The Challenges of Implementing Socially Sustainable Supply Chain Management to Enhance Fair Labour Practices for Small-Scale Farmers in Malaysia
Alesia Sigang Gugkang, Geoffrey Harvey Tanakinjal , Mohamad Rizal Abdul Hamid
Universiti Malaysia Sabah, Labuan and Malaysia
DOI: https://doi.org/10.35609/gcbssproceeding.2025.1(56)
Lack of traceability in global supply chains continues to hinder efforts to combat modern slavery, delaying the implementation of fair labour practices. Exploitative practices such as forced labour remain hidden within complex foreign supply chains (Blackwood, 2024). As Blackwood (2024) notes, differences in regional human resource development contribute to varying approaches in exerting control over forced labour. Technologies like blockchain have been proposed to enhance transparency by eliminating exploitative intermediaries and enabling evidence-based tracking of labour conditions (Blackwood, 2024; Nguyen, 2024). However, such technologies require widespread adoption across supply chain actors, which remains a significant challenge. Integrating fair labour practices into cost-driven business models is difficult, especially when it requires cultural transformation. Companies often prioritize short-term profits over sustainability, making it hard to shift focus (Nnaji, 2024). Eyo-Udo et al. (2024) emphasizes the role of human resources in promoting a culture of sustainability, yet such cultural change is uneven across global value chains. Modern slavery is a "wicked problem" due to conflicting interests among actors and regulatory complexities across jurisdictions (Rašković, 2024). While MNEs operate under multiple legal systems, gaps between policy and practice persist even in countries with strong regulations. Burmester (2024) argues that developing social competencies throughout supply chains is key to addressing systemic unfairness and embedding sustainability as a core business value. In agriculture, modern slavery is particularly prevalent due to the high use of migrant labour in difficult jobs.
JEL Codes: J81, L23, Q18
Keywords: Socially sustainable supply chain management, Fair labour, Small-scale farmers, Focus Group Discussion, Agricultural supply chain.
