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Supply Chain Management

Green Supply Chain Management Practices in Ethiopia’s Leather and Leather Product Industry

Article Details

Pub. Date	: Jun, 2019
Product Name	: The IUP Journal of Supply Chain Management
Product Type	: Article
Product Code	: IJSCM21906
Author Name	: Habtamu Abebaw Worku and Sandeep Singh Virdi
Availability	: YES
Subject/Domain	: Strategic
Download Format	: PDF Format
No. of Pages	: 18

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Abstract

Environmental issues have attracted the public attention significantly in the last two decades. Manufacturing companies around the world, particularly in emerging economies, have an increased awareness of green concepts and attempt to adopt environment-friendly practices. The leather industry in Ethiopia is facing severe pressure to minimize environmental pollution. Green Supply Chain Management (GSCM) practice improves environmental performance by integrating environmental concerns into supply chain activities. This study assesses the current practices of GSCM in Ethiopia’s leather and leather product industry by employing descriptive type of research. The data was collected using a questionnaire. The target population for the study was 92 registered leather and leather product manufacturing companies in Ethiopia. Data was collected from top and middle level managers in the leather industry of Ethiopia and the collected data was analyzed using descriptive statistics (mean and standard deviation). The results indicate that the companies in Ethiopia’s leather and leather product industry have significantly initiated the implementation of GSCM practices in terms of internal environmental management practice, eco-design, green manufacturing practice, green packaging and investment recovery, while green distribution practices, cooperation with customers and reverse logistics evidenced a low level.

Description

Over the past two decades, there has been an increasing concern and awareness of the consequences of widespread environmental degradation facing the present and future generations. Its importance emanates from increasing environmental problems such as air pollution, changing water quality and quantity, discharge of toxic substances and chemicals, increase in solid waste and climate change (Esty and Winston, 2006). These problems have largely been related to the operations of manufacturing industry (Beamon, 1999). The manufacturing industry is not exempt from contributing to the deterioration of environmental sustainability. As a result, there has been immense pressure on the manufacturing companies from various stakeholders and organizational groups to conduct environment-friendly operations. Therefore, Green Supply Chain Management (GSCM) has emerged as an important new approach for enterprises to achieve profit and market share by reducing environmental risk.

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