This week we discussed how companies may be disconnected to their supply chains. In the Walmart case study, we saw the benefits that a company can gain from managing their supply chain thoroughly and ensuring that their supply chain is sustainable. There is a strong correlation between sustainability and efficiency. For example, a company can reduce its costs, improve transparency and awareness within its supply chain, and improve its reputation and relationship with consumers.
This article explains how China’s factories are being shut down because they are not meeting pollution regulation standards. In fact, the Chinese Ministry of Environment has charged 80,000 factories have been charged with criminal offenses. China is incentivized to crack down on its factories' pollution practices not only to reduce emissions, but also improve China's standard of living and better integrate themselves in global commerce. To maintain its business with Walmart and other powerful companies, China is improving its qualifications by aiming to reduce carbon emissions in all countries and investing in advanced coal generations that will reduce overall pollution levels. China wants to remain in business with international companies such as Walmart. By investing in environmentally sustainable practices, China diversifies their business portfolio and is more appealing to its business partners. Walmart's consciousness of its supply chain and implementation of sustainable practices within all sectors of its business shows how impactful a company’s decision to help the environment can be.
Contributors: (David) Heng Wah Zeng, Justin Lee, Laetitia Waliry, Yuta Higuchi
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