Pedersen (2009) sees sustainability as promoting a “safe environment” and being “green.” The challenge that many organizations face today is that the technology may not be there to solve all sustainability issues (Lovell 2009). However, in his research, Lovell (2009) found that many organizations are merely carrying on with traditional schemes of “business as usual” because they believe that there is a technological solution out there that will solve global sustainability issues (Lovell 2009). Lovell (2009) stated that “there is a reprehensively flawed premise held that we can go on with business-as-usual theoretical accounts because engineering will bail us out.” Lovell (2009), as referred to by Mason-Jones (2009), argued whether the concept of Global Supply Chain sustainability is a flawed premise. In terms of how “sustainability” is defined, the most widely adopted and most frequently quoted definition of sustainability is that of the World Commission on Environment and Development (1987, p.8) “…development that meets the needs of the present without compromising the ability of future generations to meet their needs” (Markley and Davis, 2007). The challenge is that most organizations use the term sustainability to express different things.
#Business as usual meaning drivers
Pedersen (2009) refers to social responsibility, economic and environmental prosperity as the main drivers for “sustainability” in the global supply chain in his recent article.Įnvironmental regulations, consumer sentiment, environmental non-governmental organization pressure, global warming concerns, and economics will drive the supply chain sustainability movement for the companies, added Pedersen (2009). With the recent global economic crises and decline in oil prices, large companies, leaders, and forward thinkers are starting to examine the issue of the global supply chain and its sustainability (Pedersen, 2009).
Most administrations pursue the globalization option because it is cheaper (Davis et al., 2007). It is important for companies to understand the challenges of globalization if they want their business to maintain its competitiveness and effectively compete against rapidly emerging markets on both a long and short-term scale (Pedersen, 2009). The big challenge today is whether this approach is sustainable in the longer term (Mason-Jones, 2009 Lee, 2009). As argued by Manuj and Mentzer (2008), administrations chase cheaper materials from countries like China and India or wherever and get their logistics network booked up, and basically, this is the way they have structured their business and strategies. (Alhashim, 1980 Kagut and Kulatilaka, 1994) as cited by Manuj and Mentzer (2008).įor quite a few administrations, the world is a global marketplace, and globalization is just a way to move. It provides access to cheaper labor, raw materials, technology, etc. It has been argued by Manuj and Mentzer (2008) that global supply chains are a source of competitive advantage. However, some academics and professionals argue that the nature of globalization may be different for developed and developing countries (Bhalla, 2002). However, it can also bring enormous opportunities and benefits (Friedman, 2009).Īt its core, globalization makes the states’ borders less important, as they become dependent on each other to thrive (Carter & Rogers, 2008).Īlthough the term “globalization” is widely used in public debates, as mentioned above, its concept may not be new it is having a changing effect on the way business administrations operate (Walsh, 2009). While this is true, in another article, Friedman (2009) added that “Globalization can be incredibly empowering and incredibly coercive.” Globalization has dangers and an ugly dark side. Goods and services produced in one part of the world are increasingly available in all parts of the world.
Friedman (2008) added that with globalization “information and money flow more rapidly than ever.” In some cases, it has been defined as the connectivity between people, businesses, and countries around the world (Friedman, 2008).
Although the term “globalization” is widely used in public debates, it means different things to different people. The concept and importance of globalization and the business as usual approach have been debated and described at length in various literatures (Bhalla, 2002).
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