8.5 Main Dimensions of Sustainability in the Global Value Chain – Global Value Chain (2024)

The main dimensions of sustainability in the global value chain are environmental, economic, and social dimensions. Integration of three dimensions, economic, social, and environmental, can help companies achieve a long-term goal, and the sustainable supply chain is a crucial success factor for the future. This concept is not only theoretical but enduring. Interesting that only proactive organizations can build sustainable supply chains and products (Sureka, Shiva, Palkar, Jarwal & Bhavsar, 2021). Organizations consciously find ways to be sustainable, which will help the world create a more sustainable ecosystem for the global value chain.

For achieving a sustainable value chain and development, companies have to integrate and balance economic, social and environmental dimensions within their companies (Neumüller, Kellner, Gupta, & Lasch, 2015). Decision-makers within organizations have to focus simultaneously on economic effects and consider the impact on the social and environmental aspects. Companies can compromise customer satisfaction but gain a tremendous impact on society and the environment. Therefore, a lot of corporate organizations consider and incorporate sustainability considerations in supply chain management as well as in operations. Because rising issues negatively impact the whole world and attract debates such as labour practices, emission generation, resource consumption and so forth (Neumüller, Kellner, Gupta, & Lasch, 2015). According to the authors of the academic journal (2015), organizations are aware of a clear positive correlation between social responsibility and customer satisfaction, and on the other hand, the negative link between a poor social reputation and customers’ reactions to the product (Neumüller, Kellner, Gupta, & Lasch, 2015).

There are many benefits to being a sustainable organization. For example, reduced packaging can lead to cost savings and reduce waste of materials. In addition, the company can reduce turnover of employees and labour turnover costs by promoting good working conditions and safety in transportation and warehousing. As a result, employees will be motivated, productive and promote a great working environment (Neumüller, Kellner, Gupta, & Lasch, 2015). These can lead to support the positive development of the society and environment and prevent negative consequences by balancing three dimensions: economic, environmental, and social performance (Neumüller, Kellner, Gupta, & Lasch, 2015).