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Multinationals are increasingly pressured by stakeholders to commit to environmental sustainability that exceeds their own firm borders. As a result, multinationals have started to commit to environmental supply chain sustainability programs (ESCSPs). However, little is known about whether such commitment is rewarded or punished by financial markets, and if the stock price reaction differs depending on the type of firm that commits to such a program. This paper aims to discuss these issues.

The authors conduct an event study followed by two-equation Heckman modeling, using a sample of 66 multinationals that committed to the ESCSP of the Carbon Disclosure Project (CDP).

It was found that generally there is a marginally significant negative stock price reaction to announcement of participation in this ESCSP (i.e. −0.8 percent, p<0.10). However, the authors argue and show that firms in industries that have historically faced more pressure from consumers are less likely to announce their participation. If one corrects for this industry bias, then the negative stock price reaction is even more pronounced (i.e. −3.2 percent, p<0.05).

Using objective data, the study provides insights into the shareholder wealth effects of firms that commit to the ESCSP of the CDP. As such, the sample does not cover firms that set up their own ESCSPs.

The paper is valuable for practitioners and investors who are interested in finding out if participation in ESCSPs is financially attractive, and for (governmental) policy makers who may want to be assured that there is sufficient incentive for firms to pursue environmental supply chain sustainability.

This is the first paper that captures how financial markets react to announcements of ESCSPs.

There is only limited knowledge about the performance benefits of the alignment of sustainability-related upstream and downstream collaboration. The purpose of this paper is to analyze the deviation from an optimal profile of supply chain collaboration and its detrimental effect on sustainability performance as well as market performance.

The authors analyze the deviation from an optimal profile of supply chain collaboration and its detrimental effect on sustainability as well as market performance. Using data collected from 259 European manufacturing firms and advanced structural equation modeling approach, the authors empirically test a number of direct, mediation, and moderation effects.

The study shows that an alignment between supply chain initiatives does pay off. Furthermore, the results show that the effects of alignment on performance measures are mediated by the firm's internal sustainable production.

The paper provides research limitations and implications as part of the research.

The paper also offers important conclusions for practitioners. Particularly the paper shows that sustainable supply chain collaboration needs to be operated at an ideal profile in collaboration with advanced internal practices to generate improved performance.

This work is differentiated from earlier work through the joint consideration of alignment of supply chain collaboration for customers and suppliers, providing in combination with mediation analysis new nuances to the field of sustainable supply chain management.

The purpose of this paper is to examine the diffusion of ISO 14001-based environmental management system (EMS) on five key organisational functions, namely production, procurement, sales, logistics, and R&D. In examining the EMS diffusion, this paper focuses on two aspects of diffusion: the extent of diffusion of EMS and the balance of EMS diffusion across the five organisational functions.

Data were collected from 286 companies in Australia which were certified to ISO 14001. The respondents are personnel in the company who hold responsibility in managing the EMS.

The results show that the extent of diffusion of EMS has a positive effect on green products, green processes, and green supply chain management. In addition, diffusion variation (imbalance) has a negative effect on green product and green supply chain management. This study demonstrates the importance of both the depth and the balanced diffusion of EMS across different organisational functions in driving environmental management practices.

The results support the theory of organisational climate which emphasises the importance of both climate level and climate strength. In the context of our study, firms with high both extensive (climate level) and balanced diffusion (climate strength) of EMS will produce better environmental innovations than those which only have climate level.

The results provide insights for managers to consider the extent and balance of diffusion of EMS in their organisational functions as an indicator of the implementation of EMS in their organisations.

The findings imply the need for expanding the scope of collaborations beyond the firm's level, that is from being intra-organisational to inter-organisational by involving supply chain partners (primarily customers and suppliers). When the diffusion of environmental initiatives (including ISO 14001 EMS) can be extended to supply chain partners, the environmental effects will also be significantly larger and wider compared to when it is confined in individual firms.

This paper is one of the first to study the extent and balance of diffusion of EMS within organisations and its impact on environmental management practices

This paper aims to apply the logic of bounded rationality to corporate reputation management and explores how constraints posed by bounded rationality impact on firms’ implementation of sustainable supply chain management (SSCM).

This study draws on primary and secondary data from 12 UK-based companies. The authors conducted 17 semi-structured interviews and analysed the data through an inductive methodology.

Reputational risk exposure is a central driver in a company's decision to implement SSCM practices. However, managers face bounded rationality, in particular: conflicting priorities; capabilities and resources; commitment; and contextual setting, which in turn, means that companies do what they can to safeguard their reputation, but balance the extent to which they implement SSCM and the cost of doing so against the likelihood of exposure.

By engaging in collaborative relationships with their supply chain partners, focal firms who wish to implement SSCM can spread the cost of SSCM across supply chain partners, which helps decrease the extent to which firms face the conflicting priorities of financial targets and SSCM. A long-term commitment to SSCM can also help build capabilities and resources necessary for SSCM implementation.

The paper makes a significant contribution to the literature by conducting a cross-sectional study of the decision-making process involved in SSCM. The results suggest that managers are facing a number of constraints, which leads to sub-optimal choices regarding the level of SSCM implementation.

The purpose of this paper is to explore the empirical reality of environmental scanning (ES) practices in sustainable supply chain management (SSCM) contexts. In particular it tests a conceptual framework proposed in 2011 by Fabbe-Costes et al.

The empirical data for this research were obtained from 45 semi-structured interviews with key informants, combined with a discussion of the main results with a focus group of supply chain experts. These data are compared with the literature and brought to bear on the framework.

The research finds both breadth and depth in the scope of sustainability scanning practices of the respondent group and provides evidence of multi-level scanning, with all respondents describing scanning activity at the societal level. It further demonstrates the adoption of multiple and diverse scanning targets at all levels in the conceptual framework. The articulation and ranking of scanning targets for SSCM at all levels informs the development of priorities for practice. The paper also makes some observations about the boundaries of the scanning process.

The results provide managers with concrete guidance about what to scan in sustainable supply chain contexts. The validated framework can serve as a practical tool to assist managers with the organization and prioritization of their ES activities.

The paper is among the first to address the role of ES in sustainable supply chain contexts. It highlights the need for a multi-level framework for such scanning activities and opens up a debate about their implementation.

The purpose of this paper is to discuss research gaps and the potential applications of analytic hierarchy process (AHP) in an internal benchmarking process used to identify improvement areas when firms attempt to adopt green initiatives with a supply chain perspective.

By means of a detailed literature review, the paper distinguishes several gaps in previous studies that have investigated green supply chains, supply chain management and benchmarking issues.

Past research that analyses the challenges firms encounter when implementing green initiatives are lacking in scope and also in focus. Thus, the paper synthesises those findings, and proposes a novel framework and approach to apply AHP to examine various potential challenges firms and supply chains might be faced with when adopting green initiatives.

The investigation is conceptual in nature.

Despite the limitations of the paper, its findings and proposals can be applied directly to advise future research and practice, especially when firms are confronted with the prospects of implementing environmentally‐friendly business practices.

The application of AHP to study the various themes mentioned above is not new. Nevertheless, no previous investigation has identified the limitations in those studies. Furthermore, no previous paper has proposed a multitier AHP approach to analyse the problems firms taking part in a supply chain might encounter when implementing green initiatives.

The purpose of this paper is to investigate why developing country suppliers are adopting socially sustainable practices and how the implementation process is both impeded and enabled.

A multi-case study approach is adopted based on four ready made garment (RMG) industry suppliers in Bangladesh and the Bangladeshi buying houses of two large UK retailers. The primary mode of data collection is exploratory face-to-face interviews with 14 senior representatives. Findings are later interpreted using the transaction cost economics (TCE) theory lens.

One factor motivating implementation is labour retention – a skilled labour shortage means employees will migrate to other factories if suppliers do not improve certain social standards. Barriers to implementation include a misalignment between the requirements of western codes of conduct and the cultural and socio-economic context in Bangladesh. Enablers include a shift from auditing and monitoring to more open dialogue and trust between buyers and suppliers. The paper also reveals evidence of mock compliance, e.g. suppliers keeping two sets of timesheets, and of the complexities of social sustainability. For example, while some initiatives are unanimously positive, removing child labour from RMG industry suppliers has simply diverted it to other, less regulated and more hazardous industries such as construction.

An early, exploratory contribution is provided. The work could be extended, e.g. to other stakeholders such as third-party auditors and Non-Governmental Organisations (NGOs).

Being aware of the motivations, barriers and enablers will help multi-national corporations (MNCs) promote good practice and anticipate the challenges they are likely to face in improving the social sustainability of their supply chains. Use of TCE leads to suggesting MNCs need to move beyond immediate suppliers and incorporate tier-two suppliers in implementation efforts.

Social sustainability improvements should benefit vulnerable workers, help suppliers develop longer term relationships with MNCs, and contribute to economic growth.

Most prior studies have been in the context of developed countries and focused on the perspective of the buying firm only.

The selection of third‐party logistics providers is an intriguing practical and research question. With the development and advancement of reverse logistics concepts and practice, the selection of partners for the specific function of reverse logistics support becomes more important. This paper is one of the first to address this issue. The factors that play an important role in selecting a third‐party reverse logistics provider; such as a focus on end‐of‐life product organizational roles (e.g. recycling, reuse, etc.), differ from some traditional factors for supplier selection. How these new factors can be included for the selection of a partner is modeled within a decision‐making framework.

The purpose of this paper is to focus on investigating and benchmarking green operations initiatives in the automotive industry documented in the environmental reports of selected companies. The investigation roadmaps the main environmental initiatives taken by the world's three major car manufacturers and benchmarks them against each other. The categorisation of green operations initiatives that is provided in the paper can also help companies in other sectors to evaluate their green practices.

The first part of the paper is based on existing literature on the topic of green and sustainable operations and the “unsustainable” context of automotive production. The second part relates to the roadmap and benchmarking of green operations initiatives based on an analysis of secondary data from the automotive industry.

The findings show that the world's three major car manufacturers are pursuing various environmental initiatives involving the following green operations practices: green buildings, eco‐design, green supply chains, green manufacturing, reverse logistics and innovation.

The limitations of this paper start from its selection of the companies, which was made using production volume and country of origin as the principal criteria. There is ample evidence that other, smaller, companies are pursuing more sophisticated and original environmental initiatives. Also, there might be a gap between what companies say they do in their environmental reports and what they actually do.

This paper helps practitioners in the automotive industry to benchmark themselves against the major volume manufacturers in three different continents. Practitioners from other industries will also find it valuable to discover how the automotive industry is pursuing environmental initiatives beyond manufacturing, apart from the green operations practices covering broadly all the activities of operations function.

The originality of the paper is in its up‐to‐date analysis of environmental reports of automotive companies. The paper offers value for researchers and practitioners due to its contribution to the green operations literature. For instance, the inclusion of green buildings as part of green operations practices has so far been neglected by most researchers and authors in the field of green and sustainable operations.