The Impact of Sustainable Sourcing and Ethical Supply Chain Practices on Organizational Performance in Public Sector Logistics Stores

Abstract

The global trend of being eco-friendly and ensuring ethical governance has changed the way supply chain management is handled, including public sector logistics organizations. Pakistani logistics departs have functions of critical procurement, storage, and distribution, in which the aspects of transparency, reliability, and performance play a direct role in influencing national security. Although the world is going global, few empirical studies have been done to explore sustainable sourcing and ethical procurement within the military logistics environment of Pakistan.The research question to address is how sustainability in sourcing and ethical sourcing supply chain practices can influence performance in public sector logistics departments. Structured questionnaires were also employed to obtain data on 50 respondents, and reliability analysis reflected high internal consistency. The results show that there are positive relationships between sustainable sourcing and organizational performance and between ethical practices and organizational performance. The outcome of PLS-SEM shows a significant result of ethical supply chain practices on organizational performance, but the effect of sustainable sourcing is not significant. The Resource-Based View, Stakeholder Theory, and Triple Bottom Line paradigms claim in favor of these findings. The paper concludes that the moral supply chain activities are an ultimate solution to boost supply chain effectiveness in terms of reliability of operations, compliance, risk mitigation, and trust to the stakeholders. The ability to build long-term readiness to military supply chains can be enhanced through the application of ethical governance and sustainability in procurement systems.

Sustainable Sourcing, Ethical Supply Chain Practice, Organisational performance.