“S-eco-costs”: the Social issue in S-LCA,  TCA (in agriculture), and CSRD

The social issue in supply chains

The social issues concerning workers in supply chains are diverse and complex, reflecting the poor conditions under which many people work to produce goods and services globally. This highlights the need for responsible supply chain management practices, including due diligence, adherence to labor standards, and active engagement with suppliers to improve working conditions and protect worker rights. For business managers this is not just a moral issue: modern consumers are more and more aware of their buying responsibility. These consumers don’t sleep well when they are confronted with the social injustice in supply chains, but they feel powerless since they lack information on what they buy.
So there is an urgent need for reliable information.

Providing data on social issues, however, is not easy, especially data for benchmarking. Social issues are complex, and hard to quantify, but without data it is hard to monitor and to manage.
Key issues are:

  • Poor Working Conditions: Workers in many supply chains face unsafe, unhealthy, and harsh working environments. This includes inadequate safety measures, exposure to harmful substances, and lack of proper equipment.
  • Low Wages and Exploitation: Many workers are paid wages that do not meet basic living standards. In some cases, this can border on labor exploitation, where workers are paid extremely low wages for long hours of work.