Amplifying and promoting the “S” in ESG investing: the case for social responsibility in supply chain financing

Purpose The purpose of this paper is to amplify the importance of social responsibility in supply chain finance to promote the “S” in environmental, social and governance (ESG) investing and and highlight key methods deployed to quantify and measure social impact. Design/methodology/approach This paper provides an insightful exploratory study based on a framework for supply chain financing to accomplish ESG goals that is based on literature review, current policies and practitioner's observations. Findings With this paper, the authors have started the journey to discuss the importance to look at the social side of supply chain with a goal to attain and fulfill the ESG objectives and discuss different methodologies that can be deployed to translate qualitative information into quantitative data for ESG purposes. Research limitations/implications The research focuses on the growing legal and regulatory focus on organizations to address the adverse impacts their supply chains have on environmental, social and governance (“ESG”) related issues. This research has brought in light methods to measure social impact within the supply chain that will help to accelerate the ESG objectives. A global lens will provide a holistic view of the ESG framework. Practical implications The social responsibility framework for supply chain financing and identified methodologies will facilitate managerial decision making that will expedite the integration of “S” in the ESG. Originality/value This research highlights the criticality of looking at social aspects in ESG. The research also presents a social responsibility framework for supply chains to accomplish ESG goals.