Multinational corporations will use a combination of approaches to encourage sustainable practices throughout their supply networks. When companies provide training and foster peer learning among first-tier and select high-performing suppliers to pilot new sustainability initiatives and reward them for cascading sustainability requirements to lower-tier suppliers, they take ……….. approach.Group of answer choicesCollective approachIndirect approachDirect approachGlobal approach
Question
Multinational corporations will use a combination of approaches to encourage sustainable practices throughout their supply networks. When companies provide training and foster peer learning among first-tier and select high-performing suppliers to pilot new sustainability initiatives and reward them for cascading sustainability requirements to lower-tier suppliers, they take ……….. approach.Group of answer choicesCollective approachIndirect approachDirect approachGlobal approach
Solution
The approach taken by multinational corporations in this scenario is the Indirect approach. This is because they are not directly implementing sustainable practices themselves, but rather encouraging and rewarding their suppliers to do so. This involves a level of separation, hence why it is considered indirect.
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