User:Thefarmersdaughter/sandbox

= Virtuous Value Chain =

Summary
The Virtuous Value Chain is a term coined to reflect the business models that participate in the value chain, their contribution or detraction from sustainability outcomes as well as a way to define when the value chain is driving towards an improved society in all aspects. A key distinguishing factor is that there must be no end of the value chain and that each participant is incentivised to create "fuel" for the next step in the value chain, and thus it continues to evolve on it's own with the incentives that drive towards an improved society. It needs mechanisms that reward desired behaviour. It does not cover any regulatory mechanisms that govern undesirable behaviour, but rather seeks to reward and highlight behaviour that produces desirable outcomes for all stakeholders (invisible and visible, tangible and intangible, including externalities such as the environment and communities). It is not the supply chain, the supply chain primarily works in a linear fashion. It is not purely the Value Chain

Key Principles

The Virtuous Value chain requires a few core principles

1) Availability and access to information - much like a core principle of democracy and classical capitalism as outlined in John Ikerd's Book and academic literature Sustainable Capitalism

2) Business Model - The business models in the Virtuous supply chain reward behaviours and have put economic incentives in place that reflect the transaction sufficiently.

= Definition =

= Examples = Business models that benefit from information availability are the farmer, the consumer and the ethical ambitious innovative brand.

Business models that do not reflect the transaction effectively - aggregation, we lose information

Using the current Supply Chain/ Value chain - information is lost at the primary aggregation level, the wholesale level

The consumer must be able to "vote with their dollar"

Certifications - where do they fit in. They function more as a short cut and ultimately reduces information availability, as the information contained in a certification is not sufficiently available for the end consumer.

= History =

Digital Value Chain
Virtual Value Chain

Porters

Sustainable supply chain

Regenerative Supply Chain