The article by Julia Wolf on stakeholder pressure includes the relationship between supply chain management, and sustainable corporate performance takes a critical look at the Nestle campaign about these factors. The article looks at supply chain management and the extent of outside forces in this area. The article also discusses the relationship between the control of a supply chain and perception of stakeholders towards an organization. The article points out the means through which stakeholders pressure and supply chain management contribute towards the creation of a maintainable performance (Wolf, 2013).
The main theories that are covered in the paper include the hypothesis theory. According to this theory. A sustainable corporate system is made up of three aspects. The three elements include environmental, social and economic factors. The paper, however, emphasizes economic factors as it is the research gap that the writer identified (Wolf, 2013). The case study between Greenpeace and Nestle is used to explain this theory. Stakeholder uses different strategies to influence sustainable performance. In a case where stakeholders stop buying a product, the organization cannot maintain its performance (Wolf, 2013).
The first hypothesis claims that supply chain management and stakeholder pressure both affect performance sustainability differently although both have a positive effect. When stakeholder pressure is high, the organization has to improve supply chain management to incorporate these needs (Wolf, 2013). The second hypothesis expounds on how stakeholder pressure determines supply chain management and performance sustainability. The article provides a chart explaining the relation between production sustainability, stakeholder pressure and supply chain management (Wolf, 2013). The third hypothesis is used to determine the level of sustainability in supply chain management and its effect on corporate performance sustainability. These theories are used as a presentation of how corporate performance sustainability, stakeholder pressure, and supply chain management interact (Wolf, 2013).
The method used to prepare this article is through review of 1,621organisations spread along 32 regions globally. The organizations provided their CSP profile for analysis which helped in determining of the organizations sustainalytics database (Wolf, 2013).
Dependence theory is also used in the article as a fundamental theory to explain the relationship between the three areas of focus. Dependency theory goes hand in hand with the proactive approach to supply chain management. Green procurement is depicted as the best way to ensure that the resources are available for longer ensuring sustainability of performance (Wolf, 2013). An excellent example provided for this area is Wal-marts decision to buy fish only from suppliers who were licensed by the Marine Stewardship Council. However, stakeholders’ pressure is challenging to incorporate in this case because the preferences of stakeholders differ and are even conflicting in some areas (Wolf, 2013).
In general, the journal is used to challenge the theory that supply chain management is dictated by stakeholder pressure. The case scenario between Nestle and Greenpeace points out ways in which organizations react to outside pressure whether it is from government restrictions or nongovernment organizations (Wolf, 2013). It also shows the extent to which the outside factors influence supply chain management.
Reduction in the level of stakeholder pressure is shown to have a positive effect in supply chain management. Supply chain management has also been examined concerning an organization’s financial performance. The research looks into both social and economic factor and their implications on supply chain management. Sustainable performance is also discussed in details concluding that supply chain management affects the sustainability of production in an organization. Going green in the administration of the supply chain is presented as a solution to ensure organizations have sustainable performance.
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