Building Value at the Top and the Bottom of the Global Supply Chain: MNC-NGO Partnerships

Abstract

The rise of social movements targeting multinational companies on issues of social and environmental responsibility has generated new global supply chain standards. Tied to the wide range of sustainability standards is the growth of partnerships between multinationals (MNCs) and non-governmental organizations (NGOs). However, these standards may unintentionally impose conditions that may exclude small-scale firms in developing countries from global supply chains, thus negatively affecting the poorest developing country producers, from what is known as the bottom of the pyramid. This article examines how standard making and implementation resulting from MNC-NGO alliances can create conditions that foster inclusion and upgrading of small-scale producers in a supply chain. It demonstrates that including poorer producers from developing economies requires an active assistance approach to address the complex challenges of creating more responsible supply chains.

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