The complex web of firms that form a supply chain adds to the managerial challenges: one supply chain partner may affect many customers indirectly as materials and information pass through several tiers in the supply chain.For example, inadequate testing of materials or components by a supplier may flow downstream to customers in the form of dangerous or harmful products, resulting in product recalls, a tarnished reputation, and ultimately, significantly higher costs and lower revenue.

This research project by prof. Robert Klassen was structured into two phases with different, but related objectives. Drawing on survey data, the first phase developed a framework that identified and categorized social issues for supply chain management from an operations perspective.

The second phase explored the relationships between processes, actions and outcomes involved with different approaches to social issues. Particular attention was paid to how managers identify and understand issues, mitigate potential risks, and finally, begin to exploit opportunities related to social issues.