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Abstract

Sustainability initiatives are frequently imposed on upstream supply chain members by their more powerful downstream partners. This paper assesses the challenges of estimating costs and benefits for participants and the difficulties associated with identifying their locations and effects in the supply chain. The paper argues that the success and endurance of agri-food supply chains that purport to pursue sustainability objectives depend critically on the distribution of the associated costs and benefits. It calls on supply chain leaders to give careful consideration to the distribution of net benefits across the chain to ensure that opportunism and moral hazard are minimized.

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