Towards an eco-welfare state: The roles of states and companies in regulating supply chains

Abstract

When building an environmentally and socially sustainable society and the so-called eco-welfare state, we must also pay attention to business supply chains where challenging human rights and environmental problems may exist. We need to address the problems of forced labor, child labor and unhuman working conditions. To combat the climate crisis and global biodiversity loss, attention is needed in regulating activities in supply chains, not only in production taking place in the own country. Countries must set sustainability criteria for products and demand sustainable supply chain management from companies operating within their jurisdiction. At a minimum, businesses must comply with mandatory regulation. However, frontrunner companies can proactively develop even more sustainable and responsible supply chains aligned with company values. The contribution of this paper is to bring the government regulation and sustainable supply chain management perspectives into the eco-welfare state discussion.