New PIJM now accepts submissions exclusively via the Editorial Scholar portal — a dedicated submission & review system.
Go to Editorial Scholar →
Associated Management Consultants Pvt. Ltd. | COPE Member
Scopus Q2 UGC-CARE |
Prabandhan: Indian Journal of Management logo

Prabandhan: Indian Journal of Management

ISSN: 0975-2854 Frequency: Monthly Peer Review: Double-blind Published since: 2008 Language: English
A publication of AMCPL
amcon.co.in
New Delhi, India
Indexed in: Scopus Q2 UGC-CARE Group II Google Scholar J-Gate NISCAIR Crossref Cabell's Journalytics

Measuring the Impact of Socially Responsible Supply Chains on Firm Performance

Open Access Original Article

Measuring the Impact of Socially Responsible Supply Chains on Firm Performance

Satyendra Sharma1,  Saurabh Chadha2,  Shombit Dhar3

1 Assistant Professor, Department of Management, Birla Institute of Technology & Science (BITS) Pilani, Pilani - 333 031, Rajasthan

2 Assistant Professor, Department of Management, Birla Institute of Technology & Science (BITS) Pilani, Pilani - 333 031, Rajasthan

3 Dissertation Scholar, Birla Institute of Technology & Science (BITS) Pilani, Pilani - 333 031, Rajasthan

Volume 11
Issue 10
Pages 22–38
Year 2018
Received: June 10, 2018 Accepted: Sept. 24, 2018 Published: Oct. 1, 2018
Abstract

Most supply chain managers in the world optimize supply chains by helping different stakeholders in supply chains. Traditionally, business firms optimize the performance and compromise their pay-offs in order to increase profits (by lowering cost) of the entire supply chain. However, recent literature has hinted at another dimension to improving performance for companies by having socially responsible supply chains that take into consideration the triple bottom line approach. Literature has discussed the conceptual frameworks and empirical studies on supply chain sustainability, but there is a lack of studies on the effect of socially responsible supply chain practices on business performance. This research paper aimed at understanding the impact of having supply chains that are socially responsible and used the event study methodology to understand the impact of socially responsible supply chains on companies' performance.

Keywords Event Study Methodology Firm Performance Socially Responsible Supply Chains Triple Bottom Approach
How to Cite

Satyendra Sharma, Saurabh Chadha, Shombit Dhar (2018). Measuring the Impact of Socially Responsible Supply Chains on Firm Performance. Prabandhan: Indian Journal of Management, 11(10), 22–38. https://doi.org/10.17010/pijom/2018/v11i10/132509

References
  1. Ahi, P., & Searcy, C. (2013). A comparative literature analysis of definitions for green and sustainable supply chain management. Journal of Cleaner Production, 52(4), 329 - 341. doi: <a href=https://doi.org/10.1016/j.jclepro.2013.02.018 target="_blank">https://doi.org/10.1016/j.jclepro.2013.02.018</a>
  2. Ahmadi, H. B., Kusi-Sarpong, S., & Rezaei, J. (2017). Assessing the social sustainability of supply chains using best worst method. Resources, Conservation and Recycling, 126(3), 99-106. doi: <a href=https://doi.org/10.1016/j.resconrec.2017.07.020 target="_blank">https://doi.org/10.1016/j.resconrec.2017.07.020</a>
  3. Azadnia, A. H., Saman, M. Z. M., & Wong, K. Y. (2015). Sustainable supplier selection and order lot-sizing: an integrated multi-objective decision-making process. International Journal of Production Research, 53 (2), 383 - 408. doi: <a href=https://doi.org/10.1080/00207543.2014.935827 target="_blank">https://doi.org/10.1080/00207543.2014.935827</a>
  4. Bai, C., & Sarkis, J. (2010). Integrating sustainability into supplier selection with grey system and rough set methodologies. International Journal of Production Economics, 124 (1), 252 - 264. DOI : <a href=https://doi.org/10.1016/j.ijpe.2009.11.023 target="_blank">https://doi.org/10.1016/j.ijpe.2009.11.023</a>
  5. Bhalla, R. (2013). CSR and reporting by selected Indian companies: An exploration. Prabandhan: Indian Journal of Management, 6 (1), 40 - 48. doi: 10.17010/pijom/2013/v6i1/59956
  6. Binder, J. (1998). The event study methodology since 1969. Review of Quantitative Finance and Accounting, 11(2), 111 - 137.
  7. Boehmer, E., Masumeci, J., & Poulsen, A. B. (1991). Event-study methodology under conditions of event-induced variance. Journal of Financial Economics, 30 (2), 253 - 272. doi: <a href=https://doi.org/10.1016/0304-405X(91)90032-F target="_blank">https://doi.org/10.1016/0304-405X(91)90032-F</a>
  8. Carter, C. R., & Easton, P. L. (2011). Sustainable supply chain management : Evolution and future directions. International Journal of Physical Distribution & Logistics Management, 41(1), 46 - 62. doi: <a href=https://doi.org/10.1108/09600031111101420 target="_blank">https://doi.org/10.1108/09600031111101420</a>
  9. Carter, C. R., & Rogers, D. S. (2008). A framework of sustainable supply chain management : Moving toward new theory. International Journal of Physical Distribution & Logistics Management, 38 (5), 360 - 387. DOI : <a href=https://doi.org/10.1108/09600030810882816 target="_blank">https://doi.org/10.1108/09600030810882816</a>
  10. Chardine-Baumann, E., & Botta-Genoulaz, V. (2014). A framework for sustainable performance assessment of supply chain management practices. Computers & Industrial Engineering, 76, 138 - 147. doi: <a href=https://doi.org/10.1016/j.cie.2014.07.029 target="_blank">https://doi.org/10.1016/j.cie.2014.07.029</a>
  11. Ciulla, J. B., Martin, C. W., & Solomon, R. C. (2011). Honest work : A business ethics reader. Business Insider Report, UK.
  12. Dubey, R., Gunasekaran, A., Papadopoulos, T., Childe, S. J., Shibin, K. T., & Wamba, S. F. (2017). Sustainable supply chain management : Framework and further research directions. Journal of Cleaner Production, 142 (Part 2), 1119 - 1130. doi: <a href=https://doi.org/10.1016/j.jclepro.2016.03.117 target="_blank">https://doi.org/10.1016/j.jclepro.2016.03.117</a>
  13. Ehrgott, M., Reimann, F., Kaufmann, L., & Carter, C. R. (2011). Social sustainability in selecting emerging economy suppliers. Journal of Business Ethics, 98 (1), 99 - 119. doi: 10.1007/s10551-010-0537-7
  14. Elkington, J., & Robins, N. (1994). Company environmental reporting: A measure of the progress of business & industry towards sustainable development (Vol. 22). USA : United Nations Environment Programme, Industry and Environment Office.
  15. Feng, Y., Zhu, Q., & Lai, K. (2017). Corporate social responsibility for supply chain management : A literature review and bibliometric analysis. Journal of Cleaner Production, 158 (2), 296 - 307.
  16. Flammer, C. (2013). Corporate social responsibility and shareholder reaction: The environmental awareness of investors. Academy of Management Journal, 56 (3), 758 - 781.
  17. Genovese, A., Acquaye, A. A., Figueroa, A., & Koh, S. L. (2017). Sustainable supply chain management and the transition towards a circular economy : Evidence and some applications. Omega, 66(3), 344-357. doi: <a href=https://doi.org/10.1016/j.jclepro.2012.04.014 target="_blank">https://doi.org/10.1016/j.jclepro.2012.04.014</a>
  18. Gold, S., Seuring, S., & Beske, P. (2010). Sustainable supply chain management and interorganizational resources: A literature review. Corporate Social Responsibility and Environmental Management, 17(4), 230-245. doi: <a href=https://doi.org/10.1002/csr.207 target="_blank">https://doi.org/10.1002/csr.207</a>
  19. Gopal, P. R. C., & Thakkar, J. (2016). Sustainable supply chain practices: An empirical investigation on Indian automobile industry. Production Planning & Control, 27(1), 49 - 64. doi: <a href=https://doi.org/10.1080/09537287.2015.1060368 target="_blank">https://doi.org/10.1080/09537287.2015.1060368</a>
  20. Govindan, K., Khodaverdi, R., & Jafarian, A. (2013). A fuzzy multi criteria approach for measuring sustainability performance of a supplier based on triple bottom line approach. Journal of Cleaner Production, 47, 345-354. doi: <a href=https://doi.org/10.1016/j.jclepro.2012.04.014 target="_blank">https://doi.org/10.1016/j.jclepro.2012.04.014</a>
  21. Grekova, K., Calantone, R. J., Bremmers, H. J., Trienekens, J. H., & Omta, S. W. F. (2016). How environmental collaboration with suppliers and customers influences firm performance : Evidence from Dutch food and beverage processors. Journal of Cleaner Production, 112(Part3), 1861-1871. doi: <a href=https://doi.org/10.1016/j.jclepro.2015.03.022 target="_blank">https://doi.org/10.1016/j.jclepro.2015.03.022</a>
  22. Hassini, E., Surti, C., & Searcy, C. (2012). A literature review and a case study of sustainable supply chains with a focus on metrics. International Journal of Production Economics, 140(1), 69-82. doi: <a href=https://doi.org/10.1016/j.ijpe.2012.01.042 target="_blank">https://doi.org/10.1016/j.ijpe.2012.01.042</a>
  23. Hendricks, K. B., & Singhal, V. R. (2005). An empirical analysis of the effect of supply chain disruptions on long run stock price performance and equity risk of the firm. Production and Operations Management, 14(1), 35-52. doi: <a href=https://doi.org/10.1111/j.1937-5956.2005.tb00008.x target="_blank">https://doi.org/10.1111/j.1937-5956.2005.tb00008.x</a>
  24. Klassen, R. D., & Vereecke, A. (2012). Social issues in supply chains: Capabilities link responsibility, risk (opportunity), and performance. International Journal of Production Economics, 140(1), 103-115. doi: <a href=https://doi.org/10.1016/j.ijpe.2012.01.021 target="_blank">https://doi.org/10.1016/j.ijpe.2012.01.021</a>
  25. Kleindorfer, P. R., & Saad, G. H. (2005). Managing disruption risks in supply chains. Production and Operations Management, 14 (1), 53 - 68.
  26. Köksal, D., Strähle, J., Müller, M., & Freise, M. (2017). Social sustainable supply chain management in the textile and apparel industry - A literature review. Sustainability, 9(1), 100 - 123. doi: 10.3390/su9010100
  27. Kumar, R. (2012). Nishkam karma: The path for corporate social responsibility. Prabandhan: Indian Journal of Management, 5(2), 9-20. doi: 10.17010/pijom/2012/v5i2/60128
  28. Labuschagne, C., Brent, A. C., & Erck, R. P. G. V. (2005). Assessing the sustainability performances of industries. Journal of Cleaner Production, 13(4), 373 - 385. doi: <a href=https://doi.org/10.1016/j.jclepro.2003.10.007 target="_blank">https://doi.org/10.1016/j.jclepro.2003.10.007</a>
  29. Linton, J. D., Klassen, R., & Jayaraman, V. (2007). Sustainable supply chains : An introduction. Journal of Operations Management, 25(6), 1075 - 1082. doi: <a href=https://doi.org/10.1016/j.jom.2007.01.012 target="_blank">https://doi.org/10.1016/j.jom.2007.01.012</a>
  30. Luthra, S., Garg, D., & Haleem, A. (2014). Critical success factors of green supply chain management for achieving sustainability in Indian automobile industry. Production Planning & Control, 26 (5), 339 - 362.
  31. Mani, V., Gunasekaran, A., Papadopoulos, T., Hazen, B., & Dubey, R. (2016). Supply chain social sustainability for developing nations: Evidence from India. Resources, Conservation and Recycling, 111, 42-52. doi: <a href=https://doi.org/10.1016/j.resconrec.2016.04.003 target="_blank">https://doi.org/10.1016/j.resconrec.2016.04.003</a>
  32. Mitra, S. (2015). A framework for research on green supply chain management. Supply Chain Forum: An International Journal, 15(1), 34-51. doi: <a href=https://doi.org/10.1080/16258312.2014.11517332 target="_blank">https://doi.org/10.1080/16258312.2014.11517332</a>
  33. Mohanty, R. P., & Prakash, A. (2013). Green supply chain management practices in India: An empirical study. Production Planning & Control, 25(16), 1322-1337. doi: <a href=https://doi.org/10.1080/09537287.2013.832822 target="_blank">https://doi.org/10.1080/09537287.2013.832822</a>
  34. Rajak, S., & Vinodh, S. (2015). Application of fuzzy logic for social sustainability performance evaluation: A case study of an Indian automotive component manufacturing organization. Journal of Cleaner Production, 108 (Part A), 1184 -1192. doi: <a href=https://doi.org/10.1016/j.jclepro.2015.05.070 target="_blank">https://doi.org/10.1016/j.jclepro.2015.05.070</a>
  35. Sancha, C., Gimenez, C., & Sierra, V. (2016). Achieving a socially responsible supply chain through assessment and collaboration. Journal of Cleaner Production, 112(Part 3), 1934 - 1947. doi: <a href=https://doi.org/10.1016/j.jclepro.2015.04.137 target="_blank">https://doi.org/10.1016/j.jclepro.2015.04.137</a>
  36. Seuring, S., & Müller, M. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of Cleaner Production, 16(15), 1699-1710. doi: <a href=https://doi.org/10.1016/j.jclepro.2008.04.020 target="_blank">https://doi.org/10.1016/j.jclepro.2008.04.020</a>
  37. Shen, L., Govindan, K., & Shankar, M. (2015). Evaluation of barriers of corporate social responsibility using an analytical hierarchy process under a fuzzy environment - A textile case. Sustainability, 7(3), 3493-3514. doi: <a href=https://doi.org/10.3390/su7033493 target="_blank">https://doi.org/10.3390/su7033493</a>
  38. Yawar, S. A., & Seuring, S. (2017). Management of social issues in supply chains: A literature review exploring social issues, actions and performance outcomes. Journal of Business Ethics, 141 (3), 621 - 643. doi: <a href=https://doi.org/10.1007/s10551-015-2719-9 target="_blank">https://doi.org/10.1007/s10551-015-2719-9</a>
  39. Young, S. B. (2018). Responsible sourcing of metals : Certification approaches for conflict minerals and conflict-free metals. The International Journal of Life Cycle Assessment, 23 (7), 1429 - 1447. doi: <a href=https://doi.org/10.1007/s11367-015-0932-5 target="_blank">https://doi.org/10.1007/s11367-015-0932-5</a>
Editorial Scholar

Submit your Research to PIJM

Submit your Manuscript → Author Guidelines