Climate & Environment

Supply Chain Governance

The structures through which standards, power and accountability are exercised along supply chains — from contracts to law.

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Definition

Supply chain governance is the ensemble of mechanisms by which lead firms, standards bodies, buyers and regulators coordinate and control activities across supply chain tiers: contracts and codes of conduct, audits and certification, purchasing practices, traceability systems, and public regulation including due diligence laws. Governance analysis asks who sets the rules, who bears the costs, and whether value and risk are distributed fairly between tiers.

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