Sustainable Value Chain

Sustainable Value Chain

Value chain is the boundaries of influence covered by enterprises for providing products and services. Similar to the product life cycle, the value chain of the ICT industry includes the extracting of raw materials, manufacturing and assembly, marketing, product usage, after-sales service, and end-of-life recycling. Therefore, the value of an enterprise created throughout the complete cycle has to be taken into consideration for sustainability operation.

Throughout the value chain, stakeholders focus on different topics in each sector. However, they all expect that the enterprise could use its influential power to drive their upstream supplier to improve in the direction toward sustainability and at the same time fulfill individual producer responsibility. Manufacturers are also expected to take the producer responsibilities by providing after-sale service and takeback service for their products. As such, enterprises must take social, economic, and environmental issues into consideration from the perspective of the value chain so as to acquire information from all sides to tackle with the risk confronting their path to sustainability, including:

  • Conflict minerals at the stage of materials extraction
  • The use of hazardous materials and human right of the workers at the production stage
  • Customer satisfaction management at the stage of product consumption
  • The handling of electronic wastes at the stage of product disposals

ASUS has formulated different supplier management policies in response to the risks described above.

Product Life Cycle and Risks in Supply Chain