The Effect of Ethical Sourcing on Supply Chain Sustainability: A Case Study of Seven-Up Bottling Company in Jigawa State
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Background of the Study
Ethical sourcing refers to the practice of procuring goods and services in a responsible and sustainable manner, ensuring that suppliers adhere to ethical labor practices, environmental standards, and fair trade principles. In the context of supply chain sustainability, ethical sourcing plays a vital role in reducing environmental impact, improving social equity, and promoting responsible consumption. Seven-Up Bottling Company, a leader in the Nigerian soft drink industry, has increasingly emphasized ethical sourcing as part of its commitment to corporate social responsibility (CSR) and sustainability. In Jigawa State, where the company operates bottling plants and distribution networks, ethical sourcing practices can influence both the environmental and social aspects of its supply chain (Ibrahim & Hassan, 2023).
The growing demand for sustainable products has prompted companies to scrutinize their sourcing practices more carefully. Ethical sourcing in the beverage industry often involves selecting suppliers who prioritize sustainable agricultural practices, reduce waste, use eco-friendly packaging, and ensure fair working conditions. For Seven-Up Bottling Company, ethical sourcing can enhance brand reputation, foster consumer loyalty, and contribute to overall supply chain sustainability. In Jigawa State, where local sourcing of raw materials like sugar, water, and flavoring agents is critical, the company’s commitment to ethical sourcing practices can support both environmental sustainability and economic development (Aminu & Zubairu, 2024).
This study aims to examine the effect of ethical sourcing on supply chain sustainability at Seven-Up Bottling Company in Jigawa State, exploring how ethical sourcing practices influence environmental conservation, social responsibility, and operational efficiency.
Statement of the Problem
While Seven-Up Bottling Company has made significant strides in implementing ethical sourcing practices, there is limited empirical research on the specific impact of these practices on supply chain sustainability. Ethical sourcing, though beneficial, may also present challenges such as increased costs, supplier constraints, and supply chain complexities. The problem lies in assessing how ethical sourcing practices impact the overall sustainability of Seven-Up Bottling Company’s supply chain in Jigawa State and identifying any barriers to effective implementation.
Objectives of the Study
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To assess the impact of ethical sourcing on environmental sustainability in Seven-Up Bottling Company’s supply chain in Jigawa State.
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To evaluate how ethical sourcing contributes to social responsibility and community development in Seven-Up Bottling Company’s supply chain.
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To identify the challenges and opportunities associated with ethical sourcing in Seven-Up Bottling Company’s operations in Jigawa State.
Research Questions
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How does ethical sourcing impact environmental sustainability in Seven-Up Bottling Company’s supply chain in Jigawa State?
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What role does ethical sourcing play in enhancing social responsibility and community development in Seven-Up Bottling Company’s supply chain?
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What challenges and opportunities does Seven-Up Bottling Company face in implementing ethical sourcing practices in Jigawa State?
Research Hypotheses
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Ethical sourcing positively impacts environmental sustainability in Seven-Up Bottling Company’s supply chain in Jigawa State.
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Ethical sourcing significantly enhances social responsibility and community development in Seven-Up Bottling Company’s supply chain.
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The challenges of implementing ethical sourcing negatively affect supply chain sustainability at Seven-Up Bottling Company in Jigawa State.
Scope and Limitations of the Study
This study will focus on assessing the impact of ethical sourcing on supply chain sustainability at Seven-Up Bottling Company’s operations in Jigawa State. Limitations may include challenges in measuring the full social and environmental impact of ethical sourcing practices and potential data access issues related to supplier information.
Definitions of Terms
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Ethical Sourcing: The process of procuring goods and services from suppliers who meet certain ethical standards related to labor rights, environmental practices, and fair trade (Aminu & Zubairu, 2024).
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Supply Chain Sustainability: The practice of managing supply chain activities in a way that minimizes environmental impact, ensures fair labor practices, and supports long-term economic development (Ibrahim & Hassan, 2023).
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Social Responsibility: A company’s commitment to contribute positively to society, including practices that support community development, fair wages, and environmental stewardship (Aminu & Zubairu, 2024).
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