Difficulties in ensuring ethical and environmental practices throughout the business value chain, due to a lack of regulation and low adoption of sustainable technologies, generating pollution and labor exploitation in Colombia's industrial sector

Abstract

Supply chains in the industrial sector in Colombia face significant challenges in ensuring ethical and sustainable practices throughout their entire value chain. This problem stems from multiple interconnected factors of economic, regulatory, technological, and social nature. The implementation of sustainable practices is hindered by high associated costs, the lack of financial incentives, and pressure to reduce expenses in order to increase profitability.

At the governmental level, environmental and labor regulations are either insufficient or not stringent enough, allowing the continuation of industrial processes with significant negative impacts. Additionally, the lack of oversight in countries with outsourced production and the absence of effective international agreements exacerbate the situation.

From an operational perspective, difficulties in tracking the environmental impact of suppliers, the use of non-recyclable materials, and inefficiencies in production and distribution processes contribute to the unsustainability of the system. This is further compounded by labor exploitation, a lack of transparency in supplier certification, and low consumer commitment to sustainable products, all of which perpetuate poor practices within the sector.

The consequences of these shortcomings affect not only the environment—with increased deforestation, CO₂ emissions, and the generation of toxic waste—but also business economics, by raising the risk of penalties, loss of certifications, and declining consumer trust.