After our class discussion a few weeks ago about Nike dropping their endorsement of Manny Pacquaio, and the larger discussion about supply chain, I was intrigued and wanted to know more. I stumbled across an article that argued that social engagement is the route to business benefits. The article claims that “social impact” within a companies supply chain is becoming more and more important to consumers, as low prices are becoming less of a priority. Knowing the impact of a purchase on the consumer, their community, the environment, and so on, is becoming more valuable in the eyes of the buyer. The article uses Walmart as an example, as their change in tag line from ‘Always low prices’ to ‘Save Money. Live Better.’ signaled a change in the needs of their customers.

I agree with this article that businesses should focus on the areas within their supply chain where they could improve their social impact. However, the simple approach that they offer, in my opinion, does not seem sufficient. Their solution is to simply engage the communities within the supply chain and find a way to engage the community in a way that will improve the situation. While engaging the stakeholders will certainly offer insight, I think that it is a businesses duty to “quantify every effect” that they have within communities and on the environment.

I also think that there are many barriers to simply interacting with and engaging with the community to improve the negative effects of the business in those areas. The example that came out of the Manny Pacquaio example is one of national law; if Nike wanted to only use manufactures in a country where homosexuality was against the law, what is Nike’s place as a business to change that? In addition to national laws, there can be cultural barriers, language barriers, and economic challenges that may dilute the effectiveness of a simple approach to social engagement.

In conclusion, I agree that it is a businesses duty to pay close attention to their supply chain, and work to eliminate any negative effects within that system. However, I think that this is a complex undertaking, that in the era or global business presents challenges that will require more action then engagement. Although, this is a positive first step.