Enhancing Social Sustainability in Automotive Supply Chains: A Framework for Effective Grievance Mechanisms

Laura Marx () and Prof. Dr. Wulf-Peter Schmidt ()

International Journal of Supply Chain Management, 2025, vol. 10, issue 1, 62 - 90

Abstract: Purpose: The automotive industry operates within complex, globalized supply chains characterized by multi-tiered structures and extensive outsourcing, often lacking visibility and accountability for potential human rights violations. Increasingly, regulatory frameworks place explicit obligations on original equipment manufacturers (OEMs), including the requirement to install an effective grievance mechanism along the supply chain. This paper explores how grievance mechanisms can be integrated into automotive supply chain practices to strengthen social sustainability. Methodology: A qualitative approach was employed, and expert interviews were conducted with a diverse group of stakeholders from the automotive industry, non-governmental organizations (NGOs), regulatory bodies, suppliers, and unions to provide a well-rounded view of grievance mechanisms in supply chains. The data was analyzed by employing Kuckartz’s qualitative content analysis with MAXQDA software to systematically code and identify key themes critical for an effective grievance framework. Findings: This paper proposes a practical framework for OEMs to address human rights and ethical issues across global networks. It offers a common structure adaptable to industry players, emphasizing accessibility, confidentiality, and trust. It also recommends combining OEM-specific mechanisms with an industry-wide collaboration platform to standardize processes, share best practices, and enable collective action. The study findings support that grievance mechanisms play a crucial role in social sustainability by providing workers with secure channels to report violations. Integrating grievance data into OEMs’ risk assessments enhances proactive risk mitigation. Unique Contribution to Theory, Practice and Policy: This research uniquely addresses the gap in academic literature and practice related to social sustainability in supply chains, particularly in grievance mechanisms. In practice, the automotive industry faces fragmented and inconsistent implementation of grievance mechanisms, with the absence of a standardized framework. This paper fills these gaps by developing a comprehensive, industry-specific grievance mechanism framework that ensures accessibility, consistency, and effectiveness across all supply chain tiers.

Keywords: Labor Management Relations; Human Rights Law; Automobiles; Social Responsibility; Sustainability (search for similar items in EconPapers)
Date: 2025
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