Linking social disruption and firm performance

Abstract

Traditionally the companies were focused on cost reduction by compromising its payoffs to maximise the entire supply chain's profit and its sustainability. Nevertheless, a new concept of socially responsible supply chains can overcome the limitations of traditional model and enhance the company's performance in consideration to triple bottom line approach. Most of the studies done empirically investigates and provide a conceptualised framework on supply chain sustainability but a dearth of studies impacting the socially responsible supply chain effect on the performance of firm, financially as well as socially creates a need of more research in this area. This study focused on four different events of social issues that hampered the company's performance in terms of share prices, revenues, profits and overall image in the eyes of stakeholders. The study includes qualitative as well as quantitative analysis to know the impact of social issues on supply chains leading to disruptions.