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Centre for Mechanical Enginnering, Materials and Processes
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Modelling sustainability risk in the Brazilian cosmetics industry
Publication . Romano, Andre; Ferreira, Luís Miguel D. F.; Caeiro, Sandra
Supply chains involve several stakeholders, with different environmental, social, economic, and ethical attributes, and are exposed to various risks along all stages. One of these risks relates to conditions or events related to sustainability that have the potential to generate harmful reactions from stakeholders in the supply chain. Those risks can materialize through stakeholders’ responses, when they hold companies responsible for unfavorable conditions in the supply chain, leading to reputational damage. Understanding the supply chain’s sustainability risk factors can help companies improve supply chain resilience. This article aims to empirically identify the most influential risk factors in the Brazilian cosmetics supply chain and, additionally, analyze the interrelationships between these risks. The methodology combines interpretative structural modeling (ISM) and matrix cross-impact multiplication (MICMAC) analysis, and is grounded in the opinions of cosmetics industry experts. Firstly, the critical causes and consequences are identified, called factors. Secondly, the ISM model is built, representing the interrelationships between factors and their hierarchy.
Thirdly, the MICMAC analysis is performed, unfolding the strength of the relationship among the influencing factors. Fourthly, measures are designed to act on and mitigate the factors identified in the previous steps. The results show that the Brazilian cosmetic companies analyzed do not take
advantage of the opportunity to take leadership in cost reduction, differentiation, and engagement with their partners. “Financial risks” were identified as the most influential among the set of risks, while “Technology and innovation” and “Legislation and responsibility” were identified as root risk factors. This research identified measures that could be implemented to act on and mitigate the root risk factors, thus contributing to the research relating to sustainability risks in supply chains.
Sustainability practices impacts on supplier sustainability risks and sustainability performance: an empirical study of brazilian companies
Publication . Romano, Andre; Ferreira, Luis Miguel D. F.; Caeiro, Sandra
This study explores the influence of sustainability practices on supplier sustainability risks and sustainability performance in Brazilian companies, offering key insights into how behavioral and technical practices impact these crucial areas. Data were collected from 152 Brazilian companies across various sectors. The theoretical framework was tested using partial least squares structural equation modeling. The research findings highlight that implementing behavioral sustainability practices has a positive
effect on reducing supplier sustainability–related risks and improving overall sustainability performance in supply chains.
These practices, focused on fostering sustainable behaviors within organizations and among suppliers, play a critical role in mitigating sustainability risks and enhancing long-term performance. Unexpectedly, the study did not confirm the predicted relationship between technical sustainability practices and improvements in supplier sustainability–related risks and performance.
This surprising result challenges traditional assumptions about the effectiveness of technical practices in improving supply chain sustainability performance. By uncovering the distinct impact of behavioral versus technical sustainability practices, the study provides valuable insights for both researchers and practitioners. It emphasizes the importance of promoting behavioral change to achieve meaningful sustainability outcomes. The findings have practical implications for companies aiming to enhance their sustainability strategies and manage sustainability risks more effectively within their supply chains, making this research a significant contribution to sustainable management and supply chain theory.
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Entidade financiadora
Fundação para a Ciência e a Tecnologia
Programa de financiamento
6817 - DCRRNI ID
Número da atribuição
UIDB/00285/2020