In recent decades, the significance of sustainability in supply chains has increased due to heightened awareness of social issues To effectively achieve sustainability, it is essential to follow the guidelines established by the 9th National Congress.
The Communist Party of Vietnam has emphasized sustainable development, prompting the Government to issue the “Orientation for Sustainable Development of the Country.” This article investigates the relationship between supply chain social sustainability and performance, focusing on the mediating role of supply chain integration Utilizing the PLS-SEM model, the study analyzed 408 responses from small, medium, and large companies in Vietnam The findings reveal that sustainability significantly influences both integration and supply chain performance, with supplier and internal integration serving as mediators for the relationship between social sustainability practices and performance outcomes; however, customer integration did not show a significant mediating effect These results highlight that social sustainability practices foster collaboration among stakeholders and enhance supply chain performance To achieve sustainable development, companies should adopt sustainability values that improve employee well-being, working conditions, safety, healthcare, and contribute to local community advancement.
Key-words: Supply chain social sustainability, Supply chain integration, Supply chain performance, PLS-SEM, Vietnam
Trong bối cảnh các nước phát triển ngày càng chú trọng đến quản lý chuỗi cung ứng bền vững, Việt Nam cũng cam kết thực hiện các mục tiêu phát triển bền vững thông qua Định hướng chiến lược phát triển bền vững từ năm 2004 Nghiên cứu này khám phá mối liên hệ giữa phát triển bền vững xã hội và hiệu quả hoạt động trong quản lý chuỗi cung ứng tại Việt Nam, với sự liên kết trong chuỗi cung ứng là biến trung gian Sử dụng mô hình PLS-SEM, tác giả đã phân tích 408 câu trả lời từ nhân viên và quản lý các công ty tại Việt Nam, cho thấy phát triển bền vững xã hội có tác động tích cực đến sự liên kết giữa các thành viên trong chuỗi cung ứng và nâng cao hiệu quả hoạt động Nghiên cứu cũng mở rộng khái niệm phát triển bền vững và nhấn mạnh tầm quan trọng của nó trong bối cảnh “bình thường mới” tại Việt Nam Kết luận đưa ra khuyến nghị cho các nhà quản lý trong việc lập kế hoạch và phát triển doanh nghiệp bền vững, nhấn mạnh sự cần thiết phải chú trọng đến an toàn lao động, sức khỏe và phúc lợi của nhân viên cùng các đối tác.
Từ khóa: Phát triển bền vững về mặt xã hội, Sự liên kết trong chuỗi cung ứng,
Hiệu quả hoạt động trong chuỗi cung ứng, PLS-SEM, Việt Nam
INTRODUCTION 3
This chapter outlines the research background and identifies existing gaps in the literature It establishes clear research objectives and formulates pertinent research questions derived from these gaps Additionally, the chapter details the research methodology and scope of the study Finally, it highlights the anticipated contributions of the research, both academically and practically.
In the past decade, sustainability has emerged as a crucial concern for businesses, particularly within their supply chains, as neglecting this aspect can lead to significant issues in addressing global sustainability challenges (Cherrafi et al., 2018) Additionally, heightened awareness among local communities regarding social and environmental issues has led to an increasing emphasis on social sustainability within supply chains (Schmidt et al., 2017).
Sustainability involves meeting current needs without compromising the ability of future generations to meet theirs (Berger, 2017) Numerous studies have explored the importance of integrating sustainability practices within a company's supply chain to improve overall supply chain performance (Singh & Trivedi, 2016; Winter & Knemeyer).
Prominent global brands like Adidas, H&M, Nestle, and Coca-Cola are increasingly focusing on creating sustainable supply chains by ensuring their strategic stakeholders adhere to sustainability practices They are enhancing their ability to recognize social, economic, and environmental challenges within their operations To achieve sustainability and optimal performance in their supply chains, managers must strengthen the interplay between economic, social, and environmental activities, as outlined by the triple bottom line framework This integration of sustainability into core strategies is essential, and managers should also motivate other supply chain members to actively contribute to societal development and prosperity.
In recent years, there has been a significant focus from policymakers and managers on the performance of sustainable supply chain management, particularly in terms of its impact on economic, social, and environmental outcomes This heightened attention reflects the growing recognition of the importance of sustainability in enhancing company performance.
Current literature on sustainability predominantly focuses on developed economies, where social values and norms differ significantly from those in developing countries Research has extensively explored supply chain social sustainability within multinational corporations in Europe and North America However, studies in developing economies indicate that sustainability practices can enhance a firm's competitiveness and improve supply chain performance.
Addressing the diverse and complex challenges of global sustainability hinges on the crucial role of supply chain integration (Kiron et al., 2015) This integration comprises three key components: internal integration, customer integration, and supplier integration (Shou et al.).
Enhancing collaboration with strategic members such as suppliers, customers, and stakeholders is crucial for firms to efficiently achieve their goals Improved supply chain integration is directly linked to better performance outcomes Despite numerous studies on sustainable development, there is a lack of research focusing on the collaboration between companies and their strategic stakeholders in reaching common objectives Recent investigations have highlighted the significant impact of supply chain integration on performance outcomes within the supply chain.
Supply chain social sustainability is crucial for enhancing overall supply chain performance, as companies that operate in ways that benefit society and the environment can see improvements in their supply chain efficiency While some studies have explored how supply chain integration practices can lead to better performance and sustainability outcomes, the relationship between these two areas remains unclear Therefore, our research emphasizes the need for further investigation into the effects of supply chain social sustainability on supply chain performance, particularly focusing on the mediating role of supply chain integration in developing economies.
1 1 2 Overview of social sustainability in Vietnam
In response to the International Union for Conservation of Nature's declaration on Environment and Development, the Vietnamese Government launched the "National Plan on Environment and Sustainable Development 1991 – 2000." This initiative led to the establishment of a comprehensive legal framework and state management system for environmental protection, notably through the enactment of the Law on Environment, which serves as a foundation for sustainable development in Vietnam.
At the 9th National Congress of the Communist Party of Vietnam (2001-2010), Vietnamese authorities outlined a socio-economic development strategy aimed at elevating the country from under-development and significantly enhancing the material, cultural, and spiritual living standards of its people, with the goal of establishing Vietnam as an industrial nation by 2020 This strategy focused on strengthening human resources, scientific and technological capabilities, infrastructure, and national defense, while fostering a socialist-oriented market economy and improving Vietnam's position in the global market The development perspective emphasized fast, effective, and sustainable growth, integrating economic progress with social equity and environmental protection, ensuring a balance between artificial and natural environments, and preserving biodiversity.
Sustainable development aims to ensure material sufficiency, spiritual and cultural richness, equality among citizens, social consensus, and harmony between people and the environment It requires a balanced and integrated approach that effectively combines economic growth, social progress, and environmental protection (Ministry of Industry and Trade, 2021).
The goal of economic sustainable development is to ensure stable growth through a balanced economic structure, enhance the quality of life for individuals, prevent future recessions or stagnation, and minimize the debt burden on future generations (Tran, 2019).
The primary objective of social sustainable development is to enhance social progress and justice, ensuring improved healthcare and governance for the population This initiative aims to provide educational and employment opportunities, reduce poverty, and bridge the gap between socioeconomic classes, while also addressing social issues and promoting equity in rights and interests Furthermore, the Vietnamese government must uphold and celebrate cultural diversity and national identity, while continuously advancing both material and spiritual living standards (Lam, 2014).
The goal of environmentally sustainable development is to rationally and effectively utilize natural resources while preventing and controlling environmental pollution to protect our living environment This includes safeguarding national parks, nature reserves, and biosphere reserves, as well as conserving biodiversity and enhancing environmental quality To successfully achieve these objectives outlined by the 9th National Congress of the Communist Party of Vietnam, the Government has introduced the "Orientation for Sustainable Development of the Country" as part of Vietnam's Agenda 21.
LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT 16
This chapter will explore the literature review to identify the research gap, highlighting relevant theories It will demonstrate the connection between supply chain social sustainability and supply chain performance, emphasizing the role of supply chain integration in this relationship.
In this chapter, the author also mentioned the theoretical backgrounds, including
(1) the Stakeholder theory view, (2) the Dynamic capabilities view, and (3) the
Stakeholder resource-based view In addition, the author proposed the hypotheses and framework model for this study
2 1 Current status of sustainable development in Vietnam
Vietnam is a country that is strongly committed to the implementation of sustainable development goals through the issuance of the Vietnam Strategic
Orientation for Sustainable Development in 2004, the Vietnam Sustainable
Development Strategy for the period 2011 – 2020; and most recently the National
Action Plan to implement the 2030 Agenda for Sustainable Development
The United Nations, alongside its partners in Vietnam, is dedicated to achieving the Sustainable Development Goals (SDGs), which encompass 17 ambitious objectives aimed at tackling significant development challenges faced by individuals in Vietnam and globally.
The Sustainable Development Goals emphasize the need for global efforts to alleviate poverty, safeguard the environment, and promote peace and prosperity for all The United Nations is actively working to implement these objectives in Vietnam, ensuring that every individual can benefit from a sustainable future.
Vietnam has adopted the global 2030 Agenda by creating a National Action Plan that focuses on implementing 17 sustainable development goals along with 115 specific objectives tailored to the nation's unique conditions and development priorities This initiative was officially announced on September 25th.
2020, the Government issued Resolution No 136/NQ-CP on sustainable development The resolution sets out 17 goals for Vietnam by 2030, including:
Figure 1 - 17 sustainable development goals in Vietnam
- (1) No poverty: There will be no poverty in Vietnam by 2030;
- (2) Zero hunger: The Government will eliminate hunger, ensure food security, improve nutrition and promote sustainable agricultural development;
- (3) Good health and well-being: Vietnam authorities ensure healthy lives and promote well-being for people of all ages;
- (4) Quality education: The Government ensures quality, and equitable education and promotes life-long learning opportunities for all;
- (5) Gender equality: This goal sets to achieve gender equality; empowering and creating opportunities for women and girls;
- (6) Clean water and sanitation: Vietnam authorities will provide adequate and sustainable management of water resources and sanitation for all;
- (7) Affordable and clean energy: People in Vietnam can access affordable, reliable, and sustainable energy for all;
- (8) Decent work and economic growth: The Government will maintain sustainable, comprehensive, and continuous economic growth; full employment, productivity, and decent work for all;
- (9) Industry, infrastructure, and innovation: Vietnam authorities build resilient infrastructure, promote sustainable industrialization, and foster innovation;
- (10) Reduced inequalities: There will be no in-equality in society;
The government prioritizes the development of sustainable and resilient urban and rural areas, focusing on creating safe living and working environments while effectively distributing population and labor across different regions.
- (12) Responsible consumption and production: Both local and foreign companies must increase sustainable production and consumption;
- (13) Climate action: Vietnam authorities must respond to climate change and natural disasters immediately and effectively;
- (14) Life below water: There will be more conservation and sustainable use of oceans, and marine resources for sustainable development;
- (15) Life on land: The Government should protect and develop forests, biodiversity, and ecosystem services, prevent degradation and restore land resources;
Vietnam's authorities are committed to fostering a peaceful, democratic, and equitable society that supports sustainable development They aim to ensure access to justice for all citizens while establishing effective, accountable, and participatory institutions across all levels of governance.
- (17) Partnerships for the goals: The Government will strengthen implementation practices and promote global partnerships for sustainable development
The Resolution outlines key tasks and solutions to achieve its objectives, assigning the Ministry of Industry and Trade three primary responsibilities These include leading the implementation of the National Action Program on sustainable production and consumption for the 2021-2030 period, as established in the relevant decision.
The authorities have implemented policies to foster sustainable production and consumption, emphasizing the importance of green supply chain management They aim to develop environmentally friendly products and services while prioritizing small and medium enterprises Additionally, there is a strong focus on advancing the environmental industry and enhancing waste recycling efforts.
The program has successfully implemented key tasks, yielding impressive results as reported by the Ministry of Industry and Trade Significant achievements include an increased percentage of enterprises adopting energy-saving solutions and cleaner production methods, the gradual expansion of ecological innovation among businesses and industrial parks, and the adoption of green distribution and logistics certification.
To foster sustainable development, it is essential to develop and expand sustainable supply chains for key economic products Providing guidance and support to meet environmental requirements is crucial Additionally, it is important to ensure that consumers and communities are well-informed about eco-friendly products and sustainable production practices Furthermore, increasing the recycling rates of plastics, paper, and waste oil, as well as recovering conventional industrial solid waste for recycling and reuse, is vital for promoting a greener economy (Ministry of Industry and Trade, 2022).
The program is actively pursuing several key objectives, including the recovery of 50% of construction solid waste in urban areas for recycling and reuse, and achieving an 85% rate of solid waste being reused, recycled, or converted into energy and organic fertilizer Additionally, efforts are underway to complete the legal framework and guidelines for green public procurement, increase the proportion of sustainable products in public procurement, and enhance regulatory frameworks for sustainable development (Ministry of Finance, 2022).
In brief, according to 17 sustainable development goals in Vietnam and Resolution
No 136/NQ-CP, 9 over 17 goals are focused on the social sustainability, including: (1)
No poverty, (2) Zero hunger, (3) Good health and well-being, (4) Quality education, (5) Gender equality, (6) Clean water and sanitation, (7) Reduced inequalities, (11)
Sustainable cities and communities, along with peace, justice, and strong institutions, highlight the critical role of social sustainability in supply chains Drawing from existing literature, the author identifies six key indicators essential for enhancing social sustainability within supply chains: philanthropy, equity, human rights, safety, ethics, and health & welfare Further elaboration on these indicators will be provided in subsequent sections.
2 1 2 The importance of sustainable development
Sustainable development is an essential trend, yet businesses face significant challenges in integrating it into their short, medium, and long-term strategies One major obstacle is securing investment capital, particularly for small and medium-sized enterprises, as sustainability initiatives often require substantial funding without immediate returns For instance, investments in clean energy and environmentally friendly production processes are long-term commitments that may not align with short-term economic goals These challenges are prevalent as businesses strive to implement solutions for green growth and sustainable development.
Numerous surveys indicate that businesses recognize the practical benefits of implementing sustainable development goals, including enhanced reputation, social consensus, differentiation, competitive advantage, and new revenue opportunities This reflects the commitment of business leaders to sustainable growth As a responsible member of the United Nations, Vietnam is actively promoting green growth and sustainable development through various policies and programs aimed at raising awareness and encouraging the adoption of sustainable business models Consequently, many businesses are increasingly inclined to transition to sustainable practices, supported by these initiatives (United Nations Vietnam, 2022).
In today's business landscape, adopting a sustainable development strategy and ensuring transparency is essential for both companies and investors This shift stems from the understanding that businesses operate within a community, and their decisions significantly affect society, the environment, and stakeholders like employees, customers, and suppliers Companies rely on natural and human resources from their surroundings, highlighting the interdependence within the supply chain Consequently, fostering connections, interactions, and cooperation is crucial for achieving sustainability (PwC, 2019).