stage methodology for assessing suppliers of municipal solid waste for blue hydrogen plants, marking a pioneering effort in catering to the environmentally conscious preferences of U.S. consumers. The purpose of this work is to examine a case study of Blue Hydrogen production in Nuevo Leon, emphasizing the importance of developing responsible sourcing criteria for waste suppliers to limited blue hydrogen plants. The developed hybrid approach integrates various methodologies, including Critical Systems Heuristics (CSH), fuzzy rough sets, hierarchical fuzzy rough analysis, Fuzzy rough WASPAS, TOPSIS, and Best-Worst Method (BWM), providing a comprehensive framework for decision-making under uncertainty. Key findings include the identification of water conservation (E2) and job creation (S2) as the top environmental and social criteria, respectively. Supplier WC2 was identified as the top-performing waste collector, achieving a final score of 4.77. This structured methodology prioritizes product categories for hydrogen consumption, considering sustainability criteria and U.S. consumer preferences, thereby offering valuable insights for businesses navigating this evolving landscape. • Multi-stage method assesses waste suppliers for blue hydrogen. • Pioneer in catering to environmentally conscious U.S. consumers. • Case study on responsible sourcing in Nuevo Leon's hydrogen production. • Hybrid approach integrates various methodologies for decision-making. • Prioritizes hydrogen consumption based on sustainability and U.S. preferences. [ABSTRACT FROM AUTHOR]

Problem definition: Guided delegation, a practice in which companies provide guidelines when delegating supplier management to tier 1 firms, is a common practice in managing complex supply chains. We study the benefits and risks of this approach in a three-tier supply chain setting consisting of a buying firm, a tier 1 contract manufacturer, and tier 2 suppliers, where responsibility risk stems from the tier 2 suppliers. We analyze the buyer's profit and the supply chain's responsibility risk under a guided-delegation model, in which the buyer specifies an authorized tier 2 supplier for the tier 1 manufacturer as a guideline and may audit the tier 1 firm for compliance. We compare this model with a full-delegation model, in which the buyer fully delegates tier 2 supplier selection to the tier 1 firm. Methodology/results: We formulate a Stackelberg game for the buyer's contract design problem. We show that guided delegation does not always yield its expected results of lower supply chain risk and greater buyer profit. In instances where compliance auditing is financially more attractive to the buyer than paying a premium for tier 1's responsible sourcing, guided delegation can result in higher profit but increased risk because compliance auditing cannot completely eliminate the risk. Additionally, when tier 1 anticipates buyer audits and demands higher wholesale prices to offset potential penalties, guided delegation may lead to decreased risk but lower profit for the buyer. Our analysis shows that delegating audit responsibilities to tier 1 often does not improve the buyer's profit, and in situations where it does, it invariably raises the supply chain risk. Managerial implications: Our research identifies the potential downsides of guided delegation, offering insight for external stakeholders on where to focus efforts to avoid these pitfalls. It suggests that the intended benefits of guided delegation can only be realized when paired with compliance auditing. Supplemental Material: The online appendix is available at https://doi.org/10.1287/msom.2020.0446. [ABSTRACT FROM AUTHOR]

Academic interest concerning inclusion of sustainability principles in the field of procurement has been in steady increase over the last 20 years. However, there is an apparent void in bibliometric analyses in this field. To address this gap, VosViewer is used in this study to examine the academic literature on responsible sourcing. 575 peer‐reviewed papers from Scopus were analyzed to reveal important topics, authors, and publications connected to the subject in hand. The first part of the analysis analyzed publication activity and listed all high impact journals covering the topic. Geographical distribution of findings showed that developed countries are the most productive in the field, in addition to an increasing interest from developing countries over the last decade. Keyword analysis generated from Vosviewer yielded to four main clusters covering the topic and shaping the intellectual structure of the study: (1) sustainable development & supply chain management, (2) environmental impact of procurement, (3) lifecycle analysis, (4) social responsibility and ethical sourcing. The article discusses the four main clusters and ends with concluding remarks encompassing six knowledge gaps and potential future research fields. [ABSTRACT FROM AUTHOR]

From 2000 through 2020, demand for cobalt to manufacture batteries grew 26-fold. Eighty-two percent of this growth occurred in China and China's cobalt refinery production increased 78-fold. Diminished industrial cobalt mine production in the early-to-mid 2000s led many Chinese companies to purchase ores from artisanal cobalt miners in the Democratic Republic of the Congo (DRC), many of whom have been found to be children. Despite extensive research on artisanal cobalt mining, fundamental questions about its production remain unanswered. This gap is addressed here by estimating artisanal cobalt production, processing, and trade. The results show that, while total DRC cobalt mine production grew from 11,000 metric tons (t) in 2000 to 98,000 t in 2020, artisanal production only grew from 1,000 to 2,000 t in 2000 to 9,000 to 11,000 t in 2020 (with a peak of 17,000 to 21,000 t in 2018). Artisanal production's share of world and DRC cobalt mine production peaked around 2008 at 18 to 23% and 40 to 53%, respectively, before trending down to 6 to 8% and 9 to 11% in 2020, respectively. Artisanal production was chiefly exported to China or processed within the DRC by Chinese firms. An average of 72 to 79% of artisanal production was processed at facilities within the DRC from 2016 through 2020. As such, these facilities may be potential monitoring points for artisanal production and its downstream consumers. This finding may help to support responsible sourcing initiatives and better address abuses related to artisanal cobalt mining by focusing local efforts at the artisanal processing facilities through which most artisanal cobalt production flows. [ABSTRACT FROM AUTHOR]

Given the fast‐growing demand for electric mobility, the European Union (EU) has invested in responsible sourcing of battery raw materials, but the sustainability of their value chains is not fully addressed. Life cycle sustainability assessment is a tool to identify social, economic, and environmental aspects of raw materials, but it is mostly used for negative impacts, whereas the supply and use of raw materials may also lead to benefits. The Sustainable Development Goals (SDGs) can help to determine how raw materials boost or hinder the achievement of a sustainable society. In this study, the SDGs were used as a reference to assess contributions and risks of cobalt supply for electric mobility in the EU and whether this technology supports the achievement of the SDGs. The risks were determined using eight indicators focused on social risks, but environmental aspects like water quality and usage, and greenhouse gas emissions were also considered. The literature and databases were consulted to identify which SDGs receive contributions or burdens. Global and European cobalt supply scenarios were defined, considering the most representative countries. Results indicate that, although some SDGs receive positive contributions, like SDG 8 (Decent work and economic growth) and SDG 13 (Climate action), most of the identified correlations are negative, especially for SDG 3 (Good health and well‐being) and SDG 16 (Peace, justice, and strong institutions). The European scenario has a low risk toward socio‐environmental issues in 53% of the assessed aspects, whereas the global scenario presents a high risk in 47% of them. [ABSTRACT FROM AUTHOR]

This article analyzes the conditions of responsibility in the supply chain of gold imported to Switzerland and refined there. Starting from the paradox that is a sector both acting as a guarantor and erasing the traces of the potentially contentious past of this gold, it examines the legal struggles and issues establishing that the supply is responsible. It details the multiple modes of responsibility implemented through vigilance, traceability, and transparency. The article suggests that the ambiguous status of gold as a monetary asset and a commodity neutralizes the links of ownership and provenance that are nonetheless central to identification, accountability, and to the verification of responsibilities.

In recent years, responsible sourcing and procurement (including green supply chain management) across the architecture, engineering, and construction (AEC) sectors have become notable contributors to sustainable construction strategies. This study aims to provide a systematic review of responsible sourcing literature across the AEC sectors of the UK to identify a suite of opportunities and obstacles to adopting ethical and environmentally supportive practices and to highlight avenues for further investigation. The Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) review process was adopted to identify, screen, and select (n = 80) articles (from 2000–2020) for review. Analysis of these articles identified the most frequently reported opportunities: (i) stakeholder value (40%); (ii) improved supply chain performance (39%); and (iii) competitive advantage (30%). The most frequently reported obstacles relating to the uptake of responsible sourcing are the following: (i) cost (44%); (ii) industry constraints (28%); and (iii) lack of frameworks/information and lack of awareness (25%). Given the industry importance of these themes, it is proposed that there is a necessity to explore and unravel the perceptions of industry experts about these issues so as to clarify the progress and possibilities for more widely adopting responsible sourcing across the AEC sector and, moreover, for clarifying their contribution towards achieving national and international sustainability targets (e.g., UN Sustainable Development Goals). [ABSTRACT FROM AUTHOR]

This study delves into the intricate interplay between the economic environment and Metal Industry's profitability and growth. Metal Industry, a prominent steel manufacturing company, operates in a complex global landscape, necessitating a comprehensive understanding of economic factors that influence its trajectory. Through qualitative research methods, including interviews and document analysis, key personnel's perspectives within the company were garnered. The economic environment's role in shaping profitability and growth was scrutinized, uncovering critical insights. The study reveals that economic variables, encompassing inflation, interest rates, and exchange rates, exert a significant impact on production costs, demand dynamics, and pricing strategies. The company's adaptive measures, as illuminated in response to economic trends and events, underscore its resilience and strategic agility. Challenges posed by factors like increased competition, raw material costs, and trade policy shifts were identified, alongside opportunities such as market expansion and sustainability initiatives. Ethical practices were highlighted as integral to the company's approach, manifesting through sustainable production, regulatory compliance, stakeholder engagement, and responsible sourcing. The study's findings provide a multi- dimensional perspective on how Metal Industry navigates economic complexities, proactively responds to challenges, and ethically positions itself for sustainable profitability and growth. The insights garnered contribute to a nuanced comprehension of the dynamic relationship between businesses and the economic landscape. [ABSTRACT FROM AUTHOR]

Responsible cobalt in the context of the green transition is a major issue on the global sustainability agenda. Spurred by concerns around child labor in artisanal mine sites in the Democratic Republic of the Congo (DRC), corporate actors adopted a myriad of strategies to tackle reputational risks and establish responsible sourcing programs. Now encompassing forced labor, corruption, and environmental degradation mining-specific, as well as community development projects constitute the core of Corporate Social Responsibility (CSR) practices in the DRC. Informed by a review of academic and industry studies, this article raises concerns regarding the limitations of responsible cobalt sourcing. We present the initiatives developed to date, based on voluntary strategies, and then introduce new technology tools developed to trace mineral in supply chains, ensuring transparency of the information on the conditions of extraction and trade. Finally, we identify five limitations to responsible cobalt sourcing strategies constituting avenues for future research. [ABSTRACT FROM AUTHOR]

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In recent years, responsible sourcing and procurement (including green supply chain management) across the architecture, engineering, and construction (AEC) sectors have become notable contributors to sustainable construction strategies. This study aims to provide a systematic review of responsible sourcing literature across the AEC sectors of the UK to identify a suite of opportunities and obstacles to adopting ethical and environmentally supportive practices and to highlight avenues for further investigation. The Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) review process was adopted to identify, screen, and select (n = 80) articles (from 2000–2020) for review. Analysis of these articles identified the most frequently reported opportunities: (i) stakeholder value (40%); (ii) improved supply chain performance (39%); and (iii) competitive advantage (30%). The most frequently reported obstacles relating to the uptake of responsible sourcing are the following: (i) cost (44%); (ii) industry constraints (28%); and (iii) lack of frameworks/information and lack of awareness (25%). Given the industry importance of these themes, it is proposed that there is a necessity to explore and unravel the perceptions of industry experts about these issues so as to clarify the progress and possibilities for more widely adopting responsible sourcing across the AEC sector and, moreover, for clarifying their contribution towards achieving national and international sustainability targets (e.g., UN Sustainable Development Goals).

The carbon transition and digitalization transformation are tied to a set of critical raw materials (CRM). Energy accumulators, renewable energy modules, and electronic devices all contain a certain amount of these. The versatility and utility of such elements come together with the limited number of countries where their extraction and refining take place. As the demand for these materials is growing globally, main concerns arise regarding the security of the production chain. Several works highlighted the risks associated with these materials without presenting clear interaction between such factors. This article presents a study over the three aspects showed: market concentration, institutional quality, and circularity. The approach will contain the presentation of the main characteristics of recyclability and the institutional status of exporters. A synthetic index is derived and plotted against the potential of recycling per material. In such a manner, we can group minerals according to sourcing vulnerability: one is coming from material recovery and the other via imports. An indicator calculated with a Cartesian distance method provides the synthesis of security versus safety. According to our findings, Electrical Vehicles carry the highest vulnerability for their main components in circularity and human rights violations. Ending remarks highlighted the limitations of our research, where possible interest for future research may lay.

The Sustainable Forestry Initiative (SFI) Fiber Sourcing (FS) standard fosters responsible fiber procurement by certified wood-consuming mills. This study assesses the effectiveness of the SFI-FS standard in increasing the implementation of forestry best management practices (BMPs) and quantifies its impact by surveying logging companies and certified mills in Georgia, United States. About 55% of the logging companies who responded to our mail survey indicated that the SFI-FS standard had increased the statewide BMP implementation rate. Environmental benefits topped the list of perceived benefits of BMPs, while BMP implementation costs and operational difficulties were the most frequently reported concerns. In 2019, the average BMP implementation rate of loggers trained under the Georgia Master Timber Harvester (GAMTH) program was 6.3% higher than non-GAMTH loggers. Certified mills reported consuming a combined roundwood volume equivalent to about 72% of the total roundwood consumed in Georgia. Moreover, we find that a) logging companies with larger capital investments, and b) certified mills engaging with the loggers in terms of communication of conservation practices, may fare better towards increasing BMP implementation. Our results indicate that the SFI-FS standard positively influences the sustainability of forest resource management on non-certified forestlands in Georgia. Our findings directly relate to the sustainability of 116 million hectares of forestland owned by families across the United States.

The United Kingdom's Modern Slavery Act exposed companies to a new ethical challenge in their supply chains. An estimated 40.3 million people worldwide are in modern slavery, working in a range of supply chains, including construction and facilities management. In this article, we show how the UK construction and facilities management sector responded to this challenge through an intra‐industry initiative and went through a process of collaborative sense‐making and sector‐wide agreement on a joint approach to challenge modern slavery in the sector's operations and supply chains. The research takes an engaged research approach whereby the researchers have been able to gain deep and continued access to the phenomenon from participation in a multi‐company initiative on the implementation of responses to the UK Modern Slavery Act in supply chain and procurement activities of their sector. We identify and discuss key areas for supply chain and procurement practitioners tasked with addressing a human rights topic in their operations and supply chains: Motivation, risk hot‐spots, challenges and response and provide a rich understanding of an intra‐industry initiative which creates a basis for further research on collective sustainability approaches by businesses who are otherwise commercial competitors. The study's results and insights are useful for policymakers and practitioners who are aiming to apply market‐based approaches for sustainability improvements in supply chains. [ABSTRACT FROM AUTHOR]

Supplier non‐performance is an ever present problem for an original equipment manufacturer (OEM) buyer and past survey‐based research has shown that increasing supplier competition adversely affects their performance. Using a reverse auction setting in which supplier competition is determined by number (n) of participating suppliers (bidders), we show how buyer's exposure to supplier non‐performance risk is influenced by n. In particular, we characterize conditions under which supplier non‐performance risk is increasing in n. We then formulate a buyer's decision on the optimal n for uniformly distributed costs that allows it to resolve its cost vs. risk trade‐off. We further investigate other strategies like dual sourcing, better screening, and lower threshold on acceptable bids, that the buyer can use, together with limiting n, to limit non‐performance risk and control its overall procurement cost. Managerially, our findings indicate that an OEM buyer procuring non‐strategic (non‐critical) components could increase its exposure to supplier non‐performance risk by leveraging too much competition, especially among small entrant suppliers. In such situations a buyer can manage its input cost and risk by limiting supplier competition. [ABSTRACT FROM AUTHOR]

Problem definition: Although they enjoy low costs in sourcing from emerging economies, global brands also face serious brand and reputation risks from their suppliers' noncompliance with environmental and labor standards. Such a supplier problem can be viewed as a process quality problem concerning how products are sourced and produced. Academic/practical relevance: Addressing this problem is a key component of many global companies' responsible sourcing programs. A common approach is to use an audit as an auxiliary supplier screening mechanism. However, in regions with lax law enforcement, an unethical, noncomplying supplier may attempt to bribe an unethical auditor to pass the audit. Such supplier-auditor collusion compromises the integrity of the audit and weakens its effectiveness. Methodology: In this paper, we develop a game-theoretical model to study the effect of supplier-auditor collusion on the buyer's auditing and contracting strategy in responsible sourcing, as well as various driving factors that help reduce collusion. Results: We show that the buyer's equilibrium contracting strategy is a shutout contract that takes three different forms, depending on the collusion risk level. We also define and analyze the screening errors and social efficiency loss caused by supplier-auditor collusion. By comparing the cost versus collusion elimination trade-off between a third-party audit and an in-house audit, we offer explanations for why many global brands fully rely on third-party audits and set higher process quality requirements for suppliers located in high-risk countries. The robustness of our insights is verified by two model extensions: one involving additional supplier audit cost and the other allowing for supplier process quality improvement before audit. Managerial implications: These model insights provide useful theoretical support and baseline guidance for the current supplier audit practices in responsible sourcing. Our extended model analysis further demonstrates the importance for global brands to lobby local governments to increase collusion penalties and to promote the ethical level of the third-party auditors located in high-risk countries. [ABSTRACT FROM AUTHOR]

Given the growth in socially conscious consumption, firms are increasingly concerned with sourcing from responsible suppliers. However, a firm's sourcing decisions are not always apparent to consumers. Therefore, we investigate two mechanisms, signaling and disclosure, which a firm can use to communicate its sourcing decisions to consumers in a setting where only some consumers care about the firm's sourcing practices. We develop a supplier selection model with an embedded game in which the firm signals its supplier choice through price. Then, motivated by the observation that some firms have begun to disclose their supplier information, we consider a model in which the firm may voluntarily disclose information, but at a cost. We find that, under signaling alone, a firm which sources from a more responsible supplier may distort its price upward to signal its responsible sourcing. This leads to reduced profit, implying that the firm may have an incentive to source from a less responsible supplier. However, if supplier disclosure is an option, the firm will choose to source responsibly if the disclosure cost is small and the proportion of socially conscious consumers is large. Our findings highlight the importance of transparency and socially conscious consumption in driving responsible sourcing. [ABSTRACT FROM AUTHOR]

This study provides empirical evidence on the effect of the September 2015 Volkswagen diesel emissions scandal on the stock prices of publicly traded firms in the global automotive ecosystem. We focus on both the supply chain partners of VW—tier‐1 suppliers; tier‐2 suppliers; and business customers—and three groups of firms that are not VW supply chain partners—other motor vehicle manufacturers; parts manufacturers not identified as VW suppliers; and wholesalers, retailers, and rental agencies not identified as VW customers. We find that tier‐1 suppliers of direct material to VW suffered a mean stock price reaction of ‒2.69% in the week following the scandal, but this effect varied by region. European suppliers were the most impacted with a mean stock price reaction of ‒5.52%. Suppliers with larger revenue dependence on VW experienced greater negative stock price reactions, as did suppliers of components for engines and/or emissions systems. Non‐VW parts manufacturers experienced a positive effect. We find a mean stock price reaction of ‒5.28% to VW's European customers, but no significant effects for non‐VW customers. European motor vehicle manufacturers experienced a mean stock price reaction of ‒7.60%. Our results suggest that firms should not just focus on selecting and monitoring responsible suppliers but also apply some of the same principles to developing responsible customers. Our work also has implications for industry groups, regulators, and legal systems, entities that have the resources and capabilities to effectively monitor large firms to reduce illegal or irresponsible behavior such as the VW scandal. [ABSTRACT FROM AUTHOR]

The Europa 2020 strategy found public procurement to be an adequate tool for achieving a socially and green integrative growth and that promotes innovation. The incorporation of social clauses has been accepted by the case law doctrine of the EUCJ, although subjected to not to curtail public procurement principles, mainly free competition. Thus, 2004 Directives positivize the case law doctrine. The fourth generation of Directives, in turn, has introduced a paradigm shift that uses the public procurement as an ideal way to promote social integration, environment and innovation policies. The transposition of the directive 2014/24 is being carried out by means of the Bill on Public Contracts. Does this bill answer to the new paradigm in public procurement as far as social clauses are concerned? That is the issue we try to deal with in this work.

While the successful reclamation of coal post-mining land sites in Indonesia has been evaluated, no cost-benefit analysis has been carried out on the reclamation of mined land, and the impact of the reclamation work has not been determined. The results of this case study indicate that reclamation work is not an emission-free process, but that the benefits delivered from this work are considerable. It was found that the emissions involved at the coal mined reclamation in Indonesia were 25.4–26.6 t-CO2/ha, with topsoil management and land preparation contributing over 98% of the total emissions (9.5 t-CO2/ha and 16 t-CO2/ha, respectively). The ability of the trees on the reclaimed land to absorb CO2 emissions was calculated to be 26.4 t-CO2/ha, with the amount of oxygen produced calculated to be as much as 143 t-O2/ha of oxygen. The economic value of the ecosystem services delivered by reclamation was over USD 27,750/ha. This is higher than the USD 8642–9417/ha cost of establishing the reclamation work. Improvements to reclamation work could be designed mining and reclamation plans with attention paid to reducing fuel consumption, and therefore, reducing CO2 emissions. Furthermore, law enforcement and transparency, human resource development, and community participation are strongly required.

• Responsible sourcing manages social, environmental and/or economic aspects. • Responsible sourcing manages the supply chain through production data. • The main approaches are supply chain due diligence and sustainability schemes. • There is growing interest in responsible sourcing of minerals other than 3 TG. • There is growing interest in ensuring sustainability throughout the supply chain. Over the last decade, 'responsible sourcing' has become a topic of broad interest. Policymakers, consumers and companies refer to 'responsible sourcing' as a way to address sustainability risks in globalized mineral supply chains, but the term is used to refer to a wide range of sustainability objectives pursued by a variety of approaches. To address the need for a definition and structuring of the topic, a review was performed of the existing literature and of company policies on 'responsible sourcing' of minerals. The study develops a framework for responsible sourcing, here defined as 'the management of social, environmental and/or economic sustainability in the supply chain through production data'. We propose that 'responsible sourcing' should be used as an umbrella term encompassing all sourcing designed to be 'socially responsible', 'green' or 'sustainable'. Two approaches to managing responsible sourcing of minerals were identified: supply chain due diligence and sourcing via sustainability schemes. This study maps the sustainability requirements of such schemes and uses these to categorize them as socially responsible sourcing, sustainable sourcing or green sourcing. It also identifies the extent in the supply chain to which the schemes provide assurance or certification and how far traceability extends. The study provides a framework for future research and a springboard for further development of approaches to responsible sourcing that can be used by both companies and academics. [ABSTRACT FROM AUTHOR]

Firms have recently vertically integrated with suppliers to ensure corporate social and environmental responsibility (CSER) in sourcing. We investigate the conditions under which CSER concerns will drive vertical integration, and how actions of nongovernmental organizations (NGOs) impact CSER. This paper is inspired by Taylor Guitars's acquisition of an ebony mill in Cameroon to ensure CSER. Whereas the majority of the responsible sourcing literature focuses on auditing as a mechanism for addressing CSER, we study vertical integration as an alternative. Our analysis confirms that CSER can be a potential driver of vertical integration aside from other well-known drivers. We analyze game-theoretical models where a firm can vertically integrate to potentially eliminate CSER risks. Two innovative features of our models are demand externalities (namely, a firm's CSER violation can positively or negatively affect its competitor's demand) and horizontal sourcing (namely, a vertically integrated firm can sell responsibly sourced supply to a competitor). We show that a firm's CSER strategy depends on the risk of a CSER violation exposure, the level of demand externalities (positive or negative), and whether horizontal sourcing is feasible. We find that in industries where horizontal sourcing is unlikely, firms stay disintegrated under a low CSER violation exposure risk and vertically integrate under a moderate CSER violation exposure risk. Surprisingly, firms may stay disintegrated under a high CSER violation exposure risk combined with strongly negative demand externalities. In contrast, firms vertically integrate under moderate-to-high CSER violation exposure risk when horizontal sourcing is possible but may not share responsibly sourced supply through horizontal sourcing under strongly positive demand externalities. We show that firms should be conscious about demand externalities and the possibility of horizontal sourcing in the industry when considering vertical integration for CSER. We also provide guidance to NGOs interested in promoting CSER. When horizontal sourcing is unlikely, NGOs should specify both violating and nonviolating firms in their reports, but not over-scrutinize firms; whereas when horizontal sourcing is possible, NGOs should allocate more resources for scrutinizing firms' CSER violations and create industry-wide violation reports, while avoiding naming of specific firms in their reports. This paper has been accepted for the Manufacturing & Service Operations Management Special Issue on Value Chain Innovations in Developing Economies. [ABSTRACT FROM AUTHOR]

To meet the growing demand for sustainably produced products, firms must be able to source sustainably produced parts from their suppliers. In this study, we analyze how a buyer (manufacturer or retailer) can use sourcing policies to influence their suppliers to adopt sustainable processes that can meet certain sustainability criteria. We study two sustainable sourcing policies commonly observed in practice, which influence suppliers' process decisions by committing to offer sustainable products. Under a Sustainable Preferred policy, a buyer commits to offering a sustainable product if she can source sustainably produced parts from the supplier, but will otherwise offer a conventional product. In contrast, under a Sustainable Required sourcing policy, a buyer will only offer a sustainable product, and therefore will only source from the supplier if he has adopted a sustainable process. Our results offer insights for managers by identifying how these sustainable sourcing policies influence upstream suppliers to switch to a sustainable process, and how this affects the ability of a downstream buyer to offer a sustainable product. We find that when the buyer sources from a sole supplier, the Preferred policy can deter the supplier from switching as compared to when the buyer remains noncommittal. However, only the Required policy can induce the supplier to switch. In contrast, when a buyer has multiple suppliers, the Preferred policy does not deter the supplier, but can induce him to switch to a sustainable process, similar to the Required policy. Accordingly, our results suggest that to induce the supplier to switch to a sustainable process, a buyer should adopt a Required policy when sourcing from a sole supplier, but utilize a Preferred policy when there are multiple suppliers. [ABSTRACT FROM AUTHOR]

• The supply from silver powder to PV module is highly concentrated. • Silver stocks in installed PV modules are estimated at over 19,000 tons. • ESG risks in Ag supply chains are mostly nested in fabrication and manufacturing. • Virtually all silver used in PV is associated with high ESG risks upstream. • Reshoring the PV industry in the EU can de-risk the supply chain. Supply concentration and environmental, social, governance (ESG) issues constitute important supply risks. With strategic autonomy and responsible sourcing high on the political agenda these risks are especially relevant for the EU. This paper proposes an approach to conduct risk-based due diligence. Using a trade-linked material flow analysis, ESG and dependency hotspots along supply chains can be identified. Silver supply chains for photovoltaics (PV) are taken as case-study. The model traces silver from mining to PV module manufacturing, from 1995 to 2021. The supply of silver powder, paste, PV cells, and modules is found to be highly concentrated. These supply chains are linked to substantial ESG risks, mostly nested in fabrication and manufacturing, some of which have worsened over time. Over 87% of the silver used in PV transits through at least one country with a very high risk factor. Reshoring the PV industry to the EU can partially de-risk supply. [ABSTRACT FROM AUTHOR]

Purpose: Responsible sourcing of metals is characterized as an approach for life cycle management (LCM) and sustainable supply chain management (SSCM) of social issues. The focus is on the supply of “conflict minerals”—tin, tantalum, tungsten, and gold (3TG)—whose mining and trade are implicated in conflict and severe social conditions in the Democratic Republic of the Congo (DRC). Downstream manufacturers are using compliance strategies to reach multiple tiers and long distances into product chains to buy conflict-free sources of these metals from mines, smelters, and refineries.Methods: The research uses qualitative methods and public documents to compare 16 conflict mineral programs. A theoretical framework in three dimensions guided the enquiry into program governance, program standards, and certification processes. Additional empirical analysis of the conflict-free sourcing program, the largest and most central industry-led effort on conflict minerals, was supported by confidential access to audit reports, company policies, and management procedures on more than 140 metallurgical facilities.Results and discussion: In fewer than 4 years, conflict-free sourcing programs have impacted global 3TG metal supply chains, as indicated by pricing and significant producer compliance. Electronics, jewelry, and other manufacturers—many influenced by US conflict mineral regulation—are “pulling” metals markets for conflict-free sourcing. Private standard programs focus on product chain chokepoints to support efficient engagement: a limited number of 3TG facilities that are influenced to implement “responsibility management systems,” practice conflict-free sourcing, and undergo compliance audits. Some supply chains operate as closed pipelines along the full product chain from mine to end-product. Tantalum has been most successful as about 95 % of producers are compliant; however, for gold, in particular, the scale of compliance is challenged.Conclusions: Downstream manufacturing industries are “governing at a distance” the management practices of upstream raw material producers. For LCM, responsible sourcing may be applicable to product chains with other metals and commodities. For SSCM, conflict-free sourcing indicates how compliance and supplier development strategies can penetrate multiple tiers into supply chains to address social issues in developing countries. Future research is needed on understanding more on supplier companies and their motivations and on sustainability performance outcomes for the conflict mineral problem. [ABSTRACT FROM AUTHOR]