Supply Chain Compliance

Supply Chain Compliance

By Li Chen, Hau L. Lee
September 4,2019Working Paper No. 3826

Responsible supply chain is about ensuring that members of the supply chain are responsible for the well-being of the people and mother earth. There are both the environmental responsibility side and the social responsibility side. On top of this, responsibility also entails ensuring that products sold to consumers are authentic without having been adulterated, and the processes throughout the supply chain are run in an ethical manner. Although interests and concerns on responsibility by the general public, governments and companies have continued to increase, the problems of controlling violations or non-compliance of responsibility standard remain daunting. This chapter uses a “sense” and “respond” lens to look at how such problems can be addressed. We describe some of the innovative ways that some leading companies have used to make progress.