ABSTRACT
The globalization of supply chains has spawned hundreds of millions of jobs in the developing world. The potential to improve wellbeing is immense in mining, forestry, fishing, export manufacturing, transport and retail networks.
The rise of ethical sourcing has led to more inspections and audits of safety and environmental practices. But these corporate social responsibility (CSR) considerations never assess life satisfaction.
The first step to maximizing wellbeing in supply and distribution networks is to create jobs – particularly for those that value them the most, such as women and other minorities, especially in agriculture.
Although non-governmental organizations (NGOs) focus on wage levels, research shows that formal contracts and a reliable income matter more for wellbeing. Prompt payment of suppliers and reasonable lead terms are needed too.
Finally, small-scale entrepreneurship is not always best for happiness. Big can be better. The reliability of jobs, respect for human rights and environmental protections have all been shown to boost wellbeing in supply chains.
