For instance, an organization may adopt an EMS and significantly enhance the environmental performance
within its organizational boundaries, but its suppliers may not do the same. In other instances
suppliers may increase their buyers’ environmental harm. One example is seen in the US furniture manufacturers
industry, where some furniture manufacturers have implemented GSCM practices to purchase
wood from tier one suppliers that utilize sustainable forestry. However, many of these furniture
manufacturers have no systematic process to identify whether their tier one suppliers apply the same
restrictions on tier two suppliers. As such, tier one suppliers may increase their environmental harm,
despite the fact that they utilize sustainable forestry practices. The net effect may be an overall reduction
in environmental sustainability, which is why companies implementing decisions across a network
of organizations often see deteriorated system-wide performance (Nohria and Eccles, 1992), and why
managing the entire supply chain is critical to achieving environmental sustainability goals.