The Relationship Between Supply Chain Sustainability and Corporate Performance

Many studies argue that supply chain sustainability helps companies meet environmental and social governance requirements while creating long-term value. Cost burdens from greening initiatives in the supply chain, however, lead some to believe it negatively impacts corporate performance. This paper reviews existing research on the relationship between supply chain sustainability and corporate performance, analyzes both short-term and long-term impacts of green supply chains on business operations and economic benefits. The study investigates the mechanisms how green supply chains influence firm performance, considering both short-term operational effects and long-term developmental impacts. It presents compelling evidence illustrating that while sustainable supply chains initially impose cost burdens, they offer long-term advantages such as generating capital market returns or alleviating financing constraints. It also demonstrates that entrepreneurs prioritize long-term returns when establishing sustainable supply chains. This exposition seeks to assist organizations aspiring toward strategies capable of mediating environmental responsibilities in nature alongside imperatives of financial optimization.