INTEGRATION OF SOCIAL CRITERIA of CORPORATE SUSTAINABILITY IN TO PROCUREMENT

Justification: This paper introduces a practice-oriented bespoke modeling approach to the supplier selection issue within the context of corporate sustainability. The process employed in the case study enables the agents of... [ view full abstract ]

Justification: This paper introduces a practice-oriented bespoke modeling approach to the supplier selection issue within the context of corporate sustainability. The process employed in the case study enables the agents of organizations to plan, design, implement, control, and continuously improve the sustainable supplier selection practices. Further, the paper points to areas for future work in sustainable supplier development as identified by corporate executives and practitioners.

Purpose: The purpose of this paper is to present and analyze a case study on the design of a supplier selection model to integrate social criteria of corporate sustainability into supplier assessment and selection.

Theoretical framework: The case study was based on the SDI Design Process by Searcy et al. (2006), which provides a systemic approach to designing a system of indicators.

Results and conclusions: The case study demonstrated clear linkages to stakeholder theory, institutional theory, legitimacy theory, and dynamic capabilities view. The identification of distinct indicators is central to sustainable supplier evaluation and requires the involvement of multiple stakeholders. Simultaneous consideration of multiple dimensions of corporate sustainability, a shortage of social and economic purchasing-related indicators, and alignment of performance measurement across supply chains constitute major challenges. Further, the results pointed to a number of integration and implementation related opportunities and challenges, including the need to align inter-organizational performance measurement strategies across supply chains; to construct a model applicable to business units with distinct operational requirements; and to build the model into existing supplier selection life-cycle stages.

Tipping Points: This study provides a practical approach to sustainable supplier assessment and procurement. This provision will help corporations: further link corporate sustainability issues with other initiatives in the organization, better utilize organizational resources, demonstrate organizational commitment to sustainability principles, and enhance accountability to stakeholders through the provision of greater transparency on corporate sustainability issues, particularly as they relate to procurement and supply chain management practices.

Key words: Corporate Sustainability, Performance Measurement, Indicators, Supplier Selection, Supplier Management, Canada.