Supply chains can serve as a means of promoting the well-being of people, communities and society at large. Hannah Stolze, professor of supply chain management at Lipscomb University, explains how.

“Transformative” supply chain research entails the joint participation of academics, faculty research and industry. Together they explore ways in which business and supply chain management can enhance and contribute to the well-being of individuals, communities and society at large, Stolze says. The goal is to help people flourish in multiple ways on a global basis — economically, politically, spiritually.

The effort can be difficult to achieve in a multi-tier supply chain, Stolze acknowledges. “It’s not going to happen by accident,” she says. “It has to be purposeful.” A Fortune 500 company with a few thousand employees at headquarters might touch tens of thousands more through the extended supply chain. Organizations must attend to the impact of their partners both upstream and downstream. The question they need to ask is: “Are people better off when they’re in business with us?”

Just about every major global company claims to adhere to ethical standards throughout their supply chains. The challenge lies in discovering whether they’re actually following those rules. Companies must know all of their stakeholders, whether at home or overseas. Key to that effort is the participation of third-party auditors, who can be on the scene and talk directly with employees.

That has become more difficult with the arrival of COVID-19 and the cancellation of in-person meetings at overseas factories. “Hopefully, you have close relationships with people over there you developed 18 months ago,” says Stolze, adding that it’s important to draw up a few key performance indicators to measure progress. Elements to examine include wages, benefits, educational opportunities, healthcare and maternity leave.