From legislation to implementation, exploring the path to sustainable supply chains

CY Initiative: Could you introduce yourself and tell us more about your career and your main research themes? 

Sara Rezaee Vessal: I am a Associate Professor of Operations Management. I joined ESSEC Business School as an assistant professor in the Operations Management Department in September 2017. Prior to this, I completed my PhD in Operations and Supply Chain Management at HEC Paris. During my doctoral studies, I developed a deep interest in the intricacies of how companies interact and collaborate within their supply chains—a theme that has remained central to my academic pursuits.  

My academic journey has been driven by a passion for exploring the dynamics of collaboration among firms, particularly in the context of new product development, service innovation, and sustainability. In my early career, I focused extensively on fostering collaboration to enhance innovation and efficiency. This included studying the collaborations at the team level or firm level and how these interactions could drive successful outcomes in product development.  

Over time, my research interests expanded to encompass sustainability aspects within supply chains, a shift influenced by the growing recognition of the environmental and social responsibilities that businesses must navigate today. I have been particularly interested in how sustainability practices can be integrated into supply chain management, with a specific focus on the role of new technologies, policy design, and the evolving dynamics between companies and their suppliers. 

Currently, my research agenda is strongly anchored in studying the interactions of sustainability and corporate social responsibility (CSR) within supply chains.  This includes analyzing how firms collaborate to tackle critical global challenges such as climate change and social inequality. Through interactions with industry and academic collaborators, I aim to uncover ways for companies to adopt sustainable practices that create value not only for their business but also for society at large. This holistic approach to supply chain management is what drives my current research and teaching endeavors 

CY Initiative: You won the CY Initiative's 2024 call for proposals. What does this project involve, and what is its objective? 

Sara Rezaee Vessal: The project supported by the CY Initiative program is a comprehensive exploration of sustainable supply chains, with a particular emphasis on the implications of the Supply Chain Due Diligence Act and similar legislative developments. The objective of this project is to analyze how these regulations impact firms' responsibilities across their entire supply chains---from direct suppliers to lower-tier suppliers--- and to explore how policy adjustments could encourage higher sustainability compliance levels. 

This initiative recognizes the growing importance of sustainability in the supply chain, driven by an evolving regulatory landscape aimed at enhancing corporate accountability.  While primarily European in scope, such regulations inevitably have global implications, affecting non-European companies that are active in Europe or working with European companies.   

The Supply Chain Due Diligence Act represents a significant shift in how companies are expected to operate. It compels firms to take responsibility for not only their own practices but also for the actions of their suppliers at every tier of the supply chain, regardless of geographical location.  This poses significant challenges, especially for companies with complex, globally dispersed supply networks. Navigating these regulations requires a deep understanding of how to ensure ethical practices while managing operational complexities. 

The core of our project is to investigate the economic and social implications of these regulations. We aim to assess how they impact businesses, particularly smaller suppliers who may face significant challenges in meeting these new standards. Our goal is to provide actionable insights to help policymakers develop frameworks that are not only effective in promoting sustainability but also equitable and supportive of all players in the supply chain.  

Furthermore, the project explores how these regulations influence consumer behavior and welfare. Today’s consumers increasingly favor brands that demonstrate a commitment to ethical practices, and understanding this dynamic is critical for shaping sustainable business strategies. By addressing these multifaceted issues, the project aspires to contribute to a more sustainable, responsible and inclusive approach to supply chain management —one that benefits businesses, consumers, and the broader society. 

CY Initiative: In concrete terms, how will the project be rolled out? 

Sara Rezaee Vessal: The rollout of our project will involve a structured approach divided into two main research streams to ensure a thorough exploration of the implications of supply chain due diligence legislation. 

The first stream focuses on policy analysis and understanding the legislative framework governing supply chain due diligence.  This phase will involve a thorough review of existing literature, regulations, and guidelines to identify key components of the legislation. Such components include the responsibilities assigned to companies, the penalties for non-compliance, and the expectations for transparency and reporting. Gaining a detailed understanding of these elements is critical to our research, as it forms the foundation for analyzing the broader implications of the legislation. 

To enrich this analysis, we will engage with both policymakers and corporate stakeholders to gather their perspectives on the evolution and impact of these regulations. This interaction will provide valuable insights into the motivations behind the legislation and its practical challenges, helping us refine our research questions and hypotheses. 

The second stream of the project focuses on empirical data collection.  Through interviews and surveys, we aim to gather qualitative and quantitative data from a diverse range of companies across various industries. This stream seeks to understand how they perceive and implement these regulations and to identify practical challenges that firms encounter in complying with the new laws.  Particular attention will be given to how businesses of varying sizes and sectors are adapting to the legislative requirements and the types of support they need to meet these new standards. 

Moreover, this stream will examine the implications of these regulations on social welfare, specially looking at consumers.  As sustainability becomes a critical concern for consumers, we aim to investigate how their purchasing decisions are influenced by a company’s adherence to ethical practices and sustainability commitments.  This exploration will provide insight into how consumer awareness exerts pressure on companies to meet higher sustainability standards and how such dynamics impact overall market behavior. 

This dual approach—combining policy analysis and industry responses—will allow us to develop a comprehensive understanding of the economic, social, and operational implications of supply chain due diligence legislation, ultimately leading to actionable recommendations for both businesses and policymakers. 

CY Initiative: Why did you apply for this Call for proposals? 

Sara Rezaee Vessal: I applied for the CY Initiative's call for proposals because I presented a unique opportunity to advance our research on sustainable supply chains at a pivotal moment. The growing emphasis on corporate social responsibility and sustainability in business practices underscores the need for rigorous research that bridges academic discourse and practical applications. The funding provided by the CY Initiative offers critical support for investigating the impact of recent legislative changes, such as the Supply Chain Due Diligence Act, on business operations and sustainability practices. 

Prior to applying, my colleagues and I had already laid the groundwork for this project, recognizing the urgency of understanding the evolving regulatory landscape and its implications for businesses, especially considering the new Supply Chain Due Diligence Act. The funding from the CY Initiative provides us with the chance to expand our research scope. With this funding, we can broaden our engagement with diverse stakeholders, conduct in-depth data collection, and refine our analysis to produce insights that are both comprehensive and actionable. 

Moreover, this funding opportunity aligns perfectly with our long-term research agenda, which is centered on fostering the transition towards more sustainable business practices. Beyond contributing to academic literature, we are deeply committed to generating practical recommendations to guide organizations in adopting responsible supply chain practices. The CY Initiative’s funding will allow us to address critical questions about sustainability and compliance, helping firms navigate the challenges posed by new regulations while seizing opportunities to enhance their sustainability credentials.  

This project represents a significant step towards addressing the challenges and opportunities associated with sustainability in supply chains, and we are excited to be part of this important conversation.
 

Learn More

• Sara Rezaee Vessal's profile page on the ESSEC website

• CY Initiative Funded projects