A focal company’s boundary of accountability for social or environmental misconduct in its supply chain is hard to define. Non-sustainable business practices can occur at all stages in the supply chain: at raw material exploitation, intermediate production, or transportation. And it can occur atany tier of supplier. Thus investigating multi-tier supply chain sustainability is critical. This chapter argues for the relevance of sub-tier suppliers’ supply chains. Included in the discussion is institutionalizing sustainability standards throughout the entire supply chain, and the role of multi-tier analysis. Background on transparency and impact on sub-suppliers, drivers for active sub-supplier management, and critical factors for sub-supplier management are all introduced. Research implications and directions complete this chapter.
Joerg S. Hofstetter and Jörg H. Grimm
Sanjay Sharma, Tatiana Bouzdine-Chameeva and Joerg S. Hofstetter
The Bordeaux region is famed for some of the world’s highest quality wines and is steeped in centuries of conventional wine making practices. In recent years, the region has experienced changing societal norms toward sustainable agriculture in France, and preferences for organic and biodynamic wines amongst consumers in some high-priced markets in developed countries. In response to these external changes in the institutional environment reinforced by internal values for environmental preservation of family-owned estates in the region, some appellations within Bordeaux recently mandated sustainability requirements for viticulture and viniculture (farming and wine production). These mandates were the outcomes of initiatives undertaken by the heads of pioneering family estates who took formal and informal leadership roles in institutions in the Bordeaux wine region. Organic and biodynamic wine-making are risky approaches for wine makers in Bordeaux’s difficult humid climate conditions, in particular for wineries with medium to low profitability. This chapter discusses the motivations of the pioneering family estates that led the rapid transformation towards sustainability. While their motivations varied, the pioneering family business leaders agreed on the preservation of ecosystems, approaches to rapidly change winery practices to achieve greater sustainability, and patience for long-term financial returns.