Journal on Policy and Complex Systems
Introduction
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supply chain ’ s ability to effectively and efficiently convey and provide value to customers is critical to its success . However , traditional assumptions about consumers ’ values may no longer be valid . In particular , consumers are increasingly prioritizing environmental and social sustainability as non-negotiable criteria when making purchasing decisions . Many consumers no longer view “ green ” or socially responsible sourcing as a competitive advantage or a differentiating feature that they are willing to pay more for ; it is expected . To meet these new customer expectations , many organizations have worked to adapt their existing practices and structure , often by mandating certifications ( e . g ., fair trade , organic , cruelty-free ) throughout their supply chains . Some organizations have gone further and have incorporated new sustainability and values-focused components in their mission statements . For example , the “ triple bottom line ” emphasizes environmental and social sustainability , as well as traditional economic objectives ( Elkington , 1998 ). However , current approaches to social responsibility are often fragmented and disconnected from organizations ’ primary business strategies , such that the greatest opportunities to benefit society may remain unrealized ( Porter & Kramer , 2006 ).
As existing organizations grapple with these new requirements , new organizations have emerged that are leveraging consumers ’ changed preferences and turning this challenge into an opportunity . These types of organizations are known as values-based organizations ( VBOs ). Rather than viewing sustainability as a secondary consideration , these organizations are strategically focused on providing consumers with products and services that are socially and environmentally responsible . A key component of this strategy is offering transparency and traceability throughout the entire supply chain and communicating product and process characteristics to the end customers ( Pullman & Dillard , 2010 ).
Food supply chains , which directly influence human health and well-being , have been the target of consumer demands for environmental and social responsibility and transparency . This has led to significant increases in demand for food that is produced regionally , that is , in the same geographic region in which the consumer is located . Consumers are increasingly choosing food that is produced locally and sustainably over food from the conventional food system . Their reasons vary widely , from saving money to wanting to ensure food nutrition , quality , freshness , and safety , to concerns over environmental implications , to concerns over the treatment of farm workers , to a desire to support the local economy , to having a connection with the person who produced their food ( Bloom & Hinrichs , 2011 . Interest in supporting local food systems is also rising among policymakers , who are incorporating local foods into programs designed to reduce food insecurity , support small farmers and rural economies , encourage more healthful eating habits , and foster closer connections between farmers and consumers ( King et al ., 2010 ).
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