The governance of global supply chains

This chapter aims at investigating the impact that more sustainable sourcing policies carried on by many multinational companies are having on the local suppliers. Thus, it is crucial to understand the process through which CSR is coming to developing countries, to investigate the effects triggered by CSR strategies on the enterprises that are managing to comply with international standards and regulations, and to assess the effectiveness and feasibility of these binding CSR policies. Actually, CSR is reaching Southern enterprises as a mandatory requirement for the continuation of business relationships with foreign partners. So, instead of promoting more advanced business practices, the need for sustainability risks becoming an unaffordable barrier to entry for local suppliers. Within this context, balanced and supportive relationships along the supply chain and between local suppliers and their stakeholders seem to be needed to foster new solutions to achieve sustainability targets. More collaborative models of governance based on innovative partnerships could be the way to help firms in developing countries to address new sourcing requirements, to get support from their stakeholders, and to improve their reputation in the international markets.