Giving Compass' Take:

• Three business models are emerging that can help improve supply chain management through the vehicles of social businesses, corporate foundations, and corporate impact funds. 

• How can you leverage your charitable dollars to improve supply chains? 

• Learn how to ensure ethical supply chains through technology. 

Cramped living conditions for migrant workers in corporate supply chains have contributed to an acceleration in COVID-19 infections in Singapore, leading to a temporary halt in construction projects. The living conditions of these workers and the unequal access to healthcare and welfare have caught the attention of the public as they now realise how the well-being of this otherwise isolated group is so intricately tied to their own well-being and their ability to recover from the pandemic as a nation. There are now questions around the responsibilities of private sector players and public-listed companies further down the supply chain- ranging from property developers to major companies in marine and manufacturing in ensuring better equity in treatment.

In a post-COVID world, it is still too early to tell if companies will pay more attention to human capital considerations in the supply chain. However, trends seem to be pointing to a shifting landscape. In The Economist’s brief sensing of the situation, it highlighted deglobalisation as companies look to manage their supply chains better by moving them closer to home.

Better supply chain management however requires more than just closer physical proximity. As the following corporate social investor models show, an ecosystem-building approach is necessary for management to be sustainable.

Social businesses are enterprises that pursue both the social and financial bottom lines. More than just carrying out corporate social responsibility programmes, social businesses have a higher commitment to integrate socially responsible practices into their supply chains.

Corporate foundations are legally independent entities set up by companies to channel their philanthropic funding and/or execute socially responsible programmes. This vehicle gives companies the flexibility to pursue philanthropic initiatives that are distinct from the company’s business but increasingly, it has become a strategic business tool with hands-on approach by the sponsoring company.

Corporations can also leverage combined capital and network of industry partners to achieve sustainability goals.

Read the full article about models for improved supply chains  by Sharifah Mohamed  at avpn.