What is sustainability in SCM?

• A. Integration of environmental, social, and economic performance across the supply chain.
• B. Maximizing profits at all costs.
• C. Focusing only on environmental metrics.
• D. Reducing supplier diversity.

Answer: (A)

Sustainability in supply chain management means balancing environmental, social, and economic outcomes and coordinating actions across the entire supply chain to improve performance in all three areas over time. The best choice captures this triple focus and the need to integrate efforts from suppliers through to customers, so decisions in procurement, production, logistics, and disposal consider environmental impact, social responsibility, and long-run economic viability together.

Choosing only profit without regard to environmental or social effects undermines long-term resilience. Focusing solely on environmental metrics ignores social and economic dimensions, which are essential for sustained performance. Reducing supplier diversity hurts resilience and inclusivity, and can limit access to innovations and stable supply.