MANAGING SOCIAL AND ENVIRONMENTAL RISKS IN INTERNATIONAL LIGHT INDUSTRY SUPPLY CHAINS

Light industry is characterized by fragmentation and international integration. This is manifested in the fact that economic entities are united by a supply chain, within which products are developed and branded in one country, produced in a second country, and consumed in a third country. The concept of sustainable supply chain management addresses the issues of risk management for suppliers, manufacturers and sellers, but the management of environmental and social risks in supply chains has not yet been considered. This study is aimed at analyzing the reasons for the focus of management in the light industry on social and environmental risks, and analyzing the management decisions they make. The purpose of the study is to identify the factors that force companies involved in international supply chains to manage social and environmental risks. The objectives of the research are to identify the key factors determining the need to manage environmental and social risks; to develop a model for managing these risks, to identify the difference between managing economic and social risks. Based on a theoretical study of the scientific literature and empirical research based on a survey interview, the concept of environmental and social risk management in sustainable supply chains in light industry was developed. The research data were analyzed on the basis of modeling structural equations, which showed the high statistical significance of the model. The main incentive for environmental and social risk management is pressure and incentives from supply chain participants. Corporate management mainly manages the reduction of social risks by developing attractive corporate values. However, when forming competitive advantages and differentiating, companies focus on environmental issues, since this allows them to be distinguished from the competitive environment.

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