Environmental Management of Larg Supply Chain: A Diagnostic Instrument Proposed for Assessing Suppliers

This article addresses Supply Chain Management (SCM), focusing specifically on environmental management systems. A systematic review of the literature identified gaps in SCM studies and supported the development of a diagnostic tool model capable of measuring the level of involvement of suppliers in a Supply Chain (CS) with the Environmental Management program of a focal firm. The results of this study were synthesized in a diagnostic tool on which elaboration was based on the LARG SCM model, the Dynamic Capabilities model, and the Learning to Grow Methodology. The proposed model was structured to measure, through a graph, the level of involvement of the suppliers of an SC with the environmental management requirements based on ISO 14001: 2015. The model was tested on the supply chain of a company that was included in the ISE (2017) Corporate Sustainability Index and was validated by the surveyed company.

Keywords
Environmental Management; Supply Chain; Diagnostic Instrument

Authorship

Josiano Cesar de Sousa ^**Josiano Cesar de Sousa Email: josianocesar@hotmail.com

Universidade do Vale do Rio dos Sinos, São Leopoldo, RS, BrasilUniversidade do Vale do Rio dos SinosBrasilSão Leopoldo, RS, BrasilUniversidade do Vale do Rio dos Sinos, São Leopoldo, RS, Brasil

https://orcid.org/0000-0002-9888-3440

Murilo Barros Alves ^††Murilo Barros Alves Email: muriloimp@gmail.com

Universidade Federal de Santa Catarina, Florianópolis, SC, BrasilUniversidade Federal de Santa CatarinaBrasilFlorianópolis, SC, BrasilUniversidade Federal de Santa Catarina, Florianópolis, SC, Brasil

https://orcid.org/0000-0002-6999-8345

Leonardo Leocádio ^ΩΩLeonardo Leocádio Email: leoleocadio@gmail.com

https://orcid.org/0000-0003-0186-6562

Jaqueline Rossato ^¥¥ Jaqueline Rossato Email: inerossato@gmail.com

https://orcid.org/0000-0003-2516-7686

*Josiano Cesar de Sousa Email: josianocesar@hotmail.com

^†Murilo Barros Alves Email: muriloimp@gmail.com

^ΩLeonardo Leocádio Email: leoleocadio@gmail.com

^¥ Jaqueline Rossato Email: inerossato@gmail.com

SCIMAGO INSTITUTIONS RANKINGS

Universidade do Vale do Rio dos Sinos, São Leopoldo, RS, BrasilUniversidade do Vale do Rio dos SinosBrasilSão Leopoldo, RS, BrasilUniversidade do Vale do Rio dos Sinos, São Leopoldo, RS, Brasil

Figures | Tables

Figures (8)
Tables (4)

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Figure 1
Systematic literature review phases: research, steps, and results.

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Figure 2
Complexity of green supply chain management

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Figure 3
Wheel of Growth

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Figure 4
Wheel of Skills proposed by the Growth Radar

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Figure 5
Growth Radar

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Figure 6
Most cited authors

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Figure 7
Proposed Model

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Figure 8
General representation of the involvement of Focal suppliers (Model validation)

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Chart 1
Issues of the company context

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Chart 2
Organizational Planning Issues

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Chart 3
Awareness and Communication Issues

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Chart 4
Performance Assessment issues

Figure 1 Systematic literature review phases: research, steps, and results.

Source: Elaborated by the authors (2018)

Figure 2 Complexity of green supply chain management

Source: Srivastava (2007Srivastava, S. (2007, March). Green-supply chain management: A state-of-the-art literature review. International Journal of Management Reviews, 9(1), 53-80.)

Figure 3 Wheel of Growth

Source: Hardwig; Bergstermann; North (2011) as cited in Souza et al. (2014Souza, L. L. C., Holanda, R. R., Costa, E. C., & Rossato, J. (2014, July/November). Metodologia para diagnosticar e avaliar a capacidade de crescer e inovar das pequenas e médias empresas. International Journal of Knowledge Engineering and Management, Florianópolis, 3(6), 246-273. )

Figure 4 Wheel of Skills proposed by the Growth Radar

Source:Kamada (2017Kamada, P. M. (2017). Capacidade de crescimento e competitividade das pequenas empresas de Imperatriz - Maranhão (Master’s thesis, Centro Universitário Alves Faria).)

Figure 5 Growth Radar

Source: Holanda and Souza (2016Holanda, R. R., & Souza, L. L. C. (2016, November). Gestao do conhecimento e desenvolvimento de capacidades dinâmicas em pequenas e medias empresas. Premio Fapema Maria Aragão. São Luís.) as cited in Kamada (2017Kamada, P. M. (2017). Capacidade de crescimento e competitividade das pequenas empresas de Imperatriz - Maranhão (Master’s thesis, Centro Universitário Alves Faria).)

Figure 6 Most cited authors

Source: Elaborated by the authors, 2018

Figure 7 Proposed Model

Source: Adapted from Holland and Souza (2016)

Figure 8 General representation of the involvement of Focal suppliers (Model validation)

Source: Elaborated by the authors (2018)

Chart 1 Issues of the company context

Company Context	Monitor the environment	1. The company can determine internal and external issues that affect its capability to achieve the intended results. A) It knows the factors that can influence SME; B) knows the particularities of the local market where it is inserted; C) is constantly updated on environmental legislation.
		2. It understands the needs and expectations of the stakeholders and considers these expectations achievement as a goal. A) It knows who the stakeholders are; B) it knows the needs and expectations of the stakeholders; C) it knows which of these needs and expectations become legal requirements for other requirements.
	Capture opportunities	3. Keeps all documentation and certificates updated and available to interested parties. A) It holds all the certificates and municipal licenses; B) it holds all State certificates and licenses; C) it holds all Federal certificates and licenses.
		4. It has a structured Environmental Management system and monitors the nature, scale, and environmental impacts of its activity. A) It has a continuous improvement system of environmental management; B) It has a system of continuous improvement of the processes that it develops; C) It maintains, in an operative way, an environmental management system.

Source: Elaborated by the authors.

Chart 2 Organizational Planning Issues

Organizational Planning	Establish goals	5. The company complies with legal requirements related to environmental management and ensures that the Environmental Management System can achieve the expected results. A) It establishes goals and objectives for environmental issues; B) It performs periodic assessment of the environmental management requirements; C) It defines objectives for environmental management improvement.
		6. Determines the environmental aspects of the company’s activities aiming to control or influence their environmental impacts. A) It determines the environmental aspects the company must consider; B) It has a contingency plan for emergencies or abnormal situations; C) It knows all its processes which cause or may cause environmental impacts.
	Involve employees	7. Motivates employees to achieve the outlined goals. A) Top management demonstrates leadership and commitment to the environmental management system; B) they ensure the provision of resources required for the environmental management system; C) They encourage people to contribute to the effectiveness of the environmental management system.
		8. Ensures that employees are competent, due to training, to guarantee environmental performance and compliance with legal requirements. A) It has a qualification program for environmental management; B) It has an annual training schedule; C) It participates in meetings and congresses on environmental management.

Source: Elaborated by the authors

Chart 3 Awareness and Communication Issues

Awareness and Communication	Raise Awareness	9. Ensures that people are aware of the environmental management policy and its contribution to the effectiveness of the Environmental Management System. A) All employees know the environmental management policy; B) employees know the significant environmental aspects and the actual or potential environmental impacts associated with their work; C) employees are aware of their contribution to the effectiveness of the Environmental Management System, including the benefits of improved environmental performance.
		10. Clarifies the implications of not complying with the Environmental Management System. A) Employees know the implications of not complying with the requirements of the environmental management system, including non-compliance with requirements; B) employees are aware of the benefits of a good environmental performance for the company; C) employees are encouraged to propose ideas for improving the environmental management.
	Communicate and Document	11. Establishes, implements, and maintains processes for internal and external communication, including what, when, by which means and how to communicate. A) In establishing its communication process, the company considers its legal requirements; B) the company ensures the consistency and reliability of the environmental information communicated according to information generated by the environmental management system; C) the company keeps documented information as evidence of an appropriate communication process.
		12. It has the necessary documented information for the effectiveness of the Environmental Management System. A) It keeps a copy of all the institutional documentation made with the collaborators; B) the company communicates relevant information to the environmental management system among the various levels and functions of the organization; C) it ensures that its communication enables work to be controlled and contributes to its continuous improvement.

Source: Elaborated by the authors

Chart 4 Performance Assessment issues

Performance Assessment	Provide Resources	13. It provides an adequate number of properly calibrated equipment and resources required for the monitoring and assessment process of the EMS. A) It provides the necessary resources for the monitoring and assessment of EMS; B) it determines an evaluation frequency to assure compliance with legal and other requirements; C) it provides resources intended to improve the EMS.
		14. There is frequent internal auditing with established methods, responsibilities, and requirements. A) There is an internal audit team; B) there are established methods, responsibilities, and requirements; C) internal auditing is performed periodically.
	Monitor and Assess	15. It monitors, measures, and assesses its environmental performance. It also identifies what needs to be monitored and methods to monitor, measure, analyse, and assess. A) It conducts external audit; B) conducts regular periodic assessment; C) has defined applicable methods for monitoring, measuring, analysing, and assessing that ensure valid results.
		16. The company has an established schedule for monitoring, measuring, and assessing the performance of its Environmental Management System. A) There is a periodic follow-up schedule; B) there are established performance indicators; C) it adopts corrective measures, when necessary.

Source: Elaborated by the authors

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Environmental Management of Larg Supply Chain: A Diagnostic Instrument Proposed for Assessing Suppliers

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[1] *Josiano Cesar de Sousa Email: josianocesar@hotmail.com