Ethical and Social Responsibility in Procurement for Electric Vehicle Components
DOI:
https://doi.org/10.56830/IJSIE202408Keywords:
Corporate Social Responsibility (CSR), Supply Chain Transparency, Ethical Sourcing, Recycling, Blockchain, Fair Labor PracticesAbstract
Electric Vehicle (EV) industry growth proceeds rapidly, with associated ethical and social challenges in obtaining key components, both batteries and rare earth metals. This study investigates how they can combine corporate social responsibility (CSR) goals into their procurement practices to confront these problems. It emphasizes the need to build quality jobs, source responsibly, and minimize the environmental impact of EV production by recycling second-life batteries for them. The study shows how blockchain technology could help with supply chain transparency and verifying the legal sourcing of raw materials in supply chains. Adopting a sustainable and transparent strategy is the best way for EV OEMs to keep their brand image intact, disregard regulations, and damage sustainability in the long term. Social aspects of procurement are also considered, including material procurement from countries with weak labor laws. Auditing and checking ethical standards that prevent workers' rights from being violated and fair labor practices is necessary. This study also suggests that a more sustainable and ethical future for the EV industry lies in developing CSR practices that will help create a cleaner, more equitable transition towards electric mobility. The study lays down the responsibility of the industry to carry out astute collaboration and innovation in technological areas to support responsible sourcing, promote environmental outlay, and uphold human rights
References
[1] Althaqafi, T. (2023). Cultivating sustainable supply chain practises in electric vehicle manufacturing: a MCDM approach to assessing GSCM performance. World electric vehicle journal, 14(10), 290. DOI: https://doi.org/10.3390/wevj14100290
[2] Andrias, K. (2019). An American approach to social democracy: the forgotten promise of the fair labor standards act. The Yale Law Journal, 616-709.
[3] Avula, R. (2021). Addressing barriers in data collection, transmission, and security to optimize data availability in healthcare systems for improved clinical decisionmaking and analytics. Applied Research in Artificial Intelligence and Cloud Computing, 4(1), 78-93.
[4] Baars, J., Domenech, T., Bleischwitz, R., Melin, H. E., & Heidrich, O. (2021). Circular economy strategies for electric vehicle batteries reduce reliance on raw materials. Nature Sustainability, 4(1), 71-79. DOI: https://doi.org/10.1038/s41893-020-00607-0
[5] Banerjee, A. (2018). Blockchain technology: supply chain insights from ERP. In Advances in computers (Vol. 111, pp. 69-98). Elsevier. DOI: https://doi.org/10.1016/bs.adcom.2018.03.007
[6] Bonsu, N. O. (2020). Towards a circular and low-carbon economy: Insights from the transitioning to electric vehicles and net zero economy. Journal of Cleaner Production, 256, 120659. DOI: https://doi.org/10.1016/j.jclepro.2020.120659
[7] Brun, A., Karaosman, H., & Barresi, T. (2020). Supply chain collaboration for transparency. Sustainability, 12(11), 4429. DOI: https://doi.org/10.3390/su12114429
[8] Dirgahayani, P., Belgiawan, P. F., Prasetio, E. A., & Nasution, R. A. (2020). Green vehicle policy and demand in Indonesia. In Sustainability and the Automobile Industry in Asia (pp. 74-94). Routledge. DOI: https://doi.org/10.4324/9781351215664-7
[9] European Commission. (2020). Study on the EU's List of Critical Raw Materials.
[10] Farooki, D. M., Kuegerl, M. T., Tost, D. M., Degreif, S., Betz, D. J., Gonzalez, A., ... & Endl, A. (2023, October). Moving towards a Unified Vision of Responsible Sourcing.
[11] Farrington, B., & Lysons, K. (2020). Procurement and supply chain management. Pearson UK.
[12] Ferrara, C., Ruffo, R., Quartarone, E., & Mustarelli, P. (2021). Circular economy and the fate of lithium batteries: second life and recycling. Advanced Energy and Sustainability Research, 2(10), 2100047. DOI: https://doi.org/10.1002/aesr.202100047
[13] Gebhardt, M., Beck, J., Kopyto, M., & Spieske, A. (2022). Determining requirements and challenges for a sustainable and circular electric vehicle battery DOI: https://doi.org/10.1016/j.spc.2022.06.024
supply chain: A mixed-methods approach. Sustainable Production and Consumption, 33, 203-217.
[14] Glöser-Chahoud, S., Huster, S., Rosenberg, S., Baazouzi, S., Kiemel, S., Singh, S., ... & Schultmann, F. (2021). Industrial disassembling as a key enabler of circular economy solutions for obsolete electric vehicle battery systems. Resources, Conservation and Recycling, 174, 105735. DOI: https://doi.org/10.1016/j.resconrec.2021.105735
[15] Gold, S., & Heikkurinen, P. (2018). Transparency fallacy: Unintended consequences of stakeholder claims on responsibility in supply chains. Accounting, Auditing & Accountability Journal, 31(1), 318-337. DOI: https://doi.org/10.1108/AAAJ-06-2015-2088
[16] Hira, A. (2023). The smoke and mirrors game of global CSR reporting: Issues and fixes. Anthem Press.
[17] Hofmann, H., Schleper, M. C., & Blome, C. (2018). Conflict minerals and supply chain due diligence: an exploratory study of multi-tier supply chains. Journal of Business Ethics, 147, 115-141. DOI: https://doi.org/10.1007/s10551-015-2963-z
[18] Initiative for Responsible Mining Assurance (IRMA). (2022). The IRMA Standard for Responsible Mining.
[19] International Labour Organization (ILO). (2020). International Labour Standards.
[20] Ioannou, I., Kassinis, G., & Papagiannakis, G. (2023). The impact of perceived greenwashing on customer satisfaction and the contingent role of capability reputation. Journal of Business Ethics, 185(2), 333-347. DOI: https://doi.org/10.1007/s10551-022-05151-9
[21] Kasselia, N., & Somi, S. (2023). Navigating through the Purchasing Department’s Role in Technological Uncertainty: An Investigation into Supply Chain Resilience in New Product Development A case study at a leading OEM in the automotive industry.
[22] Kharissova, O. V., Kharisov, B. I., Oliva González, C. M., Méndez, Y. P., & López, I. (2019). Greener synthesis of chemical compounds and materials. Royal Society open science, 6(11), 191378. DOI: https://doi.org/10.1098/rsos.191378
[23] Kishore, S., & Johnvieira, A. (2021). SHARED ELECTRIC MOBILITY: A CATALYST FOR EV ADOPTION IN INDIA!. CONTEMPORARY ISSUES IN BUSINESS, MANAGEMENT, AND SOCIETY, 125.
[24] Kumar, A. (2019). The convergence of predictive analytics in driving business intelligence and enhancing DevOps efficiency. International Journal of Computational Engineering and Management, 6(6), 118-142. Retrieved from https://ijcem.in/wp-content/uploads/THE-CONVERGENCE-OF-PREDICTIVEANALYTICS-IN-DRIVING-BUSINESS-INTELLIGENCE-AND-ENHANCINGDEVOPS-EFFICIENCY.pdf
[25] Kumar, A., Liu, R., & Shan, Z. (2020). Is blockchain a silver bullet for supply chain management? Technical challenges and research opportunities. Decision Sciences, 51(1), 8-37. DOI: https://doi.org/10.1111/deci.12396
[26] Larcher, D., & Tarascon, J. M. (2015). Towards greener and more sustainable batteries for electrical energy storage. Nature chemistry, 7(1), 19-29. DOI: https://doi.org/10.1038/nchem.2085
[27] Lauwo, S. G., Otusanya, O. J., & Bakre, O. (2016). Corporate social responsibility reporting in the mining sector of Tanzania: (Lack of) government regulatory controls and NGO activism. Accounting, Auditing & Accountability Journal, 29(6), 1038-1074. DOI: https://doi.org/10.1108/AAAJ-06-2013-1380
[28] Lechler, S., Canzaniello, A., Wetzstein, A., & Hartmann, E. (2020). Influence of different stakeholders on first-tier suppliers’ sustainable supplier selection: insights from a multiple case study in the automotive first-tier industry. Business Research, 13, 425-454. DOI: https://doi.org/10.1007/s40685-019-00103-y
[29] Liu, Y., Heinberg, M., Huang, X., & Eisingerich, A. B. (2023). Building a competitive advantage based on transparency: when and why does transparency matter for corporate social responsibility?. Business horizons, 66(4), 517-527. DOI: https://doi.org/10.1016/j.bushor.2022.10.004
[30] Mancini, L., Eslava, N. A., Traverso, M., & Mathieux, F. (2020). Responsible and sustainable sourcing of battery raw materials. Publications Office of the European Union: Luxembourg.
[31] McKinsey & Company. (2021). The Future of Battery Recycling for Electric Vehicles.
[32] Morey, T., Forbath, T., & Schoop, A. (2015). Customer data: Designing for transparency and trust. Harvard business review, 93(5), 96-105.
[33] Moshtari, M., & Vanpoucke, E. (2021). Building successful NGO–business relationships: A social capital perspective. Journal of Supply Chain Management, 57(3), 104-129. DOI: https://doi.org/10.1111/jscm.12243
[34] Nyati, S. (2018). Revolutionizing LTL carrier operations: A comprehensive analysis of an algorithm-driven pickup and delivery dispatching solution. International Journal of Science and Research (IJSR), 7(2), 1659-1666. Retrieved from https://www.ijsr.net/getabstract.php?paperid=SR24203183637 DOI: https://doi.org/10.21275/SR24203183637
[35] Nyati, S. (2018). Transforming telematics in fleet management: Innovations in asset tracking, efficiency, and communication. International Journal of Science and Research (IJSR), 7(10), 1804-1810. Retrieved from https://www.ijsr.net/getabstract.php?paperid=SR24203184230 DOI: https://doi.org/10.21275/SR24203184230
[36] Panda, S. K., & Satapathy, S. C. (2021). Drug traceability and transparency in medical supply chain using blockchain for easing the process and creating trust between stakeholders and consumers. Personal and Ubiquitous Computing, 1-17. DOI: https://doi.org/10.1007/s00779-021-01588-3
[37] Responsible Cobalt Initiative (RCI). (2021). Cobalt Refiner Supply Chain Due Diligence Standard.
[38] Ryghaug, M., & Skjølsvold, T. M. (2023). How policies and actor strategies affect electric vehicle diffusion and wider sustainability transitions. Proceedings of the National Academy of Sciences, 120(47), e2207888119. DOI: https://doi.org/10.1073/pnas.2207888119
[39] Sainio, T. (2017). Socially sustainable supplier selection in minerals processing, manufactured spare parts, Case: Outotec.
[40] Sten, E. (2023). Can batteries really be “green”?: A study of value chain due diligence obligations in response to social and environmental problems associated with production.
[41] Tan, D. H., Xu, P., & Chen, Z. (2020). Enabling sustainable critical materials for battery storage through efficient recycling and improved design: A perspective. MRS Energy & Sustainability, 7, E27. DOI: https://doi.org/10.1557/mre.2020.31
[42] Tapiola, K. (2021). What happened to international labour standards and human rights at work?. International Labour Organization and global social governance, 51-78. DOI: https://doi.org/10.1007/978-3-030-55400-2_3
[43] Un-Noor, F., Padmanaban, S., Mihet-Popa, L., Mollah, M. N., & Hossain, E. (2017). A comprehensive study of key electric vehicle (EV) components, technologies, challenges, impacts, and future direction of development. Energies, 10(8), 1217. DOI: https://doi.org/10.3390/en10081217
[44] Upadhyay, A., Mukhuty, S., Kumar, V., & Kazancoglu, Y. (2021). Blockchain technology and the circular economy: Implications for sustainability and social responsibility. Journal of cleaner production, 293, 126130. DOI: https://doi.org/10.1016/j.jclepro.2021.126130
[45] Villena, V. H. (2019). The missing link? The strategic role of procurement in building sustainable supply networks. Production and Operations Management, 28(5), 1149-1172. DOI: https://doi.org/10.1111/poms.12980
[46] White, C. (2022). The Impact of Oversaturation and Corporate Identity on CSR Messages Within the Electric Car Industry.
[47] World Economic Forum. (2021). Blockchain for Sustainable Supply Chains.
