Incorporating Sustainability into Supply (Chain) Management – … · 2016-01-15 · 1...
Transcript of Incorporating Sustainability into Supply (Chain) Management – … · 2016-01-15 · 1...
1
Incorporating Sustainability into Supply (Chain) Management
– The Case of the Volkswagen AG
Julia Koplin
Abstract
Companies are perceived as important actors in the drive for sustainability. Linked to this,
and in response to increasing demands from various stakeholder groups, companies start to
look at their supply chain to enhance their overall sustainability profile. Two major triggers
can be identified: (1) focal companies are held responsible for environmental and social
problems caused by their suppliers, which become more and more important as (2) an in-
creasing share of value is created at the supplier level. In response to such demands, compa-
nies have to find ways to incorporate environmental and social aspects into their supply
(chain) management. Therefore, environmental and social standards are integrated into sup-
ply management by amending the purchasing processes. This paper presents an approach to
integrate social and environmental standards into supply policy and supply management at
the Volkswagen AG, a focal company of the automobile industry. Therefore, required
changes of the sourcing and supply structures were identified, and possible options for com-
pany internal integration are presented.
Keywords: Automotive industry, Sustainability, Supply management, Supply policy, Envi-
ronmental and social problems
2
1 Introduction
Sustainable development is sometimes comprehended as an ultimate value system to give
orientation for decision making and action in different situations. It can be seen as a frame-
work for companies and their management to transform their responsibility for environ-
mental, economical and social behaviour into business practices within the legitimacy of our
society (Ulrich/Puri 1995). As one particular example, the automotive industry constitutes a
product system that directly and indirectly relates to economic wealth creation as well as
impacts on the natural and human environment along all stages of the product’s life cycle
(Warren et al. 2001). Automakers therefore play an important role for the environmental and
social development of our world in the context of sustainability. They have to respond to
increasingly strict governmental regulation and environmental and social expectations by
applying management strategies (Commission of the European Communities 2002).
Today, companies are also confronted with a growing trend towards internationalisation.
Globalisation allows working with a lot of different suppliers to get raw materials and pre-
liminary products (horizontal supplier structure), and each first tier supplier often depends
on a multilevel supplier chain for their own production (vertical supplier structure). Such a
structure makes it difficult for a company to handle the whole supplier network and thus in-
creases the complexity of purchasing (Corswant/Fredriksson 2002). But for sustainability,
companies have to ensure manufacturing of products without creating environmental dam-
age or disobeying social standards (Seuring 2004).
This fact represents a significant risk to a company’s public reputation and its attractiveness
on the sales market, because it has to take the responsibility for its suppliers in front of the
media and critical non-governmental organisations (NGOs) (Scherer et al. 2002; Lawrence
2002). The saturation, fragmentation, and deregulation of mature markets, as well as the in-
tensification of competitive pressure render this reputation even more important for a pub-
licly visible company such as a global automotive manufacturer. Consistently, NGOs un-
cover inhumane working conditions, especially in developing countries, and reveal how
companies make money from these unjust circumstances (Graafland 2002). Directly cohe-
sive with these changes, such inhumane working conditions are discussed (Kraus 1997; Lal
1997). Therefore it is useful to integrate environmental and social aspects in supply policies
and supply processes ex ante (Commission of the European Communities 2002). Hence,
firms have to identify new criteria for supplier selection and evaluation, aiming at the inte-
gration of environmental and social guidelines as well as the implementation of related con-
3
trol mechanisms and compliance stimuli. These requirements are then passed on to suppliers
(Zhu et al. 2005).
Against this background, the paper analyses impacts of environmental and social guidelines
on purchasing decisions of a focal company in the car industry. This forms a response to
environmental and social risks in the global supply chain. The research is based on the as-
sumption that it is necessary to incorporate sustainability issues into supply (chain) man-
agement (Wolters et al. 1997; Seuring/Müller 2004). “Sustainable sourcing” could have a
positive impact both on the image of a company as much as on the drive for sustainability of
the business (Walton et al. 1998; Hall 2000; Bowen et al. 2001). Therefore the paper an-
swers the following question: How can environmental and social standards be integrated
into the supply policies and supply processes?
The paper addresses in four steps the issues raised. First, there is a short introduction, which
outlines the general problem of integrating sustainable development into supply (chain)
management. As a second step, the paper will give an overview about sustainability in sup-
ply management. In part three, a brief description of the situation of the automobile industry
is provided, which emphasises the importance of developing a structured sustainable supply
concept. The fourth section provides the research project, taking the Volkswagen AG as an
example of the automobile industry. The overall concept incorporating the four levels to
achieve defined standards will be presented. Finally, some conclusions for sustainable pur-
chasing are drawn, and implications for future research at the level of the started develop-
ment process are given.
2 Sustainable Supply Management
Inter-organisational concepts or approaches for environmental or sustainability management
have seen a great variety of developments, which incorporate among others
green/environmental supply chain management (Seuring 2004). As one key element, supply
strategies and processes can be identified (Bowen et al. 2001; Drumwright 1994). The pur-
chasing or sourcing functions inside focal companies is the key actor to search for, evaluate
and monitor suppliers. Such departments are also responsible for placing contracts with one
particular supplier. Focal companies, such as Volkswagen in the automotive industry, often
own highly visible global brands, are frequently attacked by NGOs, and are held account-
4
able for environmental and social problems observed in the earlier stages of their supply
chain (Seuring/Goldbach 2006).
2.1 Environmental and Social Standards as the Normative Content Level
The acceptance and implementation of international environmental and social standards in-
side a company and along the supply chain orientation basis. Because of the complexity and
uncertainty of economical, environmental and social corporate developments, there is a need
for companies to create flexible solutions to the operative integration of additional supplier
requirements during their business processes. In this context, environmental and social stan-
dards established by societal institutions play a superior role, although they have not yet
reached a general and legally binding character (Matten/Wagner 1998). This is the reason
why, especially in the textile industry, a lot of companies have formed their own standards
(codes of conduct), e.g. on the content basis of the ILO conventions (Graafland 2002). The
Social Accountability Initiative (SAI) assumes that meanwhile about 500 different codes of
conduct for suppliers exist. Companies which have created such a code of conduct for their
supply chain include e.g. BASF, C&A, Hewlett-Packard, Kraft, Otto, PUMA, und Steil-
mann.
Environmental standards can be defined as quantitative specifications to limit different
kinds of anthropogenic impacts on human beings and/or the environment (SRU 1996). So-
cial standards include accepted rules for designing labour relations, working conditions, and
social safety systems. There is a huge variety of associated terms ranging from working
conventions to social provision to cachets and codes of behaviour (Pallmann 2002). An
overall definition does not exist; the meaning of social standards is in fact rather general
(Brown 2000).
With the integration and implementation of standards for a special business process, a com-
pany normally tracks one of the following objectives: consumer protection and transparency
on the market, environmental protection, or safety at work. In doing so, types of product,
production and process standards as well as behaviour standards can be distinguished
(McIntosh et al. 2003). For a company, mainly process standards (e.g. emission limit values
or operational safety sanctions) and behaviour standards (e.g. freedom of association or col-
lective bargaining) are important. Here lies the special characteristic and the resulting prob-
lem to find an effective way to integrate these standards into supply (chain) management.
5
The compliance of vendors cannot be monitored and ensured by analysing the supplied
products in comparison to product standards like quality.
Therefore it is necessary to combine the normative content level as embedded in supply
policies of environmental and social standards and the purchasing process, which includes
supplier evaluation and selection, as well as monitoring, combined with supplier qualifica-
tion. The subsequently described research project brings both sides together for the effective
operationalisation of sustainability.
2.2 Supplier Management at the Process Level
Suppliers are an important, critical resource for the success of a company. Sheth and
Sharma (1997) constitute that “value creation by suppliers has become an area of interest to
firms. Value creation can manifest itself in access to technology, access to markets, and ac-
cess to information. Business customers will realize that suppliers provide access to value
creation that will provide them with sustainable competitive advantage.” The integration of
environmental and social standards into strategic supplier management is the basis for a sus-
tainable supply (chain) management. Therefore it is necessary to coordinate a collective vi-
sion, missions and measures of both parties (buyer and supplier) for long term business rela-
tions. Supplier management consists of three parts: (1) Management of the supplier basis
(election, evaluation and monitoring), (2) supplier development and (3) supplier integration,
shown in figure 1 (Wagner 2003).
6
Figure 1: Elements of Supplier Management
Principally, every company has its own process for supplier management fitting them to
variable organisational characteristics. Nevertheless, Webster and Wind (1972a, b) tried to
outline a universal organizational buying decision process, including the cycle of five fun-
damental steps:
1. Identification of demand: A purchasing situation exists if there is a need for any
product or service, which cannot be satisfied by the company itself and has to be
bought from an external contractor.
2. Definition of targets and specifications: This step includes the exact determination of
the product/service acquired in the purchasing requirements. These purchasing re-
quirements are also influenced by other business units e.g. technical development,
quality assurance, and logistics.
3. Finding purchasing alternatives: If the requirements and the schedule are set up, the
market can be checked for available purchasing alternatives (supplier). Therefore, al-
ready-used supply sources as well as new potential suppliers are included according
to the description of the product/service. If necessary, other business units will be
factored into the supply process for the election decision.
7
4. Evaluation of all alternatives: The evaluation of supplier alternatives represents the
main part of the whole buying process. It consists of balancing the different offers on
the basis of the supply targets and product specifications defined in step two. For an
elementary product, most of the time, the price is the final decision criteria. But for a
complex product, uncertainties and problems in finding a solution can exist because
of divergences of the offers. Decision making makes it necessary to assess the tar-
gets and specifications, and to distinguish the acceptable trade-offs.
5. Supplier selection: With the election of a supplier for the contract, the organizational
buying decision process will be completed.
To minimize purchasing risks and to complete the supplier evaluation, a monitoring system
is needed to confirm the supplier profile and situation on site. Therefore, companies under-
take supplier audits to check information as well as to find opportunities for supplier devel-
opment, which include all activities of a buyer, and help the supplier to improve perform-
ance and fulfil purchasing requirements related to technical, quality, supply skills, or cost
reductions (Scannel et al. 2000).
Structuring both the content and process of supply management, Harland (2002) has pro-
posed four levels in supply management, which represent a set of so-called interventions
that management can take (see Figure 1):
• The supply policy of a company sets the overall frame and conditions for supply
issues, taking into account medium- to long-term effects. Based on the corporate
philosophy and strategy, supply policies specify basic rules and conditions for pur-
chasing good or services. This might include an environmental and/or ethics policy,
such as e.g. restricting supply choices to countries and corporations that do not ex-
ploit child labour. This may however be in conflict with supply policies aiming for
the lowest costs. Hence, the policy level includes normative judgements, which are
binding for the following levels.
• Supply strategy sets directions for organisations on supply issues, aiming to achieve
a targeted position. Supply strategies should be closely integrated with other corpo-
rate strategies to support an overall strategic mission (Harland et al. 1999), which
might even contribute to corporate competitive advantage. Supply strategies are of-
ten directions for providing operational performance improvements. Environmental
supply strategies may be in place to ensure, for example, that pre-products are pro-
duced while obeying environmental and social standards.
8
• The next level covers supply management in a narrower sense, where supply activi-
ties are managed and monitored through planning and control. For example, this
may involve the design and implementation of plans and controls to ensure that
sources for environmentally-sound produced goods are available. This might include
that suppliers are further developed to be able to meet such requirements.
• Level four deals with the operational level of supply management. On this level, the
real action takes place. Decisions are made regarding which goods and services are
purchased from which suppliers, enacting the day-to-day business. This provides a
close link to the definition of purchasing presented above. “Supply policies, strate-
gies, managerial plans and controls may or should guide or constrain the day-to-day
operational decisions taken relating to supply” (Harland 2002).
DemandAnalysis
Risk Analysis
SupplyMarketResearch
VarietyManage-ment
Cost Control
Supplier DevelopmentContractPerformance
SupplierPerformance
Reconciliation and Financial Reporting
BudgetManagement
Specification and Cost Estimate
Requisition
Authorisation
CatalogueCheck
Tender/Quotations
Evaluation
Contract Award
CheckAvailability
Place OrderOrder
Promise
OrderFulfilment
Expedite
Schedule
DeliveryArrangement
Receive(DeliveryNote,Goods
ReceivedNote)
SupplierInvoice
InvoiceVerification
Pass for Payment
Enter PurchaseLedger
Payment
Supply Policy
SupplyStrategy
SupplyManagement
SupplyOperations
OutsourcingStrategy
Single vs.MuliSource
Variety StrategyRisk Strategy
InternationalSourcing Strategy
Environmental Policy
Value for Money Policy Ethics Policy
Relationship Strategy
NetworkStrategy
TransparencyPolicy
ComplianceRegulation
Product/ ServiceDevelopment
LogisticsManage-ment
LogisticsStrategy
InnovationStrategy
InformationStrategy
InternationalPolicy
SourceDecision and
IdentityReqiurement
DemandAnalysis
Risk Analysis
SupplyMarketResearch
VarietyManage-ment
Cost Control
Supplier DevelopmentContractPerformance
SupplierPerformance
Reconciliation and Financial Reporting
BudgetManagement
Specification and Cost Estimate
Requisition
Authorisation
CatalogueCheck
Tender/Quotations
Evaluation
Contract Award
CheckAvailability
Place OrderOrder
Promise
OrderFulfilment
Expedite
Schedule
DeliveryArrangement
Receive(DeliveryNote,Goods
ReceivedNote)
SupplierInvoice
InvoiceVerification
Pass for Payment
Enter PurchaseLedger
Payment
Supply Policy
SupplyStrategy
SupplyManagement
SupplyOperations
OutsourcingStrategy
Single vs.MuliSource
Variety StrategyRisk Strategy
InternationalSourcing Strategy
Environmental Policy
Value for Money Policy Ethics Policy
Relationship Strategy
NetworkStrategy
TransparencyPolicy
ComplianceRegulation
Product/ ServiceDevelopment
LogisticsManage-ment
LogisticsStrategy
InnovationStrategy
InformationStrategy
InternationalPolicy
SourceDecision and
IdentityReqiurement
Figure 2: Four Levels of Supply Management (Harland 2002)
This concept implies that the successful integration of sustainability and supply manage-
ment needs to consider all four levels. Changes inside one of them automatically affect the
other levels and vice versa. Therefore, these levels have to be checked for required adapta-
tions in content, structures and processes. If a company develops and implements a new
supply policy, which includes environmental and social aspects, e.g. the information (gath-
9
ering) strategy on the supply strategy level has to be extended. Furthermore, the manage-
ment of supplier performance and development on the supply management level as well as
the evaluation on the supply operations level have to be re-arranged for incorporating re-
lated new requirements into the decision making of the buyer. This outlines the impact on
the whole supply management process and further to the overall supply chain of a company.
In line with these four levels of supply management, Zsidisin und Siferd define green supply
as a ” (...) set of purchasing policies held, actions taken, and relationships formed in re-
sponse to concerns associated with the natural environment. These concerns relate to the
acquisition of raw materials, including supplier selection, evaluation, and development;
supplier’s operations; in-bound distribution; packaging; recycling; reuse; resource reduc-
tion; and final disposal of the firm’s products. ” (Zsidisin/Siferd 2001). One objective is to
avoid a loss of reputation that might arise from insufficient environmental problems and
lacking social standards at suppliers (Preuss 2001).
Consequently, environmental criteria form part of the requirements placed on suppliers aim-
ing to reduce the input of natural resources and minimize environmental risks by improving
the efficiency of suppliers (Simpson/Power 2005). Sustainability thereby covers external
impacts upstream and downstream in the supply chain along the product life cycle and the
involved actors (supplier and customer) (Seuring 2004; Green et al. 1996). One main objec-
tive is the economic success of a company’s supply chain by complying with environmental
and social standards on the basis of collaboration and corporate development between buyer
and supplier (Preuss 2005). Environmental impacts and violations of human rights should be
discovered and stopped early in the supply chain. Thus, a rising influence of environmental
and social standards on product and production decisions is expected for the future (Zhu et
al. 2005).
The starting points for environmental and social requirements in supply management are the
interaction of three different trends: (1) the increasing strategic importance of supply man-
agement (Goldbach et al. 2004), (2) the increasing importance of buyer-supplier-partnership
both for “normal” business, but also facing environmental and social problems (Harland et
al. 1999), and (3) the awareness of the connection between supply decisions and a firm’s
environmental and social or sustainable performance (Seuring/Müller 2004; Bowen et al.
2001). As a result, sustainability in supply management accrues from the general adaptation
of products to changed environmental and social conditions along the chain concerning de-
sign, ingredients, production systems, recycling, and disposal (Green 1996).
10
2.3 Issues in Environmental Supply Management
Basically, two different forms of environmental supply management can be distinguished:
(1) the integration of environmental criteria/standards into product and production related
decisions along the whole supply process (“greening the supply chain”) and (2) the optimi-
sation of the environmental compatibility of purchased goods (“product-based green sup-
ply”) (Bowen et al. 2001). For the integration of environmental standards into all purchasing
decisions, additional information about the environmental performances of suppliers must
be gathered and evaluated. Their classification and rating schemes can be helpful, as they
support related supplier selection and evaluation (Noci 1997). One related trend is the in-
creasing international diffusion of standardised environmental management systems (EMS),
such as ISO 14001 (Corbett/Kirsch 2001). Focal companies establish this as an “order quali-
fier”, which has to be met before a supplier is considered at all (Zhu/Sarkis 2004). Therefore
it is necessary to incorporate specific environmental criteria into the purchasing guidelines.
Furthermore, related processes for evaluating and auditing suppliers have to be set up (Bo-
wen et al 2001; Zsidisin/Siferd 2001). The greening of the product as the second major op-
tion regards all stages of the life cycle and includes e.g. packaging, recycling, and disposal.
Hence, purchased products can often be improved or replaced by other more environmental-
friendly products (Bowen et al. 2001). Yet, for technically more advanced products, which
are produced according to the requirements defined by the customer, environmental criteria
form part of the product requirement specifications. These specifications are usually meas-
urable afterwards, so they are much easier to evaluate (Seuring/Müller 2004).
2.4 The Emergence of Socially Responsible Supply Management
Assessing suppliers regarding their performance on the social dimension of sustainability is
much more difficult. Overall, social aspects are not very often taken up in related publica-
tions (Seuring/Müller 2004). First approaches are nevertheless appearing. These authors use
terms such as “ethical sourcing” (Roberts 2003), “purchasing social responsibility” (Carter
2005) or “social responsible buying” (Drumwright 1994). One starting point is “ethical”
sourcing initiatives, which might even include avoiding “obscure” contracts, but covers a
wide range of aspects both regarding suppliers and customers Carter 2000; Cooper et al.
2000). One particularly relevant sector, the textile industry, has seen a great number of focal
companies being blamed for unethical sourcing (Seuring/Goldbach 2006). Yet, this industry
11
has also played a major role in the development of related supplier monitoring schemes
(Graafland 2002). Typical problems reported are illegal child and forced labour, low wages,
and discrimination. This has further led to the establishment of the Social Accountability
8000 (SA 8000) standard (Rohitratana 2002), helping suppliers to signal that they fulfil re-
lated requirements.
Overall, the role of focal companies is of key importance in developing the field further.
They “have to” integrate environmental and social criteria into their supply policies and
processes. This is specified on a normative level, but implies operational implications, such
as early warning systems for related problems or the operational implementation of related
criteria in the supply processes. Before one such example is discussed, the automotive sector
will be addressed, and recent developments regarding sustainability and supply chains will
be discussed.
3 Sustainability, Supply Chains and the Automobile Industry
For the automobile industry, the vision and operational implementation of sustainable de-
velopment is part of the overall objective to satisfy the need of our society for individual
mobility. This can e.g. be seen by related statements from all major car producers (see as
examples Volkswagen and Toyota). With the complexity of the product “car”, worldwide
expansion, and at the same time the concentration of the branch on some multinationals, the
industry is part of the so-called “sensible” branches for sustainability (Kreikebaum 2002).
Therefore several automakers make efforts to integrate and transfer sustainability into their
business strategies and actions (Simpson 2005; Koplin 2006). This forms part of a wider
drive towards “sustainable mobility”, such as discussed in the related reports of the World
Business Council for Sustainable Mobility; Mobility 2001, and Mobility 2030 (World Busi-
ness Council for Sustainable Development 2004).
Each phase of a car’s product life cycle carries with its related impacts on the natural and
human environment. One particular field automakers have a decisive influence on are the
aspects of product design and manufacturing. Regarding manufacturing processes, adverse
side effects are minimized these days (Department Trade and Industry 1991). Although
large parts of the production processes are conducted by suppliers, the problems described
above are also apparent in the automotive industry (Association des Constructeurs Eu-
ropéens d’ Automobiles, Japan Automobile Manufacturers Association, United Nations
12
2002). Examples from the automotive industry are frequently featured in papers on supply
chain management, as purchased materials usually account for 60 to 70 percent of the total
manufacturing costs (Scannel et al. 2000). While the automakers have integrated sustain-
ability issues into company guidelines and processes, e.g. by setting up environmental and
social policies, they have only started to place such prerequisites on their suppliers. One
starting point might be to ask for ISO 14001 implementation (Zhu/Sarkis 2004). So far,
there have only been a few examples where such standards have been implemented into the
structures and processes of the company’s supply management (Noci 1997; Simpson 2005).
Examples provided so far discuss how automakers cooperate with and integrate suppliers
into their new product development processes and related innovative technologies. This of-
ten implies a reduction of the supply base as well as closer co-operation (Noci 1997; Warren
et al. 2001; Liker/Wu 2000). Environmental impacts of the single car manufacturing proc-
esses are assessed, and joint action is taken to minimise them (Warren et al. 2001; Gef-
fen/Rothenberg 2000). Hence, related research on the sustainable supply chains in the auto-
mobile industry mainly focuses on operational issues such as individual manufacturing
processes.
The wider issues of supplier selection and evaluation against sustainability-oriented criteria
are greatly lacking. Further analysis of environmental and socially responsible supply man-
agement including these research fields as well as structured research approaches and theory
development could not be identified [Error! Bookmark not defined.]. In this respect, the
buyer’s supply processes are not addressed. A fundamental conceptual review of necessary
changes of structures, i.e. the preconditions for the operationalisation of environmental and
social standards in supply management, is missing (Seuring/Müller 2004; Green et al.
1996). Noci (1997), Murphy & Bendell (1998) and Carter & Dresner (2001) outlined first
attempts, but a complete approach for integrating sustainability including both environ-
mental and social standards into the supply management of the automobile industry does not
exist.
Based on the previous discussion and related to the concept of the four levels of supply
management (Harland 2002), this triggers the need for research addressing the following
issues (Seuring/Müller 2004; Lamming/Hampson 1996; Bogaschewsky 2004):
1. Normative requirements for sustainable supply management: Identification of the
normative supplier requirements for a sustainable supplier management,
13
2. Early detection of supply-related risks level: Creation of comprehensive early detec-
tion, information and communication systems for a better organisation in and be-
tween enterprises,
3. Operational implementation of supply processes: Adaptation of existing supply
structures and processes to support operationalising of the normative supplier re-
quirements,
4. Supplier monitoring and development level: Development of appropriate and inde-
pendent measures, evaluation and control systems that include incentives, rewards,
and suitable possibilities for qualification of suppliers.
Starting with these issues, the research project and its results (outlined subsequently) con-
centrate on the development of a structured concept for integrating environmental and social
standards into the supply management of an automaker.
4 Developing a Sustainability Concept for Supply Management – The Case of
Volkswagen
Against this background, Volkswagen has taken a proactive move towards sustainability in
supply (chain) management. The company initiated an action research project from January
2003 until August 2004 in co-operation with the University of Oldenburg (scientific part)
and different departments of the entire Volkswagen group (practical part). The project was
mainly driven by the five-person core team (three from Volkswagen, one each from the en-
vironment, human resources, and purchasing department, and two from the University of
Oldenburg). The major structural backbone of the project was a series of six internal work-
shops which brought all company internal actors together. The process of conducting the
project was of major importance, especially regarding the application of action research
methodology. As this methodology and research process taken in the project has already
been described elsewhere (Koplin 2005), this paper will cover this only briefly, and concen-
trate instead on the outcomes of the project.
4.1 Research Project
As mentioned, the research process taken within the project was of great importance. Over-
all, the project was made up of four different research stages along the time:
• Preliminary analysis (literature review),
14
• Discourse workshops with all participants,
• Review of the current purchasing structures (internal interviews), and
• Involvement of first tier-suppliers (survey/supplier workshop).
1. Preliminary analysis
The preliminary analysis took place before the discourse-oriented main part of the project
started. Main topics for these enquiries were: challenges (chances/risks) for globally acting
companies which stem from environmental and social problems in supply chains. A major
part of the status review concentrated on the standing, proliferation, and contents of existing
environmental and social standards as well as discovering the most recognized standards. In
line with this, related best practice and negative examples of other companies and industries
were searched for. Based on this analysis, an overview of the current research status for sus-
tainable development in supply chains and supply management was established as the start-
ing point for the first internal workshop.
2. Discourse workshops
Six discourse workshops were used to discuss findings and propositions with a group of
relevant people from inside Volkswagen. The intention was to get all departments involved
in the project that could either contribute to developing a suitable solution and/or would
later have to deal with the outcomes. The first workshop familiarized the participants with
the topic by presenting the results of the preliminary analysis. In every workshop the current
status of the ongoing research was discussed, and subsequent actions were determined. This
way, it was aimed for integrating all internal stakeholders. The overall objective was to de-
velop a feasible plan that allows Volkswagen to integrate sustainability issues into its supply
policy and supply processes. As this has to be based on existing purchasing structure, the
know-how of the practitioners was of great importance.
3. Purchasing structures
The review of the current situation was initiated to understand the company’s sourcing
structures and processes and to identify weak points regarding environmental and social is-
sues. These topics where mainly identified by looking at environmental and social stan-
dards.
The overall supply management system comprises four different phases: (1) the normative
level, (2) early detection, (2) the purchasing process, and (4) monitoring and supplier devel-
opment. Nine interviews with experts of the respective Volkswagen departments were car-
15
ried out. Statements were collected and analyzed to identify opportunities and needs for
changes. This way, different solutions could be generated as ideal strategies, and were dis-
cussed at the workshops to identify a suitable solution.
4. Supplier integration
The integration of automobile suppliers was carried out by a survey in written form, as well
as a direct involvement of five selected suppliers into a supplier workshop. The survey of
378 suppliers (mainly located in Germany) included questions about the cognition and im-
portance of sustainability and the realization of environmental and social standards in their
own companies and their supply chains. The rate of return consisted of 111 completed ques-
tionnaires that showed a picture of the current situation in the automobile supplier industry.
This helped achieve an impression of the need for regulations of environmental and social
aspects in the context of outsourcing processes (Koplin et al. 2005). For the discussion of
the provisional concept, five suppliers were chosen to take part in a supplier workshop to
get feedback before the planned implementation. This allowed the discussion of coming
changes regarding supplier requirements and ensured that suppliers would agree to the pro-
posed solution.
4.2 As-Is Analysis at Volkswagen AG
As already mentioned, the internal analyses of Volkswagen’s supply policy and supply
processes at the start of the project were based on nine expert interviews with employees
from different business units. As a further source of information, Volkswagen internal
documents were analysed. The status-quo, as observed at the beginning of the project, will
now be summarized.
4.2.1 Normative Requirements for Sustainable Supply Management
The basis for the operationalisation of sustainability in supply chains is the meeting of
worldwide accepted institutional environmental and social standards also inside the own
company. Therefore the Volkswagen AG admits to the mission statement of the business
initiative “econsense”1 and to the Charta for a sustainable development by the International
Chamber of Commerce. At the same time, Volkswagen supports the Global Compact2 and is
1 http://www.econsense.de/eng/mitglieder.htm 2 http://www.unglobalcompact.org
16
oriented towards the OECD-guidelines for multinational enterprises3. Additionally, almost
all production sites around the world are certified according to ISO 14001 or EMAS. Re-
garding the social dimension, since 2002 the global responsibility of the Volkswagen AG
has been based on a code of conduct (Diller 1999), called the “Declaration of social rights
and industrial relationships at Volkswagen”4. This rests upon the SA 8000 standard.
4.2.2 Early Detection of Supply Related Risks
At Volkswagen the early detection of problems and risks (until recently) concentrated on the
environmental aspect. Using a so-called “environmental radar”, external information is col-
lected on a frequent basis, and stands for the exploration of long-term environmental
framework conditions (changes and emerging risks). Resulting from this are the formulation
and implementation of an environmental policy and strategy inside the company, which is
one key part of the overall environmental management system. This ensures the integration
of environmental objectives into the whole Volkswagen group, but also offers a link for re-
lated external communication with stakeholders. This aims at supporting all business proc-
esses with relevant environment-oriented information and improving related decision mak-
ing.
4.2.3 Operational Implementation of Supply Processes
The supply processes of the Volkswagen AG included product related environmental re-
quirements for suppliers but no prerequisites for obeying environmental and social standards
in the production processes of suppliers. Volkswagen informs all suppliers about these
product related standards with the purchasing inquiry. For the supplier selection the pur-
chasing department uses a general supplier pool without any environmental and social
evaluation or classification. Only the quality ratings and the economical situation of the
supplier are stored in the related supplier database. During the technical test of the supply,
all submitted offers are checked against the quality of the product and their specific envi-
ronmental characteristics. An extensive check of the offers related to manufacturing stan-
dards does not exist. The only evaluation of suppliers is based on the ISO 9000 certification,
self-information and quality audits. The main important factors for selecting a supplier are
quality, reliable deliveries, and costs.
3 http://www.oecd.org/dataoecd/56/36/1922428.pdf 4 http://www.imfmetal.org/main/files/Sozialcharta_eng3l.pdf
17
4.2.4 Monitoring und Supplier Development
At Volkswagen AG, checking and evaluating a supplier is based on quality issues, as is usu-
ally the case in this industry (Bandyopadhyay/Sprague 2002). Assessment criteria for plac-
ing in order are: (1) delivered products and services, (2) production facilities of the supplier,
especially regarding their quality performance. Through self-information or self-audits, sup-
pliers can give quality proofs to the Volkswagen AG. This is complemented by audits by
Volkswagen quality management staff at supplier sites, which may be conducted on a short
notice basis.
4.3 Developing a Sustainable Supply Management Concept at Volkswagen
Starting with the current situation of the Volkswagen AG, objectives had to be identified
which are to be met when integrating environmental and social aspects into supply policies
and processes. On the one hand, a first goal is the early identification of risk potentials and
problem fields combined with the reduction (or rather prevention) of these risks. On the
other hand, environmental and social standards can develop additional middle- or long-term
competitive advantages inside business relations (Rao 2002). An environmentally and so-
cially committed supplier is at the same time an economically above-average qualitative and
safe partner for the customer (Seuring/Goldbach 2006). So, for a long-term and future ori-
ented sustainable supply management, the ability for development in the supply chain based
on collective learning processes is the decisive factor in creating win-win situations for both
partners. For example, improvements in the organization of environmentalism can produce
gains in efficiency, e.g. by the elimination of errors and breakdowns.
To realize these practical changes, the existing purchasing structures of Volkswagen were
analyzed with all participating departments, weak points were identified, and solutions were
discussed. The project tried to find an implementable and practicable solution to integrate
environmental and social requirements and standards into the purchasing structures and
processes of Volkswagen. The concept spans the four levels outlined above and will now be
described in detail.
4.3.1 Normative Requirements for Sustainable Supply Management
The top, normative level of the concept includes the setting of general sustainability re-
quirements in the relationships to business partners, which are derived from the company’s
own standards. It is a necessary condition for Volkswagen to have a clear understanding of
18
what sustainable development means for the own company (mission statement). Further-
more, the company must comply with all environmental and social standards before passing
them on to its suppliers. This facilitates the placing of such requirements on suppliers and
asks them to pass them on in their own supply chains. In-house guidelines of the Volks-
wagen AG are (1) the environmental policy, (2) the environmental objectives, (3) the quality
policy as well as (4) the “Declaration on Social Rights and Industrial Relationships”. These
data were the basic principles in creating a catalogue of sustainability requirements where
suppliers have to respond using a self-information procedure. For the environmental dimen-
sion, environmental management systems such as ISO 14001 are suitable instruments. This
helps ensuring that a supplying company has related organisational and functional measures
in place. It can be assumed that ISO 14001 will find an equally wide diffusion in the near
future as that found with the quality management system ISO 9000 (Zhu et al. 2005; Cor-
bett/Kirsch 2001). This is especially true for the automobile industry (Koplin et al. 2005).
Equal systems regarding social aspects, for example the SA 8000 or AA 1000, are not
widely implemented. Their practical use is limited to just a few branches, e.g. the textile or
toy industry (Graafland 2002; Rohitratana 2002). So there are no standardised systems that
can be used within the social dimension. As a consequence, Volkswagen developed a code
of conduct which suppliers have to obey. Within the self-evaluation, suppliers have to pro-
vide information on ISO 14001 certification and related environmental issues, occupational
health and safety, and human rights.
4.3.2 Early Detection of Supply Related Risks
A second part of the concept includes the installation of a global internal and external issue
screening. This is intended to allow provident identification of environmental and social
risks and weak points at suppliers. All environmental and social topics that can be relevant
for the company or industry are collected within this kind of a radar function. Potentially
applied instruments are e.g. (1) internet inquiries, (2) expert panels, (3) media and special-
ized journalism screening, (4) contact to watchdog organisations, (5) noting legal drafts, and
(6) regular dialogues with NGOs. Quite often, internal staff members are also able to detect
related issues. To collect such information, an internal reporting requirement for all divi-
sions will be introduced.
19
4.3.3 Operational Implementation of Supply Processes
While the two top levels are on a rather normative and strategic level, the third module of
the supply policies and processes at the Volkswagen AG must be readjusted to include envi-
ronmental and social aspects. This way, the general sustainability requirements are made
operational in the relationships to business partners. The most important step is to account
for these aspects when placing contracts with suppliers.
The process covers three main steps: (1) Environmental and social information is sampled in
terms of self-information from business partners, which has to be updated before a specific
purchasing decision is made. This self-information is the basis for evaluating and rating
suppliers regarding to what degree they comply with standards set by Volkswagen’s sus-
tainability requirements. Supported by plausibility checks from the quality assurance de-
partment, the supplier statements are analyzed to ensure their validity. Generally, Volks-
wagen asks its supplier to ensure the same requirements for sub-suppliers along the supply
chain. The fulfilment of the specified environmental and social criteria then forms part of
the overall sourcing decision. Therefore, they are related to the quality and delivery per-
formance of the supplier. In the future, these criteria might have a prohibitive impact on the
sourcing decision, meaning that a supplier that does not fulfil required environmental and
social standards will not be awarded a sourcing contract.
4.3.4 Monitoring and Supplier Development
Along with the plausibility check, it is important for the Volkswagen AG to create control
mechanisms for inspections. In individual cases, visits to the production sites of particular
suppliers are conducted. In the long run, Volkswagen tries to build up a revision and audit
system to obtain professional competence and routine in the processes. Suppliers not fulfill-
ing several issues of the sustainability requirements have to initiate an internal improvement
and development process. They are obliged to prove their changes regarding steps taken,
timelines set, and results to be achieved. Additionally, Volkswagen supports all suppliers by
information via an online supplier platform and technical support. Furthermore, there are
plans for training suppliers in the form of workshops and seminars: This assists in spreading
sustainability and deepens the co-operation between Volkswagen and its business partners.
Table 2 provides an overview of the four levels of the VW sustainability concept in com-
parison to the status of the supply policy and process before the research project started.
20
Level As-is Analysis Sustainable supply management concept
Product based environmental supplier requirements
Product and production based envi-ronmental and social supplier re-quirements
Normative Re-quirements for Sustainable Supply Man-agement
ISO 9000 as prerequisite ISO 9000 und 14001 as prerequisite
International environmental issue-screening
International environmental and social issue-screening with additional focus on suppliers
No reporting requirement for divisions
Reporting obligations for all divi-sions to a central department
Early Detection of Supply Re-lated Risks
No co-operation between di-visions, no expert-team
Expert-team (human resources, envi-ronment protection, procurement, quality assurance) to evaluate supplier information
Supplier information for qual-ity performance
Site-related self information via sup-plier platform
No evaluation and classifica-tion of suppliers
Environmental and social supplier evaluation based on a classification system
Operational Im-plementation of Supply Proc-esses
Ratings from quality assur-ance, F&E and logistics for the sourcing decision
Additional inclusion of environ-mental/social evaluation in the sourc-ing decision (no specific “sustainabil-ity” ratings)
Quality audit with some envi-ronmental questions
Added case oriented revision of envi-ronmental and social standards
No supplier information about environmental and so-cial aspects
Provision of information on the sup-plier platform via Internet Duty for supplier qualification
Monitoring and Supplier Devel-opment
Support to suppliers with en-vironmental questions
Support to suppliers with environ-mental/social problems
Table 1: Overview of the changes of the sustainability concept
The framework of the four levels as described in the as-if analysis and the sustainable sup-
ply management concept at Volkswagen can be generalised. Figure 3 outlines a framework
of how companies might implement environmental and social standards into their supply
(chain) management. While the framework is rather general, it will have to be specified for
a company when using it. Therefore this concept summarises how supply policy and supply
processes can be complemented to account for sustainability issues. The Volkswagen AG
will start their practical implementation in 2006. The company initiates a pilot phase to col-
21
lect information about the environmental and social standards at its suppliers and to examine
the results of the different organisational changes inside the company. Figure 3 provides a
summarizing overview of the four levels of the sustainability concept for supply (chain)
management.
Supply ProcessSelf-Disclosure via Supplier Website
Plausibility Check
Environmental / Social Evaluation
Normative RequirementsSetting Purchasing Requirements for Sustainability
in Business Partner Relations
Monitoring + Supplier DevelopmentCase-by-case Revisions
Duty for Supplier Qualifications
Information / Technical Support
Early Detection
International Issue-Screening
Reporting Liability of Business Units
Analysis of Problematic Cases
Supply ProcessSelf-Disclosure via Supplier Website
Plausibility Check
Environmental / Social Evaluation
Supply ProcessSelf-Disclosure via Supplier Website
Plausibility Check
Environmental / Social Evaluation
Normative RequirementsSetting Purchasing Requirements for Sustainability
in Business Partner Relations
Monitoring + Supplier DevelopmentCase-by-case Revisions
Duty for Supplier Qualifications
Information / Technical Support
Early Detection
International Issue-Screening
Reporting Liability of Business Units
Analysis of Problematic Cases
International Issue-Screening
Reporting Liability of Business Units
Analysis of Problematic Cases
Figure 3: A conceptual framework for integrating sustainability into supply manage-
ment
5 Conclusions
Companies are seen as key players on the societal path towards sustainability. This requires
operational implementation far beyond the mission statement. It is necessary to find practi-
cal approaches for sustainable development inside the companies themselves, as well as in
regard to their supply chains. This paper offers one approach for companies to attend to
their social responsibility and integrate sustainability into supply management. Therefore
environmental and social standard systems und their potentials for integration in the busi-
ness processes of a company were analysed building on the case of Volkswagen. The result
is a sustainability supply management concept consisting of four levels: (1) normative re-
quirements, (2) early detection, (3) supply process, and (4) monitoring and supplier devel-
opment. This should help to reduce or even eliminate environmental damages and social
22
problems along the entire supply chain of a company, which can be seen as major step to-
ward sustainability.
The described research project conducted at Volkswagen establishes first findings within the
automobile industry. Therefore, the derived recommendations for action from the sustain-
ability concept can be seen as a design model or orientation framework, which has to be
verified and improved by further research. A first step comes from the operational imple-
mentation of the Volkswagen concept. It is necessary to analyse the effects on practice.
Only then it is possible to evaluate the true potential of the concept to implement sustain-
ability in supply (chain) management. To prove the universal validity of the concept, other
action research projects must be initiated, and/or multiple case studies must be carried out.
Afterwards more specified information would be available about the practical application,
the benefit, as well as any potential disadvantages. These research results will show how far
the developed sustainability concept can really contribute to the integration of sustainable
development into the structures and processes of supply management for enterprises.
23
References
Association des Constructeurs Européens d’Automobiles/ Japan Automobile Manufacturers
Association/ United Nations (ed.) (2002) : Environment Programme, Ort ???.
Bandyopadhyay, J.K./ Sprague, D.A. (2003): Total quality management in the automotive
supply chain in the United States, in: International Journal of Management, Vol. 20, No. 1,
p. 17-22.
Bogaschewsky, R. (2004): Beschaffung und Nachhaltigkeit, in: Hülsmann, M./ Müller-
Christ, G./ Haasis, H.-D. (ed.): Betriebswirtschaftslehre und Nachhaltigkeit:
Bestandsaufnahme und Forschungsprogrammatik. Wiesbaden, p. 171-218. (in German).
Bowen, F./ Cousins, P./ Lamming, R./ Faruk, A. (2001): The role of supply management
capabilities in green supply, in: Production and Operations Management, Vol. 10,
No. 2, p. 174-189.
Brown, D. (2000): International trade and core labour standards – A survey of the recent
literature, OECD Labour Market and Social Policy Occasional Papers No. 43
(DEELSA/ ELSA/WD) 4, Paris.
Carter, C.R. (2000): Ethical issues in international buyer-supplier relationships – A dyadic
examination, in: Journal of Operations Management, Vol. 18, No. 2, p. 191-208.
Carter, C.R. (2005): Purchasing social responsibility and firm performance – The key medi-
ating roles of organizational learning and supplier performance, in: International Jour-
nal of Physical Distribution & Logistics Management, Vol. 35, No. 3, p. 177-194.
Carter, C.R./ Dresner, M. (2001): Purchasing's role in environmental management – Cross-
functional development of grounded theory, in: The Journal of Supply Chain
Management, Vol. 37, No. 3, p. 12-27.
Commission of the European Communities (ed.) (2002): Corporate social responsibility – A
business contribution to sustainable development, COM(2002) 347 final, Brüssel.
Cooper, R.W./ Frank, G.L./ Kemp, R.A. (2000): A multinational comparison of key ethical
issues, helps and challenges in the purchasing and supply management profession – The
key implications for business and the professions, in: Journal of Business Ethics, Vol.
23, No. 1, p. 83-100
Corbett, C.J./ Kirsch, D.A. (2001): International Diffusion of ISO 14000 Certification, in:
Production and Operations Management, Vol. 10, No. 3, p. 327-342.
24
Corswant, F. von/ Fredriksson, ???. (2002): Sourcing trends in the car industry - A survey of
car manufacturers’ and suppliers’ strategies and relations, in: International Journal of
Operations & Production Management, Vol. 22, No.7, p. 741-758.
Department of Trade and Industry (ed.) (1991): Logistics and supply chain management – A
management overview, London.
Diller, J. (1999): A social conscience in the global marketplace? – Labour dimension of
codes of conduct, social labelling and investor initiatives, in: International Labour
Review, Vo. 138, No. 2, p. 99-129.
Drumwright, M.E. (1994): Socially responsible organizational buying – Environmental
concern as a noneconomic buying criterion, in: Journal of Marketing, Vol. 58, p. 1-19.
Geffen, C./ Rothenberg, S. (2000): Suppliers and environmental innovation – The automo-
tive paint process, in: International Journal of Operations & Production Management,
Vol. 20, No. 2, p. 166-86.
Goldbach, M./ Seuring, S./ Back, S. (2004): Coordinating sustainable cotton chains for the
mass market - The case of the German mail order business OTTO, in: Greener
Management International, Vol.43, p. 65-78.
Graafland, J.J. (2002): Sourcing ethics in the textile sector – The case of C&A, in: Business
Ethics - A European Review, Vol. 11, No. 3, p. 282-294.
Green, K./ Morton, B./ New, S. (1996): Purchasing and environmental management – Inter-
actions, policies and opportunities, in: Business Strategy and the Environment, Vol. 5,
p. 188-197.
Hall J. Environmental supply chain dynamics. In: Journal of Cleaner Production 2000;
8(3):455-71.
Harland, C. (2002): The purchasing strategy process, in: Day, J. (eds): Gower handbook of
purchasing management, 3rd edition, Aldershot, p. 23-36.
Harland, C.M./ Lamming, R.C./ Cousins, P.D. (1999): Developing the concept of supply
strategy, in: International Journal of Operations & Production Management, Vol. 19,
No. 7, p. 650-673.
Koplin, J. (2005): Integrating environmental and social standards in supply management –
An action research project, in: Kotzab, H./ Seuring, S./ Müller, M./ Reiner, G. (ed.):
Research methodologies in supply chain management, Heidelberg, p. 381-396.
Koplin, J.: Nachhaltigkeit im Beschaffungsmanagement – Ein Konzept zur Integration von
Umwelt- und Sozialstandards, PhD-thesis, University of Oldenburg, (coming 2006).
25
Koplin, J./ Seuring, S./ Beske, P. (2005): Umwelt- und Sozialstandards als Instrument eines
nachhaltigen Beschaffungsmanagements – Ergebnisse einer Umfrage bei Lieferanten
der Automobilindustrie, in: Umweltwirtschaftforum, Vol. 13, No. 4, p. ??? (in German).
Kraus, M. (1997): How nations grow rich – The case of free trade, New York.
Kreikebaum, H. (2002): Die Bedeutung des Nachhaltigkeitsprinzips für die strategische
Produktionsplanung, in: Albach, H./ Kaluza, B. (ed.): Wertschöpfungsmanagement als
Kernkompetenz, Wiesbaden, p. 183-198. (in German).
Lal D. (1997): Social standards and social dumping, in: Giersch, H. (ed.): Merits and limits
of markets, Berlin, p. 255-274.
Lamming, R.C./ Hampson, J.P. (1996): The environment as a supply chain management is-
sue, in: British Journal of Management, Vol. 7 (Special Issue), p. 45-62.
Lawrence, A.T. (2002): The drivers of stakeholder engagement – Reflections on the case of
Royal Dutch/Shell, in: Andriof, J./ Waddock, S./ Husted, B./ Sutherland Rahman, S.
(ed.): Unfolding stakeholder thinking: Theory, responsibility and engagement.
Sheffield: Greenleaf, 2002:187-199.
Liker, J./ Wu, Y. (2000): Japanese automakers, US suppliers and supply-chain superiority,
in: Sloan Management Review, Vol. 42, No. 1, p. 81+.
Matten, D./ Wagner, G.R. (1998): Konzeptionelle Fundierung und Perspektive des
Sustainable Development-Leitbildes, in: Wagner, G.R./ Steinmann, H. (ed.): Umwelt-
und Wirtschaftsethik, Stuttgart, p. 51-79.
McIntosh, M./ Thomas, R./ Leipziger, D./ Coleman, G. (2003): International standards for
corporate responsibility, in: Ethical Corporation Magazine, Vol. 13, p. 22-29.
Murphy, D.F./ Bendell, J. (1998): Do-it-yourself or do-it-together? – The implementation of
sustainable purchasing policies by DIY retailers in the U.K., in: Russel, T. (ed.):
Greener Purchasing: Opportunities and Innovations, Sheffield, p. 118-134.
Noci, G. (1997): Designing “green” vendor rating systems for the assessment of a supplier’s
environmental performance, in: European Journal of Purchasing and Supply
Management, Vol. 3, No. 2, p. 103-114.
Pallmann, H.-D. (2002): Die Bedeutung von Sozialstandards aus Sicht der
Entwicklungszusammenarbeit, in: Scherer, A.-G./ Blicke, K.-H./ Dietzfelbinger, H./
Hütter, G. (ed.): Globalisierung und Sozialstandards, München, p. 179-191.
Preuss, L. (2001): In dirty chains? – Purchasing and greener manufacturing, in: Journal of
Business Ethics, Vol. 34, p. 345-359.
26
Preuss, L. (2005): Rhetoric and reality of corporate greening – A view from the supply
chain management function, in: Business Strategy and the Environment, Vol. 14, No. 2,
p. 123-139.
Rao, P. (2002): Greening the supply chain –A new initiative in South East Asia, in:
International Journal of Operations & Production Management, Vol. 22, No. 6, p. 632-
655.
Roberts, S. (2003): Supply chain specific? – Understanding the patchy success of ethical
sourcing initiatives, in: Journal of Business Ethics, Vol. 44, p. 159-170.
Rohitratana, K. (2002): SA 8000 – A tool to improve quality of life, in: Managerial
Auditing Journal, Vol. 17, No. 1-2, p. 60-64.
Scannell, T./ Vickery, S.K./ Dröge, C.L. (2000): Upstream supply chain management and
competitive performance in the automobile supply industry, in: Journal of Business
Logistics, Vol. 21, No. 1, p. 23-48.
Scherer, A.G./ Blicke, K.-H./ Dietzfelbinger, D./ Hütter, G. (2002): Globalisierung und
Sozialstandards – Problemtatbestände, Positionen und Lösungsansätze, in: Scherer,
A.G./ Blicke, K.-H./ Dietzfelbinger, D./ Hütter, G. (ed.): Globalisierung und
Sozialstandards, München, p. 11-21 (in German).
Seuring, S. (2004): Integrated Chain Management and Supply Chain Management –
Comparative Analysis and Illustrative Cases, in: Journal of Cleaner Production, Vol.
12, No. 8-10, p. 1059-1071.
Seuring, S. (2004): Industrial ecology, life cycles, supply chains – Differences and
interrelations, in: Business Strategy and the Environment, Vol. 13, No. 5, p. 306-319.
Seuring, S./ Müller, M. (2004): Beschaffungsmanagement & Nachhaltigkeit – Eine
Literaturübersicht, in: Hülsmann, M./ Müller-Christ, G./ Haasis, H.-D. (ed.):
Betriebswirtschaftslehre und Nachhaltigkeit – Bestandsaufnahme und
Forschungsprogrammatik, Wiesbaden, p. 117-170 (in German).
Seuring, S./ Goldbach, M.: Managing sustainability performance in the textile chain, in:
Schaltegger, S./ Wagner, M. (ed.). Sustainable performance and business
competitiveness, Sheffield, forthcoming 2006.
Sheth, J.N./ Sharma, A. (1997): Supplier relationships, in: Industrial Marketing Manage-
ment, Vol. 26, No. 2, p. 91-100.
Simpson, D.F. (2005): Greening the automotive supply chain, in: Demeter, K. (ed.):
Operations and Global Competitiveness, Proceedings of the 12th International
27
Conference European Operations Management Association, June 19-22. Budapest,
Ungarn: HALPIM, p. 313-326.
Simpson, D./ Power, D.J. (2005): Use the supply relationship to develop lean and green
suppliers, in: Supply Chain Management: An International Journal, Vol. 10, No. 1, p.
60-68.
Toyota Motor Corporation (ed.): Guiding principles at Toyota, Tokyo, online:
http://www.toyota.co.jp/en/sustainability/index.html (accessed 31. August 2005).
Ulrich, P./ Fluri, E. (1995): Management – Eine konzentrierte Einführung, 7th edition, Bern,
p. 3-16 (in German).
Wagner, S.M. (2003): Management der Lieferantenbasis, in: Boutellier, R./ Wagner, S.M./
Wehrli, H.P. (ed.): Handbuch Beschaffung: Strategien, Methoden, Umsetzung,
München, p. ???.
Walton, S./ Handfield, R./ Melnyk, S. (1998): The green supply chain – Integrating suppli-
ers into environmental management processes, in: International Journal of Purchasing
and Materials Management, Spring, p. 2-11.
Warren, J.P./ Rhodes, E./ Carter, R. (2001): A total product system concept – A case study
of the smart™ automobile, in: Greener Management International Vol. 35, p. 89-104.
Webster, F.E./ Wind, Y. (1972a): Organizational Buying Behaviour, Englewood Cliffs.
Webster, F.E./ Wind, Y. (1972b): A general model for understanding organizational buying
behaviour, in: Journal of Marketing, Vol. 36, No. 2, p. 12-19.
Wolters, T./ James, P./ Bouman, M. (1997): Stepping-stones for integrated chain
management in the firm, in: Business Strategy and the Environment, Vol. 6, No. 3, p.
121-132.
World Business Council for Sustainble Development (ed.)(2004): Mobility 2001 – World
mobility at the end of twentieth century and its sustainability, Full Report, Geneva.
Zhu, Q./ Sarkis, J. (2004): Relationships between operational practices and performance
among early adopters of green supply chain management practices in Chinese
manufacturing enterprises, in: Journal of Operations Management, Vol. 22, No. 3, p.
265-289.
Zhu, Q./ Sarkis, J./ Geng, Y. (2005): Green supply chain management in China – Pressures,
practices and performance, in: International Journal of Operations & Production
Management, Vol. 25, No. 5, p. 449-468.
28
Zsidisin, G.A./ Siferd, S.P. (2001): Environmental purchasing – A framework for theory
development, in: Journal of Purchasing and Supply Management, Vol. 7, No. 1, p. 61-
73.
[1] See e.g. the Volkswagen AG website: http://www.mobility-and-sustainability.com/
(accessed 31. August 2005), where the “Environmental Report” can be downloaded.