Embedding externalities (e.g. laborer rights, legal accountability, and environmental stewardship) into supply chains is critical to sustainably managing our planet’s resources. Companies need to manage its business risks more effectively, regardless of the personal viewpoints of their CEOs or staff.

Desired Equilibrium

Global supply chains are managed to create long-term value for all stakeholders, effectively managing finite resources, minimizing waste, and providing safe, dignified working opportunities. Complex supply networks are held accountable for environment and labor standards through consumer- and policy-driven systems of transparency.

Ways Skoll social entrepreneurs are addressing the issue:

• Engaging corporations and investors to factor social and environmental externalities into business strategy (Ceres, Imazon, Institute of Public and Environmental Affairs, Marine Stewardship Council)
• Making global supply chains more transparent to influence key actors (e.g. consumers, policy makers, companies) to steer toward responsible products (Fair Trade USA, GoodWeave, Global Witness, Institute of Public and Environmental Affairs, Marine Stewardship Council, Verite)
• Leveraging existing legislation to hold supply chain stakeholders accountable (Ceres, Global Witness, Institute of Public and Environmental Affairs, Verite)
• Collecting and presenting data to drive transparency (Fair Trade, GoodWeave, Imazon, Institute of Public and Environmental Affairs,Marine Stewardship Council, Verite)