Legal and Environmental Risks in Cross-Border Procurement: Implications for Ontario Businesses Importing from China with a Focus on Supply Chain and Sustainability
DOI:
https://doi.org/10.47604/ijscm.3546Keywords:
Cross-Border Procurement, Legal Risks, Jurisdictional Challenges, Sustainable Supply Chain, Environmental Compliance, Ethical Sourcing, Environmental EconomicsAbstract
Purpose: The study not only focuses on the legal risks faced by Ontario businesses in cross-border procurement from China but also considers how sustainability practices and environmental regulations impact these risks. As businesses increasingly prioritize green supply chain management and sustainability, understanding how to mitigate legal risks related to environmental laws, ethical sourcing, and the global push for sustainable practices is critical. The paper explores how these factors intertwine with legal considerations, providing a comprehensive view of the risks businesses face when importing goods and meeting consumer expectations for environmentally responsible products.
Methodology: The research utilizes methods, including a mix of statutory analysis, case study, and literature review, to analysis the legal risks associated with cross-border procurement from China. This paper reviewed sources from a mix of academic and legal databases, while it gives priority to studies from the last 10-15 years.
Findings: This paper identifies three significant risks facing businesses intellectual property infringement, product liability, and lack of jurisdiction and introduces a fourth: sustainability and environmental compliance. This includes navigating green procurement challenges, the environmental impact of goods being imported, and the potential legal consequences for violating international environmental laws or failing to meet sustainability standards. As sustainability becomes a driving factor in procurement, businesses must adapt to evolving green regulations and ethical sourcing practices to avoid legal pitfalls.
Unique Contribution to Theory, Practice and Policy: This study extends Siedel’s Six Forces Model to include environmental and sustainability considerations in business legal risks and international procurement. It adds a dimension to Siedel’s theory, validating that understanding not only the legal but also the environmental and ethical challenges facing businesses is crucial for competitive advantage in cross-border procurement. The paper encourages future research in integrating sustainability with legal risk mitigation strategies in international procurement, offering a new framework that balances both sustainability and legal compliance.
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